My disclaimer: I'm not an attorney or a CPA. I just do a lot of short sales and therefore have formed an opinion. And you know what they say about opinions!
It seems that the finger pointing continues. . . Now some of the investors who are taking losses in short sales and foreclosures are suing the banks who originated the loans that they bought. Some investors who allegedly include Freddie Mac are suing the banks for misrepresenting the risks associated with sub prime loans. The banks contend that the investors knew the risks and that's why they were taking the kind of profits that they were. Interesting that nobody wants to pay for the rampant speculation that was going on. The investors were thrilled with the profits, the banks liked the servicing fees etc.
My opinion is that money was made that was never really there. Homeowners are having to give it back in the form of their houses. Banks and investors are having to give it back in the form of short sales and foreclosures. That's it. I know everyone wants to pass the buck, but it's got to stop somewhere.
Again, just my humble opinion.
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