Homeowners to Expect Payout From Big Banks

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Get ready for a big pay out. The five biggest mortgage lenders in the United States are exercising their check-writing hands and getting prepared to make good on a $25 billion payout mandated by the United States government. The total payout goes to homeowners who lost their homes due to foreclosures during the largest economic crisis worldwide since the Great Depression. The amount of money back depends on the state, but it looks to be about a thousand dollars. If anything, this payout seems to appear as only a little more than a slap on the wrist to some of the richest organizations around the globe.

"The Bad Guys"

The economic construction of the world is complex. It"s a living, breathing enterprise which includes worldwide trade, goods, services and, above all, money. In economics as in any living thing, one prime factor is the great motivator: survival. Monetary survival starts riots, incites wars, brings forth protests, ruins families and rips them from their homes. So what was the pivotal underlying factor behind the millions of foreclosures that took place during the last decade? Why did "the bad guys," of the major five leading big  banks  ( Bank  of  America , Chase, Ally Financial, Citibank and Wells Fargo), illegally foreclose on so many homeowners?

Vulturous Lending: The Lions Eat Their Young

The answer is... well, it"s complicated. Clarity on this issue has been further examined by high-powered defense lawyers working on behalf of our nation"s monetary Goliaths. Some economists have pointed the blame at the U.S. government, stating that  banks  were strong-armed (can anyone strong-arm a  bank  in a capitalist society?) into predatory lending actions, allowing countless adjustable-rate mortgages to overflow the market. This cancerous paper was traded around the world, then collapsed spectacularly in the mid-2000s, causing our present-day and never-ending economic crisis.

Who Triumphs?

Whether the government is at fault or not, financial fear--the need for  banks  to keep above water once they learned they were holding untold amounts of loans they knew would never get paid off--caused the "Big Five Bad Guys" to foreclose, foreclose, foreclose. The government sued, and the result is a $25 billion payout. Did any of the Big Five suffer due to their illegal foreclosure? Nope. Do homeowners who were lawlessly foreclosed upon get their homes back? Not at all. What do they get for years of difficulty and grief? In many cases, about a thousand measly bucks. While much of the payout will go toward loan adjustments, etc., the end of the foreclosure fiasco appear to be not even a celebratory victory, but a defeat.

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Source by Derek Huff

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