"Foreclosuregate"

     This week I thought I would mosey on over to motherjones.com to do some reading.  As the banks are prepping, yet again, to foreclose on delinquent homeowners, Andy Kroll interviewed author, Michael W. Hudson.  He has just penned, "The Monster: How a Gang of Predatory Lenders and Wall Street Lenders Fleeced America-And Spawned A Global Crisis."
       The sub prime mortgage industry began in the late 1980's in Orange County, CA.  Long Beach Savings and Loan was at the forefront.  Hudson interviewed nearly 200 people in the industry from secretaries to vice presidents.  Exchanges of money, liquor, cocaine, and sexual favors occurred regularly in the mortgage business.
     Hudson has connected Orange County to Wall Street's fourth largest investment firm, Lehman Brothers.  Lehman was very diversified, but in the end real estate dealings brought the company down.  Back dated documents and false affidavits were used to process loans instantly.  Attempts to reform and correct the problems don't really mean a whole lot because they have yet to be implemented.
     After reading this article, one name caught my eye, Long Beach Mortgage.  They were the financial group that I purchased a foreclosed home from in 2004.  Money was loaned for an extended-cab pickup truck with this house as collateral.  Which by the way was owned free and clear.
     With these home loans that went awry, it sounds like most folks fell delinquent after interest rates skyrocketed.  The stock market crash after 9/11, unemployment, and a poor economy also caused issues.  We all need to watch out for number one.  I feel that individuals should always bank where they have banked their entire lives.  When that is not possible, sometimes a smaller, local bank can be more trustworthy.  Don't purchase more of a house than what you need.