Banks are overwhelmed by foreclosures

The Feds have a program to grant money to cities to buy foreclosed homes and vacant properties. ( I believe this has always been in place in one form or another, but recently has gained new life=money) Seems like a back door method to assist banks.

I suppose if the bank does not pay property tax the city then forecloses on the bank with Fed money. Banks off the hook the city auctions the house, short fall is on the back of the fed. Clever as hell.

I know I haven't the details correct but, it'll work.
 
Quote from nutmeg:

The Feds have a program to grant money to cities to buy foreclosed homes and vacant properties. ( I believe this has always been in place in one form or another, but recently has gained new life=money) Seems like a back door method to assist banks.

I suppose if the bank does not pay property tax the city then forecloses on the bank with Fed money. Banks off the hook the city auctions the house, short fall is on the back of the fed. Clever as hell.

I know I haven't the details correct but, it'll work.
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Oh, that's absolutely fascinating. I had not thought of that. I also think you are 100% correct, although I am sure that the mechanism is more complicated than that. What would the compliance/legal/ issues for the banks be with that is the question. Thanks for that post - useful for RE timing in the future.

And bodes for muni defaults by those cities as well as declining tax revenues combine with purchases of property which will undoubtedly create an accounting loss as they are not easily auctionable.

Will create an opportunity in time, though.
 
I'm tired of greedy, irresponsible people who can’t afford their mortgage payments crying “help me!” It’s the same story over and over. The evil banks allowed them to overextend themselves, the evil government doesn’t run to their rescue and now they are going to lose their houses. It's everyone's fault but theirs.

Why in the world should they be bailed out? Unless a gun was put to their head to sign the paperwork to borrow this money, they should be held responsible — period. These deadbeats deserve to be foreclosed on!

Prudent people live below their means and save a part of their income for retirement and so they can get through tough times. Buy something when you can afford it. It’s that simple. There is one simple solution to this problem and that is to downsize. Houseless is not homeless. Rent for a while until you get on your feet and live within your means.
 
Quote from Trader666:

I'm tired of greedy, irresponsible people who can�t afford their mortgage payments crying �help me!
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No one cares about the people who are being foreclosed. The only reason there is so much pressure to help the homeowners is to help the banks which are up sh*t creek without a paddle. I say screw them all.
 
Quote from Trader666:

I'm tired of greedy, irresponsible people who can’t afford their mortgage payments crying “help me!” It’s the same story over and over. The evil banks allowed them to overextend themselves, the evil government doesn’t run to their rescue and now they are going to lose their houses. It's everyone's fault but theirs.

Why in the world should they be bailed out? Unless a gun was put to their head to sign the paperwork to borrow this money, they should be held responsible — period. These deadbeats deserve to be foreclosed on!

Prudent people live below their means and save a part of their income for retirement and so they can get through tough times. Buy something when you can afford it. It’s that simple. There is one simple solution to this problem and that is to downsize. Houseless is not homeless. Rent for a while until you get on your feet and live within your means.
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The problem in this country is that most people are brainwashed idiots; that's what TV does to you with all the advertising. They make you think you need all this shit, when you really don't. If the Amish can get by without it, so can everyone else. People want everything NOW. They want a mcmansion, a new Porsche, and granite countertops. So they go into huge debt and cry when things go sour.
 
Quote from brokerbroker:

this is something i never understood, why do rates go up when you can't pay your bills in the first place? makes no sense!
why do high risk pay more? high risk can only pay less by definition.
dropping the rates enables more people to make payments, raising rates makes more people default.

them guys is crazyyy
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Wow. That's all I can say about this post.
 
Trader666 hit the nail on the head. The media has changed the American Dream from a life lived below one's means into a life that has to be lived way beyond the means of the normal person.

I do really well living in a house w/o granite counters and marble floors. But I'm pretty happy and well adjusted about it anyway.

My feeling is that the buyers who got themselves in trouble should have to find their own way out.

I had to learn the lesson the hard way and got no help. Now, it is their turn.
 
Problem is, the COLLECTIVE (our governmental) and the Middle and Poor feel that the American DREAM is an American RIGHT.

I mean, why should those who are more successful buy houses 20X the average norm. That isn't EQUALITY.

I mean, why should someone making 300k a year with a net worth of a Million be able to utilize an Arm with an adjustable rate. That isn't EQUALITY.

I mean, American stands for EQUALITY among all MEN/Women.

America owes the poor and middle class a HOME, 5x what they can afford, with no assets. I mean, where is the Justice? Why do we not care for the "common" man. Those of us who work and make X more than the poor and middle class have a moral duty, to provide for them. What kind of world do we live in, when a man, will allow another man to starve in the streets, go home-less.

Let the "looters" take control of this country. Let the "Looters" lower the standards to push Sub Prime Loans. Let the "Looters" pass laws to allow the "Poor and middle class" to keep their homes. Let the "Looters" demand that the TAX PAYERS, to include the Evil Ones who pay 200k a year in Taxes, pay for the common man.

I mean, we are a bruva hood? Right? The common collective of the great AMERICAN STATES.

The "Looters" have just started. It is only the begining of their Methods, their Philosophy, their rule.

This is the Decade that will be run by the "LOOTERS".
 
you are SO right. this IS the decade of the looters: GWB, Halliburton, XOM, Enron, Bear Stearns, GS. Countrywide ...

PLEASE !

your hypocrisy knows no bounds: in your schema, only the little people should be owned. If you are too big to fail, well, then no bailout is too much, right ?

this isn' t capitalism, it is wealth socialism !

does "moral hazard" mean anything to you, at all ?
 
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