Saturday, October 09, 2010

Foreclosures, er, Foreclosuregate

So maybe this foreclosure-thing is a big deal.

In Sacramento, we have thousands seeking modifications of their mortgages. They say they don't want a free house, just a lower payment.

Gee. Don't we all?

So now we have banks stopping the foreclosure process due to faulty paperwork or reviews of paperwork. And I guess this means that some folks will get to stay in their homes, er, the banks' homes, for free.

How does that make you feel as an on-time mortgage payer month after month? Yeah, when someone gets a little something for nothing, it can't help but make you feel slighted by the process.

Having poked my nose in lots of economic books (and swiped my fingers across many econ ebooks), I cant think that this is good for the business of loaning money to buy homes. Isn't this going to cause banks to stop making loans? Or at least highly scrutinize borrowers?

What about the real estate market? Would this process remove inventory and artificially stabilize prices only to collapse eventually when these homes do come on the market.

Someone please enlighten me!
Saturday night at an Indian casino. Trying to get my little slice of something for nothing. So far, so good. Having a mocha and then heading home a winner. So there!

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