U.S. real estate market sits on a powder keg

On the economic crisis they are going through low interest rates and ease with which U.S. financial institutions have lent money to anyone who wanted to buy a house without checking whether they can return the loan. Within a few years, housing prices have exploded, becoming increasingly less accessible. Because the mortgage industry not to block, banks had to lower standards that customers would have to meet to qualify for a loan. So they came all sorts of exotic loans specifically designed for everyone to be able to qualify. Basically, the banks with the money you attract.

At the same time banks packaged and sold on stock exchanges all based on real estate loans. Once arrived on the stock exchange were also traded until many of the original documents were at the loan have been lost on the road.

And came the collapse of the housing market, property values began to decrease, many could not pay, others have decided they no longer deserve to pay for a house whose value has dropped dramatically, so that more loans become nonperforming. Banks have started eviction proceedings to bad debtors and recovery of the properties pledged as collateral. Problems began to emerge when it was realized that the original signed documents were unavailable. So in many cases lawyers have produced false documents to banks to replace those lost, as proven later in court.

Caught offside, four of the largest U.S. banks have stopped the expulsion order until they do the paperwork. Meanwhile prosecutors in all 50 U.S. states began to investigate the practices of banks. The stakes are huge.Banks can not expel the bad payers if they can prove in court that they are the rightful owners of property in question. Plus the falsehoods used in many cases to date fall under the penal code.

Addition: "Experts" hired by banks to handle the removal and recovery properties were bad payers barber by trade, workers at Walmart or other plants. Many lacked basic notions about how real estate works. Although they were hired as "experts" by major American banks like Bank of America, JP Morgan Chase, Goldman Sachs etc.

It seems the fun is just beginning.