Posted on 02/04/2011 7:33:28 AM PST by SeekAndFind
Trillions will be lost because they were never there on the equity side.
The mortgage problem has never been adequately addressed. It will take more than good cheerleading and wishful thinking. These losses have to be declared sooner or later.
Which will impact the economy in a more negative way: people losing their homes, or banks going under?
I know a young couple, bought a home in the 250,000’s (seemed like a good price at the time...back in 2006), put 70,000 down, but the home has lost more than half it’s value since they bought, so now there is no equity. They sold on a short sale (not necessarily because of the mortgage payment but because of the taxes/insurance hit they were taking on the property.) The bank came back and placed some sort of a lien on them for the difference of what they owed and what the short sale was. They were current on their payments, but like I said, insurance and taxes unfortunately weren’t adjusted down as fast as the prices fell, and the bank absolutely refused to change or lower their interest rate, so they chose short sale.
Here’s an interesting story from our morning paper which seems to me is going to lead us right back into the same sort of mess we’ve come out of:
http://www.tampabay.com/news/business/realestate/article1149420.ece
prices just don’t seem to have dropped here in Eastern Washington...they still want a ton of money for a smallish house in town......and land seems very high
RE: Obama’s Debt Reduction Commission has recommended elimination of the mortgage deduction on our taxes
Well if true, this will all but ensure that real estate values will fall FASTER. Why? Because the tax incentive to own, buy or invest in real estate will be GONE.
Why is it that in earlier decades we didnt have all this mass conundrum with mortgage foreclosures and sky high real estate prices? The artificially overpriced homes plus the big taxes to maintain them are putting a kabosh on the economy for so many.
There are currently some very good deals out there, with once in a lifetime low rates for 30 year mortgages, but no one has, or wishes to spend, what bucks they have saved up, because the entire system is teetering, with the US govt f rom top down having no effin idea of how to stimulate growth.
Their answer to everything is MORE TAXES.
One has to wonder what will happen to the second mortgages on these foreclosures. I am betting over 40% of all foreclosures on first mortgages also have seconds behind them.
Not to worry obama’s buddies at the big global banks are dumping them on the taxpayer
Unlimited credit for GSEs seen as backdoor bailout
http://www.reuters.com/article/2010/01/05/us-usa-housing-bailout-idUSTRE6044YU20100105
Is Fannie bailing out the banks?
http://finance.fortune.cnn.com/2011/01/03/is-fannie-bailing-out-the-banks/
Please take a peek at my freeper page. Scroll down deep. I've been 100% correct in my predictions since early 2004. 'Nuff said here
Obama is dumping on us alright!.....
It really is all about location. Where I live property may have decreased a little but not near what I read about in other parts of the country.
“Which will impact the economy in a more negative way: people losing their homes, or banks going under?”
Letting the banks go under what good has it done to bail them out? Millions still lost their homes and their jobs and they screwed investors to boot. On top of that we are still bailing them out through the GSE’s and it’s costing taxpayers Billions. Iceland let them fail and now they are well on the road to recovery. Besides you do realize who those big global banks had on their payroll don’t you? That’s right zero for years. Lloyd the vampire Blankenfein is a life long democrat and Jamie Demon is his favorite banker.
Title and link only due to copyright
Iceland Shows Ireland Did ‘Wrong Things’ Saving Banks
http://www.bloomberg.com/news/2011-02-01/iceland-proves-ireland-did-wrong-things-saving-banks-instead-of-taxpayer.html
Barack’s Wall Street Problem is Now America’s
http://www.noquarterusa.net/blog/2008/09/21/baracks-wall-street-problem-is-now-americas/
JPMorgan CEO Jamie Dimon Donates Serious Cash to Democrats
http://www.opensecrets.org/news/2009/07/jpmorgan-ceo-jamie-dimon-donat.html
JPMorgan Chase Asked to Stop Funding ACORN
http://nlpc.org/stories/2009/09/15/jpmorgan-chase-asked-stop-funding-acorn
Editorial: Bailed-out banks should stop funding ACORN
http://washingtonexaminer.com/opinion/2009/04/editorial-bailed-out-banks-should-stop-funding-acorn
President Obama’s Favorite Banker
http://www.economicpolicyjournal.com/2009/07/president-obamas-favorite-banker.html
Banks accepted and bundled ‘deficient’ loans
Mortgages rejected by due-diligence firm were lumped in, crisis panel says
Location, location location....It’s all going to be about location when all the boomers retire. I don’t think they will be looking for homes next to major metro areas.....
huge waves of foreclosures will just feed the media narrative they need to get a third-party economic populist on the ballot in 2012. Obama is counting on that.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.