Banks are Homeowners, Occupants are Debtowners. 1 in 7 is what this article says from Wall Street Journal..http://tinyurl.com/yfonrnb 1 in 7 homeowners are in default. At least 30 to 90 days behind in their mortgage payments. This number is astronomical! Hopefully, some of the loans will be re-structured in such a manner that the owners can stay in their homes, but the reality is that the BANKS ARE THE HOMEOWNERS!
This is always the case, of course, when you sign a loan, but it is really apparent now since many of these Owners are so intent on NOT helping the occupants in the homes. Why should they? Those idiots took out the bad loans, right? Well, that idea held water during the first flood of Foreclosures..blame the people that signed the loan docs. Not any more. Now, it is apparent that even people that did qualify, did not take out more loan than they could handle, and held jobs are in trouble. Look at the jobs..that will tell you how bad it is going to get and here in Calif., we are somewhere around 15% unemployment depending on what you read and who you include..the part-timers with no benefits etc. Yikes.
Here in the desert, there is going to be another onslaught of REO's and Short Sales..probably throughout 2010 and 2011. Yes, the bottom will continue to sell, how can it not when you cannot even drop the sticks on the lots for what the completed homes sell for? Plus, even on minimum wage, a family can now afford to make the payments so that supply will meet the demand. It's the higher priced homes that are and will continue to be hit.
I know the Banks are in it to make money, who isn't? 
However, failing to see the value of re-setting loans, and I mean re-calculating the PRINCIPLE, is going to cost the Banks and our country even more over the long run. Whoever said Business was in the Long Run arena? A quick buck now is always worth more than the overall good it seems.
Yuck. I think I am just tired of all the REO's and Short Sales and the human stories that accompany them. It hurts.
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