Posts Tagged ‘mortgages’

some supporting data. All markets are local but taken as a whole, it’s going to be a while before we see prices rise. ┬áThere are two other points that bear repeating: 1) your home is NOT an asset unless it is generating revenue and 2) the historical appreciation on housing is ~ 3%. ┬áKeep these things in mind when buying.

Via BrokenCredit. Short sales under HAFA will now be reported as paid in full. That’s a great step forward in achieving equilibrium…of course, its just under this program and it’s taken six years to get even this much.

 

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.

 

It is beyond insane to me that we are still, six years after the market imploded, debating the way ahead on the housing market. It is not that difficult. People need help. If they are not helped, they will stop paying their mortgages, usually after they have gone broke or bankrupt trying to hold on or negotiate a way out. This will further collapse the market.

There are ways to help without “bailing out” homeowners. All it will take is one person in the right place with the moral courage to tell the banks and politicians to (to put it mildly) f*** off.

May Mr. DeMarco have this courage.

I suspect he does not.

 

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.

 

It would be too much to ask for them to analyze existing revenue streams, make efficiencies, and use this efficiencies to pay for the tax cut. No, instead they tack the cost onto a subset of the folks who “gained” from it and will now pay $15 a month for 30 years.  The language going through my head right now is not suitable for print.

 Most states allow a lender to pursue a deficiency judgment for years after a foreclosure.  Further, acknowledging that debt to a collector during those years can “refresh” the statute of limitations on thr debt.  This is why a short sale or bankruptcy is the preferable route; it deals with the debt up front.  

Banks are not your friend.  They are not your ally.  They do not – as an institution – have your best interests at heart. 

 Damn criminals.  That’s all I have to say about that.