Why Foreclosures Are Wrong 25

short salesOkay, this is the most ridiculous one I’ve ever heard. A new report came out claiming that foreclosures are actually good for the housing market. Yep, in another amazing conspiracy theory, the report claims the banks actually create delays in foreclosure resolution on purpose to help their balance sheets. It’s just amazing!

So first of all, let’s get 2 things straight right now:

1) There is DEFINITELY an imbalance in this country with people in homes that are too expensive for them.

2) The BEST solution for this problem is Short Sales, hands down.

There’s just no question about it and I’m shocked such ridiculous studies are still coming out. The entire economy from top to bottom, the banking industry, even thick Uncle Sam have all realized that short sales are the only real salvation of the housing market.

Yet some people insist on just seeing the tip of their nose, or losing the forest for the leaves, or whatever expression floats your boat. So let’s all give up delusions that the whole resolution process needs to be painful and expensive.

I’ve pushed short sales since way before the crisis and I’ll continue to do really well off them long after this crisis is resolved. So will tons of others for that matter – homeowners, investors, banks, etc.

So if you’ve heard differently please speak up because otherwise everyone’s just gotta lay off.

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25 thoughts on “Why Foreclosures Are Wrong

  • Cola

    Foreclosures are completely wrong and destructive (not only to the housing market but the moral fabric of society) when they don’t follow the rule of law. Around 100% of the big bank foreclosures don’t. An individual investor is probably naive enough to just follow the law and not falsify and forge documents to foreclose on a home they cannot prove they hold an actual note and proper security on.

    Short sales are OK if there is no duress. But I suspect the pressure of an unlawful foreclosure is often forcing a homeowner into that corner.

    If the foreclosure crisis was CAUSED primarily by homeowners buying over-priced homes they could not afford while not placing the “lender” at ZERO risk of loss because they immediately sold their interest for a profit all while lying about the quality of the note and security as well as the homeowner’s ability to repay, then it should also be clear that spoons are what make people fat. Clearly we should ban spoons and jail the homeowners that bought the lies about ever increasing prices and in turn destroyed the worlds’ economy.

    In my opinion, the BEST solution for this problem is the Rule of Law. Hands down. The Rule of Law allows for equity in punishing the actual bad players and criminals in the crisis and is the only solution that will avert the next bankers profitable scam. Short sales are a band-aid on a gangrenous arm. Whether or not we like it the arm needs to be removed. The alternative is to destroy the whole body.

    Following the Rule of Law as a resolution will be painful and expensive – for the bankers that forged, lied, and stole as well as the homeowners or mortgage “professionals” that falsified a Uniform Residential Loan Application to buy an artificially over-priced home.

    Not to worry though. I see no indication that the people, the courts, the banks or the legislature has any interest in the demanding the Rule of Law so short sale band-aids that are not causing significant harm (other than perhaps feeding the delusion that they are a real solution to the crisis and will in any way mitigate the next one) and offering some relief in individual cases.