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The initial wording of the bailout plan had the Fed buying the mortgages at "face" value rather than market value. That would put some credence in posters saying banks have pulled their homes.
I don't know if that's been changed..I hope so else we're losing right off the bat (taxpayers).
Now I understand there's some insurance involved.
Hate to break it to you, but this is going on all over the country. Yes, banks are waiting to see what the bail out means to them. And of course it is convenient . . . banks are not philanthropic institutions. They are money making entities, LOL. So of course banks are waiting to see who is gonna bail them out. Why take a loss if they are not gonna have to? This is how it works. Unfortunately, most of us simply have no clue what this bail out really MEANS since no one is telling us the actual terms of this "deal."
Of course they're waiting. Why would anyone not believe that. Naive?
What is unbelievable about this is that we, the taxpayers are supposed to pay them full value, rather than market value....
This is simply outrageous. If I want to sell my house, I have to take what I can get, no one cares what I paid for it.
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The price of anything is the amount of life you exchange for it. ~Henry David Thoreau
This is the part that frustrates me the most. I am planning on buying in Dec-Jan and I am dreading the process, now that home prices are becoming more reasonable, banks don't want to make any deals because they are too greedy, they want more than these houses are worth. To me, home prices should be about what they were in 2002, with maybe 15% added to that value, banks thinking that they are going to get the 2006 price are just insane and they are only compounding the problem by hording these properties.
Well, what can I say... I am only relaying what my realtor told me, but I trust her (know her quite well) and see no reason why she would tell me such a story if it weren't true.
It makes sense. Any seller can walk away, and the Banks are no different. Everyone is watching to see how this thing shakes out and the Banks are notoriously slow when dealing with short-sales and foreclosures anyway. For them or any seller, realistically, if waiting means more money, most will just wait, particularly if they suspect a short wait will lead to more profit.
This is the part that frustrates me the most. I am planning on buying in Dec-Jan and I am dreading the process, now that home prices are becoming more reasonable, banks don't want to make any deals because they are too greedy, they want more than these houses are worth. To me, home prices should be about what they were in 2002, with maybe 15% added to that value, banks thinking that they are going to get the 2006 price are just insane and they are only compounding the problem by hording these properties.
Once the credit problems open up and trend towards a resolution, and Banks have a reasonable handle on their losses, I suspect this trend will change. The banks are caught in a catch 22 - in order to hold an asset they have to horde capital on a ratio basis. Couple this with jobs decreasing, toxic credit assets, and unstable financial markets they're caught in a vicious circle. A stable buyer willing to take an equity interest in the property should be attractive as Banks are really focused on risk at this point.
I ran into our realtor yesterday while I was out and talked to her for a while. She told me that things have really slowed down, no surprise. BUT, she told me she had a client who is looking to buy a house, finally she found a house her client liked and was perfect for her. They put in an offer to the bank (house is bank owned) verbally the bank agreed, so the potential buyer went ahead with a home inspections, mold and radon test etc. etc. Then she tells me the bank has now called off the sale, saying they are waiting to see what will happen with the bail out bill and they are hoping to get more money from the government in a bail out.
Just peachy. I wonder how many banks will now decline to sell properties, hoping for more money from the taxpayers.
This just is insane.
I am looking to buy another house. I am glad you put this thread up. I'll wait now until this bailout fails and then offer the Banks a stupid price. Banks should be No.1 on the Public Enemy list.
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