Foreclosure Defense Florida

The Problem With Amerika- One in Ten Homes With Mortgages in Foreclosure

home-foreclosure-crisisI suspect this number is low, and if you factor in the number of homes that are struggling or who are underwater or who are behind on insurance or tax payments or who are just barely choking by….you’re probably talking about more than half of the homes in Amerika—and now from the Wall Street Journal…..

The foreclosure crisis that erupted four years ago has claimed more than five million American homes””about 10% of all homes with a mortgage. It began in lower-income neighborhoods and has spread to some of the most exclusive addresses in the U.S.

The seeds of the crisis were planted a decade ago when banks, discovering the high returns from selling bundles of securitized mortgages, relaxed lending standards and originated millions of adjustable-rate subprime mortgages. Such loans were designed to allow just about anyone to get a home loan.

When interest rates on the adjustable-rate mortgages finally climbed, many borrowers began falling behind on their payments, leading to the first wave of delinquencies and defaults.

Wall Street Journal

One Comment

  • smtblnde says:

    A must see C-Span video of a congressional hearing on Mortgage Services and Foreclosure Practices:

    Like many congressional hearings, this is a long one filled with unsubstantive commentary by politicians, so I have listed the highlights along the video’s timeline so that viewers can fast forward to the good parts:

    The most informative part of the hearing occurs near the end, beginning at 02:18:08.

    Other informative testimony:

    00:53:37 Tom Deutsch
    Executive Director American
    Securitization Forum

    In his opening statement, he states that $7 trillion of MBS trusts are owned by insurance, companies, pension funds, etc.

    Translation: The same old Mutually Assured Destruction argument by banks. If the MBS trusts are found to have not been legally perfected, it will destroy pension funds along with the rest of the economy.

    Once he is done speaking, skip to:

    00:59:53 Christopher Peterson
    Law Professor
    Opening statement, history and purpose of land recording in America, and that MERS circumvents democracy.

    (Once he is done speaking, skip to his next statement at 01:23:46, and listen to the debate between Peterson, Deutsch, and other attorneys up to 01:30:21)

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