The Coming Collapse of the Real Estate Market

Of Two Minds ^ | 14 Oct 2010 | Charles Hugh Smith

[petercooper]

bttt

[Texas resident]

“Every ‘underwater, mistitled’ home will be confiscated by HED, re-classified as public housing and the government will collect rent based on the ability to pay.”

From those according to their ability, to those according to their need.
Plus if they own the home, then they can pull a Kelo on the family in the house without any of those pesky court cases.
The marxist party hates the idea of private property, except for them.

[Alberta's Child]

Very interesting scenario here. I disagree with the author on one of his points, though:

7. Buyers who closed on foreclosed homes now face legal challenges to their ownership and potentially even "clawback" of the property as the previous owner can claim he/she was defrauded by a flawed/defective foreclosure process.

My prediction is that in a collapsing real estate market we're going to see the exact opposite occur . . . With real estate values declining and more and more properties underwater, I predict that many current owners (especially of foreclosed properties) are going to use the legal system to make the case that they never really bought the property in first place because of legal problems with the title process under which they acquired it.

In other words, these property owners are going to find themselves in the exact same position as someone who bought a property from a previous owner, later discovered some kind of environmental problem (soil contamination, for example), and determines that the best course of action is to use the legal system to try to force the previous owner to take it back.

[adamjefferson]

All foreclosures involve substantial missed payments and inability to pay back the loan. People will not get a lot of sympathy if they try to reclaim their house by blaming a bank error. I think it is still pretty safe to by a foreclosed property.

[Talf]

to post 20

try this link
look at Oct. 7
http://www.globalresearch.ca/index.php?context=va&aid=11236

[mo]

“All foreclosures involve substantial missed payments and inability to pay back the loan. People will not get a lot of sympathy if they try to reclaim their house by blaming a bank error. I think it is still pretty safe to by a foreclosed property.”

In principle, couldn’t agree with you more.

In fact, the titles to many of these homes are so obscured by the trashy paperwork, there may be very real issues about just exactly what you’re really paying for, and to whom to get it from at the end.

[PeterPrinciple]

There is no “fix” or half-measure that can patch this over now.

---

I feel like I am in old testament times and the prophet has said we are all going to be captured and carried away................

[MrB]

Hmmm...

seems to me that’s one of the “planks” of the communist manifesto.

“abolition of private property, application of all rents to public purpose”

[meyer]

I have, sitting among my important documents, an actual title to each of my two vehicles. I’d like to have the same document for each of my two properties.

I do have a “Warranty Deed”, signed and stamped, along with a title insurance document from the time of purchase for each, but no “white copy” of the title like I have with my car. Both are paid for, free and clear.

So what document should I have that shows absolute ownership?

[sodpoodle]

I just happen to believe the Fannie Mae manipulation was no accident.

State and Local public housing was deteriorating into crime infested unsustainable ghettos. What better solution that financing mortgages in pleasant communities where property could be confiscated by Government controlled banks and ‘subsidized/rented’ back to the public?

[zeugma]

I think it’s time people start admitting that we have, in fact, become a kleptocracy. We’re not as far down that road as the budding narco-kleptocracy of mexico, but we’re heading there.

[zeugma]

My prediction is that in a collapsing real estate market we're going to see the exact opposite occur . . . With real estate values declining and more and more properties underwater, I predict that many current owners (especially of foreclosed properties) are going to use the legal system to make the case that they never really bought the property in first place because of legal problems with the title process under which they acquired it.

True dat. Especially true for those with no real skin in the game, i.e., they had no down-payment to speak of. So, they can walk away and get the legal system to not even have a forclosure on their credit history.

[giotto]

So those like myself who were frugal, responsible, and paid off the mortgage are the real ones getting screwed.

And those of us who have been waiting for years for California home prices to reach a realistic level, will now be expected to foot the bill for deadbeats who didn't want to wait for a house they could afford.