Reply #55: And most loans get SOLD to investors / investment funds

[havocmom]

The loan originators make their $$ on processing fees and what they can sell the loans for. Many are using offshore labor to lessen actual processing costs. K-ching!. Less jobs here = more likelihood of more foreclosures. Oh well, say the risky loan originators.... they got theirs.

Volume was the ticket and ridiculous rates combined with very low approval standards were the method.

Now, most of the mess is a huge burden on other people's shoulders.

You are right, bleeding ordinary people into poverty IS the plan and the plan has worked well. Who do you think will be buying up all the depreciated real estate? Fat cats will become BIG owners. They will be the landlords American workers and retirees will be stuck with. Bye bye American Dream.

And the depreciation is NOT just on the foreclosed properties. Abandoned homes bring down values in the neighborhoods they stand in. Those neighborhoods ARE EVERYWHERE now.

The empty homes are too often left unattended too. Creates all sorts of health and law enforcement problems, plus adding to the burden of local tax payers when local governments have to deal with the mess. The mess gets worse with time. Time is stretched by the convoluted methods of title change with the selling and re-selling of the original loans. There are lots of communities hurting as they have to spend time (payroll hours) sorting out the ownership tangle on foreclosed home so they can find the parties responsible to maintain the derelict homes. Just one more way ordinary people get sucked dry while the loan originators skate.

Oh, and when whole neighborhoods depreciate in value, so do local tax revenues. So, soon, more burden will be put on the shoulders of home owners who are trying to keep their roof over their own heads.