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The banks don't want to foreclose, because they do better with "extend and pretend" ... until the day before the foreclosure they can still carry the worthless
by patrickgzill 16y ago
The banks don't want to foreclose, because they do better with "extend and pretend" ... until the day before the foreclosure they can still carry the worthless loan as an asset at 100% of its original value (if I understand this part of the process correctly).
Who is the greater criminal?
Some old lady living in a crappy $125K house in Florida--or bank execs who in concert with corrupt regulators are hiding billions in bad loans and meanwhile paying themselves 100K bonuses or more?
- tptacek 16y agoIf you remove the word "criminal", which doesn't apply, and replace it with "bad actor", I'm going to go with: "they are both bad actors". Squatting in a $125k house you promised to pay for but now refuse to pay for is still bad. This is the same lazy argument that runs though any discussion of any abuse of any service anywhere. "Sure, I stole 10,000 credit card numbers --- but the credit card companies are evil organizations that prey on low-income people, and they're the ones that are going to end up paying!"