In case you hadn't heard, the banking industry and the Federal government settled the "robo-signing" fiasco that resulted in a significant number of improper foreclosures. The bottom line is that people caught in this mess that haven't lost their homes will get a break and assistance with modifying their mortgages. The folks who had their homes literally stolen through improper foreclosure procedures get...wait for it...$2000. You can't even buy a decent car for that much, let alone a house.
How is this a "win" for the American homeowner?
Here's a bigger question - Why are we protecting the banks? They literally stole property from hundreds of thousands of people and the only compensation offered is barely enough to cover rent. The banking industry made money when all these loans were made. They made money on the downturn and got a bailout. The banks walked away from all this unscathed. In fact, they still owe $133 billion to the federal government. Who is looking out for the guy who lost his house?
Bryan's Scorecard on the Foreclosure Fiasco...
- Banks - Winners!
- Investors -Winners!
- Existing homeowners - Winners! (sort of)
- Former homeowners - Shafted! (royally)
This sort of "up yours" attitude from the banks and the Federal government is likely to undermine belief that homeownership is an important part of the American lifestyle. It's also likely to widen the gap between the "haves" and "have nots". How can we convince all these people who were improperly foreclosed on that they should EVER buy a home again? Did we just lose 750,000 potential home buyers because they got burned by the system?
In my opinion, NAR should be all over this to speak on behalf of homeowners who otherwise have little voice. This settlement will have a negative, long-term impact on the faith American homebuyers have in home ownership.
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Bryan Robertson, CEO | T: 650.799.9951 | Email: email@example.com | Website: http://www.BryanRobertsonHomes.com |CA BRE# 01191946 | Catarra Real Estate, Inc | 171 Main St #220 | Los Altos, CA 94022