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Thursday 19th January was observed across America as Yes, He Can dayt undertaken by MoveOn.org targeting the banks and also the President for the foreclosure mess that is wiping out the middle class. Senior citizens braved the cold to take part in demonstrations. They wanted the President to haul up Wall Street for fraudulent foreclosures.
The legislators of Connecticut while lauding the role played by Attorney General and Assistant Attorneys General in bringing about the pan American settlement with 5 mega banks, expressed their frustration about $1,500 being paid to borrowers for wrongful foreclosure of their houses as peanuts; however without the deal they would have got nothing.
Senator Sherrod Brown has taken up the cudgels for the investors sensing that following the settlement the banks will try to pass on some part of the losses to the investors. It will affect the pension funds also. Brown wants the settlement to be meaningful that will bring broad relief to house owners as well as investors.
Foreclosures are poised to increase and purchasers and sellers in very upscale markets can no longer depend on Federal Government help. In areas where prices of residential are still very high, there is fear of another real estate shock spreading. Rick Del Pozzo, mortgage broker said price drops could be even higher and this would lead to more foreclosures.
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