[jpk]

The huge ghost inventory flooding the market has been a rumor for about a year now. The rumor seems to come from actual banking insiders who know how many bad mortgages are out there. However, the inventory has still never hit the market because of the changes to the accounting rules that allow the banks to keep bad debts on their books longer. There will continue to be a slow bleed off of the foreclosures and no massive panic selling as there was in 2008, it seems.

[gtbguy]

Originally Posted by jpk

The huge ghost inventory flooding the market has been a rumor for about a year now. The rumor seems to come from actual banking insiders who know how many bad mortgages are out there. However, the inventory has still never hit the market because of the changes to the accounting rules that allow the banks to keep bad debts on their books longer. There will continue to be a slow bleed off of the foreclosures and no massive panic selling as there was in 2008, it seems.

Exactly, stimulus money at work! They can hold onto those loans for a very long time.

[airics]

Originally Posted by gtbguy

Exactly, stimulus money at work! They can hold onto those loans for a very long time.

how is it the stimulus money? that money has been paid back!

Troubled Asset Relief Program - Wikipedia, the free encyclopedia

[jpk]

I think he meant it was part of all the legal changes that were buried in the massive stimulus legislation. All sorts of stuff buried in that giant tome, some of it might take years for people to figure out (and exploit).

And the TARP has not been paid back. You think AIG or Chrysler are ever going to pay us back the money we gave them? Chrysler already said it has no plans to repay us.

Separate topic, but the stimulus money that was actually paid back is just going to get re-spent on new 'stimulus' and entitlement programs by the morons in Washington, rather than to close the budget deficit. If you actually think TARP is over and all the money is back in the genie bottle, you're too optimistic.

[olecapt]

they have and continue to do foreclosure at abut 3000 per month. That is the capablitiy of the system. They see no reason to do more so they don't.

I would think the rate will remain the same. The real question is how long they last.

Note that REOs are increasing in price relatively continuosly since June.

[airics]

Originally Posted by jpk

I think he meant it was part of all the legal changes that were buried in the massive stimulus legislation. All sorts of stuff buried in that giant tome, some of it might take years for people to figure out (and exploit).

And the TARP has not been paid back. You think AIG or Chrysler are ever going to pay us back the money we gave them? Chrysler already said it has no plans to repay us.

Separate topic, but the stimulus money that was actually paid back is just going to get re-spent on new 'stimulus' and entitlement programs by the morons in Washington, rather than to close the budget deficit. If you actually think TARP is over and all the money is back in the genie bottle, you're too optimistic.

was referring to the banks... i was totally against chrysler and gm and know that they will never pay it back.. they should have let the companies fall

[airics]

Originally Posted by jpk

I think he meant it was part of all the legal changes that were buried in the massive stimulus legislation. All sorts of stuff buried in that giant tome, some of it might take years for people to figure out (and exploit).

And the TARP has not been paid back. You think AIG or Chrysler are ever going to pay us back the money we gave them? Chrysler already said it has no plans to repay us.

Separate topic, but the stimulus money that was actually paid back is just going to get re-spent on new 'stimulus' and entitlement programs by the morons in Washington, rather than to close the budget deficit. If you actually think TARP is over and all the money is back in the genie bottle, you're too optimistic.

of course i don't think its over at all, i'm still waiting for my bailout.

[jpk]

Originally Posted by airics

of course i don't think its over at all, i'm still waiting for my bailout.

Ha!

[airics]

just wait.. this is all going to get worse in April when HAPA? legislation comes out. You will be able to shortsell your house with no deficiency reprocussions (on 1st mortgage).. the town is going to flood with homes.. you heard it from me first..

[olecapt]

Originally Posted by airics

just wait.. this is all going to get worse in April when HAPA? legislation comes out. You will be able to shortsell your house with no deficiency reprocussions (on 1st mortgage).. the town is going to flood with homes.. you heard it from me first..

There is no change on the first. It is basically a gimme now. The seconds are a different story. On the first if you don't get relief in the short sale you let them foreclose.

The rules are different for owner occupants versus investors...but they still will be. Much harder for an investor with assets to get out from under.