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The banks don't care about market prices, buyers or sellers.
The banks care about their balance sheets and how this effects their bottom line.
If they hold onto the properties they can value them at whatever they want.
The Fed changed the rules to allow that...it's called "mark to magic".
They don't have to mark to market unless the home is actually on the market. If the home sells for a loss, they have to list the loss.
By holding the homes in their inventory they are actually buffering up their balance sheets with these high value assets.
And you are very correct. I have many realtor friends, and i was a real estate assistant for many years. Bottom line is the bank cares about how things look on paper. They do hold on to the properties as long as they can, and they they can value them at a price they deem fit. They really do not want to list the homes that sell at a loss. The reason they hold on to the homes in inventory, is to buffer up their balance sheet, and the high value assents looks good on paper, better then a loss.
And we all know how well the Stimulus Plan WORKED .........RIGHT! if this is their plan, i guess they don't have a plan.
That was their plan. Government spending was going to kick-start the economy - or so they said. It was really just a way to rob the middle class to make sure the filthy rich would see no pain. Those who robbed this country blind didn't want to suffer. They are who benefitted from the stimulus and we're stuck holding the bill for it - with no way to pay it.
That was their plan. Government spending was going to kick-start the economy - or so they said. It was really just a way to rob the middle class to make sure the filthy rich would see no pain. Those who robbed this country blind didn't want to suffer. They are who benefitted from the stimulus and we're stuck holding the bill for it - with no way to pay it.
I am thrilled that some besides myself do undesrstand this. And ain't that the truth, and who in turn is stuck holding the bag..........Well we know only to well don't we now!
But I'll take a stab at it. If all the banks were to flood the market with their forclosed homes the prices would be depressed due to increased inventories, that isn't in anybody's interest. Not the banks and not other sellers.
How about buyers? Wouldn't lower prices help buyers?
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