Jul
Foreclosure is sometimes inevitable
Treasury Secretary Henry Paulson announces:
“Many of today’s unusually high number of foreclosures are not preventable,” he said in prepared remarks to a mortgage-lending forum meeting in Arlington, Va. “There is little public policymakers can, or should, do to compensate for untenable financial decisions.”
from CNN
I applaud the decision to speak clearly about the foreclosure crisis and the acknowledgement that all homeowners in distress can’t be helped. Borrowers who have suffered a temporary setback but can make payments in the future should be helped. There exists, however, a huge number of homeowners who never should have been granted the loans they have under any kind of sane underwriting guidelines.
So, the homeowners will lose their homes, the lenders and bondholders will suffer very significant losses on their loan portfolios and the taxpayers will undoubtedly end up footing the bill for the rescue/bailouts of the lenders who are “too big to fail”. Savings and Loan Crisis - The Sequel
