The Big Foreclosure Settlement

The big story in regard to foreclosures is that the long discussed global settlement between the states, federal government and large banks is complete. The New York Times report indicates that the settlement is an attempt to solve the foreclosure crisis, instead of just dealing with the banks’ criminal forgery, perjury and other crimes in regard to the processing of judicial foreclosures.

I must say that I cannot see how this settlement will succeed where other programs have failed. Banks will pretend to fix their serious flaws and give token amounts to borrowers, but again nothing real will happen. For a few dollars they have bought absolution, and will not be put out of business as they should be. Individuals who lied as much as these banks on their mortgage applications go to jail, but not Jamie Dimon.

The governments went wrong because they think they can make housing prices go back up. That should not be the goal. Every time they focus on fixing the real estate market, they fail. There is nothing wrong with the real estate market, it is just correcting from a very long binge. The problems with foreclosures matter in and of themselves, not just because housing prices won’t start skyrocketing again.

My guess is that now we will see the banks start pushing their foreclosures forward, which they were avoiding, but maybe not. They still do not like having to tell the truth. Either way, if In foreclosure don’t give in and don’t go it alone. Call me at 201-289-5352 to discuss your case.


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