US Mortgage Lenders Manage to Avoid Foreclosure Class Lawsuits [mortgageprotectiontips.blogspot.com]
Question by Robert B: Do you think the US mortgage lenders will put the US into a recession? No more easy money. If you're a democrat (I lean towards the left myself), you can't pin this on Bush. Clinton established this policy which I believe will severely hurt the US for the next couple of years. Did I hear someone say "bail out?" Best answer for Do you think the US mortgage lenders will put the US into a recession?:
Answer by Goonigal
Jimmy Carter did in the 70s. By the time Reagan came into office Mortgage rates were nearly 22%. You might as well have put it on a charge card. This is when women HAD to go into the workforce. You then needed two checks to make ends meet. I believe that the economy goes in cycles. So, yes it can happen again. But, I think maybe the feds are going to try to keep interest rates down. I worry about the same thing, as you.
Answer by Andrea B
The federal reserve has been very cautious about not raising interest rates in order to keep the economy growing. They didn't raise rates at the last meeting about a month ago.
Answer by puckfreak02
The ones who put people into adjustable rate mortgages (ARM's), yes, they may very well do that. In the coming year many ARM's are set to readjust to rates that will literally drive many families out of their homes, into forclosure, and God only knows where after that. Lucky for me, I get to help families out of situations like that. The economy does move in cycles, like a clock. Consider 12:00 as the boom in the economy and 6:00 as the recession periods...like the crash of 1987, Y2K, and 9/11. Eventually, the economy rebounded from all of these events. Just as the hands of the clock move around and around, so the economy moves through it's cycle of "boom and bust." Our current savings rate is suffering also. Average Americans spend $ 1.22 for every $ 1 they earn and the average family has about $ 9,000 in credit card debt. I just feel bad for people who do not understand the economic and stock market cycle and will pull their money out when things start to look bad, only to miss out on all of the growth their money could have experienced once the economic cycle starts to move toward the favorable direction again. The smart people bought, or at least stayed in, after 9/11 while many people sold. Buy low, sell high, often not as simple as it sounds but it is how the rich get, and stay, rich. So yeah, you're right, many mortgage companies will not help the situation and many more will indeed make things worse for a lot of people.
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US home loan lenders are poised to keep their cool despite the charges they get due to allegedly mishandling of foreclosure documents. The banks have expressed confidence that they could emerge out of the mess unharmed, although the foreclosure suspensions are beginning to pose impacts on their home loan performances.
Home loan providers like Ally Financial, Bank of America, and JPMorgan Chase continue to resolve probes launched in about 50 states that are aimed at closely looking at their home repossession practices. Aside from that, the lenders are facing numerous big class action lawsuits from several of their customers. The problem about allegedly improper handling of foreclosure documents started in September.
The banks reiterated that they could effectively and successfully avoid most if not all of such huge class action lawsuits.
The home loan lenders took the spotlight when skeptics started questioning whether such banks really cut corners when going into the process of foreclosures and repossessions. The so-called รข€˜robo-signers' of documents have been allegedly used to speed up and justify evictions of homeowners. Federal and state watchdogs are currently conducting their respective investigations to look into the matter.
The lenders have recently disclosed several of the legal challenges they face from borrowers or homeowners. However, they emphasize that class action suits they face are still not to be put in a national scope. For instance, Bank of America defended its self from a class action in Indiana by arguing that the borrowers could not demonstrate or prove any economic harm, because they would surely have lost their properties anyway.
Observers note that the legal battle between affected borrowers and home lenders could be far from over. However, they underline the confidence that the mortgage industry exudes, citing their arguments that complainants could hardly prove the injustice they have incurred. But analysts said the positive outcome of the disarray could be that home lending practices could be revamped and made more secured. Meanwhile, the housing market is yet to see how the issue could further affect its position.
Would US mortgage lenders succeed in defending their interests? The housing market could only wait and watch. Suggest US Mortgage Lenders Manage to Avoid Foreclosure Class Lawsuits Articles
