How Banks Are Worsening the Foreclosure Crisis

How Banks Are Worsening the Foreclosure Crisis article http://news.yahoo.com/s/bw/20090213/bs_bw/0908b4120034085635

Okay America here is a thought about the housing market. In the above article there are stories from back in 2007.

In early 2007, as overextended borrowers began to default on too-good-to-be-true sub prime mortgages housing experts sounded an alarm heard throughout Washington. Christopher Dodd (D-Conn.), chairman of the Senate Banking Committee, wanted to push a bill requiring banks to modify loans whose enticingly low "teaser" interest rates soon give way to tougher terms. But he knew that with Republicans strongly opposed, he lacked the muscle, according to Senate aides. So Dodd did what politicians often do. He convened a talkfest: the Homeownership Preservation Summit.
A who's who of banking executives gathered on Apr. 18, 2007, behind closed doors in an ornate hearing room in the marble-faced Dirksen Senate Office Building. Dodd told them they needed to get out in front of the foreclosure fiasco by adjusting loan terms so borrowers would continue to make some payments, rather than stopping altogether. Foreclosure proceedings typically cost banks about 50% of a property's value. That's assuming the home can be resold -- not a certainty when empty houses multiply in a neighborhood. "What are you doing?" Dodd asked the executives. "What do you need me to do to help you modify loans?"
Some from the industry denied a foreclosure problem existed, including Sandor E. Samuels, at the time chief legal officer of sub prime giant Countrywide Financial. They vowed to continue selling loans with enticing introductory rates as well as those requiring minimal evidence of borrowers' income. "We are going to keep making these loans until the last second they are legal," Samuels later told a fellow participant.

So America, are we to believe that these loans they knew were illegal? If so then every politician should be held responsible for their states losses and they will need to direct all banks in the state to re-do all home financing loans, re-appraise the houses and re-do them. Again yesterday I gave a great simple example of how this works, so why is American politics slowing down the process? Is they don't understand that they created this mess!

So to repeat yesterday's Creative Conclusion:
Every Bank had better get out there and appraise these houses all over America, then take the hit and refinance the house for what it is worth today. Don't give back any money to the individuals living in these houses but set up a new finance system to put the loses over here and the new finance over here.
Let's say your house was bought at $600,000 but today the bank appraises it at $275,000. The bank needs to refinance the house for the $275,000 and the other $375,000 will be taken care of by the money they get from the government. This way the banks are not out any money and the person living in the home can now afford to make their lower payments. It is too simple people.............let's bite the bullet and get on with our lives......