Bank CEO’s testified before the U.S. Congress last week and claimed they never saw the housing bubble coming, and could not predict the following wave of foreclosures
It may seem hard to believe, but the best and brightest in our banking institutions sat before the U.S. Congress and stated they had no idea their lending and investing practices would land the country in the middle of the largest economic downturn since the great depression.
Take a look at this video from Steven Colbert…make sure you Watch the WHOLE THING!! You will be amazed at the things you hear straight from the CEO’s of these major banks! (if you don’t see the video box just click on the title of this article and it will pop up!)
Colbert is making a great point…these banks that are taking all the Federal TARP money and tax relief they can get…but they don’t want homeowners to get any relief from high mortgage payments! They want you to continue paying for mortgages on homes worth half of what most folks paid for them four years ago…and that is a Double Standard if I ever saw one!
What does this mean for Valley Center homeowners?
There are two possibilities from the Bank CEO testimony:
- These CEO’s are telling the truth…and the collective wisdom of the largest financial institutions never saw this wave for foreclosures and short sales before they happened.
- These CEO’s are not telling the truth…they knew this was coming, but chose to make money instead of doing the right things
I guess I’m getting cynical in my age…but I have to go with answer #2.
This leads to the obvious conclusion the Banks are motivated by profit over honest business practices…so here are two more things to consider if you are having trouble with mortgage payments or are considering short sale as an alternative to foreclosure:
- Can you trust these banks when they offer you a “Trial” loan modification? (remember only 7% of the trial mods have been made permanent at this time)
- If you’re in a hardship situation and are facing foreclosure why wouldn’t you use a short sale to get the same kind of debt relief your lender is already taking from the government?
These banks created the “housing bubble” with low standards for lending…and now they want all the borrowers to bail them out? I don’t think so
Please call me..Bob Davis…760-525-0123…when you have any questions about short sales or foreclosures…I’m certified by the National Association of Realtors as a Short Sale and Foreclosure Resource Specialist…I have LOTS of information that can help you determine the BEST choices for you!
Phone calls are Free…Knowledge is Priceless