Foreclosures should help new homeowners?

We had one bright spot in the foreclosure mess. Folks that couldn't afford their first home have had an opportunity to buy an affordable home at the bottom of the market. GREAT! We also have had a run of folks buying their second dream home. Again because it is affordable. GREAT!

Enter the banks into the scenario:

First, they were the greedy culprits that led us into this huge mess. Can you say "predatory lending"?

Second, we the people of the USA bailed them out. In plain English, the kids were very bad but let's give them tons of money because not doing that would be worse. Now they are trying to work quickly thru their losses but they are giving the homes to investors over new homeowners for less money. Time and time again buyers that are very qualified for a new mortgage are being rejected for cash buyers. I've seen the difference as much as $10,000 less from the cash buyer. That just makes me MAD! That also continues to drive prices down along with appraisals.

Finally, is this a good business decision? NO it isn't. It's just easier. It seems they don't care about their losses. We give them money on the back side with free money. It's like a garage sale at the end of the day. "Just take it, I don't care."

Just when you think this mess could get cleaned up with some benefit to real people, big business ruins it. We gave the banks huge amounts of money. We need to insist those same banks encourage lending to real homeowners and let these same people get a leg up ahead of investors in buying these foreclosures. That's good business. That's good for the economy.