An article in today’s Wall street journal explains one of the big reasons that real estate short sale programs haven’t been very successful. Nearly a third of homes facing foreclosure have second mortgages and the institutions holding the second mortgages have little or no incentive to play nice.
It is clear why commercial banks like J. P. Morgan Chase choose to let homes slip into foreclosure when it suits them. Banks make decisions based on dollars and cents without any hint of moral obligation and Chase is just one example. Of course those same banks expect the public to continue paying for homes that are hundreds of thousands of dollars underwater when it makes no economic sense for the homeowner. Hypocrisy much?
I also find it amusing that Chase Bank is screwing their mortgage customers while spending a fortune to open new branches all over Georgia. Guess they gotta have more screwees to keep making money.
Read the whole article here: http://on.wsj.com/fgiLru