Wall Street gave birth to this crisis by manipulating financial products. The crisis will continue to impact on the lives of millions for many years to come. The Settlement focused more on politics rather than economics. Individuals can bring cases against the banks but the latter is betting that the numbers will be greatly reduced.
The foreclosure settlement is also attracting its share of criticism – the banks have not been punished in proportion to their wrongs, the amount of cash they will give is just a sneeze, the principal reduction is nothing compared to the staggering pan American loss of equity and there is solid ground to fear that the market will not improve by it.
The Ohio Housing Finance Agency manages Restoring Stability. Altered terms for participation will make more troubled house owners be eligible for mortgage help. The programme extends help to those who are jobless or otherwise facing financial trouble like underemployment, illnesses or death of husband or wife.
According to a study conducted under Harvard University it was noted that any one foreclosure, especially that which leaves behind a vacant unit can result in the cash-starved municipality spending thousands of dollars in related expenses. Banks are selling houses at heavy discounts and this is further causing prices to tumble.
If the ruling in a particular case involving Fannie Mae and MERS of Superior Court of Massachusetts goes in favour of the homeowner Eaton retroactively, it will stir up a hornets’ nest involving 40,000 properties in the state; it will stir up similar actions across America
The report released by the assessor of San Francisco County shows that massive fraud was perpetuated by the banks during the boom years. The proof is piling up showing that the entire system had cracked. It was not just incompetence or carelessness but intentional felony on an astronomical scale. The government officials are hedging the issue for fear of it boomeranging on them.
There is cheering among the politicians that the recovery is happening albeit on a low key. But in Jamaica, New York it cannot be seen. What is visible is the plague of boarded houses indicating that the trouble has not gone but is worsening; federal funds for counseling have dried up.
The Internet has come in handy to Occupy activists. Websites are popping up connecting troubled homeowners with those who can help. One family in Hawaii was partly successful to postpone eviction through online letter writing campaign. Another family in Atlanta is reclaiming the foreclosed house of their grandmother with help from Occupy.
Foreclosures are breaking the social fabric and showing up the ugly side of relationships; even the most sacrosanct bond between mother and son is cracking. The mother of a celebrity son wanted his help to escape foreclosure but he was willing to throw to her only few crumbs that would not have helped her.