The Foreclosure Crisis : A Certified Civil / Circuit Mediator
1350 Words6 Pages
As a certified Civil/Circuit Mediator, I mediated over 500 foreclosure mediations during the foreclosure crisis. Looking back at the many family experiences I witnessed and the consequences endured as a result of those experiences, there were many lessons to be learned. Three of the most important lessons are: (1) education; (2) moderation; and (3) exploration. Buyers will get more education on the lending process; banks will exercise more moderation in extending mortgage loans, and the government will explore more concrete ways to resolve financial crises instead of just extending a failed bailout plan.
EDUCATION: The most important change demanded to ensure we never experience the magnitude of foreclosures as was seen during the…show more content… They never realized that they were using their home as collateral or that the documents were applications to secure equity loans, line of credits, and modifications. It was proven that many could not read or write. Nevertheless, the banks were able to move forward with the foreclosures and the victims lost their home to either the bank or the contractors. Despite the clear demonstration of criminal activity, no arrests were made and very few consequences directed toward those licensed to uphold the highest standards and to protect the consumer. The fraud and abuse was so widespread throughout the entire real estate industry. Mortgage and real estate brokers, roofers, contractors, surveyors, inspectors, and bankers; there was definitely enough blame to go around.
MODERATION: In order for this crisis to have reached such alarming heights is a clear demonstration that there are not enough legislation and regulations in place to ensure that banks are not exploiting the public. For loans to have been declared unconstitutional is so alarming that America should be embarrassed that so many of their citizens were exploited. The travesty continued when banks, not the victims, were given additional funds to balance their books in the midst of the crisis. They gave themselves huge bonuses for having pulled off the greatest heist in the history of America. After securing their bailout and bonuses, they still foreclosed on the victims