About If you thought banks were in trouble by fighting with the home owners, you ain’t seen nothing yet. The homeowners have lost their homes to foreclosure and most go meekly on their way. What else could they do? A few stand and fight, valiantly, and occasionally they prevail.
But, now the situation has changed. The investors have joined the fray.
The investors were typically institutions, such as insurance companies, pension funds and other very large financial entities. The investors usually tried to keep a low profile, even when they lost some money through a foreclosure. They took their lums and stayed out of sight.
Well, it appears their silence is coming to an end and they are joining forces with other investors to fight the banks. Ther belief is that the banks were complicit in promoting loans that were way over leveraged and that there was little or no hope in them ever being paid back.
The investors aren’t so likely to surrender. They are joining on the borrowers side.
Read more here.