Why is it that banks, which were a major contributor to the current economic crisis because of their reckless lending practices and other abuses, will foreclose on mortgages that are in default because of the very mess the banks themselves created? This makes no sense.
Why would a bank want to take possession of a house it can’t resell for quite some time, and will cost the bank money in terms of utilities, upkeep and property taxes? The house will most likely be vacant for some time, may be vandalized, and could fall into disrepair. It makes no sense.
Wouldn’t it be smarter for a bank to let the occupant stay in the house so it remains occupied, cared for (at least to some level), and people aren’t made homeless. That would make sense, wouldn’t it?
Of course it would, but bankers aren’t that smart. Otherwise we wouldn’t be in the mess we’re in. They would rather make someone homeless than do the right thing for all concerned. Banks are unscrupulous, uncaring, and reckless. This is certainly a moral and ethical issue that should be dealt with by government. For at least the short-term, some provision should be made for occupants to be allowed to stay in their houses, and banks should be forced to renegotiate terms of mortgages.
While I’m usually not in favor of such heavy-handed governmental interference in the free market system, I believe the banks have acted so badly that such measures are necessary. If you agree, write your senators and congressman.