An IMF report has come down strongly on the Obama government for having failed to contain the foreclosure crisis that is continuing; greater steps were taken by the administration during the time of Great Depression. The suggestion was increasing incentives to lenders and easing eligibility conditions for borrowers.
The foreclosure crisis has slashed the revenue collection of Stockton City that it is on the verge of filing for bankruptcy. It has made drastic cuts on emergency basis on many departments including the police department. A new law might avert this drama by mandating mediation with creditors.
The Occupy movement is gathering steam. Instead of occupying parks and streets they are focusing on disrupting auctions and re-entering vacant homes right across America. To some extent they have been successful. Foreclosed units in the market bring down value of property and many pundits opine that unless this problem is solved the economy will not get back on tracks.
Thanks to a nefarious scheme (2005 January – 2008 February), sales numbering hundreds took place. Tara Properties paid over $5 million as kickbacks. Fraudulently the conspirators made the lenders grant loans totaling to over $42 million. Those who planned the scheme arranged for straw purchasers by promising them s kickbacks.
Romney has toned down his views on the foreclosure crisis after coming to Florida and experiencing the mood of the people. Another Republican candidate, Gingrich is blaming the banks for the foreclosure mess. Some of the undecided voters are leaning towards Romney after being disillusioned with Obama. They are hoping that Romney as a good businessman would perform better.
Ocwen has taken over most of the servicing assignments of the mega banks that are now turning away from it. It is using a method of applying psychology to improve relationships with the borrowers. Sub-prime lending has stopped since the onset of the crisis – yet these mortgages are vital for Ocwen’s business.
Merced in California ranked third in foreclosures and this has been a plus point for college students who are living in grand style as tenants. The owners are battling foreclosure while the students flaunt their youth, their vulgarity and lack of decency as they trample on sentiments of the fallen owners by their behaviour.
The housing segment has failed to self-cure itself. Obama hardly made a passing reference to the housing problem perhaps due to political compulsions regarding homeowners who overreached by taking unmanageable loans. He may be thinking that a direct approach to job generation would be more rewarding.
Fear about being the next foreclosure victim is gripping the people. Judges in some states are so annoyed that they are making new rules making it difficult for lenders to foreclose. However the majority will lose their homes but it is now taking a long time. This could be advantageous to borrowers.