Oooooooh, THAT’s Why!

When something does not make sense, a good rule of thumb is to follow the money and see where it leads. When you find out which person in power is making money, you can then be pretty sure you can stop asking “why?”

So many people have been totally unable to get their banks to move on short sales and flat out cash purchase offers of underwater home mortgages, I have repeatedly wondered why it should be this way. Why would they want to lose money and not take a short sale vs. a frank loss?

Follow the money. I didn’t have all the information – the banks aren’t losing money on foreclosures, they are making money hand over fist. That right there also explains why they were having robo-signers rubber stamp so many loans into foreclosure: profit. The bank loses money, but it’s only a paper loss, and only until you consider that the taxpayer (read: your mom) turns the losses into profit.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s