As you know we had a mortgage/housing bubble pop in late 2007. Surprisingly enough, this was the same time I decided to get into real estate investing. Maybe it was the guru hype or whatever, but either way I went into the industry with hardened confidence (either that or newbie naivete). Regardless, I remember walking into a local mortgage office and declaring that I wanted to do short sales – a sexy topic in those days.
The Reality of the Bubble Popping
Well, what started as a dream shortly became something like a scene from Saving Private Ryan. You see, everything was collapsing – mortgage industry, housing, construction, job marketing, and sales of everything were hitting the fan. However, I was aware that this was a great opportunity for everyone who wanted to get IN real estate, right?
Foreclosing of Home Owners and Bank Fraud
I did what I was told by the brokerage and thought nothing of it. The foreclosure process was very frightening and it affected everyone I would come into contact with.
For every investor, short sales were sexy so they ignored the fact that many families started losing everything they had. I had people beg and cry for me to help them – but what did I really know? I started reading and watching videos about the mortgage lenders and realized that many of them played a cruel joke on the families I was trying to help.
True, the banks are not alone but everyone took advantage of the borrowers almost with no regards including – agents, brokers, underwriters, etc…
Below is a video report of the banks settling for fraudulently foreclosing on homeowners because they were too careless, and IMO too greedy, to follow proper process and provide actual documentation at court. Imagine having something given to you, then taken, then in court everyone agrees its your fault – but there is no proof anymore?
It has now been roughly 4 years since then and there are now articles saying that Bank of America did their best to cover up their tracks and try to settle with the feds.
– Yves Smith of Naked Capitalism takes a deep dive into the mire of America’s mortgage industry and investigates the continued suffering of the public at the hands of greedy predators.
On January 7, 2013, ten services entered into an $8.5 billion settlement with the Office of the Comptroller of the Currency and the Federal Reserve, terminating a foreclosure review process which was set forth in consent orders issued in April 2010.CLICK HERE TO KEEP READING
