Thursday, October 14, 2010

Haste to shed bad mortgages leads to shoddy foreclosure paperwork

According to, as banks raced to repossess or foreclose on scores of homes, shoddy paperwork could be compounding the problems for the U.S. housing market already struggling to recover.  The revelation of hundreds of thousands of inaccurately processed foreclosure documents has prompted almost every major bank to freeze all foreclosures and nearly every state in the United State have begun investigations into the repossession and foreclosure procedures in their respective states. 

Over the course of July, August, and September "372,445 foreclosure auctions were scheduled,... while 288,345 properties were repossessed by lenders over the same time period."  And for the first time every, over 100,000 homes were repossessed in a single month with 102,134 being taken back by the banks. 

Keep in mind, Banks were the major recipients of TARP.  The American Taxpayer bailed these guys out.  These same banks are showing record profits again, are hemming and hawing about executive compensation packages, and are funneling massive amounts of campaign money to business friendly conservatives (like there's any other type). 

So, do these folks really care if their shaky and shoddy paperwork causes the U.S. economy to take another shot to the gut again?  Here's Matt Lauer of the Today Show interviewing Jim Cramer of Mad Money about the developing problem with the Mortgage Lending Industry, again... 

According to the Business and Media Institute, Jim Cramer was singing a different tune a year ago, but he accurately bashes Wall Street for their hubris.  Again, another example of the disconnect between financial elites and the rest of Americans. 

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