The banks also have an incentive to not release all these distressed properties. The note on the property is not going to change as stated above the homeowners are not making the payments so if they push more homes on the market it will create a supply and demand issue wherein too much supply means even lower prices and greater losses for the banks. They will make it up in fees, watch out for those!!

“If the American people ever allow private banks to control the issuance of their currency, first by inflation, and then by deflation, the banks and the corporations that will grow up around them will deprive the people of all property until their children wake up homeless on the continent their father’s conquered … I believe that banking institutions are more dangerous to our liberties than standing armies … The issuing power should be taken from the banks and restored to the Government, to whom it properly belongs.”

“The Colonies would gladly have borne the little tax on tea and other matters had it not been the poverty caused by the bad influence of the English bankers on the Parliament, which has caused in the Colonies hatred of England and the Revolutionary War.”

Taxation has been a red herring issue to disguise the corruption of the banking system and the impact of banks on the government.

Just state your opinion and let’s agree to disagree. There’s no reason to get personal.

Happy New Year everyone, and thanks for your input.

Let me issue and control a nations money, and I care not who writes its laws.

— Meyer Rothschild (Original Central Banker / Fed Chairman)

Thomas Jefferson SAID ; First thru Inflation-Next by Deflation
The American Bankers -If ,every given a Central Bank / or Fed
would ROB the Americans of everything the Founders built and destroy the Country

And ,Last but not Least the Bankers were a BIGGER threat than a Standing Army.

People who do not know their \"History\" are prisoners of it.

Too many Short Memories-!!!!!!!!!!

To “Out of Work” – the world may not revolve around Angela making money, but the economy of the world does revolve around people making money, and for the government to chose who wins and who loses, rather than the market, it a travesty of justice under the Constitution of the United States. The government should not be picking homeowners, banks, the auto industry or any other sector of the population to be the winners, while using all taxpayers’ money to make them winners.

To “Mike” – the industry doesn’t need to be revamped, it needs to go back to the way it had been. Lenders make loans that they are willing to own, rather than loans that they peddle to the Federal Government (or the Feds insure it against default), and get paid whether the loan is paid back or not.

TFA

Girl, you need to wake up. This world does not revolve around you making money.

You really know how to show a heart during the holiday season!

While I absolutely agree that the commercial side should get foreclosed upon when it is time, I have to say that I am not an advocate of the massive home foreclosures that are continuing across the United States.

While, yes, there were a number of persons that bought into homes that they could never have afforded (these guys have already been weeded out), the new foreclosures (and those in the foreseeable future) are the hard-working stiffs that may have seen their wages massively reduced and/or found themselves out of work for a period of time.

The “grow up” and “suck it in” to live on the streets while your home is auctioned off at the court house mentality seems a bit narrow in understanding the scope of what the implications are for all of us and all of our houses VALUE (or, as this trend continues, lack thereof).

To those of you that agree with the writer of this article, I simply shake my head and thank whatever power is out there that I am not in the residential real estate field.

I’m in total agreement with you – a lot of unscrupulous mortgage brokers and lenders were contributing to the problem in a major way. Also, the banks were funding loans before the contingencies were met, telling the loan brokers to just close the file and move on to the next one. It was pretty crazy! But most of all, we need some major regulations in the industry where people make the biggest purchases of their lives.

Sadly, a lot of the mortgage and real estate agents actually believed in the product they were selling, and ended up in the same predicament as their clients.

Also, in the good ol’ days, the fixed rate loans were regulated and had pretty strict qualifying guidelines, but the adjustable rate loans weren’t getting as much scrutiny. The fact that they would allow people to qualify based on a 6-12 month teaser rate was ridiculous in itself. Then the sub-prime loans came into play, and anyone, and I mean anyone, could get a loan. Same concept as I discussed before – somebody is handing you something, why not take it? However, as a responsible adult whose family’s future is at stake, and who’s making the biggest purchase of a lifetime – how can someone complete the transaction without understanding what they’re doing? Honestly, I just don’t get it.

I have encountered clients and buyers who tell me that they trust me, and will purchase whatever I recommend to them. I always tell them that they should not trust ANYONE, period. It’s their money on the line, and they need to make that final analysis and/or decision. I will explain the transaction and my understanding of it to them, but they should make that final decision a 100% on their own.

So yes, there should definitely be government oversight and regulation in the mortgage industry, like there was before anyone know what sub-prime loans were, and even more so. I hope that we have all learned from this last RE cycle, and that there will be stricter mortgage industry regulations implemented in the future. The sad thing is that the mortgage industry has so over-corrected itself, that even a perfect candidate can’t get a loan these days. Hopefully, it’s only a temporary situation

Angella

This really is a double edged sword, you had some people buying things they couldn\’t afford and unscrupulous bankers and mortgage companies helping them do it.

We are definately see this gotta have it now attitude of our society come into play.

I see people every day with ballon notes, interest only loans, ARM\’s that they didn\’t understand but were sold them any way. I do agree that both parties need to be help accountable, but unfortunatley here in the United States accountablitity for ones actions isn\’t all that important.

I do believe that our mortgage industry needs to be revamped, you have to be able to prove you can pay the money back in order to get the loan. We also need to coach people that they can in live in smaller homes, take out 15 year fixed rate mortgages and pay them back early if possible. People need to realize that the sole purpose of a bank is to keep you in debt, they are not there to show you how to get out of it.

Financial education is severly lacking in this country and there will always be educated people preying on the uneducated.

This needs to change.

Mike

You need to read the article I was referencing, @ http://www.doctorhousingbubble.com/real-homes-of-genius-culver-city-housing-bubble-housing-shadow-inventory-in-action-countrywide-bank-owned-home-versus-duplex-on-same-block-foreclosure-holiday/, to get a better understanding of what I was agreeing with.

I’m in total agreement with the author of that blog post that the banks are responsible for the majority of the blame, but the other half does fall on the homeowners who signed the Notes. I’m sorry, but there are two guilty parties here, and I was just pointing out who the other guilty party is. I also do not believe that the tax payers should be bailing out either the banks or the homeowners. All of this political correctness of blaming ONLY the big corporations, and not the “little guy”, just doesn’t sit well with me. If you look on the Mortgage Notes, there’s only one signature there, and that’s of the borrower – the same borrower that defaulted on the loan and is in breach of a contract.

And yes, I lost money in the stock market, but I also recovered it by now. However, I never expected to be bailed out by anyone, and was willing to live with the consequences of NOT recovering that money. The point is that any investing is risky by definition, and if you do decide to invest – you have to deal with the consequences, good or bad. The same goes for buying real estate – it’s an investment the homeowners thought they’d be cashing in on, but the market went south instead. Well, they need to deal with it, according to the terms and conditions of the mortgage note they signed, period.

Rather than trying to drag out the foreclosure process and the eviction (and I know plenty of people who know how to work the system), and stay in the property for free at the tax payers’ expense, these homeowners need to move on. They know they can’t stay in their homes forever! They need to take the money they’ve saved by NOT paying their mortgages, rent a house, and buy another one in two years (per the shortened Fannie guidelines).

Anyway, someone who’s in foreclosure has known what’s coming up for at least a year, so you can’t tell me that they couldn’t have prepared for the inevitable, and would be surprised to be evicted during the Holidays. The process of foreclosing in itself takes almost a year. An eviction can take up to another year, and I know a number of families who have been foreclosed upon almost a year ago, and the eviction hasn’t even begun yet. That’s almost two years total! So how can somebody be unprepared for an eviction, or be totally broke, if they’ve known about it for at least a year and haven’t paid a penny in rents?

Although I have to admit – if I were the one in default, I would take every advantage of the situation myself. It would be silly not to! It’s no different than what’s going on with the families that stay on Welfare for generations – why get a job if someone just gives you a handout. It’s the system that needs to be changed so that it does not allow for such a waste of taxpayers’ money. I cannot blame the people for taking advantage of the system, but my point is that they should not be allowed to do it, period!

Your response is welcome,
Angella Raisian

Note: New Fannie Mae guidelines for purchasing a home two (2) years after a foreclosure are outlined here: http://angellaraisian.com/wp-content/uploads/Fannie-Mae-Guidelines.pdf. FHA guidelines require a three (3) year waiting period. http://AngellaRaisian.com

Monica Beltran -http://www.MonicaBeltran.com
.-= Monica´s last blog ..Stop Selling Failure by Talking Yourself Out of Sucess =-.