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TARP wasn't enough. Now that the mortgages were sliced and diced and sold piecemeal, it's a free-for-all for the banks to grab homes and foreclose them and then turn around and sell them again.
Corruption knows no bounds.
True, true. Bush and Obama screwed the pooch on this one, IMO. Financial reform bill was a joke also. With the exception of some feel good measures protecting credit card consumers who couldn't read small print there is nothing in the financial reform bill that will prevent the exact same CDS fiasco from happening again or any oversight on bundled, sub prime securities being sold on the world market. Just a matter of time before the whole thing happens again.
The recent deflation in housing prices is the direct result of the sacred market actually correcting itself by determining the actual worth of a structure as a home not a speculative investment. This is why economists love the market and some businessmen hate it. Functioning markets can drop in value instead of always increasing prices.
Prices in the places I am investigating for a second or retirement home have dropped enough to let me pay cash for a house. My own home is still worth considerably more then I paid for it 25 years ago.
I believe the entire speculative era was created by deregulated banks and finance companies in order to maximize their short term profits. They are continuing this by falsifying their repossession practices to the detriment of the home owners. It is just another example of the Have and Have Mores stealing from the Have Nothings.
The banks have secondary underwriters and insurers which pay them full price of mortgage back when they foreclose. Then the bank doubles its money by getting (IF there is equity left after their pillaging) a deficiency judgment agains the homeowner they denied a modification or re-payment plan to.
I am not defending people who have 2 refis or interest-only loan, living in a S. Florida 700,000.00 McMansion home.
This is absolutely true. I live in a very hot housing market just outside of DC. I know of a family that has lived in their home nearly 20 years. They are not upside down, they do not have a subprime, they have no second mortgage. What they have in-fact a quarter million in equity and a very sick mother in the home with no insurance. The bank had them fill out a hardship letter and forms for refy loan and told them it will take 80-120 days for a decision. 3 weeks later the bank not only didn't tell the family whether they qualify or not but instead sent a "accelerated foreclose" notice to them. And believe this or not they are only two months behind and have not let it get past that amount. Evil chit!!! I've seen the paper work and could not believe what I was seeing. I will never forget this behavior from our national banks, ever.
This is absolutely true. I live in a very hot housing market just outside of DC. I know of a family that has lived in their home nearly 20 years. They are not upside down, they do not have a subprime, they have no second mortgage. What they have in-fact a quarter million in equity and a very sick mother in the home with no insurance. The bank had them fill out a hardship letter and forms for refy loan and told them it will take 80-120 days for a decision. 3 weeks later the bank not only didn't tell the family whether they qualify or not but instead sent a "accelerated foreclose" notice to them. And believe this or not they are only two months behind and have not let it get past that amount. Evil chit!!! I've seen the paper work and could not believe what I was seeing. I will never forget this behavior from our national banks, ever.
Banks have traditionally been in the financial business. Since TARP, they have money to burn. Housing prices are artifically deflated now. Banks arn't loaning money and have kept credit tight. They are now in the real estate business with first crack at the real estate market. Buy low, hang on to the tangeble asset and sell high later.
I do not believe the banks are hoarding cash or that the housing prices are artificially deflated. I think the banks are holding reserves for the eventual collapse of the CDO speculative market and that housing was artificially inflated far beyond the 2.5X the local mean income during the 1990s. This speculation created a massive surplus of McMansions designed to be speculative investments for the growing financial class (100 to 250 thousand dollars per year DINKS). There were very few working class (40 thousand per year) houses built.
In my local overpriced market the average income is about 100 grand but the average house price is still about 400 thousand. There is still plenty of room for deflation in our town. In many places in this country you can get decent 3 bedroom older houses in the 100 grand price range. Just bring your own job or independent income.
I believe we are going to see not only a massive drop in the sales of gussied up pickup trucks and SUVs posing as family cars as 50 thousand and under jobs continue to be replaced by off shoring and automation. Most people in that income range cannot afford to buy late model (2005 and newer) used cars. The mass market for 40 thousand dollar pickups will be limited to commercial sales and those will not sustain four mass production auto manufacturers. The money is just not available in the working and lower middle class markets.
The money for real mansions and second or third homes is plentiful although the number of buyers is more limited as mid and upper level management positions are being sharply reduced. The very top of the income scales will increase their income and there are just enough to provide a market for million dollar house in exclusive gated and resort communities. This group will also support the very top end automobile (Ferrari and others) and other luxury goods and services.
Same old situation typical if the pre WW2 economy has returned. The Haves and Have Mores will get and keep More while the Have Little’s will get less until they lose everything and drop to the Have Nothings. This is the natural result of an economy created to serve a financial and political aristocracy that controls the markets and the politics with their wealth
Banks are foreclosing at higher than normal rates and using robo-signatures, are now charged witnh foreclosure fraud bcs their reps are not even reading the documents before signing off. In NY the atty general is suing Chase and Bank of America for fraud.
Is anyone else enraged that this is happening after all our TARP funds from average taxpayers bailed out these conglomerates? Its wrong.
Yup, the bankers need to go to JAIL They committed fraud in a big way and if citizen jane or john did the same thing they would be in jail.
What cracks me up about this thread is most posters don't seem to get that the foreclosure fraud has nothing to do with IF the property should be foreclosed on due to non-payment for whatever reason. It is a totally different issue. I'm surprised that most seem to have a mortgage, yet don't understand the very basics of property ownership. Do you really know who holds the mortgage on your property? Has your mortgage been sold to another entity (most likely)?
What is now and will continue to happen until this is fixed, is the title companies won't insure over the top of a foreclosed property - that is happening right now because of the fraud. What this means is, if the title companies won't insure no one can get a loan. It also drives down the price of the value of the property to zero, who wants to own a property that might have a problem with who actually OWNS the property also known as a "cloud on the title". I know several title companies will no longer insure on ANY property with a foreclosure ANYWHERE in the chain of title, even if it took place 10, 20, 30 years or more.
When you buy a property a title search is done and it needs to be clear of any liens etc. for instance, if aunt minnie owned the property 50 years ago but for some reason retained the mineral rights when she sold out, her heirs can show up on your property and set up an oil rig or dig for gold. It is the same problem with the "paperwork fraud" going on with foreclosures. The banks have to PROVE they have the right to foreclose with a clear/clean title and if the proper paperwork is not of record in the deed room, and that seems to be the case, they legally do not have the right to foreclose putting a serious cloud on the ownership to the title of the property.
The banks have committed fraud through neglegence and all of them need to go to jail. I also suspect that this fraud has been going on for a lot longer than the banks are willing to admit to.
Again folks, the foreclosure fraud perpertrated by the banks has nothing to do with should the foreclosure take place through non-payment of a mortgage, that is a different issue all together.
A lawsuit filed on September 28th in federal court in Louisville on behalf of all Kentucky homeowners claims that MERS was part of a conspiracy to create false promissory notes, affidavits, and mortgage assignments to be used in mortgage foreclosures. Similar class actions have been filed on behalf of homeowners in Florida and New York. Karmela Lejarde, a MERS spokeswoman, declined to comment on any pending litigation.
The reality is that as millions of U.S. mortgages have been bunched together and traded around the globe at lightning speed, it has become increasingly unclear who actually has title to them and who actually has the right to foreclose on these properties
Not sure why you are still blaming the homeowners, they didnt create MERS.
The loan modification MHA program was not anything but lip service by a corrupt administration and banks paying them for a supposed aid to people with medical and other hardships.
This is absolutely true. I live in a very hot housing market just outside of DC. I know of a family that has lived in their home nearly 20 years. They are not upside down, they do not have a subprime, they have no second mortgage. What they have in-fact a quarter million in equity and a very sick mother in the home with no insurance. The bank had them fill out a hardship letter and forms for refy loan and told them it will take 80-120 days for a decision. 3 weeks later the bank not only didn't tell the family whether they qualify or not but instead sent a "accelerated foreclose" notice to them. And believe this or not they are only two months behind and have not let it get past that amount. Evil chit!!! I've seen the paper work and could not believe what I was seeing. I will never forget this behavior from our national banks, ever.
Exactly. And why isnt the federal government stepping in ?. They gave out TARP funds but didnt oversee where any went.
Everyone who is wondering about their county should go to hall of records and print out deed registration. If it has MERS stamped on it (esp. from Pinellas County FL) It is part of the foreclosure mill that is being sued by the Florida AG.
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They committed fraud in a big way and if citizen jane or john did the same thing they would be in jail.
. Do you really know who holds the mortgage on your property? Has your mortgage been sold to another entity (most likely)?
. It is the same problem with the "paperwork fraud" going on with foreclosures. The banks have to PROVE they have the right to foreclose with a clear/clean title and if the proper paperwork is not of record in the deed room, and that seems to be the case, they legally do not have the right to foreclose putting a serious cloud on the ownership to the title of the property.
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