One of the direst results of the current depression has been the avalanche of mortgage foreclosures. Foreclosure itself has become big business. Foreclosures are granted by the courts en masse. People move from their homes, and many houses lie vacant for long periods of time.
As an attorney I’ve sometimes had the difficult business of defending homeowners in foreclosures. People often say that banks won’t work with them. What I’ve found in this work is that most banks have a Byzantine way of handling foreclosures. They make their personnel very hard to reach. They allow themselves long periods of time to respond to reinstatement queries.
Insurance companies are often vilified, but in my experience they are quite accessible. Other attorneys, if sometimes hostile, nonetheless are open to discussion. No such dealings with the banks. No wonder it is, then, that so many foreclosures come to fruition.
Many banks were bailed out by the federal government. They are now doing quite well while the rest of the country struggles. Our banks in no small way share responsibility for the foreclosure epidemic.