HUD has given up on the housing market. They’ve decided that under-performing loans are never going to amount to anything and it’s time to drop them. They’re taking 15,000 bad loans, worth $2.3 billion, and selling them off.
This is a big statement when it comes to belief in the strength of the recovery. If we truly believe that things are going to pick up and the economy is going to be strong again how can we consider any debt worthless?
Well, there’s 2 points to be made here.
1) They’re selling these debts for between $94.5 million and $804.5 million. So someone thinks they’re worth something.
2) Foreclosures are down. So these might just be the last few holdovers of the worst of the mortgage fraud. Once these clear out it might be smooth sailing.
I don’t know if I’m dreaming or just in denial, but I’m a believer. I want to hope that the best is yet to come. Who believes with me?