Foreclosure-gate, Fraudclosure, the foreclosure scandal – you’ve been hearing about this in the news the last few days, but what the heck is the foreclosure-gate scandal, exactly?
Foreclosure-Gate is the New Risk Factor Everyone Should Be Talking About
What Is Foreclosure-Gate?
. Well, there’s two parts to this answer. The first part is the simple fact that Bank of America, GMAC, and other lenders are now putting blocks in place to halt foreclosure processes in all 50 states. But wait! — you say. Isn’t that a good thing? It will allow people to remain in their homes after they’ve lost their jobs and it will help the neighborhood by preventing home loss blight and abandoned buildings.
In theory, from a political perspective, sure, it looks good. But in economic practice, delaying the process of foreclosure just adds more uncertainty into the real estate market and prevents transparency. This means that buyers might wait before buying a new home because no one is really sure how many foreclosures are still waiting in the wings. Blocking the foreclosure process delays it. If foreclosures get processed quickly, on the other hand, this keeps the state of the real estate market transparent and sales can happen quicker. When sales are discouraged, however, prices will begin to slump in that all-too-familiar downward spiral everyone now knows is deflation.
How To Know If It’s Time To Rent
Foreclosure Limbo
. The second part of the answer to the question “what the hell is foreclosure-gate” has to do with record-keeping. But there’s nothing shady going on here the way there was with Enron or Wall Street and all the offshore hedge funds. This time it’s a question of where the information on each mortgage was stored.
Because of the rise of so many mortgage-backed securities over the past twenty years, and in particular the past ten, mortgagees and lenders on record for any given mortgage (not always the same person) proliferated. For any given U.S. mortgage, there might be 10, 20, 100 “mortgagees” – commensurate with the amount of times your mortgage was sliced and diced and resold to other brokers.
This means that if a lender wants to foreclose on your mortgage, they’d have a lot of people to contact. So a system was set up whereby one single entity would do all the record-keeping pertaining to who was buying and selling your mortgage, so that if foreclosure was necessary, it would keep the contacting process a lot simpler.
The problem that has arised is that the central mortgage “record-keeper”, if you will, is not recognized in every county or state by that county or state – which means that the county isn’t sure who to contact about with the final authority on the foreclosure.
People Living in Homes For Free
. It’s a somewhat complicated picture, and I haven’t given the clearest presentation of it here, but this is basically what’s going on. So Bank of America has stepped up to forestall all foreclosure proceedings before they slide their way into this administrative backlog.
So yes, it means there will be many people living in homes they aren’t currently paying for, a lot longer than they otherwise would have been able to. Is that fair? I don’t know – I guess it depends. It definitely penalizes those who followed the rules and kept up their side of the agreement. But it’s the way things are.
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