Banks Criticized for San Diego Foreclosure Homes
Banks Criticized for San Diego Foreclosure Homes
San Diego foreclosure homes in California are rising in numbers due to unemployment. Many distressed homeowners are creditworthy and responsible borrowers who encountered bad luck and were forced to default on their mortgages.
Most of these troubled borrowers are seeking ways to modify their mortgage loans but their modification requests were rejected. For so long now, industry experts have been criticizing the banking industry for receiving bailout funds from taxpayers but failing to reciprocate the support provided on them.
Experts said that the bulk of investors in banking institutions are taxpayers but they are not given attention and care by banks.
The banking industry has been blamed for the current housing bust and now they are being criticized for their lack of cooperation to address the subsequent foreclosure crisis. Industry analysts said that it is not surprising that banks bear the brunt of the blame on the current foreclosure problem.
They said that three years ago, the banking industry has made a promise to address the increasing stresses on their residential loan borrowers. But the number of San Diego foreclosure homes and defaults still has not slowed down.
The same scenario is being played out in the housing markets in other areas in California. The growing inability of banks to prevent the foreclosure crisis has alarmed elected officials who received numerous complaints from their distressed constituents.
The League of California Cities is scheduled to meet this month to discuss a resolution that will call on about 480 cities to withdraw their deposits from banking institutions that failed to cooperate with various foreclosure prevention efforts.
Some local officials said that if you consider all the funds that cities have deposited in banks, the move would make a significant impact. They said that banks that will be affected by the initiative are those that are not doing anything to help alleviate the foreclosure crisis.
But some industry analysts are having doubts about the proposed initiative for cities to withdraw their money from banks that failed to do their share in foreclosure prevention. They pointed out that cities have limited investment options should they decide to divest themselves.
Some members of the California House have done their share of pressuring by writing to U.S. Housing and Urban Development Secretary Shaun Donovan, urging him to pressure mortgage lenders to perform more loan modifications.