Remember the “bailout” from years ago, when banks, motor companies and others received hundreds of millions of dollars from the federal government because they couldn’t properly run their companies?
There was public outrage at the amount of public tax dollars that was going to these companies and the lavish bonus executives were taking, despite the money being on the public dime.
A recent article by Bloomberg details how banks — who have since been trying to kick people out of their homes through foreclosure proceedings with robo-signed documents and incorrect paperwork — received $1.2 trillion in secret loans that taxpayers never knew about. The Miami Foreclosure Lawyer Blog will detail, in a three-part series, the massive bailout and reliance on the Federal Reserve that these banks have.
It’s not a shock that many people in South Florida and nationwide are struggling with foreclosure. But the situation is made even more frustrating when banks have gotten so much taxpayer money and yet are still unwilling to help homeowners. But if you are looking to fight back against your bank to protect your home from a Miami foreclosure, trust in an experienced Miami Foreclosure Defense Lawyer who will stand by your side and hold the bank officials’ feet to the fire.
In 2006, at the peak of the real estate market, Bank of America and Citigroup led banks and brokers with $104 billion in profits. It was a great year, as they were doling out loans left and right.
But within two years, the housing market collapse — led by the banks’ collective poor judgement in loaning practices and sloppy bookkeeping — turned the lenders into borrowers. Bloomberg reports that they borrowed $669 billion — six times their profit from two years earlier — from the Federal Reserve. That number is nearly four times the amount the U.S. Treasury gave to the top 10 banks in public bailouts.
The sad reality of these numbers is that the $1.2 trillion of public money that the Federal Reserve gladly lent to the major banks is roughly the same as what U.S. homeowners owe on 6.5 million delinquent and foreclosed mortgages.
Why this is so troubling is that these banks took public money and yet have taken a hard-line stance against these homeowners and taxypayers, by going after them tooth-and-nail.
They aren’t likely to modify a loan and they aren’t using government-backed programs to help come to some kind of agreement with homeowners about the problems they’re facing. Instead, they try to steam right through the foreclosure process — violating homeowner rights in the process with shoddy practices and outright fraud.
Part two of the series will look at who got paid and how it worked. Part three will look at why the plan hasn’t worked and why only government officials knew about it until recently.
If you’re battling foreclosure in Miami or the surrounding areas, contact Jacobs Keeley for a confidential appointment to discuss your rights. Call (305) 358-7991.
More Blog Entries:
Mediation Touted as Key to Stopping Miami Foreclosures, But It Rarely Works: August 7, 2011
Banks Still Looking For a Break Even After Foreclosure Mess in Miami, Nation: August 3, 2011
Wall Street Aristocracy Got $1.2 Trillion in Secret Loans, by Bradley Keoun and Phil Kuntz, Bloomberg