Through fraudulent securitizations, Wall Street and the mortgage banks made trillions of dollars and left us with not only deflated real estate prices and a tight credit market, but with continual erosion of the housing market due to the huge servicer calamity. Since we are not dealing with lenders who have real economic “skin in the game”, we are left with servicers who have perverse incentives—perverse in that their financial interests directly conflict with keeping homeowners in their homes and stopping the foreclosure madness. This article from yesterday is evidence of just how little the servicers care about market values when they take homes away from families just so they can make more money. This is really sick! Nearly 20% vacancy in Florida! http://money.cnn.com/2011/03/18/real_estate/florida_vacant_homes/
Here is an older article that projects market recovery across the country. Some area might recover by 2021 while others are out to 2038. 10 to 27 more years of this! http://money.cnn.com/2011/01/07/real_estate/home_prices_depressed_for_decades/index.htm?iid=EAL
Thank you banks and Wall Street for screwing the country! Once again, this is precisely why I am pushing this nationwide legal attack against the pretender lenders. None of us signed up for this and what we are asking from the banks is in the best interest of the country—principal corrections for the homeowners will significantly reduce foreclosures and stop further market erosion. If we didn’t live in a banker’s world, this servicer dilemma would be more obvious to the rest of the country.