I recently read a very interesting article in Rolling Stone about the fallout of what this whole foreclosure process has created.  In some states, unlike Nevada, foreclosure is a judicial process.  The article starts off in Florida, a hard hit area with judicial foreclosures.  Due to the backlog of cases, Florida has brought judges out of retirement to deal with this backlog. Dubbed the “Rocket Docket” by locals there, it was designed to clear up the backlog, however, the reality of it is that judges are speeding through complex cases and usually to the benefit of the lenders.

I know many of you think that these homeowners are deadbeats who can’t pay their bills and rightfully should lose their homes, but each case is individual and complicated.  Many of these homeowners should never had been given these loans in the first place, and the article probes more deeply into how banks gave loans to people who should not have qualified, sometimes using false documents all in order to sell these loans to real estate trusts.  The deception runs deep, as many of the rules that qualify these loans for mortgage backed secruities were not followed and thus, innocent investors bought into these securities thinking they were safe.  Many investors were pension funds and when the bottom fell out, because these loans, some already in foreclosure at the time they were placed into the mortgage backed securities were never qualified in the first place more innocent people lost money.  For many, it was their planned retirement in the form of their pensions.  Pensions they paid into for years and now have nothing.

What does all this have to do with the rush to foreclose?  Well, banks are trying to foreclose and sell quickly to erase the trail that will lead back to them doing bad loans in the first place.  These same banks who made millions off selling these bad loans then taking billions from the American people to bail them out and are now foreclosing on the same people who should have never been given the loan in the first place,  in a quick way so as to cover up their own illegal activities.

The article is long, but worth the read.  It will open your eyes about how big banks have taken and taken from the American people and continue to.   It will also make you realize that maybe just maybe, these homeowners should be given the breaks that big banks have been given.  Or maybe just a loan modification that works for them. 

Read the entire article by clicking here