Posts Tagged ‘Foreclosures’

same stuff, different year.  The government may as well indemnify the banks against any further prosecution.

I, too, have been surprised there hasn’t been a tsunami of foreclosures.  Perhaps my error was one of not understanding the totality of the system.  I suspect there has been a wave of defaults the data may not show yet; however, they are not foreclosures and the wave probably won’t be seen because of “system bandwidth“.

The folks who’s business it is to track trends say they have no idea.  Here’s my two cents: if you’re buying for the long term, rates are incredibly favorable.  However, make sure the market you’re in is the right one.  E.g., Colorado Springs not Las Vegas.  The former has a high occupancy rate and homes are selling in under 24 hours.  The numbers have been stable, too.  The latter has a massive overhang of houses and a lot of underwater homeowners which can only translate to downward trends in prices.

…Sita Slavov thinks we should fear the predatory borrowers, not the lenders.   Are there predatory borrowers?  Absolutely.  What I find ironic is these borrowers are mirroring the behavior of…lenders.  And they are to blame for this? 

I think not.  Banks are not victims in the ongoing housing crisis.  Neither are predatory borrowers.  The real victims are those who were talked into mortgages they could not explain nor afford.  The real victims are those who trusted the agents, appraisers and lenders to fulfill their fiduciary duties and are now tens or hundreds of thousands of dollars underwater, with no hope for a solid sale and are facing the loss of social mobility.

It continually boggles me we are years into this thing and the powers that be are doing everything in their power to not fix it.

Looks like Fannie and Freddie are taking steps to do the right thing. Six years too late for most, but it will help a few.

 

There are several excellent points in this article. First, debts that cannot be repaid won’t be. A person underwater by tens or hundreds of thousands of dollars is eventually going to default (the majority of them anyway). There are exceptions, bust most will not stand by and pay a premium for years on end while their neighbors pay a fraction of the cost for the same housing. Further, as the banks are bailed out again and again and no relief is given to the homeowner, default becomes palatable.

Second, the government has sacrificed our economy to the banks profit. The bailouts and continued programs purported to “help homeowners” – themselves just thinly veiled bailout vehicles for the banks – can be characterized in no other way.

Finally, the government as a sovereign entity holds absolute power over the corporation. That they have not forced resolution only backs up the second point; the economy takes a back seat to corporate profit and political power.

This will not end well. Instead, it will end in the destruction of millions of financial futures.

Millions of lives have been financially ruined (through some fault of their own, to be sure…but there are contributing macro factors). Millions more will be ruined as they struggle to hold on and continue to pay their mortgages in the hope the banks and politicians will act to stem the tide, rather than profit from it.

Read the whole thing.

 

Paul, of BrokenCredit.com, was an immensely valuable resource while I was working my short sale in Las Vegas.  His site is chock full of information you need to effectively negotiate a short sale.  Educate yourself, whether you are represented by an attorney or have an “expert” real estate agent handling your sale (the agent I used wasn’t as up to speed as I’d have liked…however, they did line up a buyer so I stayed with them as I negotiated with the lenders).

Paul doesn’t post often, but when he does it’s always useful.  Check out his latest post here.

The bank settlement doesn’t address the rampant fraud perpetuated by the banks. When asked, prosecutors and politicians say this is just the initial step. I don’t agree; when the dust settles (what little dust this will create), the banks will point to this settlement and say, “But we’ve paid our dues.” Further, politicians will look to this and say, “We made the banks pay!” Neither of which is true.

 

There are entirely too many “coulds” and “mights” in this article. One other detail jumps out; if California receives 9 to 15 of the 25 Billion, a “couple hundred million” per remaining state is not valid. These banks are being given a free pass, especially when you consider how much the taxpayer has given them. We are literally paying the settlement for them.

 

 This is being touted as good news.  It is not.  For relative chump change, these banks will be indemnified for their crimes.  The same banks will then charge fees, recouped from the payout no doubt, to help a limited number of people. Be assured they are right now looking for any loophole that will allow them an out.    Be also assured their friends in the judicial and legislative systems are helping insert more of the same loopholes.