The true costs of bad loans

The mortgage crisis has exposed the fundamental flaws of the overall mortgage system. With thousands of foreclosures occurring throughout the United States daily, the process of foreclosing on a house has developed into a major undertaking for financial institutions. In there effort to streamline the process companies have cut corners in protocol and paperwork, but this week investigations nationwide have forced many companies stop all foreclosure procedures. The slowing of foreclosure only grows the number of houses that need to be sold which holds back the market from finding the true equilibrium price only delaying recovery.