Not if George Soros has anything to say about it.
The Mandelman Matters blog has a great post detailing with how our government, through the FDIC, helps the rich get richer and hurts homeowners who want to stay in their homes.
How?
We all see the FDIC taking over more and more banks.
Debts, like mortgages, owed to a bank, are assets on their books. From their side, it is money owed to them.
So, after taking over the bank, the government sells the assets.
But, in order to move them, even thought they are selling them for a discount, they guarantee most of any loss that the buyer would suffer if the mortgage is not paid in full. That is, if they pay $100,000 for a $200,000 mortgage, the FDIC covers 80% or more of the possible loss.
So, if you have a short sale set up for $150,000 on that house, they tell you take a hike, even though it looks like a $50,000 profit to you and me.
For the same reason, they do not discuss mortgage modification, even though they could do that and make money.
Because the government will give them even more money if they foreclose and sell the place for a net of $100,000.
This is the same FDIC that actually suspended premium payments, because things were going so good.
So they took in NOTHING for years as the bubble inflated.
Then, it burst, they are forced to buy up the bad banks one by one.
The good banks, and there were some, survive, and are now stuck with increased FDIC premiums to cover the bad banks that got a free ride.
Rumors now are that the FDIC wants the next 3 years paid in advance, because, guess what?
THE FDIC IS BROKE TOO!
Judicial mortgage modification, a solution that works.
Can I Get A Short Sale On My Home?
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