One of my regular email correspondents told me several months ago that one of her properties should already be in foreclosure. This property has multiple units on it. She's been hit bad by the recession.
But, she couldn't figure out why the bank was dragging things out for almost a year? Why, Devvy, have they not issued the paper work? It seems like they just want it to sit there even though no payments are being made. The article below explains why.
That's why the data in this column doesn't surprise me. Today is Friday, so we'll see if any more banks are shut down by the feds.
The Mother of All Bank Runs
"The FDIC, which claimed only about 300 problem banks in the 1st Quarter of 2009, but hid the fact there were about 2000 total lame banks among its 8400 members, This has given rise to the term "zombie banks," which are defined as "a financial institution with an economic net worth that is less than zero, but which continues to operate because its ability to repay its debts is shored up by implicit or explicit government credit support."
"Examination of the following FDIC chart shows geographically that most banks are not making a profit."
Rest at link
Just FYI. New unemployment figures "unexpectedly" jumped to 567,000. Guess TPB couldn't figure out a way to massage the numbers this week.