My New Blog

The cause of much of our economic mess has been the mortgage crisis.  If lenders had done what they should have done, if borrowers would have been more suspicious and conservative, and if the regulators would have been on the ball we would not be in the mess we are in.

Now we have people in government trying to figure out a way to get out of this mess.  Many people believe that we need to deal with the root cause of it all which is the mortgage mess and the decline in housing values.  Thus there is the impetus to try to prevent foreclosures.  But as I have said that is easier said.  These companies that hold these mortgages have layers of beauracracy.   Some of this is because of the servicing companies that collect money for the mortgage, but do not actually own the mortgage.  It is really hard to actually find the person and talk to that person holding the mortgage. 

Below is a link to a web site that tells the story of six homeowners trying to get their mortgages reworked.  It illustrates the problem.  What's the solution?  Hard to know.  But this should give people pause that think because the government promotes something it will actually get done.  Be wary of political promises.

http://finance.yahoo.com/real-estate/article/106472/Tough-Workouts