From another thread -
http://scaredmonkeys.net/index.php?topic=6280.msg983804;topicseen#msg983804This housing problem reminds me of Al Bundy and a dollar. In one show, Al went to the nudie bar with his dollar. After spending it at the dance floor, he used a string to retrieve it. He did this over and over with the same dollar.
1. The mortage originators, write these mortages which are backed by taxpayers. They earn fees.
2. Over time, vast numbers of these loans go into default, and taxpayers get stuck with the houses and bad loans.
3. These houses are sold in bulk lots, for pennies on the dollar. The buyers remain secret, the prices paid remain secret (iirc).
4. These bulk buyers of homes put the homes on the market.
5. Start over with step #1.
A home is sold multiple times, to buyers that are poor risks. Taxpayers get stuck with the home, bad loans, and sell in bulk for pennies.
Taxpayers get poorer, and mortgage originators and bulk buyers make out like bandits.
When will it end?
Another Al Bundy show involved getting change with a dollar. Al puts in a dollar, gets change, and then pulls the dollar out of the machine as it is attached with a string and duct tape.
Taxpayers are like the machine - they keep losing. They dispense money and lose the dollar.
When will it end?
Who buys all those houses for pennies on a dollar?
If those mortgage companies had to take financial responsibility for the loans they originated, would they be more selective?
If they didn't get paid until the loan/house was paid off, not refinanced, would they be more selective?
What kind of capitalism continues to pay like a sweepstakes, and when bad things happen, continues to pay?
Crony capitalism? Job rotation?
Who's looking out for taxpayers?
Hmmm...I saw on TV yesterday that Obama is upset that BANKS aren't writing down mortgages aggressively enough to suit his purpose.
Why is he worried about writing down loans? How many bad loans could possibly be left in the system?
The talking heads also said housing prices need to fall al lot more...before commercial banks start making loans.
Apparently the housing prices are still over inflated.Hmmm...who's buying those houses with the $8,000 tax credits? People who have strong jobs? Good credit? Do they make enough to afford those homes today?Or, are those houses really beyond their means? The liar loans and unqualified buyers continue with Freddie and Fannie backed loan
Irresponsible people? Unqualified by income, legal status, or credit history? Losses paid for by taxpayers?
Mr. Obama gave Freddie and Fannie unlimited taxpayer resources.
How aggressively is Obama writing down these loans? If someone bought a mansion they couldn’t afford last quarter, and Obama is marking it down, how much are taxpayers eating?
Enough to ensure that the home buyer is ONLY paying 10% of their income? I remember reading that the desired reduction/write down would ensure that borrowers paid some very low percentage of their income.
In my mind, Obama appears to be keeping housing priced propped up at taxpayer expense. Knowing that all those unqualified buyers will get HUGH price and payment reductions from Obama’s Freddie/Fannie.
The backend write downs make the home LOOK more valuable on tax records and real estate data banks. A false impression. Dishonest?Meanwhile, hardworking HONEST Americans are taking financial hits – not knowing about all the post buy markdowns, they buy homes they can afford, and will pay for all those neighbors that got an OBAMA deal with Freddie/Fannie.The dollar is collapsing and Obama is giving away mansions to SOME people. How many of those people are ILLEGAL ALIENS?
How many are committing some kind of fraud, identity theft by buying those houses? All crimes washed clean by Amnesty for $500?
Meanwhile, honest people keep paying top rates for homes?
Follow the money. Who’s selling all those houses? I read a while ago, foreclosed homes are being sold for pennies on the dollar, in bulk, to mystery buyers. Who are these buyers? Apparently it remains a secret. People have asked, but the government isn’t telling. These bulk buyers are getting top dollar at taxpayer’s expense.
Obama’s FAT CATS. Who are these mystery buyers?
Obama’s dishonest housing market.
From an old thread -
http://scaredmonkeys.net/index.php?topic=6145.msg947404;topicseen#msg947404During the real estate bubble, older urban neighborhoods across the nation, from Atlanta to Baltimore to Cleveland to Sacramento and countless communities in between fell victim to a devastating plague of predatory lending and mortgage fraud.
But the bursting bubble has not brought relief to suffering neighborhoods. On the contrary, communities already hard-hit by mortgage fraud and subprime foreclosures are now enduring the next wave of profiteering: the selling of vacant and foreclosed real estate to speculators.
A few of the purchasers are doing a service by fixing foreclosures up and renting them out. But far too often the foreclosed homes stay vacant and derelict as they're flipped from one buyer to anotHouses are being re-sold at tremendous mark-ups — sometimes upward of 1,000 percent — under "rent-to-own" contracts, whose holders bear the responsibilities of homeownership but few of the rights. These foreclosed houses are purchased in bulk, sight unseen, by investment companies far away from the community.
Houses are being re-sold at tremendous mark-ups — sometimes upward of 1,000 percent — under "rent-to-own" contracts, whose holders bear the responsibilities of homeownership but few of the rights. These foreclosed houses are purchased in bulk, sight unseen, by investment companies far away from the community.
In hard-hit foreclosure zones across the nation, servicers have so much real estate to dispose of that they auction it in bulk for as little as a few thousand dollars a property. These fire-sale prices too often attract buyers who exhibit little concern for neighbors or neighborhoods.
read more here -
http://www2.hernandotoday.com/content/2009/sep/17/ending-foreclosure-profiteering
