Oct 26 2008
The True Cause of Mass Foreclosures
Whose fault is it? There is a lot of blame to go around. After all, there is no one person or entity that could cause such an economic crisis, no matter how hard they might try. As the attorney hired by the banks to execute the foreclosures, I have had the opportunity to interact with all of the possible culprits.
Is it the bank’s fault? Well, there are two banks to speak of in most foreclosure situations; there is the bank that did the lending and the bank that purchased the Note and Mortgage and is now initiating the foreclosure. The bank that purchased the Note and Mortgage as an investment is a victim. They do not want to foreclose. They thought that they would be collecting mortgage payments and that the loan was a good loan. They clearly thought wrong.
Is it the lending bank’s fault? The bank that originally lent the money did so because the borrower met certain qualifications. The bank reviewed the loan application that was filled out by the borrower or the mortgage broker and lent the money based on that application, however they failed to verify any of that information by requesting proof of employment history, credit scores, or income statements. They thought the loan applications were filled out honestly. They clearly thought wrong.
Is it the borrower’s fault? The borrower was looking at a real estate market that was skyrocketing. They figured that they could purchase a house now and sell it later for way more than they paid because real estate is the safest investment and the real estate market would continue to rise. They thought that any loan they would receive today would easily be paid bank with the equity they could pull from their ever-increasing value of their house. They clearly thought wrong.
Who is to blame for the mortgage foreclosure crisis? Everyone. We all thought we were making correct decisions and we were all wrong. No one stopped to take the time to educate themselves before taking these unnecessary risks. The true cause of the massive amount of foreclosures facing the nation today is ignorance. Suffice it to say, our best weapon against foreclosure is education. Educate yourself at www.ForeclosureDefenseSecrets.com.
