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Tuesday, January 26, 2010

Bankers Wait For the Other Shoe to Drop

Most homeowners with mortgages continue to make their house-payments. Some are even struggling to keep above the water line on their mortgages as the recession drags on the markets. Bankers across the country are seeing an increasingly popular method of getting out from under housing by swamped homeowners. People surrendering the keys and walking away from their homes

The latest thing in the housing market to gain steam across the country and in four of the worst housing markets (California, Florida, Nevada, and Arizona) is for homeowners to simply drop off the keys to the mortgage holders. There are even companies that will help people expedite walking away. In the worst markets people can walk away from their mortgaged property and rent the very same house for about half of what they were paying for a mortgage in their same neighborhood. Big Business does it all the time and now homeowners are walking in droves.

Bankers who got us in this mess are fearing "jingle mail" (keys getting sent to them) will become epidemic as the practice gains steam. Meanwhile, the rest of us get to watch as the Big Time Bankers reward themselves with huge bonus payouts.

We are now into our second year of this recession and the only scoundrel we have seen of any consequence end up in prison is Bernie Madoff. The question on a lot of folks minds is when do we get to see more of the crooked bankers get hauled off to prison for a long, long time.

The Banks and mortgage lenders may be in for another rough go in 2010. Housing prices continue to have downward pressures and people are surrendering the keys. There are only so many buyers for "ripe bananas" that the housing market has become.

We can all hope this turns around in the near term and all of the pessimism is unfounded. Here is a link to a story in Atlanta where $250k condos sitting empty have the foreclosure biding starting at $50k and they will probably sell for around 100K.

Working people across the country continue to patiently wait for some form of justice to be dispensed for all the incompetence we have witnessed and suffered at the hands of greedy people in high places.

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