Note: This article was written by author Douglas Castle (http://aboutdouglascastle.blogspot.com/, and http://www.linkedin.com/in/DouglasCastle) for the Global Futurist with rights for reprinting available though TNNWC Group, LLC.
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US Banking: A Deepening Foreclosure Crisis - From THE GLOBAL FUTURIST
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US Banking: A Deepening Foreclosure Crisis - From THE GLOBAL FUTURIST
Dear Friends and Colleagues:
It would seem that there is mixed news to report, and some unsettling possible implications for the near-term (the next 18 months) which will impact every homeowner, selling homeowner and prospective home buyer...not to mention the US economy-at-large and, to a lesser degree, the economies of other industrialized countries in Europe.
A recent article published by Truthout (a publication of BuzzFlash Media) indicates that an increasing number of major US and international banks with mortgages (or which are invested in the mortgage-backed securities produced by the process called "securitization") are ceasing or indefinitely postponing foreclosures.
"Why are they doing this?" you may ask. It is certainly not out of clemency or decency -- it is because of a great number of legal irregularities, fraudulent actions, and a shipload of other complications relating to the way in which the banks, their servicers and their third-party securitization agencies (a Wall Street Family-type affair) created the mortgages, packaged the mortgages, re-sold the mortgages, abused the mortgagors (the people in debt), and went about the business of trying to recover some of their losses by seizing the assets which they thought collateralized their loans and selling them off. Many law firms ("mortgage mills") have played a role in the these slapdash, illegal and downright unconscionable fraud. Some many parties profited at so many different levels -- all at the cost and peril of the consumer.
For a time, at least, for this whole cast of characters, crime certainly did pay. It was not really finance; it was sophisticated, systematized thievery. The US consumers will ultimately pay (AGAIN) for the excessive arrogance, gluttony and greed of "banks" and "investment banking houses".
We all know that if a bank is stuck with a large portfolio of non-performing mortgages (and all of the large banks are), and can't get rid of them "hot-potato" style by selling them to some government agency, passing them off like counterfeit bills to other banks, or by foreclosing on them and reselling them to recover some percentage of of their losses, they are in deeper trouble than ever before.
What you'll hear: "Bank foreclosures are slowing down, and many banks are delaying foreclosure proceedings!" "YAY!"
What Douglas Castle says: "Banks are in far worse shape than had been previously thought, and the availability of financing for new and used home purchases will be further stoppered up, further cratering the home sales market, home prices and further steepening and prolonging the profound economic recession in the US." "NAY".
The banks are going to be screaming for another bailout or legal relief, as an increasing number of homeowners are taking them to court, title companies are refusing to issue title insurance, and other participants in the process are becoming frightened and frozen. The banks brought this upon themselves.
The question is, in what manner will the US government try to "fix" this new revelation? Just imagine....banks unable to foreclose.
Here's what to do...
First, read the article. Second, enjoy the video. Third, read what I believe that the near-term issues will be -- near-term issues affecting every single one of us.
---------------
Shock Therapy for Wall Street: JPMorgan Suspends 56,000 Foreclosures; GMAC and BOA Many More
Ellen Brown, WebofDebt.com: "On September 28, JPMorgan Chase said it was halting 56,000 foreclosures because some of its employees might have improperly prepared the necessary documents. All of the suspensions were in the 23 states where foreclosures require court approval."
Read the Article
Video Follows: (If the video player doesn't appear, simply click on the hyperlink below in order to see it):
What to expect - The Global Futurist 18-Month Forecast:
1) A deepening credit crunch from all conventional lending sources, with stiffer credit criteria and more draconian documentation required than ever before. Simply put; no re-negotiated terms, no new mortage funds for mortals, no refinancings, more unemployment in the banking services sector, even poorer customer service (if this is actually possible). Banks are all but completely out of the lending business, as will be most consumer loan financing companies, except the ones which are captive or dedicated to the financing or leasing of automobiles.
2) A cutback in all conventional lending activities;
3) Increases (despite the consumer-protection laws) in all types of non-loan related banking fees, in true predatory fashion, to make up for some of these losses and to create some income and liquidity, especially in terms of credit cards and other bank "services" and "privileges."
4) Further declines in home values due to the absense of credit to facilitate liquidity in the market;
5) Downward pressure on the price of major publicly-traded bank stocks; not to worry, though...those executive bonuses being paid to these too-big-to-fail fraudsters will continue and will increase;
6) A further decline in the value of the US dollar versus other currencies;
7) A decline in the sovereign debt rating of the United States;
8) More money finding its way out of the US banking system and securities markets into alternative and less-known investments involving, ETFs ("exchange-traded funds"), physical gold, foreign currencies, and direct participations in select entrepreneurial deals (cash flow generating private placements, and similar arrangements).
I wish that I had better news.
The silver lining: If your bank forestalls a foreclosure on your home, you will enjoy the basic benefit of shelter for a while longer.
Faithfully,
Douglas Castle
Douglas Castle
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