February 8, 2012
Thomas J. Mackell Jr.
The barbaric and suffocating behavior of the nation’s largest banks are harvesting the last possible pound of flesh from millions of homeowners before kicking these failing debtors out of their homes creating a foreclosure crisis.
Of the 55 million mortgages in America, more than 10 million are reasonably likely to default. It is a staggering number and so many homes are worth so much less than the mortgage the homeowners are holding. Some 14.7 million homeowners owe $700 billion more on their mortgages than their homes are worth.
Nearly $7 trillion of home equity has been wiped out. Prices are likely to fall further as banks put a backlog of foreclosed properties on the market.
As home prices fall and more homeowners sink underwater, there will be more foreclosures and more price declines.
The supply of housing is going to drastically outstrip demand for the foreseeable future; the glut of unneeded homes could go as high as 6.2 million over the next six years.
Also, nearly 20% of current homeowners no longer qualify for a mortgage, as lending standards have tightened.
The administration bailed out the banks, the culprits, but have done little to help the homeowners who suffered the most.
More Americans have set their minds to being renters forever.
Have we destroyed the American Dream of homeownership for millions into the future? Can we recast the American Dream? Are we devoid of creative ideas to alter the landscape? Has anybody got a clue? Are you out there?