Miller and other attorneys general (minus some dissenting figures) are going ahead with a settlement with the banks in the issue of foreclosure fraud – giving banks broad reprieve. But this will not stop some of the attorneys generally independently digging for skeletons in the cupboards and bringing criminal charges against the banks.
The time line for having foreclosure cases reviewed as per the settlement made between banking regulators and 14 financial entities last year will be extended from 30th April till 31st July. The response to letters sent out to borrowers hardly got any response mainly because the letters were couched in too heavy legal terms.
There is full scale wrangling and mudslinging among the Republican presidential candidates but on the vital topics of unemployment and foreclosure all remained vague. Ron Paul has grass root committed campaigners. He is wooing the support of Romney’s Mormons, gun-owners, Hispanics and prostitutes.
Utah is one of the worst foreclosure affected states. But unfortunately only a modest amount from the slice it got from the Settlement amount has been apportioned for foreclosure help and prevention purposes. The money went into the general funds.
Nevada has been slapped on three fronts by the effects of the Great Recession – foreclosures, unemployment and underwater mortgages. The government programmes have not helped troubled homeowners. The housing bust hurt the construction industry and the economy of the state suffered because of drop in tourists coming to gamble because of the pan-American downturn in the economy.
There are some lucky investors who are snapping up deals from HUD sale of foreclosed houses. HUD becomes the owner of foreclosed units whose mortgages were backed by FHA. This has led to HUD owning an increasing number of units. Eager to dispose of this weight HUD has been offering incentives and allowing greater competition among its agents.
The vacant abandoned houses in Florida have been taken over by squatters and become drug farms. The neighbours are not always aware of these illegal dangerous activities. Recently a detective was killed and another injured when the police raided an abandoned house to flush out anti-social elements.
New Haven City authorities have told the Occupy New Haven activists to exit from the Green – failing which the city will resort to direct action of dismantling and trashing. The city has been sympathetic towards their cause but the Green should now be accessible to all. The activists are refusing to move because their demands have not been met.
The question of moral hazard is on everybody’s lips. It points a finger at both lenders and borrowers. If banks became sure about bailout then why not foray into risky lending. If borrowers became sure of help then why not splurge on properties well beyond their means?