The New York Times recently hit the nail on the head with an article about how the federal government missed Main Street when it bailed out banks. These institutions were handed hundreds of billions of dollars after the lenders gave billions in substandard loans and then handed employees billions in bonuses for doing so.
Banks have tried painting themselves as the victims in the collapse of our nation’s economy. But in reality, they were the ones handing out loans left and right then ended up defaulting, thus ruining our nation’s economy in the process. And, sadly, it has led to thousands of foreclosures in Miami and elsewhere in the country.
And as banks wrestle with homeowners over their foreclosed homes, the consumer needs an advocate. Between robo-signed documents, incomplete paperwork and ethically and legally questionable practices designed to take away people’s houses, banks must be held accountable for their actions. Hiring an experienced and dedicated Miami Foreclosure Defense Attorney means getting someone on your side who has seen the tricks the banks try to pull and knows they can’t be trusted. It also means fighting your foreclosure for an outcome that’s in your best interest.
The New York Times article hits on how Americans were skeptical of the federal government dishing out hundreds of billions of dollars to banks. In light of a recent Bloomberg article, which the Miami Foreclosure Lawyer Blog reported on recently, it would appear that the taxpayers were right.
Bloomberg reported that banks received $1.2 trillion in loans that were never disclosed to the public until an act of Congress and a public records request, despite resistance from the federal government. These loans were given to banks after the real estate market began collapsing and banks were considering folding. Sadly, that amount of money is equal to the amount owed on the nation’s foreclosures.
And yet the banks used that money to finance their efforts to come after homeowners who have lost jobs and desperately want to work with banks to save their houses. The banks refuse to listen and instead use millions of dollars — backed by the taxpayers whose homes they’re trying to take — to aggressively seek a foreclosure proceeding.
As The Times reports, the Federal Reserve has no current plans to produce any more bailouts, saying that the previous loans generated no losses. With European banks — who benefited from the Fed’s deep pockets — American banks and others on shaky ground, it may open the wallet again, the newspaper speculates.
Experts say the fact that European banks — one that received $84.5 billion in 2008 and another that got $58.5 billion — took so much American tax money shows that the bailouts were designed to help corporations and not citizens. The Bloomberg report showed that the nation’s central bank accepted junk bonds and stocks as collateral, lowering its standards in the process. That could be a scary precedent to set.
The bottom line is that the Federal Reserve handed out $1.2 trillion to banks, yet has set up worthless rescue programs for homeowners in need.
The average Miami homeowner? Just fend for yourself, the government says. But the homeowner has an advocate who won’t let them stand alone. Fighting foreclosure requires an aggressive Miami Foreclosure Attorney.
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:
Final Blog in Series About Secret Bank Loans as Miami Homeowners Deal with Foreclosure: Sept. 1, 2011
Mortgage Servicer Sues Lending Processor Over Robo-Signed Docs in Miami Foreclosure Cases: August 20, 2011
The Rescue That Missed Main Street, by Gretchen Morgenson, The New York Times