E-mail updates
Follow on Twitter
Subscribe to RSSThe U.S. foreclosure rate has climbed to its highest level in seven months, suggesting that lenders are moving beyond a "robo-signing" scandal that had temporarily slowed bank takeovers, according to a private firm that tracks the activity.
Foreclosure filings — including default notices, scheduled auctions, and bank repossessions — were issued on 230,678 homes in October, up 7 percent from September but 31 percent below the level of October 2010, according to the report issued by RealtyTrac Thursday.
RealtyTrac CEO James Saccacio said the uptick represents more "unclogging of the pipeline," as foreclosure activity suppressed by the robo-signing scandal eases its way out of the system and the process reaccelerates. Many lenders and servicers were forced to slow or halt foreclosure activity after revelations of the improperly signed documents.
"We expected this uptick to occur, since the pipeline was 'suppressed,' so to speak," Saccacio said in an interview.
Nevada, California and Arizona remain the states with the highest foreclosure rates.
Saccacio noted state rules on foreclosures can impact activity.
Nevada, for instance, recently changed rules on what a lender must do when filing a notice of default — the first step in the foreclosure process. The state passed a law that went into effect in October requiring that institutions file affidavits in connection with the launch of the foreclosure process. The affidavits make Nevada a "judicial" foreclosure state, meaning the process is slower because it requires more public paperwork. The result, Saccacio said, is that Nevada default notices fell dramatically last month.
James McHugh, a Realtor specializing in distressed property at Las Vegas-based 1st Realty Group, said lenders filed about 4,000 default notices in his market in September, before the change, but that fell to about 50 notices in October.
"In the past, we were a non-judicial foreclosure state where the process used to take about a year," he says. "My opinion is that this could cause a bubble market, where inventory of these homes shrinks but then pops back up later. A foreclosure could take three years."
McHugh says he speculates that this could dry up the pipeline of inventory and improve the market for a time, but a major uptick in foreclosures might hurt the market later.
Nationally, default notices rose 10 percent month over month, but were down 23 percent from October 2010. States where there was a notable increase in notices included Indiana (61 percent), Pennsylvania (50 percent) and Florida (up 28 percent).
Foreclosure auctions scheduled in October rose 8 percent from September but were down 38 percent from this time last year. Auction activity was notably higher in Florida (57 percent), Minnesota (43 percent) and Illinois (38 percent), but those states' activity levels were still lower than in October 2010.
Lender repossessions rose 4 percent in October but remained 27 percent below October 2010 levels. Major increases were seen in Michigan, Oregon, New Jersey and Indiana.
Here is RealtyTrac's September "heat map" of foreclosures. We'll update it when we get the October map.
Leave a Comment:
Deflation cannot be prevented after credit inflation runs it's course. FED made credit easy, we have borrowed for the last 70 years. Now the pay back time has arrived.
Banks create money when we borrow. Entire money supply is debt. It is the principal we borrowed. But banks demand that it is paid with interest. It is not possible for every borrower to be employed at levels that enables them to earn principal + interest. Because the interest portion is not created yet. It is only created with more borrowing. The inflation created by money creation of banks punishes savers and forces more people to borrow. New money is used to pay old debt. When we run out of borrowers, it crashes.
www.kondratieffwavecycle.com/economy/deflationary-crash/
New money that is created in a society should belong to the society. It should not belong to private bankers. Thus, if any interest is to be paid, it should be paid to the people, not to the private bankers. A solution is to require 100% fractional reserve. Let treasury print principal + interest when a loan is made. Principal is loaned out to the borrower. Interest portion is spent in place of taxes. principal + interest is available to earn. When interest is paid back, destroy it.
www.kondratieffwavecycle.com/web-of-debt/
Current system requires perpetual debt since existing debt cannot be paid without further borrowing. Banks can at will withold loans and create a depression. Then they will make loans to their friends and withold loans from competitors. When competitors who cannot access loans go bankrupt, they are bought by the friends pennies on the dollar. This way the banking cartel gains control of the media and other industries. This is a ponzi scheme but when it goes bust, they get bailed out.
Last but not least, if banks did not create money out of nothing when they made loans, then home prices would be lower and savers would afford them cash down. This is because when 30% of the population works in financial services, the other 70% has to work harder to feed the 30%. If financial services is reduced to 1% just like farming, then they will be employed at more productive tasks (building homes?) and the burden on the 70% will be reduced.
Obama will not let deflation occur. The housing bubble is collapsing still, but everything else is way up due to rampant spending. Deflation helps the poor but punishes the rich. Inflation does the opposite. The fact that Obama is forcing inflation speaks volumes.
As to the article...increased foreclosures, is a necessary pain we need to go through to get the economy going again. After the foreclosures are cleared out, then we can find the market bottom and start rebuilding. Until that happens, there is so much speculation that it will be hard to maintain any positive momentum.
As to the debt based society - I completely agree that it's a house of cards that was bound to collapse. Hopefully we will learn some good lessons out of this and start becoming a nation of fiscal conservatives ...but, from what I see, we seem to be going the other direction.
Well, when companies are already priming the pump on Christmas spending with there insessent advertising of more stuff we don't need, alot of people will spend money they don't have (ie.. credit cards). We are a nation of habitual spenders and companies don't care how you do it, just so long as you do.
Are there any properties that haven't been foreclosed on yet? 49% of Americans now live below the poverty line and there is no relief in sight. While over 75% of us realize that there needs to be an increase in revenue, the right will not impose a lousy .7% tax increase on those that earn over $1M/year.
I would like to see those elected officials compromise and get something done for the working class before the term, "middle class" is only found in history books.
Sandtrich
I'd love to see where you get the numbers to support the claim that 49% of Americans live below the poverty line. Everything I'm looking up on the internet says that claim of yours is way way way off. The poverty level would have to be in excess of 40K a year to even come close to the number your tossed out. Sorry to break it to you Sandtrich, but whoever gave you your numbers is lying.
Reading your whole comment, it seems to me your just trying to bait people into a class warfare conflict. Is this info your putting out given to you directly from some political party machine? Only politicians can lie to your face as badly as what your claims suggest and do it with a straight face. My suggestion to you is to do your own research before you listen to what Obama says. A simple google search would have told you that 49% is false. Political parties lie. That holds true for Republicans and Democrats. Both are parties of lies. It is time people stop being sheep.
Obama is one ofthe reasons why the economy is the way it is. Corporations don't want to hire because there is no reason to hire in the Obama environment. Banks are now foreclosing after we, the american taxpayer, bailed them out. The biggest crooks are Bank of America and Wells Fargo. It would do us well to BOYCOTT these institutions because they have forgotten how to be good neighbors. If we as taxpayers bail them out then they have an obligation to help bail out troubled homeowners. When I say troubled homeowners I mean homeowners who need to refinance because their mortgage is to large and they have paid their mortgages in the past and they are up to date. Now Bank of America is looking to foreclose on homeowners that have lots of equity but are unable to get refinancing. This is immoral if not criminal. I refuse to do business with vultures like this. I served my country in a war and help my family, neighbors, and community. This is not the way Americans should act to each other and we should not accept this kind of behavior from our financial institutions. We should be helping each other in this difficult time.
LETS BOYCOTT BANK OF AMERICA and make our voices heard for a better America.
I know a couple who lost their farm. It was suvbdivided and put on the market. It never sold. Well, when it went on the block for auction, they bought it back at pennies on the dollar. Their payment's are less than half. Who lost the equity. In the beginning I thought it was the original owners...now I wonder was it the financial institute?
Foreclosures are joyrides. For those in foreclosure I hope you enjoyed the joyride while it was happening, and I hope you now land on your feet at a level you can afford, and without credit repercussions. If you feel you were suckered into a jackpot, a "jackpot" is a $750K house when you have 3 part time jobs + a shift at McDonalds, by your banker or your politician or both, I hope you will find a gratis lawyer and go after the bums.
If you were suckered, you do not deserve a bad credit rating out of this. The credit rating liability belongs at the feet of the institution or politician or both that suckered you.
The GOP's skewed economic policies that flagrantly favored Wall Street and the Big Banks have allowed these entities to engage in massive mortgage fraud and financially sink trusting American homeowners. If any of the GOP's/Tea Party candidates should slink their way into the White House in 2012 - these Fascists will have many more Americans living, sleeping and dying on our streets.
But its a combination of the unemployed and people below poverty, still inflation without pay increases has put 20% of these people and families impoverished in just the past recent years and still working..
Many throw a blind eye to what is happening because poor americans are geniuses on staying hid.
Folks, I hate to send you into a state of inexorable fear, but this has never been a housing bubble. No, housing prices have risen at a fairly (overall) linear percentage since at least the end of the 19th century. Sometimes they go up faster, sometimes slower. This is the first time they've gone down. Is this because some Wendys cashier bought an all brick center hall colonial? There are still a few extremely gullible folks who wish to believe that rather than face the truth. The truth is, that if this is even a bubble (and by comparable percentages to tech stocks et. al. I still say the word bubble is overly convenient and overused to describe what is happening with real estate) then it is a bubble inside of another bubble, kind of like Inception. What we actually have here is an employment bubble. Now, I make things by hand for folks one at a time, so I do get to take the moral high ground here. What is obvious to all of you is that every time manufacturing evolves even slightly, it takes fewer and fewer people to make more and more items. Everything that was built by massive numbers of people just a few decades ago is now built largely by machines and robots, and with increasing frequency, this takes place overseas. But now even China is finding that it can't keep ratcheting up production across the board, they have shut more factories than we have. And sorry to disappoint the be fruitful and multiply crowd, but we can't just f()ck our way out of this one this time either, because the world is now incapable of supporting it's human population. Major apex predators are going extinct, as of today, the black rhino is already gone. This means that the entire mechanism that produces plants, absorbs CO2, allows for crop growth and maintains a regular supply of rain is beginning a collapse that will occur much faster than most of these climate scientists can even comprehend. The bubble we are in is at first perhaps a housing bubble, wrapped up in an employment bubble, one that is just beginning to rip apart in slow motion, but will explode once the newest 3D printing technologies begin to become practical within the next few years. Even if society can instantly reinvent itself without money, the employment bubble is wrapped up in the ultimate bubble of all. In the garden of Eden, God told Adam and Eve to go forth, be fruitful and multiply. The thing is back then, there were only TWO PEOPLE! It is the arrogance, the ignorance and the irresponsibility of the human race that will burst the outermost bubble - the People bubble.
25Walker: I couldn't have said it better myself!
Richard--My apologies. The number of 49 was not a percent. 49.1 Million Americans live in poverty, (a record high). The wealth gap is also higher than any time in history. There is a class warfare going on and it's not the fault of the poor. Eisenhower taxed the nation's wealthiest at a rate of 91%--Kennedy lowered it to 70%, yet the nation prospered. Taxes were higher during Nixon, Reagan, Ford, and Bush I than they are now. Was Ike a "socialist"? Historically, when a country is at war, taxes go up--not this time. The right has nothing to complain about. Corporations are reporting record profits, continuing to ship jobs abroad for cheap labor--yet they still use the US corporate branding to sell their products back to the same people whose jobs were shipped abroad.
When the time comes, the left will put a stop to this behavior by the right and it The French Revolution will pale in comparison.
25Walker,
Go back and read history, you could not be more wrong.
To those who want to blindly blame the banks and financial institutions for the current housing situation might I suggest a moment or two of reflection. I'm guessing many, or at least many that post here do not have a comprehensive understanding of how the system works and why the current situation is what it is. At this point I will apologize in advance for the length but it is necessary to put everything into context.
First a bit of history; contrary to what many think the CMO and MBS concept is not something new that the banks thought up to take advantage of the public. They have their origins in FDR's New Deal programs. More specifically during the depths of the Great Depression, the United States Congress responded to the crisis by passing the National Housing Act of 1934, which established the Federal Housing Administration (FHA). One of the principal mandates, or indentured requirements, of the FHA was to increase the flow of capital to the housing markets by insuring private lenders against them risk of mortgage default. FHA also was tasked with chartering and regulating a national mortgage association that would buy and sell FHA-insured mortgages. This newly formed entity required by Congress, which was chartered in 1938, was and is the Federal National Mortgage Association; better known today as Fannie Mae.
Fannie Mae was established in order to provide local banks with federal money to finance home mortgages in an attempt to raise levels of home ownership and the availability of affordable housing. Fannie Mae, by law was required to create a liquid secondary mortgage market and thereby free the loan originators to originate more loans, primarily by buying Federal Housing Administration (FHA) insured mortgages. For the first thirty years following its inception, Fannie Mae held a veritable monopoly over the secondary mortgage market.
The provisions of the act changed gradually over the years. It was not until the mid 1960's, under pressure from the federal government by way of LBJ's 'Great Society' programs and mandates, that there was a paradigm shift in the way FNMA was required to conduct its business. In response to the public outcry and need to further broaden the capital base available for mortgages that the housing finance system began to resemble its current form. In that year, Congress partitioned Fannie Mae into two entities:
1. Fannie Mae, which retained responsibility for purchasing "conventional" (non-Government-guaranteed) mortgages that conformed to specified standards, and
2. The Government National Mortgage Association, now known as Ginnie Mae or GNMA.
In 1970, the federal government authorized Fannie Mae to purchase private mortgages, i.e. those not insured by the FHA, VA, or FMHA, and created the Federal Home Loan Mortgage Corporation (FHLMC), colloquially known as Freddie Mac, to compete with Fannie Mae and thus facilitate a more robust and efficient secondary mortgage market, thereby pushing mortgage rates lower and making the pool of capital larger.
As a result of GNMA's creation, in 1968 a vehicle was establish to create and trade the first mortgage passthrough securities which was followed in 1971 with Freddie Mac' issuance of its first mortgage passthrough, called a participation certificate, composed primarily of a pool of private mortgages.
By the late 1970's, under the administration of then President Carter more pressure was brought to bear by the federal government, by way of Department of Housing and Urban Development, better known as HUD, (which remember was created as part of Johnson's Great Society) on the mortgage industry in an effort to reign in mortgage interest rate and to expand home ownership.
In 1992, President George H.W. Bush signed the Housing and Community Development Act of 1992. The Act amended the charter of Fannie Mae and Freddie Mac to reflect Congress' view that the GSEs "have an affirmative obligation to facilitate the financing of affordable housing for low-income and moderate-income families." For the first time, the GSEs were required to meet "affordable housing goals" set annually by the (HUD) and approved by Congress. The initial annual goal for low-income and moderate-income, or sub-prime mortgage purchases for each GSE was 30% of the total number of dwelling units financed by mortgage purchases.
In 1999, Fannie Mae and Freddie Mac again came under pressure, this time from the Clinton administration, to further expand mortgage loans to low and moderate income borrowers (again sub-prime borrowers) by increasing the ratios of their loan portfolios in distressed inner city areas designated in the Carter Administration's 'Community Investment Act', or CRA of 1977; thereby pushing the sub-prime component of the secondary mortgage securities market to nearly 60% of all MBS pools.
Because of the increased ratio requirements, institutions in the primary mortgage market were required by federal mandate to ease credit requirements on these sub-prime mortgages.
On September 10, 2003, the G.W. Bush Administration recommended the most significant regulatory overhaul in the housing finance industry since the savings and loan crisis. Under the plan, a new agency would be created within the Treasury Department to assume supervision of Fannie Mae. The new agency would have the authority, which now rests with Congress, to set capital-reserve requirements for the company and to determine whether the company is adequately managing the risks of its portfolios.
There was immense Democratic opposition to Bush's plan as led by and expressed by Rep. Barney Frank of Massachusetts, the ranking Democrat on the Financial Services Committee. From his pulpit he said, and I quote:
"These two entities -- Fannie Mae and Freddie Mac -- are not facing any kind of financial crisis." Frank continued: "The more people exaggerate these problems, the more pressure there is on these companies, the less we will see in terms of affordable housing."
Thusly, it should be concluded that, while there is enough blame to go around, the primary culprits in the current lending fiasco is the government intervention into the mortgage market for the purposes of social engineering.
Starride#1.15: Sir/Madam: Your treatise is as illuminating as a coat of black paint swiped over the eyes of a blindfolded blind man at midnight. My none of us ever again stumble.
Robo signing? Protect the rights of the borrower who doesn't pay?
I have a very simple criteria. Is the borrower paying the amount promised each month?
No? Foreclose.
End of story.
Why romanticize deadbeats?
And you expect logic and common sense to prevail? How dare you. The poor down trodden were just trying to get the things that "those rich people" have....
I do sympathize with those who could afford their homes, and just happened to get caught up in the downturn, and there are many. The interesting part is they're also the ones doing everything they can to scramble and pay their bills and try to keep the sherrif away. The ones who couldn't afford it in the first place are also the ones who trash the house before they leave in retribution. Of course losing the house for many of these was a forgone conclusion BEFORE they even closed.
Hopefully this time the government won't step in with everyone elses money in a faulty attempt at keeping a grossly overinflated balloon overinflated. Let it find it's own bottom. It will hurt, but in the end everyone will be the better for it.
A man looses his job and then his house because of the economy and he becomes a dead beat.
Another man makes stupid decisions with his corporation and threatens to go into bankruptcy if he doesn't get billions from the taxpayer so he can keep millions in bonuses for those stupid decisions. Bush II gives him all the money he wants - of course he is a banker not a dead beat. He gets to keep the dead beat's house also.
No one is romanticizing anything here. These loans were predatory con games that had some individual loan officers quitting in disgust. That's a corruption of the process that drags down the value of every home, including those owned outright or paid for on time. It also includes people who bought in good faith, have made payments, and still find the value of their homes under water. There isn't a homebuyer or homeowner out there who wouldn't benefit from mortgage reform.
Dick-2100935. Excellent post. In this country, if you steal a car, you go to jail. If you steal someones life savings, you become CEO of a corporation.
I feel for those who work hard, live within their means, do not buy a house they know they can't afford, and lose it because they lost their job.
So Obama haters.. The republicans have had control of the house for almost 2 years right? Where are the Jobs they promised? Where are the jobs that Americans need so they can pay their mortgage?
Thank you @Dick...I grow so tired of people like @Letusreason, who paint everyone with the same narrow-minded, cynical brush...
I've been looking for a full-time job for 18 months. During that time, we have begged and borrowed and have done everything possible to make our mortgage payment, because like a surprising number of people in our situation, we bought a house well within our means and felt obligated to pay for it as we are mature, responsible adults.
But the money dried up, and we have had to make many difficult choices, including moving back home, 1400 miles away, and living off the largesse of my in-laws...another hard decision was to let our mortgage go, and it is about to go into the beginnings of the foreclosure process. We are still working with an agent and trying to sell, and hoping that we can at least get a short sale approved to take some responsibility for this whole mess...
When your back is against the wall, you do what you have to in order to survive, and take care of the basic needs of your family. Unless you're in that position, your voice is just background noise to people like me...so ramble away...
STLRunner.
I respect you for doing all that you have to live up to your responsibilities and not claiming it was all someone else's fault. Your honesty and dignity shines clear.
Hang in there and know that you are not alone.
STLRunner. I have a tremendous amount of respect for you and your entire family. Having watched my mother go through this as a child.... Keep your head up, you are definitely not alone.
People need to take responsibility for their actions. If a person or business overextended themselves, they need to do whatever is necessary to fix the situation (even if that means closing the business or losing their house). Just because we did one bad thing (bailing out Wall Street), doesn't mean we should do another equally bad thing (bailing out homeowners that were careless with their finances). What we're doing in this country is punishing the responsible people by making them pay for the faults of others.
We should also prosecute people that broke the law with predatory lending practices and those home buyers that lied on their loan applications.
Citizen K - while I have no doubt there were cases of loan officers quiting because they felt forced to make unethical/illegal loans, there were also loan officers that quit because the government was pressuring them to make loans they thought were unwise for the borrowers. I don't have any statistics for the second group, but the lender my family had used for 20+ years quit for this reason around 2005 (i.e.; he felt under pressure from regulators to give people loans he thought were unwise investments for the borrowers - and he closed his business instead of making these loans even though it would have made him lots of money).
STLRunner,
I'm sorry to hear about your situation. Sometimes we make all of the right choices and things still don't work out.
On a positive note, with your attitude, my guess is you'll get your life straightened out over the next few years. Keep your head up and good luck!
Simple, they aren't deadbeats. Who caused the housing crash? Wall St. did. Now if you have to switch jobs or find a job out of state, you will not be able to sell your house on the market. You will have to short sell or foreclose on it because you don't have any other option. In a normal market, you would be able to sell your house with no issues. But because Wall St. destroyed the housing market and lending, you are screwed due to no fault of your own. People die, people switch jobs, military personnel get transferred and there are many other situations where people need to sell their homes but cannot do so. Ultimately, they have to foreclose.
Dick and Citizen..First class posts. The foreclosures we are seeing now are those from hard working Americans who have either lost their jobs or have chosen to "walk away." That being said, I would like to ask the conservatives on this board the following:
If corporations "are people" as Mitt Romney said, then why do they have more rights thru the Bankruptcy code then "people?"
To Wit:
If the definition of Bankruptcy is liabilities exceeding assets and you are unable to meet your obligations, then why can't consumers avail themselves to the BK code and force the Banks to the negotiating table like corporations do?
Why didn't president Obama and the Congress pass "Cram Down" legislation in 2009 that would have allowed consumers to do this?
Just askin?
TorpedoYou,
I'll answer as a fiscal conservative (social liberal):
I don't think businesses should have more rights through the bankruptcy code. I'm not sure the specific issues you are talking about - but I think everyone should be treated the same unless there is a very, very good reason otherwise.
My understanding is, for pretty much any type of loan other than a mortgage, the banks can be forced to the negotiating table. I do not like the exemption for mortgages and I would like to see it removed. Having said that, if the exemption is removed it will increase the risk for mortgages and we will all pay a higher interest rate on future mortgages. I still think removing the exemption is the right thing to do, but I also think everyone needs to evaluate the consequences before making a final decision.
Yeah ,because all people being foreclosed are deadbeats. Dumb
@'letusreason' (ha)
The whole problem with robosigners is that half the time the bank doesn't have the legal note of ownership of the house they are evicting people from. They created a loan out of thin air, bundle it all up in a worthless pile of securities and bet against it on the stock market. These loans were designed to fail by the banks, they knew the risk was high, they didn't even bother to keep the legal note of ownership.
Dick....then you have another man who gives millions of taxpayer money to green companies and they file bankruptcy anyway.
I'd rather give millions to a company to save them and keep people employed, than give millions to a company and watch them file bankruptcy anyway and create thousands of more unemployed people.
Oh well, what do I know, 80,000 jobs were created last month. Never mind they were all temporary minimum wage HOLIDAY jobs, but heck, a job is a job, right?
Yu have Dumbya Bush to thank for this debacle. If you think anything else, you've been duped.
Started 8 yrs before W...dum mass. W tried to rein them in...(D)'s would have nothing of it.
Time:
10 months is not 2 years! There are 22 bipartisan House job bills passed. At least 15 are being held up in the Democrat controlled senate.
The republicans are doing just what they are there for...stop obama, pelosi and reid from destroying what is left of this country. In 2012 if the GOP takes control of the senate, retains control of the house and obuttwad-fer-brains is ousted from 1600 PA Avenue...then you will start to see a turn around. Right now the (D)'s are in the way of recovery.
If Obama and Pelosi and Reid all died in a plane crash...what would you have? Better leadership from Joe Biden! (and that truly is scarey)
It's all the borrower's fault huh? You slackers are claiming you would lend money to people, whom you knew up front couldn't repay you. I'm on the borrowers side of this issue, and I damn sure wouldn't do that. Don't think the banks did either.
I wasn’t one of those people who could not afford the fixed rate mortgage I received. I had a six figure income until the banksters destroyed the economy. Because I was a self employed contractor, I was denied any unemployment benefits. I had to move out of my home to get another job in a different state to put food on the table.
After moving out of my home over two years ago, and having been forced through a failed short sale process, Bank of America has finally approved a deed-in-lieu of foreclosure just last week. The problem is that the paperwork they just sent me to sign is back-dated to last Christmas. Is that even legal?
Is it asking too much for them to give me paperwork that reflects when they really took possession of the home in May of this year? I would be in breach of contract the moment I signed the papers, because the requirements spelled out in the contract were not met until the real date they took possession of the house. There may also be tax liability for last year’s income taxes.
I recommend that if you cannot afford your mortgage, stop paying it and just live in your home until the bank forces you out. I could have stayed in my home rent free for 2 years if I could have found a way to feed my family and keep the lights on.
The banks are not playing fair, why should we? I secured my loan with home. If it isn’t worth 20% more than I borrowed after all of my improvements, it is the fault of the banks. Why should I have to pay capital gains because my home depreciated $166,000 in two years after losing $75,000 in equity?
If that's the way you feel, GaC, then don't vote republican. Else, it will continue.
All I know is I am seeing a lot of good coming from foreclosures. Finally, investors or wise buyers are buying the homes that have sat around falling into ugliness through neglect and disrepair and fixing them up. A lot people who simply walked away from their homes or are living in homes without paying have zero incentive to keep the place nice. It's ruining good neighborhoods. I say foreclose as quickly as possible and get those homes back on the market and fixed up. People who are bitter about the fact that they are losing their homes are taking it out on their neighbors and ruining the quality of life for others who had nothing to do with their demise. Let it go and move on.
if their was a program in place to prevent foreclosures you would not see soo much blight. How can you turn around soo many ugly neglected homes if only a few investors are able to barrow money to rehab the home and than when they are done where are the qualified buyers. at the rate they are foreclosing in some areas their is no possible way to keep up with the renewal process if banks won't loan the money and foreclosures continue the value of real estate never gets a chance to stabilize and recover at this stage of the game without some government help I don't see how the market will recover fast enough it will in washing where unemployment is 6% and the housing market is decent to good the majority of every place else just keep waiting
All I know is that you must not be in danger of foreclosure, otherwise you wouldn't be trumpeting its benefits. Walk a mile in a man's shoes, etc.
I don't see how a nation of impoverished and homeless people is a good thing. The banks aren't lending money, the nationwide average savings is hovering around 0, few have the credit to receive a bank loan. If people had the money to purchase these foreclosed homes, don't you think they would have done that already? Instead these homes are sitting in disrepair. Why? because few have the money or credit to buy them. It's not like people are buying new homes instead of foreclosures. This effects you because it brings down the value of your own house. You should want a solution to this problem to help your own home value. Now city governments are paying banks to clean these houses up, more taxpayer dollars wasted on a problem that seems to be a vicious cycle. People signed these mortgages initially able to afford their payment, and their payments were increased to the point that they couldn't pay, or unemployment forced them to choose between either feeding their children, health care or their home. There is this sentiment that these people deserve what they get, I'm not sure how that helps anything. It only makes the gap between the rich and the poor wider. My generation in the meantime has so much student loan debt they will be paying it off until their own children go to college. Our debt to income ratio is so bad there is no way we can get a loan. They say go to college to get a good job, those graduating are finding they cannot find a job. They say college students should major in something "useful" such as engineering or math, yet if every college student got a degree in only a few subjects, there still would not be enough jobs for everyone. There is the notion that my generation has a sense of "entitlement", all we want is to have the same opportunities as our parents had. Now people are working harder then ever to receive less then ever. I cannot even fathom being able to purchase a house within the next 10 years, and neither can many of my middle class classmates. Only the previously rich who could pay their tuition in whole are able to purchase homes. If someone is working 2 jobs in America they should not only be able to pay their mortgage, they should have a decent car and a vacation home. Instead people are working 2 jobs to make ends meat. Shouldn't we have a right to happiness? Or maybe that's just me an my "sense of entitlement". The American Dream is dead for us. And due to budget cuts the light at the end of the tunnel has been turned off.
NO, you do not have a right to happiness, you have a right to the pursuit of happiness. Big difference. It is indeed your sense of entitlement.
The American dream is dead for you because you killed it. Funny how even illegals can come into this country and make a successful life for themselves, I guess they didn't get the message.
If you think budget cuts have turned off the light, then you've labeled yourself a leach on society. Remember Kennedy's famous quote, "Ask not what your country can do for you, ask what you can do for your country"! Instead of whining about your government teat drying up, work a job, two jobs, even three, DO WHAT IT TAKES. Minimum wage? So what! DO WHAT IT TAKES!
And no, working two jobs does NOT mean you should be able to afford a second house, lavish vacations, etc. That is your "charge it" no limit gold card talking, not reality.
If boomers made any mistakes, the biggest is allowing people to believe they were entitled instead of enabled. Again, big difference.
Somewhere between Carla and p111 is a reasonable sense of reality.
Carla, is it really accurate to characterize us as a "nation of impoverished and homeless people"? If the unemployement rate is 9% that means that 91 out of 100 people have jobs. According to the article above, 562 out of 563 homes did NOT receive a foreclosure filiing in October.
p111, I believe in personal accountability as much as the next guy - more so probably, but you're sounding downright mean. Carla was innumerating a number of real problems in our society. I didn't read anywhere in her post where she was asking for a government handout to solve her problems. Are there people who knowingly and intentionally bought homes with mortgages they could not afford? Absolutely and those people should suffer the consequences of their bad decisions. Someone though who lost a job and has been out of work for two years? Maybe not so much. I think many people are trying to "do what it takes" but with the high unemployement we currently have sometimes getting 3 jobs might be a little more difficulty than your post would imply. And BTW, I know some boomers with pretty big entitlement attitudes also.
Many of you put emotion before logic and facts. Many, many of these foreclosures are on homes on which the buyers put ZERO MONEY DOWN!!!! They made some payments, ran into trouble and now cannot afford the house. The people that lent the money need the house back! If you rent from a landlord and can no longer afford the rent, you will have to find a cheaper place or be evicted. This is not a scandal, this is how the real world works. The original owner that stopped making payments is not out a penny. He probably profited by living in a house rent free for 9 months while the property went through the courts. There are countless stories of families not making payments for years while they fight the banks. Who loses?? You do! Those mean banks will jack up interest rates and fees to cover the losses from the deadbeats. Yes I said deadbeats. Today, there are many that want to buy that cannot because banks have tightened the standards to the point where 80% of America cannot get a loan. Another "hidden " cost to the public over the foreclosure mess.
A handyman will buy the house and keep it for his family or rent it out to someone else. This will create jobs for painters, plumbers, carpet and appliance manufacturers, etc.
The buyers will not be homeless, they can rent from an investor or handyman, or another landlord. Where are all these homeless people??? The answer is they are not homeless, they just moved to a place they could afford.
Grow Up. Pay your bills. Stop blaming everyone else for your problems.
p111- GREAT POST. I want you for President! I'm writing it in ....
No kidding. This housing bubble burst and banking crash was brought to you by Dumbya Bush and the GOP and their horredously poor policies. Blaming "the guy without a job" is ridiculous. Banks collapsed and the entire housing market was sucked down into a cesspool. (Again, thank you Dumbya!) The working class individual had NO CONTROL over these much larger issues. I have a mindless right-winger for a neighbor -- lives two houses down from me. He was a big talker. Oh yeah, Obama this, "suck me" that, and screeching the typical Right Wing Mantra: I've got mine!! FU** YOU!! Four months ago he got laid off, resulting from the very reasons I stated here. Suddenly, he's looking to suck from the teat of gov't benefits and he is also on the verge of losing his house and cars (none of which are paid off). His new song is "um -- I need help. Someone help me." And he's realizing that getting laid off and being unemployed wasn't his fault. He's had his job for 13+ years. So, so much for the "Grow Up. Pay your bills. Stop blaming everyone else for your problems..." BS that you always hear from the Right. They suddenly stop singing that tune when they and their spouses and kids are faced with no house or vehicles.
You never run out of pig-sucking lowlifes in the conservative Right Wing.
Bernitch, let me help you.
The housing crisis was caused by: 1) government policies that encouraged unqualified people to buy houses and get mortgages ( yes Bush played a role. So did Clinton, so did Fannie and Freddie). 2) Idiotic, Greedy, banks and lending institutions that made these loans, secure in the knowledge they could dump them onto someone else. ( I agree they should not have been bailed out or received bonuses). 3) People that spent too much, borrowed too much, lived beyond their means. The initial subprime wave was caused by refinances, not so much by new loans. People hocked their houses to buy new cars, boats and vacations. George Bush had nothing to do with it.
Thinking people look at all 3 factors. Meaningful reform must address all 3. I think people have got the message about reigning in spending. Hopefully this lesson will stick around for a while. Not sure government's role has been fixed. Dodd/Frank just makes getting a loan a lot more difficult for normal people. We still subsidize mortgages through the tax code. ( Some of us thinking conservatives want a flatter code with no loopholes, including mortgage interest deduction). With regard to banks and Wall Street, their shareholders should be completely responsible for any and all losses. A couple of bad quarters will get the bums thrown out sans bonuses.
With regard to your loud neighbor, don't gloat, you could be next. He will likely need to move to a small rental and sell his cars until he gets back on his feet. The message that must get across to liberals, conservatives and all in between is that the government don't owe you nuthin. No one promised him a nice house and a fleet of cars. Liberal or conservative, if you need to reign in spending or adjust your lifestyle or send your kid to State U instead of Private School U then do it. STOP BLAMING OTHERS, STOP EXPECTING OTHERS TO FIX YOUR LIFE!
joemike404,
No it doesn't, 9% unemployment means 91 out of 100 are collecting unemployment benefits, and another 16% (16 out of 100) have basically gone on welfare and given up looking for work or have taken jobs well under the level they should be.
The true unemployment rate is well over 20%.
whos buying these homes? have you seen the sales? 9 million homes on the market. should be 3 million. wtf? are you talking about?
Wow...Georgia is the extreme high range. 1 in every 180 homes. So, I guess the 179 isn't newsworthy.
And so down down down go home prices for the forseeable future.....Thanks Bush. Thanks Obama. Thanks Congress. Your all idiots.
more2bits..
you can't blame them for the greed of the builders, nor the gullibility of the people that bought into the theory that "real estate ALWAYS goes up", oh and I forgot to mention the greed of the RE agents and brokers.
Unfortunately, the 'buyers' were the targets (as buyers always are) of many involved.
The root of this is the Gramm-Leach-Bliley bill that repealed the Glass-Steagall act and allowed all banks to become investment banks. It also put hard limits on the ability of the federal government to enforce regulation of investment banks. It was a Republican bill signed by Clinton. The Bush Administration did nothing to reign in the housing bubble (or request powers to do it) in part because of ideology and in part because the economy was otherwise so feeble. Obama, while blameless for the current situation, has not proposed sweeping mortgage reform, in part because his style so far is to not make proposals that have no chance of becoming legislation and in part because his administration's initial response to the recession was based more on faith in the market than hard data.
There's blame enough to go around, but Gramm-Leach-Bliley is the foundation.
"The Bush Administration did nothing to reign in the housing bubble"
That's a lie. Bush went to the democrat congress three times and asked them to reign in the banks, but Frank and Dodd would have none of it. According to them, home ownership was a right and they would do whatever it took to make that happen.
Well said, Citizen.
Mortgage backed securities were always a good investment because people historically paid their mortgages on time. As these securities were sought after more and more, mortgages had to be made easier to get and this was supported by our leaders. Greenspan even suggested that mortgage companies get "more creative" when putting people in homes.
This led to the now infamous NINA (No Income No Asset) loans where people just signed the line without having to prove their income. Eyes got bigger than their stomachs and it was just a matter of time before it all came crashing down when folks had to default on their very first payments!
Collectively, we did this to ourselves. Those that signed the line should have known what they could afford. Leaders promoted it. Wall Street got fat on it and the whole world bought into it.
P111,
Bush promoted home ownership, especially to the lower class and minorities, with Greenspan by his side.
Bush warned congress...tried to rein them in...but they would have nothing of it. Barney's Frank and Chris Dodd said they were both fine...those two should be run out on a rail...oh, yeah barney's butt-buddy who run's freddie or fanny, he should join them
Ugh - good grief... Wrong wrong wrong. You are the proverbial "dude that just fell off the turnip truck." You're good at repeating talking points from Faux Noise, but little more...
It's amazing how little you know about what brought us to this mess. I gotta tell ya, though... one thing that really annoys me (and others) are people who clearly don't understand what brought us to this disaster, so you just make up a bunch of crap for the sake of partisan hackery. That's an idiotic thing to do. It shows how quickly people are ready to repeat the same mistakes, just to see their moron "leadership" back in power to drive their ridiculous, hateful social agendas.
And what you've tried to say so far is just nonsense. Banking and housing both started their decline when the Bush Admin eliminated the Federal Agencies dedicated to regulation and investigating predatory lending practices at the Federal Level. I know – my partnership owned a large regional mortgage company up until 2003. When Dumbya Bush’s own stimulus policies weren’t working and he was burning through the surplus handed down to him, he cut all those federal agencies way back – one example (of many) is the RESPA division which, in early 2002, he cut down to TWO PEOPLE for a total of 50 states – and, when he did that, his administration actually sent an official mailer out to every bank and mortgage company in the US. (I know, because we received one of them). And, magically, every major mortgage bank in the US who had questionable ethics and unquestionable greed, started up all the “really cool” predatory lending practices, especially toward subprime customers, to make a quick buck (and, lots of them).
Countrywide, Dime, First Franklin, MILA, and a whole list of others started the ridiculous 1.5% loans, and the $125% LTV loans. These kinds of loans are the biggest reasons why the housing market began to crash, and thus, banks began to crash. Once we saw the big guys doing this in 2002/03, we put our mortgage company up for sale and sold it within 6 months of listing it. Had we held on much longer, it would have been worthless.
Bush knew his economic policies weren’t working, so he built a false economy based upon the largest increase in signature debt, HELOC debt and refinance debt ever seen in any presidential term. And when these short term 1.5% loans and 125% LTV loans came due 3-5 years later, many ballooned and fell into default. More like avalanched into default. This all started LONG before Obama’s election. And it is directly related to Bush’s policy – which was specifically written to encourage banks to build up a false economy based on spending that was derived from more debt, NOT more jobs. For a period, more jobs followed of course, due to more spending. But it was all spending of borrowed money. Of course, the secondary market failed, and then, who was the first major bank to finally drop? Countrywide – the first major lender to offer these crazy loans after Bush wiped out every federal agency dedicated to regulation and to investigating predatory lending practices.
None of this happens overnight. This took a few years and it didn’t happen a few weeks after Obama was elected, like some morons would like you to think. We saw it coming a mile away in 2002, and took action to get out before it got bad. So did many other smaller mortgage companies who also sold off at that time.
Seriously, you can “blame the DEMs” all you like. It’s simply ridiculous. Blaming Barney Frank and a couple others, for blocking a GOP Controlled Congress? Really? LOL!! And yet, even what you’re claiming --- it would not have had the effect on the crisis you’re suggesting. Because the secondary market wasn’t responding to that (do you even KNOW what the Secondary Market is?) – it was collapsing due to defaulting short-term refinance and HELOC loans that had largely begun getting awarded in 2002/03.
You had a GOP Controlled White House from 2001 – 2009. And a GOP controlled Congress (BOTH houses) from 1997 – 2007.
The collapse initially started in 2005 when the first wave of defaults began to show up; it picked up speed by 2006, and was in full swing by 2007.
AND, try this scenario: Even if you could show this was due to Democratic controlled policy before 1997 (which you cannot) – then, with 10 years of full GOP legislative control after that in BOTH HOUSES, why the hell didn’t the GOP solve the problem before this happened? You keep claiming the GOP is brilliant, with all the talent – then what the hell happened for the 10 years they controlled both houses and the Executive Branch? Didn’t they have the talent and smarts to FIX ANYTHING? Or, were they just hoping their false economy would make them look good long enough to ride it out?
The car drove soundly into the wall. GOP Pres Bush was in the driver’s seat for all that time, as was the GOP Congress. How long you gonna try to blame this crash on someone else?
The people who purchased homes that have foreclosed on in the last 2-3 years I;m sure the majority of them felt they could continue to make the payments. but because the economy took a direct turn and decline they many can not afford to make the payments. Many companies got bailed out on the back of these same tax paying people who bought homes. where's the bailout for the housing market ?? wheres the bail out for Jobs to help pay for housing ??? no where month after the month the slide continues as our president set and watches the erosion and this is the president we want to re elect this is the change we bought into ??? sorry folks this is undoubtedly the wrong guy working for us. when he gets rejected from congress he goes back and points the finger instead of jumping back in the water
not many people bought houses in the last 2 -3 years. And I'm sure the vast majority if not all buyers in that time frame actually had the means to afford the homes they bought. Sure there might be a few that got caught up in the downturn, but they are the exception rather than the rule.
The real issue for these foreclosures are the ones who bought in the 2002/3 to the 2006/8 period when the bubble finally popped and they were caught flatfooted, and not able to flip it as agents suggested.
Um, do you seriously believe that the Republicans would bail out homeowners? Do you get your news from Mars?
Citizen... if they don't have a job, what should the government do? Pay off the mortgage and hand them the keys?
I do agree that, especially those that got bailouts, banks should be required to modify the interest rates on mortgages that are current, whether they're underwater or not. If they're making the payments, what difference does it make what the underlying "value" of the property is? They are making the payments.
I do agree that, especially those that got bailouts, banks should be required to modify the interest rates on mortgages that are current, whether they're underwater or not. If they're making the payments, what difference does it make what the underlying "value" of the property is? They are making the payments.
Banks that got large sums of bailout money were required to participate in the government modification program known as HAMP for all loans they owned and all GSE loans they serviced until the full amount of the bailout money was repayed. Once the bailout money was repaid, the banks were released from having to participate in HAMP except for all loans backed by Freddie Mac and Fannie Mae. The HAMP program modifies the interest rate on first mortgage loans to as low as 2% in order to get the borrower's housing to gross income ratio to 31%. In many cases, borrowers that were given this modificaiton still defaulted on their loan after the modificaiton as they were in too much other debt as well or felt that the modified mortgage payment didn't get low enough. However, in some cases, it is impossible to get the monthly housing payment to 31% simply because the house is too big for the amount of income the borrower is now making. Many times, the property taxes and homeowners insurance alone are more than the borrower's can afford, never mind the principal repayment. Additionally, one thing that no one talks about with the whole foreclosure mess is the fact that a large number of the foreclosures are not primary residences, but investment properties where the tenants do not pay rent or the home has been sitting vacant for a long time. I work for a small bank trying to work with borrowers to prevent foreclosures. Last month out of 40 properties that were approved for foreclosure, 35 of them were 2nd homes or investment properties.
STLMike...
I probably could have worded that better. I understand your reasoning.
What I MEANT to say was in lieu of trying to refinance or anything else... as long as the homeowner is CURRENT on payments. And has a history of timely payments, take the X% and simply reduce it to 3.x or 4.x%. No request on the homeowners part. Just do it.
Let's face it, as you are in banking, you know as well as everyone else does, MANY not all but MANY banks take FRB 'loans' at near 0% and do nothing more than turn right around and buy government bonds paying 2 or 3%. It's a no brainer actually, it's practically free money and it's the taxpayers that guarantee the entire package.
I DO object to those with 2nd or investment properties getting in on these programs. They're the ones who truly DON'T need the assistance. But that's another matter entirely.
Could you just amagine 200 million golden retirement for the exec. in charge. At tax payer bailout money. That should piss everyone off. Instead lets beat up the peaple who loose there home. Only in America.
Whew we can finally get the rest of the deadbeat families out of their homes...Mitt Romney
"I feel your pain, (and if feels good)"! Obama
"...oh, and have you seen my Nobel? It was awarded to me for what I may...or may not do in the future"
along with 1 million dollars
As opposed to your hero Dumbya Bush, who can't even say the word Nobel in a sentence without twisting his tongue and flubbing the words, and thinking Nobel meant the church clock was broken and not ringing anymore...
In answer to Letusreason is the borrower unemployed, unable to refinance, or has outragous medical bills?
Has the bank been paid by the bailout of our taxes but will not work with the borrower? Then the borrower should walk away....give the bank back their house....That's what I did. Deadbeat, no, fallen on hard times, yes.
I am now debt free, no credit card debt, no car debt, no bebt of any kind. Can you say that???
Jim... I empathize and can understand your situation. Been there done that, but at least for me, different times and I was able to sell my place(s).. (yeah when the job goes away, you follow the work!!)
I don't and I think most people don't harbor ill will so to speak for those who truly tried to make the American Dream (not my real thought on that, but that's another thread!) real and work for them.
The problem comes in when someone making 45-50 thousand a year, tried to buy a 500 or 600 thousand dollar place using some super exotic mortgage. Of course, we also know they weren't buying a home, they were buying a house to "flip". That's where the problem originated and THAT is the fault of the Realtors convincing gullible people that they could make a fortune in real estate.. just like the guys on TV. Of course Realtors weren't alone, they had the builders they were working with and let us not forget the mortgage brokers. Honest brokers went broke, thieves made out like... well, bandits. Let's not forget, the term Liar Loan was pretty much coined in this period.
It will take time to work out, unfortunately, many will suffer and MANY of the truly guilty will walk away totally unscathed, and many will still have a pocket full of dollars from the experience.
Jim, it's hard to believe, but the TARP money has been paid back. Some banks didn't want it but were forced to take it, lest other banks be seen as weaker. I wanted the irresponsible banks to fail. Responsible banks could have taken their place. Now we have folks saying that the banks ripped off the taxpayer (true), therefore they should be able to ripoff the taxpayer too (false).
The continuing bank ripoff is that the fed loans money to banks at 0% and the bank lends it to us at 4%-24%. I'd like some of that action please.
"I have a very simple criteria. Is the borrower paying the amount promised each month?
No? Foreclose."
Guess you haven't heard about homes being foreclosed on and taken away from people that NEVER had a loan or paid off their loan? That has been kind of hidden away because it is ALWAYS the home "owners" fault.
Did some research and there are more people then you think in this same quandary, some of whom even lost their homes. Yet, nothing done in person, by mail, etc clears this up.
There is NO reason someone should have to pay an attorney to clear up messes like this, none.
So screw the banks. We have bailed them out, been loyal customers, paid unreasonable charges, etc. At this moment, if you have had a home loan for more then 5 years then the bank should sign it over to you.
Corruption deep within our government, corruption in our banks. Lies told by both the government and the banks to American citizens have to stop NOW! Heck, the Federal Reserve took $16 Trillion of our money and gave it to foreign nations, foreign banks, even foreign corporations (some domestic banks) without permission from congress or "We the people..." over a couple of years; $16 Trillion. To me that says "Crooks, Thieves, liars" and yet not one arrest. Housing and Wallstreet Problems a few years back, NO arrests just money made (some by "our" representatives).
Domestic enemies pursue legislation, programs against the powers of the Constitution; destroys and weakens the Rights of the people guaranteed by the Constitution; and create laws, amendments, etc that goes against the restraint on the 3 branches of our government by the Constitution.
This says that the Federal Reserve was put into place by a domestic enemy long ago, so is illegal and a criminal organization. It also shows that all, or almost every single one of those currently occupying positions within "our" government are Domestic Enemies and are there illegally.
This says why they are there illegally: All three branches of our government, the Military, all Law Enforcement, all Heads of the States, all federal employees are required to take an Oath to support and defend the Constitution and NOT an individual leader, ruler, office, or entity to get into the Office or Position they want. They must keep that Oath until they leave office to be able to stay in that office/position.
Let the damn banks go bust so we can start over and TRY to get it right this time!
THE PIPELINE IS STILL CLOGGED AND WILL BE FOR YEARS TO COME. There are homeowners and there are renters. What fannie mae and freddie mac did is outrageous, but yet knothing will be done about it because it is OWNED AND OPERATED-- backed by the federal govt.... Until the fed. govt. stops picking winners and losers we will be in this mess for a long time....
The FED needs to let these homes foreclose - let the market balance itself back out.
This is your voice of reason? A mass generalization of everybody who has lost a house? So when the "banks" screw up and get into debt for bad decisions; its okay to get bailed out by the same tax payer huh?
Your attitude towards people is half the problem with this country. This is part of what is fueling all of this anger.
The TARP money loaned to banks were just that LOANS, and that means they needed to be repaid with substantial interest. Most of the banks, and all the big ones, have done so. You seem to not know the difference between a loan and a gift.
Are you suggesting that underwater homeowners or those unable to make their mortgage payments should have been given an additional loan to pay back on top of their existing mortgage?? How stupid would that have been??
Peter- your omitting the fact that the those TARP loans was basically sitting at 0% interest. And that the banks was drowning underwater in their debt, and we helped them out. So, no it would not be stupid to refinance every ones debt at near 0%. Please give the American people the wall street treatment.
Most of the people getting foreclosed on were in more of a house than they could afford to begin with or should not have been buying a house to begin with. There is no way the housing market will recover if the FEDs keep propping them up. It has been going on 4 years; time to move on. How long do you think this should go on?
Its interesting to read the published Trustee Sales in the newspapers. Some of the original default dates showing the last payment made go back 3 or more years. It appears these folks have been able to sit in their homes without making any payments at the expense of the banks and the tax payers ( Fannie, FHA, Freddie ) while all the time they complain about the "evil banks".
Fresno County, Ca has the lowest number of houses on the market right now that it has seen in the last year. Inventory has been steadily dropping. It's probably fairly stable and deals can be found. Just sayin'
The sooner we work through all these foreclosures and get the current inventory plus upcoming foreclosures sold off, the sooner the housing market can bottom out.
I don't get it. The banking robbers get to keep the entire house regardless of how much was put toward the loan (down payment + interest + principal).
Say I borrow $100 from John. At the time I borrowed the money I paid John $20 with a remaining balance of $80. I continue to pay John $5+$2 per month toward principal and interest. Let's assume I pay down the $80 loan to $30 and am now unable to make regular repayments. John can now claim that he want's the entire $100 irrespective of what I have returned to him + interest.
How could we as a nation let the Banking robbers get away with such arrangements. This is pure stealing. I have no sympathy for these massively rich banking robbers. There has to be a movement to bring these robbers in line.
You might want to never take out a mortgage as you do not seem to understand the basics. At any point in time anyone with a mortgage has an outstanding balanced owed on their loan. If they cannot make the payments the homeowner can either try to renegotiate for a loan payment they can make, sell the home themselves and if they can sell it for more than what they owe the holder of the mortgage, they get to keep the "profit", or they can allow the bank to foreclose.
You are trying to compare a secured loan to an unsecured loan. Apples and oranges, my friend.
RKapoor
Even at a sheriff's sale, once the creditors are paid the remaining equity balance minus costs goes to the former homeowner no matter what the amount.
They cannot take 100% of the value if they are not due 100%.
In your example above, if you defaulted on your promise to repay, he would forclose and seize the equity, selling it off, but he could only collect what he was owed and MUST repatriot the remainder to you.... he doesn't get to take 100%
As the only source of power authorized to create inflation & deflation, THE FEDERAL RESERVE SYSTEM is intentionally pulling the strings that are causing these issues. Aimed at eliminating any remaining wealth within the middle class in America, the lack of mortgage and small business loans is a result of FED policy created behind closed doors, with no transparency and no accountability.
THE FEDERAL RESERVE SYSTEM controls over 70% of U.S. daily banking deposits through its member banks located throughout the nation. Those defaulted mortgages were originated by those member banks, bundled with traditionally sound investments backed by U.S. mortgages, and fraudulently sold in the OTC dark markets to unsuspecting national and international investment fund managers, spreading the economic collapse around the world.
Alan Greenspan, FED chairman at the time, did everything in his power to prevent the CFTC (Commodities Futures Trading Commission) from requiring transparency and regulation of those markets, after he convinced Clinton to repeal Glass-Stegall. Because of the way the system is set up, whoever heads the N.Y. FED runs the system. Timothy Geithner, in that role, oversaw the entire meltdown. His conflict of interest, only rivaled by Hank Paulson's as former CEO of Goldman, was granted an ethics waiver by the Bush 43 administration that wasn't disclosed until after he successfully pressured congress into approving the TARP FUNDS.
Geithner's intervention and continued refusal to allow any part of the government provided "help" (funds) for underwater homeowner's, to be used for legal fees that would establish whether the foreclosing banks actually have the required paper work for foreclosure, has enabled many illegal foreclosures. Keep in mind that an average $100,000 profit on every foreclosure due to the bank's knowledge of how to work the system continues to increase bank profits.
When Obama chose Geithner as Treasury Secretary, the president demonstrated his loyalty to preserving the wealth and power of the elite group who run this country. In Greenspan's own words, "There is no power greater than the FED." The most recent legislation proposed in the House of Representatives, requiring transparency and an audit of the FED was opposed by the White House and Timothy Geithner which led to its defeat.
United opposition of middle class American to surrendering U.S. sovereignty and democratic rights under the constitution is viewed as a major road block in progress toward the NAU (North American Union) under the SPP (Security & Prosperity Partnership) already agreed to and signed by Bush 43. Money is power. By undermining the wealth of the middle class, seeking to undermine the power of the middle class...and pressuring congress into approving three additional trade agreements that lure American business and American jobs to foreign nations, at the same time claiming his number one priority is creating jobs is disingenuous...at best.
Europeans were given the option to join the E.U. with the E.U. Constitution requirement of all European nations signing on, before becoming effective. The SPP provides no such option. Continued pressure to break up any organized sources of opposition in the form of labor unions and or the OWS movement etc. continues... Strength in numbers is the only thing that can stop the formation of the NAU, second of three superstates, proposed by the Trilateral Commission...
The IMF is scheduled to replace the FEDERAL RESERVE as a world-wide central bank. Following the April, 2009 G20 Summit, leaders issued a communique which set the ground work for the creation of a global currency to replace the dollar as the world reserve currency. The communique stated that the G20 leaders (including Obama) have activated the IMF's power to create money and begin global quantitative easing. In doing so they put a de facto world currency into play. It is outside the control of any sovereign body.
A May, 1976 report of the House Banking and Currency Committee indicated that the Rothschild banks hold 53% of the stock of the U.S. Federal Reserve. Mayer Amschel Bauer's, founder of the Rothschild dynasty, famous words, "Permit me to issue and control the money of a nation and I care not who makes its laws..." seem to have changed to "Permit me to issue and control the money of the world and I care not who makes its laws..."
Goldman, Citibank, Chase...all major stockholders in the FED, created the economic collapse, necessitating the TARP BAILOUT, and now profit from the loan U.S. taxpayers were forced to take, from the bank they own. AS we are obligated to repay based on fractional reserve lending, that generates a 90% proift on every dollar, plus compounded daily interest...thanks to their inside man (Paulson), at the time, eithics waiver in his pocket, the banks got obligation free billions and U.S. taxpayers are stuck with the bill.
The real estate bubble was created by the FEDERAL RESERVE. Current FED policy serves to drive down real estate value even further, while their current inside man, Geithner, facilitates illegal foreclosures that generate even more profit for the bank... It was an ingenious plan to eliminate the most sound, reliable source of middle class wealth...equity in real estate, generally held in primary residences...and it will continue unless THE FEDERAL RESERVE is recognized as the private, for-profit banking corporation that it is. Granting itself the right to control the U.S. economy, with no transparency and no accountability, in the FEDERAL RESERVE ACT OF 1913, keep in mind that the FED chairmen work for the bank. Their job is to create profit for the bank at the expense of American taxpayers. With their former CEO, now sitting as U.S. treasury secretary...should you be tempted to feel warm & cozy, contemplate that feeling is generated by their hand in your pockets.
Great post...google "the creature from Jekyl Island" When these 7 men met off coast of GA they represented 1/4 of the WORLD'S wealth. We are dealing with very powerful, influential people.
The kind of folks who can pick and choose who wins elections...who win's wars.
The problem is the fact that the government did not let the economy hit the bottom like it did in the Great Depression. Since the economy did not hit the bottom no one knew how bad off the nation is. So, we just trodden along putting bandaids on the economy with the hopes that it would fix itself. Along with that, government saved their buddies at companies like Goldman (Government) Sachs and did not enforce the laws put in place to fix the problems. No one has been fired from these companies or brought to trial. As a result the little person suffers as it has always been throughout history. The dot com bubble, the housing bubble and now I wonder what the next gimmick will be to make the economy boom until it goes bust. Maybe the 2012 thing is true as things are not looking good GLOBALLY.
No need to worry. It's just Phase II of Obama's "recovery" kicking in. The White House is paid for, who cares about your's? If you voted for Hussein in 2008 to prove you weren't a racist, vote for someone else in 2012, to Prove you are not an IDIOT!
I would if there was someone NOT an idiot for whom to vote.
Newt Gingrich- Possibly the brightest man to run...ever.
I would pay to see him and obuttwad debate. Obuttwad would mark his shorts
He would stripe his shorts trying to debate Ron Paul also.
I like Newt, but he has too much baggage.....
Like being a liar and a fraud? Since when has that ever stopped the GOP from running someone? Put Newt up for Pres!!
What?!...how can this be happening with Obama and his banker buddies at the helm?!...I mean, Obama himself said we are all better off since he took office...(I mean since Soros bought it for him)...say it aint so bammy!!...: (
Assume this news gave the Mitster a woody....Nothing he like better than seeing the 99% struggle..suffering of the 99% have made him Million$
@RKapoor
There is a movement...it's called revolution...and it's coming. Maybe not today, or tomorrow, but someday soon.
You might be spending too much time at Disney World in Fantasy Land.
We can only hope to awaken the masses!
chuckzul, what type of revolution..give us some details...what kind of world do you want...
The revolution is coming,so is Christmas.
It's true that some people shouldn't have bought homes when it was likely that they didn't have the income to pay a mortgage. However, lenders who should have known better baited them for profits. Who should have acted responsibly here?
Then there are those who were once wage earners with good jobs that could support a mortgage. However, the deliberate out-sourcing of jobs and down-sizing for corporate gain left many out of work. Who can go from making something like $75,000 a year down to half that and still manage to pay a mortgage. Add to that our foolish and greedy system of health insurance which becomes unaffordable for the unemployed or under-employed. It's a recipe for disaster.
That's why there's people occupying Wall Street.
Funny, I did not see any of those pointed mentioned on the OWS list of 13 'demands'