As I mentioned in my post about Shadow Inventory in California, many of the major banks have released only a fraction of recently foreclosed homes. To combat the effects of even more foreclosures in the California housing market, Attorney General Edmund G. Brown Jr. has asked ten major banks and loan servicers to detail their plans to assist homeowners who will be forced to pay increased fees for their Pay Option Adjustable Rate Mortgages. Why? He knows that these increased rates will trigger a new round of home foreclosures. Read more »