There will be about 3.6 million foreclosure in the next 2 years. That will include foreclosures which have been stalled due to allegations of foreclosure fraud that hit the banks earlier. Unfortunately, the situation is not being helped at all by the fact that banks have been slow to respond to adjustment requests. The slow response is usually due to the fact that, in the event of a default, banks are reimbursed by the Federal Deposit Insurance Corporation (FDIC). Not only that, even after...
Read moreThere will be about 3.6 million foreclosure in the next 2 years. That will include foreclosures which have been stalled due to allegations of foreclosure fraud that hit the banks earlier. Unfortunately, the situation is not being helped at all by the fact that banks have been slow to respond to adjustment requests. The slow response is usually due to the fact that, in the event of a default, banks are reimbursed by the Federal Deposit Insurance Corporation (FDIC). Not only that, even after being reimbursed, the banks still get to keep the house which they usually end up selling to somebody else. This FDIC arrangement almost looks like it’s incentivizing banks to want homeowners to default on their mortgage. Shouldn’t FDIC protection shift to protecting the citizens instead?
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