Recent REO News and Articles

A mood of gloom dominated the meeting of world financial heads in Italy. America seems to be poised for another recession while the euro zone is set to be fractured with the exiting of some countries. It will impact on the world economy and the system. The hope is the growth figures in the emerging markets.

Last year the Sacramento Occupy group joined the international movement and demonstrated for many weeks in downtown Cesar Chavez Park. In their latest move the have been joined by unions and the clergy. They targeted the shareholders meeting of Wells Fargo. Many have been arrested.

The Occupy movement in Petaluma City, California is part of the pan American Occupy movement but with a difference. Elsewhere there is a mood of confrontation between the activists and the city authorities but here the council was persuaded by them to ask the banks to stop foreclosures during holiday season.

With much fanfare a settlement had been reached with Countrywide in 2008 to help troubled homeowners facing foreclosure weighed down with sub-prime mortgages. Unfortunately many have not benefited. Despite tall claims by Countrywide and its parent bank BofA experts contend that the figures have been fudged.

Indian tribes get grants from the federal and state governments – the target being to see that they become self-sufficient. Even before the downturn the unemployment in two tribes was over 60%. The downturn has made the tribes aware that they cannot rely only on one source for development like casinos but diversify their activities.

The attorney general of California Kamala Harris has brought law suit against five mega banks for their deceptive business operations. She has also opted out of the settlement talks saying that the amount was too little in proportion to the wrong done. The protestors are continuing with their movement but the focus is on the courts.

In Ocean Township Jewish Community Center has been able to ward off foreclosure three times; a date has been fixed for December. It has not yet sought bankruptcy protection. The third adjournment of foreclosure was asked by the bank on the request of a stockbroker. Mothers of children who attend play school of the centre are unhappy with the happenings.

The Mayor of Los Angeles, Villaraigosa has used sugar coated words to praise the Occupy activists for having brought about a national dialogue. But the bitterness leaked out when he fixed a deadline for their exiting from the City Hall. They were also invited to vague talks. The activists rejected these orders and invitations.

The unemployment scenario has hardly improved. Those employed are not getting due wages and thus they cannot spend; neither can underwater homeowners. Banks after the February settlement is poised to aggressively foreclose again. The solution is more spending by the federal government; the last stimulus package was insufficient.

The acting director of FHFA is testing a pilot programme in regions hard hit by foreclosures. Bulk quantities of houses would be sold to investors for rental purposes. California legislators are strongly opposing the move contending that it will do more harm than good to the market and the citizens.