Black People : Bailed out Corporations make record profits , but Homeowners bite the Bullet

Discussion in 'Black People Open Forum' started by Ankhur, May 21, 2011.

  1. Ankhur

    Ankhur Well-Known Member MEMBER

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    Mortgage Mess
    No end in sight to foreclosure quagmire report on the mortgage mess
    By Lisa Myers, Rich Gardella and John W. Schoen

    NBC News and msnbc.com

    Four years after a wave of rogue mortgage lending sent the U.S. housing market into the worst collapse since the Great Depression, the devastating flood of resulting foreclosures shows no sign of abating. In some ways, the problem is getting worse.

    House prices are falling again, forcing more homeowners “underwater” — owing more than their house is worth. Lenders’ shoddy document practices have brought widespread court challenges, slowing the process and leaving millions of homeowners in limbo.

    And the foreclosure crisis continues to weigh heavily on the fragile economy.

    “Right now, it’s the second-biggest drag on the economy after the surge in oil prices,” said Moody's Analytics chief economist Mark Zandi.

    Already some 5 million homes have been lost to foreclosure; estimates of future foreclosures range widely. Zandi, who has followed the mortgage mess since the housing market began to crack in 2006, figures foreclosures will strike another three million homes in the next three or four years.

    Congress and the White House have run out of ideas to save those homes, he said.

    "There's no political appetite to do anything," he said. "So we're on our own."
    Story: Here's how to get help with your mortgage

    There were many causes of the foreclosure crisis — and plenty of blame to go around among mortgage lenders, regulators and, in some cases, the borrowers themselves. But as the crisis has accelerated it also has swept up families who, through no fault of their own, have lost or are in danger of losing their homes.
    The government's efforts to stem the crisis are widely viewed as a failure. Its flagship foreclosure relief program, the Home Affordable Modification Program, has been hampered by confusion over its terms, lenders’ widespread refusal to forgive loan principal and a “trial modification” process that, in some cases, leaves homeowners worse off than when they entered the program. .........
    http://www.msnbc.msn.com/id/42881365/ns/business-personal_finance/
     
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