Banks involved in price fixing - Foreclosures Distorting Housing Data

reply to post by In nothing we trust


One of the reason they are doing this is because most of the homes on foreclosures has been paid for by the bail outs at the tax payer expenses.

This means that banks got their money so now they can seat and wait when the interest rates goes back up.

Either that or they are waiting to see the outcome of Freddy and Fanny.

Now when the bancrupcy figures are in the millions you can pretty much wonder what else can the banks be waiting while sitting on all this real state properties.

Bankruptcy Filings Border One Million

Bankruptcy filings surged 29% in the 12 months that ended June 30, according to government figures released Wednesday.

Total filings rose to 967,831 from 751,056 a year earlier.

Business filings jumped more than 41% to 33,822 from 23,889 in the year-ago period. Personal filings totaled 934,009, up 28% from last year.

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money.cnn.com...






[edit on 31-8-2008 by marg6043]

Originally posted by marg6043
This means that banks got their money so now they can seat and wait when the interest rates goes back up.

Well it does make sense that the banks don't care as much about the principle as they do the interest rate that they loan out against.

But when interest rates go up people won't be able to borrow as much priciple, which will keep house prices from rising as well.

I don't think house prices are going up for a very long while, at least until enough people have payed down thier existing mortgage balances, built up some principle, the economy is able to add some better paying jobs, loan become easier to get, peoples credit improves, debt loads decrease, people start saving some money and gas prices decrease so that food prices and transportation costs correspond to the design parameters of the infrastructure around which they were built (i.e. a 40 foot container for an 18 wheeler was designed to transport as much product to market as was profitable for gas prices at that time)

OH yeah and banks unload thier huge inventory of bank owned homes.

[edit on 31-8-2008 by In nothing we trust]

Well I see you point, but one of the provision for the new bill to help the homeowners include a more flexible formula for new home buyers so their credit worthiness will not become and issue when applying for loans.

Is call Flexible Underwriting Criteria

Originally posted by marg6043
Is call Flexible Underwriting Criteria

What's that a fancy term for looking the other way?

I think they tried that already. It didn't work out so well.

[edit on 31-8-2008 by In nothing we trust]

reply to post by In nothing we trust


!!!!!!Exactly!!!!!!!!

I read the entire bill and boy of boy you have not seen anything yet, I am going to post my views of the bill if you don't mind.

A more extensive review of the Housing bill bail out.

First the Flexible Underwriting Criteria, flexible enough for those mortgagor that have less than good credit will be able to be taking into consideration for insurance and credit scores will not be an issue.

Revenue recovery through home sale profits, according to section 257 of the bill If a troubled homeowner get a loan from the FHA and later sales his home, the FHA will collect all the profits.

Credit card and other payment processors must report transactions to the IRS, this will under mind the privacy of consumers.

More tax credits and deductions for homeowners, the bill have over 60 sections relating to tax incentives over the ones that already has been available, this one is an overkill.

The treasury gets a blank check to maintain Freddie Mac and fannie Mae

This bill will raise the national debt by 800 billion dollars Housing and Economic Recovery Act of 2008
www.opencongress.org...

So at the end this nothing more than more money for Fannie and Freddy at the expenses of tax payer money.

Originally posted by marg6043

First the Flexible Underwriting Criteria, flexible enough for those mortgagor that have less than good credit will be able to be taking into consideration for insurance and credit scores will not be an issue.

Revenue recovery through home sale profits, according to section 257 of the bill If a troubled homeowner get a loan from the FHA and later sales his home, the FHA will collect all the profits.

So what's the advantage for someone not to let thier house go back to the bank, wait the required 2 years to be considered a new homebuyer by the FHA and then buy a new house through the FHA again?

reply to post by In nothing we trust


Actually is a loophole to the section 257 of the bill, make possible for the seller to make the transaction look like no profits made and have the buyer give the seller cash in a form of a gift.

Then get another loan with the FHA.

Don't you love all this?

Originally posted by marg6043
Actually is a loophole to the section 257 of the bill, make possible for the seller to make the transaction look like no profits made and have the buyer give the seller cash in a form of a gift.

Then get another loan with the FHA.

Let me get this right.

So a homeowner facing foreclosure gets to walk away from his home, the bank gets a huge tax writeoff against a pretend number that they loaned out against (which the house was never worth that much anyways), and then they get to borrow money from the FHA for a new house 2 years later. Then the banks get to sell the very same foreclosed house a second time back to these very same people and make more money at a higher interest rate?

So the banks actually want people to walk away from thier houses.

And tax payers who did everything right the first time get to watch all this maddness and just shake thier head and pay more taxes.

[edit on 31-8-2008 by In nothing we trust]

reply to post by In nothing we trust


I believe you pretty much summarized all.

No wonder the banks are sitting on all the foreclosures an patiently waiting.

How accurrate do you think this gragh is?

Interesting, I actually believed that the percentage of foreclosures was bigger and so the delinquent mortgages.

Now with the economy woes many people has been lure to get those reverse mortgage so I was expecting to seem less of the owners with no mortgage I guess in that group the wealthy is included.

Originally posted by marg6043
... many people has been lure to get those reverse mortgage ...

I'm seeing more reverse mortgages being promoted as well.