Saturday, March 24, 2012
Welcome to Wonderland
I had a fascinating conversation yesterday with a lawyer who has set up a huge business just making short sales happen--where the bank OKs a sale for less than the amount they are owed on the note. He says that Wells Fargo intends to count their losses on short sales against the amount they are supposed to take in reducing the principal on loans, pursuant to the $25 billion settlement the big banks made with the state attorney's general. That means that a program designed to keep people in their homes with new, affordable loans will be used to get them out. Welcome to Wonderland, Alice.