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Loading ...Since the nation is in the midst of a foreclosure crisis, average citizens have been wondering what really happened in the housing industry. Although analysts and experts have been pointing their fingers to predatory lending practices and buyer speculation, it would seem that there are other reasons for the high foreclosure rate.
If you consider the fact that troubled borrowers can actually avoid foreclosures if only their lenders agreed to change their mortgage terms, allowing them to enjoy more affordable mortgage payments, it may be a bit confusing as to why the industry ended up in such a mess.
Critics believe that the foreclosure problem is actually the result of self-preservation. Individuals working for these lenders have decided that the easiest and safest route for them is to proceed with the foreclosure filing. This way, the interest of the company is protected as well as their jobs.
It does not matter if families will become homeless and the industry will suffer from large supply of foreclosure homes, sluggish home sales and declining home prices. The important thing for these employees is to make sure that the money owed to the corporation remains in the books.
What is more saddening is that the government has chosen to help these huge financial investment firms rather than the millions of troubled borrowers. Never did it occur to the government that forcing these lenders to agree to a loan modification is better than throwing taxpayer money away to various programs which have not yielded any concrete and long-term results.
It is indeed frustrating to know that there was actually something that could have been done to prevent the worsening of the foreclosure crisis. But then again, it is human nature to think of protecting himself first rather than lend a helping hand to another human being in trouble.
