[eventusstultorummagister]

Originally Posted by ScoopLV

No they aren't.

Can the banks pay their depositors if there was a run on the bank? The answer is no.

http://www.cato.org/pubs/regulation/.../deplesson.pdf

[007 license to sell]

Originally Posted by airics

i still cannot figure out for the life of me.. why the banks just don't reduce the principle owed..... heck, they shortsale the house for $150k when $250k is owed.. for cryin out loud, just keep the owner in it, and restructure the loan to owe 150... problem solved...

without doing this or getting the jobs back....we're all screwed...

There's allot of reasons banks won't write down the principle, one of them is if there is mortage insurance the lenders can collect the mortage insurance but if the bank foreclose or agree to a short sale They can't recieve the mortgage insurance payments. They milk the mortgage insurance until the bennifits quit paying and then they allow the short sale or foreclosure.

There is a new law now that the banks can't collect mortgage insurance and go after the home owner for any of the deficiency.

Whether you believe it or not allot of people believe the Banks are cooking thier books, if they were to write down all the deficiencies to keep home owners in their homes they would be in the red. After all all those CEO's have to get their big bonus's you know.

[ScoopLV]

Originally Posted by eventusstultorummagister

Can the banks pay their depositors if there was a run on the bank? The answer is no.

http://www.cato.org/pubs/regulation/.../deplesson.pdf

Banks have NEVER been able to do that. By their very nature, the lend out most of the money they take in, to generate interest, which they then kick back a little to their depositors.

FDIC, FSLIC and NCUA still have our backs.

We'll see how well the system works on Nov. 5. I doubt most Americans know or care about Bank Transfer Day, but I could be wrong.




PS -- If liquidity is that much of an issue for you, convert everything into gold coins (even though gold is way overpriced) and stash it under the bed with the ammo and the MREs, and presumably the zombie repellent.

[eventusstultorummagister]

The "REALity" MAGIC 8-BALL:

Let's throw some numbers/facts out there. There are more than 50K properties in Clark County currently either in default or with a NOD or seriously delinquent. That's not counting the homes already owned or serviced by the banks (shadow inventory). Then there are the homes with second liens (HELOC), you're guess is as good as mine as to how many there are outstanding. In Vegas I think it very likely looms large and the majority are now deeply underwater... BIG PROBLEM!

Now people are beginning to realize after struggling for the past couple years that they were lied to (again) and a "walkaway" is not such a horrible thing (banks do it all the time and call it a business decision). As prices continue to decline and more homeowners fall further into negative equity the vicious cycle continues. I said this back in April of 2010 when people were calling bottom.

It became clear to me (and others) that the key to understanding where the housing market in Las Vegas is headed is by watching the number of delinquencies, to ignore this factor is to not be prepared for what is to come.

Many people rely on the advice of a so-called industry professional. They will always focus on the positive which is not the complete picture. I urge everyone to examine the facts and draw there own conclusions.

People were lied to. The banks used TARP cash to shore up their liquidity gaps and fund marginal costs. Banks are jugglers managing liquidity, they cannot take their eye off the ball to assist a consumer in distress. That would be disastrous. The game only works if the banks are able to continually finance the escalating liquidity spiral.

Perhaps FOD can come in and explain it better...

ESM

[WestieJeff]

Not sure where you got your 50k number from, but the actual number from Sep, 2011 was 26k units with an NOD and 4.5k with a NTS. NODs are up around 10% YOY, but trending down again after trending up from last May to August.

Originally Posted by eventusstultorummagister

The "REALity" MAGIC 8-BALL:

Let's throw some numbers/facts out there. There are more than 50K properties in Clark County currently either in default or with a NOD or seriously delinquent. That's not counting the homes already owned or serviced by the banks (shadow inventory). Then there are the homes with second liens (HELOC), you're guess is as good as mine as to how many there are outstanding. In Vegas I think it very likely looms large and the majority are now deeply underwater... BIG PROBLEM!

[Tires]

The low hosing prices will be an opportunity for some single people without kids to move to Las Vegas and buy a house for cash with only a few years of savings.
Any single person who can make $50k a year working in any state in the US where they can live in a room for rent in a shared home and are also frugal with the rest of their money could save enough to buy a home in Las Vegas in just a few years. Every extra year they save bumps them up to being able to afford to pay cash for a nicer home in a nicer area. If they could put away $30K per year, in 5 years they would have $150K and that should get a nice house even if prices rose a bit in 5 years.
They wouldn't need a very high paying job when they moved to Las Vegas to cover property taxes, insurance, utilities maintenance and their personal expenses for food, clothing, transportation etc..
In a scenario where prices were rising more than just a little, that would have to mean the economy turned around and they could then make the move early, take the money they saved so far and use as a downpayment after finding a lucrative job in the apparently improved economy.

[eventusstultorummagister]

Originally Posted by WestieJeff

Not sure where you got your 50k number from, but the actual number from Sep, 2011 was 26k units with an NOD and 4.5k with a NTS. NODs are up around 10% YOY, but trending down again after trending up from last May to August.

The data came from CoreLogic and includes those loans that are more than 90 days delinquent but no NOD has been issued yet, commonly referred to as zombie loans(ScoopLV is gonna love the "zombie" reference!)

I want to mention also that the Fannie, Freddie and HUD portfolio of homes have spiked also and that there is talk of plans to bulk sell them at deep discounts to private investor conglomerates (vulture funds). Look deeper into these funds and you are likely to find former high-ranking government officials.

[ScoopLV]

Originally Posted by eventusstultorummagister

The data came from CoreLogic and includes those loans that are more than 90 days delinquent but no NOD has been issued yet, commonly referred to as zombie loans(ScoopLV is gonna love the "zombie" reference!)

I want to mention also that the Fannie, Freddie and HUD portfolio of homes have spiked also and that there is talk of plans to bulk sell them at deep discounts to private investor conglomerates (vulture funds). Look deeper into these funds and you are likely to find former high-ranking government officials.

Yes, I agree the whole thing stinks on ice. But my "ace in the hole" is that we as a nation want to work. The "Lords of Loud" argue that isn't the case, but I find their whole philosophy to be fundamentally flawed.

We like work. We like to be useful. And in general, we're a nation that believes in fair play. Sure, we read about the exceptions every day. But I see no reason to wallow in hopelessness. You're not going to catch me being a pessimist. We're Americans, after all. This ain't Somalia or Liberia or Zimbabwe. We're good at pulling ourselves up by our bootstraps.

"I am a firm believer in the people. If given the truth, they can be depended upon to meet any national crisis. The great point is to bring them the real facts, and beer."
-Abraham Lincoln

True then. True now.

[eventusstultorummagister]

Agree

http://youtu.be/q7vtWB4owdE

[Tek_Freek]

Originally Posted by ScoopLV

Yes, I agree the whole thing stinks on ice. But my "ace in the hole" is that we as a nation want to work. The "Lords of Loud" argue that isn't the case, but I find their whole philosophy to be fundamentally flawed.

We like work. We like to be useful. And in general, we're a nation that believes in fair play. Sure, we read about the exceptions every day. But I see no reason to wallow in hopelessness. You're not going to catch me being a pessimist. We're Americans, after all. This ain't Somalia or Liberia or Zimbabwe. We're good at pulling ourselves up by our bootstraps.

"I am a firm believer in the people. If given the truth, they can be depended upon to meet any national crisis. The great point is to bring them the real facts, and beer."
-Abraham Lincoln

True then. True now.

The core of our current problem, if nothing else is.