Monday, January 28, 2008

The Subprime Mortgage Wasteland

Back when we were kids we used to read science fiction stories about nuclear wars and plagues turning whole cities into ghost towns.

Of course we did actually get to see a little bit of that at Chernobyl, but who would have thought something as simple as bad lending practices would lead to whole neighborhoods being abandoned?

Apparently there is a suburb of Cleveland called Shaker Heights that has largely been evacuated due to the sub-prime mortgage crisis.

This story goes on about squatters all over the place, a nearly abandoned grocery store, one last resident about to get thrown out due to a botched 2003 refinancing.

It sounds like those old science fiction stories.

Or The Depression.

Or worse.

It's not QUITE so bad around here.

Yet.

But you do see a disturbing number of abandoned older houses while driving around.

Seems that the banks are holding on to them in the hopes that the real estate market will recover.

I wonder what happens if it doesn't - if the banks for forced to write down a trillion dollars worth of property.

Perhaps that all-out nuclear war would have been a more preferable fate after all ...

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1 Comments:

At February 14, 2008 at 10:24 PM, Blogger creditxp said...

Lenders and how we get them to listen!
As many borrowers know from their own experience is that the resistance from
their lender is high and just getting through to the appropriate person is very
difficult. However, when MyRecast is
involved it seems as if the calls start to get answered and the letters are
responded to. On our MyRecast Team we have the best HUD advisors involved, state
wide attorney representation and the BEST sub-prime underwriters to QC / and
audit the original files.
We use powerful laws like the Truth in Lending Act (TILA) and the Real Estate
and Settlement Procedures Act (RESPA) to bring lenders to their knees. So,
naturally, the lenders will be very amicable to working and negotiating with
MyRecast Team for a modification of the note and work out to more
affordable terms to avoid costly
litigation. Not to mention your credit and
how this will affect your ability in the future.
Jackie

 

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