What is referred to as “The Economy” is a set of vast, complex systems that work together to demonstrate the financial pulse of a geographic area, a state, or a nation. It can be measured in a variety of ways, and occasionally can lead to confusing contradictions. This is not the case in our current state, however. Opinions are mixed as to whether we are in a “double dip recession” or whether we are experiencing gradual growth. As uncertain as the future may be, we can all agree that the times aren’t good when it comes to jobs and the family’s checkbook.
It is well understood now that the controversy surrounding mortgages and irresponsible lending is responsible for the artificial rise (and subsequent burst) of the real estate market. As it stands today, many houses have been on the market for in excess of twelve (12) to eighteen (18) months, and are selling at twenty to fifty percent (20-50%) below asking price. Many houses are reduced two (2) or three (3) times before selling-that is–if they sell at all. Families’ plans are often held up or thwarted altogether due to this frozen market.
As well, many are losing their homes (some have projected up to one third of all home ownership) to foreclosure, putting direct excessive downward pressure on the real estate market. Banks are foreclosing at record rates, and for good reason. Because these interests are nearly always insured, banks stand to gain a significant profit–greater than the profit if the homeowner paid for the full term of the loan.
To accomplish this, banks are using “robo-signing” to push foreclosures through the court system. (See CBS News Article, ‘Robo-signing’ of Mortgages Still a Problem” 18 July 2011.) Banks are foreclosing at such a rate that they cannot physically sign the necessary documents themselves with human hands. In fact, the larger banks are signing what are called “affidavits of debt” using robotic means in the Porter County courts and Lake County courts.
Before the mortgage crisis began, traditionally banks would work with homeowners to find a mutually agreeable resolution to get mortgages back on track for homeowners in difficult situations. For the reasons above, however, banks are refusing to do this, opting instead to skip the mediation phase altogether and obstinately refusing to negotiate any terms of existing mortgages.
However, some state attorneys general are fighting back.
MSNBC, \”Morning Joe\” – \”Delaware Attorney General Goes After Banks over Mortgages\”
According to a piece aired on MSNBC’s “Morning Joe” this morning, attorneys general across the United States are teaming up to make mediating home foreclosures a necessary step before pursuing litigation. This would require authorized bank representatives with authority to renegotiate mortgage terms to personally appear in court for each and every foreclosure filed. If they are successful in their respective states, these attorneys general could plug one major hole in our leaking economy.
I personally applaud these courageous attorneys general in their efforts to thwart banks’ greedy attempts to make excessive profits on the backs of helpless and struggling homeowners. I would persuade taxpayers to contact Indiana Attorney General Greg Zoeller‘s office and persuade him to join in this effort. If you have a mortgage in foreclosure in Lake, Porter, or LaPorte Counties in Indiana, give one of our foreclosure defense attorneys at SFT Lawyers a call or use our Contact Us page to get some help. We know the law, and we know how to stop banks from erroneously foreclosing on your home.