More signs the foreclosure crisis is worsening

The banks have taken advantage of the various moratoriums to come up with some different solutions besides foreclosure. They are doing loan mods,selling bulk reo portfolios to hedge funds and private equity investors and they are implementing the HAMP program.

The banks have held off on most foreclosures in my area since last September to try to use different approaches. I am a real estate agent who sells foreclosures for the banks. This time last year I had over 125 listings. Now I have 7. That is not a complaint. That is just my observation.

The attempts to slow down the foreclosures is creating a whole new set of problems.The backlog of homes has become huge. Now the second wave of foreclosures is coming. I am concerned that the attempts to keep people in their home has created a critical mass of foreclosures that will engulf the market all at once and drive prices down further.

The politicians and lenders need to be aware of the law of unforseen consequences.

It boggles the mind to think that American’s allowed themselves to put so much belief in banks and commerce to bring us back to the very place my grandparents stood in the Great Depression. Where cash went into a credit pay a dollar down per month and you get what you want now scenario. History repeated itself because we have taken history away from our education system and we let our green back dollar become obsolete for plastic credit and a whole lot of pushing numbers back and forth in a computer with no gold to back it up.

To have a house payment over $4,000.00 seems unfathomable to a below middle income blue collar worker who has never seen that amount of money per month for wages in there 35 year working career even with a college degree. The whole foreclosure incident is because to many individuals no longer wanted to go across the lake of life is a small motor boat, they graduated up to yacht status because someone sold them the false American Dream. For those who didn’t upgrade, they got hurt the worse when the market took this down turn, The honest person lost out when his job disappeared and he is asked to go from a $2,750.00 income to Unemployment Benefits of 1/3 of that amount and still pay the basic bills for food, shelter, clothing and insurance required by law.

Somewhere American Banking and the Government lost sight of what was more important for their country. Stability is what was lost in the Depression, the US began to deteriorate slowly after we reached 200 years old, thus instability continued slowly in these repeated recessions. This is my fourth recession in my working lifetime and the worse. Yes, our house was sold for what we owed the bank- period, but we still retain a side construction loan for new roof and siding required to sell it on a loan. Now, unemployment has struck us two times in less than six month’s. Though we can’t lose a house, we are still in a lease at our apartment that is binding.

America has hit that continued force of the domino’s sliding faster and faster to the table. To many stories I hear everyday now are sounding like those of my grandparents and their friends. People walking away from their homes, full of furniture and everything. Food shelves empty, because no one can avoid to even donate to them. Where is the last domino going to fall? In Washington or in the American Bank system?

The jobs situation is getting worse also! But hey the banks are doing well. I guess they are all that matter. We were warned for years, “their will be no more middle class” and we ignored it. Now we see it right before our eyes. When we the middle class are all snubbed out, the only good thing that might happen is the rich will have to start paying! Unless they allow us to truely become a country of polverty, starving and infrastructure crumbling. It seems the ball is in their courts now and how will they act? Jobs, homes, healthcare, families, all lost to American greed and they continue to pound us down even further. Will we have another great American revolution? Instead of the north vs the south, it will be the corporations and rich against the poor. Watch how those backed into a corner trying to survive can fight for their lives. We are a country of strong and willing to labor and have been snuffed out over greed.

I was told by my loca home inspector that the banks are selling forclosures for less than a quarter of value to bank employees. Inside trading? Why wont a bank keep a family in a home for somewhat of a modification rahter than take the huge losses? Are the banks recovering these lost amounts from the government via you and I? It just seems really wrong and are they practicing illegal activiites?