Posts Tagged ‘broken credit’

There are several excellent points in this article. First, debts that cannot be repaid won’t be. A person underwater by tens or hundreds of thousands of dollars is eventually going to default (the majority of them anyway). There are exceptions, bust most will not stand by and pay a premium for years on end while their neighbors pay a fraction of the cost for the same housing. Further, as the banks are bailed out again and again and no relief is given to the homeowner, default becomes palatable.

Second, the government has sacrificed our economy to the banks profit. The bailouts and continued programs purported to “help homeowners” – themselves just thinly veiled bailout vehicles for the banks – can be characterized in no other way.

Finally, the government as a sovereign entity holds absolute power over the corporation. That they have not forced resolution only backs up the second point; the economy takes a back seat to corporate profit and political power.

This will not end well. Instead, it will end in the destruction of millions of financial futures.

Millions of lives have been financially ruined (through some fault of their own, to be sure…but there are contributing macro factors). Millions more will be ruined as they struggle to hold on and continue to pay their mortgages in the hope the banks and politicians will act to stem the tide, rather than profit from it.

Read the whole thing.

 

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The question I have after reading this article is, “Do we as a society want to live in an environment where charging 350% APR is even debatable as unethical?”

It is so wrong that things are so upside down, that we allow the poorest among us to be charged 350 percent…especially when the richest among us have access to vastly more sums at zero (or close) percent.

I don’t have an answer, just a deep sense of the wrongness of this dichotomy.

 

Paul, of BrokenCredit.com, was an immensely valuable resource while I was working my short sale in Las Vegas.  His site is chock full of information you need to effectively negotiate a short sale.  Educate yourself, whether you are represented by an attorney or have an “expert” real estate agent handling your sale (the agent I used wasn’t as up to speed as I’d have liked…however, they did line up a buyer so I stayed with them as I negotiated with the lenders).

Paul doesn’t post often, but when he does it’s always useful.  Check out his latest post here.