In a mind-boggling appearance today Sheila Bair attempted to sweep the current foreclosure fiasco under the rug by backing a plan to allow a "safe harbor" for certain loans currently in foreclosure. In other words the banks would be allowed to foreclose if certain conditions are met....NOT if the bank has proven that they have the right to foreclose. The rule-of-law when it comes to foreclosures is being crushed and now the FDIC is all in with their buds over at Fannie and Freddie leading the charge.
Regardless of if a homeowner is able to pay or can afford to pay we have a system of laws that must be followed. We can't start making exceptions for large banks/services out of convenience, especially after the abuse that has been heaped upon this nation by the very same banks.
Bair's comments received almost no immediate press - which is remarkable.
Scott Dauenhauer CFP, MSFP, AIF