Will There Ever Be A Foreclosure Deal?

OK, we know that banks were not perfect in processing foreclosures.

They were overwhelmed with the number. They’re losing an average of at least $40,000 per foreclosed home.

Still, I don’t know of anyone who’s made his payments who’s been evicted from his home.

So why not settle this dispute? Slap the banks on the wrist for imperfect processing? And let the free market resume its dirty work.

Politicians are eager to posture. They prefer to do that than to take responsibility for the housing mess they created. They want to portray banks as the villains and extort money to pay off delinquent homeowners and run for re-election.

From Boston.com:

State and federal officials are negotiating a settlement with the five largest mortgage servicers, including Bank of America in Charlotte, N.C., and JPMorgan Chase in New York, over their servicing and foreclosure practices.

A person familiar with the matter said last month that banks want liability releases that cover other areas of their mortgage operations besides servicing, including the bundling of loans into securities.

Dan Frahm, a spokesman for Bank of America, said the bank shares Masto’s goal of helping homeowners.

About Luke Ford

Raised a Seventh-Day Adventist at Avondale College in Australia, Luke Ford moved to California in 1977. He graduated from Placer High School in 1984, reported the news at KAHI/KHYL radio for three years, attended Sierra College and UCLA, was largely bedridden by Chronic Fatigue Syndrome for six years, and converted to Judaism in 1993. From 1997-2007, Luke made his living from blogging. Living by Beverly Hills (Alexander90210.com), he now teaches the Alexander Technique (moving the way the body likes to move). Lessons cost $100 each and last about 45 minutes. In 2011, Luke completed a three-year teaching course at the Alexander Training Institute of Los Angeles. His personal Alexander Technique website is Alexander90210.com. Luke is the author of five books, including: » The Producers: Profiles in Frustration » Yesterday’s News Tomorrow: Inside American Jewish Journalism
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