Like other examples of mass hysteria or misinformation, it is a widely accepted mantra that we’ve got to churn through all these foreclosures to get our economy moving again. THIS IS FLAT OUT WRONG.
We need to fix the fundamental flaws in our economy which will allow people to go back to work so they can make modified mortgage payments in order to prevent homes from being sold in foreclosure. And yet there exists a profound lack of leadership at the state, national and local levels that are focusing on this.
Instead our leaders are focused on, “Damn The Torpedoes- Churn Through Foreclosures”. Now I can tell you this is great for attorneys because every foreclosed home is going to present potential title claims and legal work and the accumulated cases mean this work will continue for years….but this is not good for our country and it is not good for my state in particular.
Check out this video from Zillow for an explanation of this phenomena. The bottom line is people need to go back to work in order for any solution to the foreclosure crisis that grips this country to take hold. We need to stop proceeding with flawed foreclosures and work on solving the fundamental financial problems that exists and force the banks to start exercising more common sense in the foreclosure process.