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30ashopper

SoWal Insider
Apr 30, 2008
6,846
3,471
56
Right here!
The unexpectedly deep plunge in home sales this summer is likely to force the Obama administration to choose between future homeowners and current ones, a predicament officials had been eager to avoid.

Over the last 18 months, the administration has rolled out just about every program it could think of to prop up the ailing housing market, using tax credits, mortgage modification programs, low interest rates, government-backed loans and other assistance intended to keep values up and delinquent borrowers out of foreclosure. The goal was to stabilize the market until a resurgent economy created new households that demanded places to live.

As the economy again sputters and potential buyers flee ? July housing sales sank 26 percent from July 2009 ? there is a growing sense of exhaustion with government intervention. Some economists and analysts are now urging a dose of shock therapy that would greatly shift the benefits to future homeowners: Let the housing market crash.

..

A small decline in home prices might not make too much of a difference to a slack economy. But an unchecked drop of 10 percent or more might prove entirely discouraging to the millions of owners just hanging on, especially those who bought in the last few years under the impression that a turnaround had already begun.

The government is on the hook for many of these mortgages, another reason policy makers have been aggressively seeking stability. What helped support the market last year could now cause it to crumble.

http://www.nytimes.com/2010/09/06/business/economy/06housing.html

I think another downturn in prices is virtually guarenteed. It doesn't look like we'll be trying to prop things up this time either.
 

rancid

Beach Fanatic
Aug 9, 2006
270
68
I think you are correct. Market is allowed to fall this time. I think the Prez handled it well. Prevented an implosion a couple of years ago and hopefully will now allow a more modest slow correction.
 

gmarc

Beach Fanatic
Jan 19, 2009
506
65
some pts of the usa like new york city haven't corrected much. but i think sowal which started its downturn much earlier than the rest of the us is bottoming. i've been tracking watercolor and rosemary and i don't see much drop price per square foot the past 2 years on the lowest of the prices. i recall looking at a nice home on western drive in dec 2008 for 680k or $300 a square foot and here 21 months later i've yet to really see anything sell for less than $300 a square foot in that area of watercolor.i thought at the time prices in watercolor were headed to $200 a square foot but iw as wrong. were i ended up buying in jan 2009 or 20 months ago there have been 8 sales or more and nobody has bought less than i paid per square foot. yes some areas have fallen more but i'd say many areas stabilizing. heck sowal has fallen in many areas as much as south fla. many prices back to 10 or more yrs ago. many lots 80-90% off peak prices. its a great time to buy for long term holders
 

TNJed

Beach Fanatic
Sep 4, 2006
589
118
53
Seagrove Beach, FL
MortgageGate could well bring Wall St. to it's knees.

From evicted homeowners breaking back into their old homes and changing locks to Adam Levitan telling Citigroup yesterday this thing could be completely systemic, I believe this could be how the social revolution will unfold. Wont be by might. It will be a shutoff of money to the corporatocracy and starve the beast.

It was the fast and easy money that that attracted Wall St. to use the MERS registration system. Allowing them to bypass taxes and document fees by creating an electronic Delaware Corp. which owned 60% of all titles. And this rush to embrace technology for ease and greed has turned and bitten them hard. With no proof of an original blue-inked title, there is no proof of ownership.

If you've bought a foreclosed home, I wouldn't be surprised if your bank didn't hear from the previous foreclosed owners. Any way you slice it, this thing is far from over and ugly all over.

What do you do when most American's retirement packages are invested with corrupt banks which should have failed 2 years ago and are yet again faced with perhaps a bigger crisis. Give them another couple trillion for QE2? Or let the free market reign, allowing them to crash and take everyone with them?

I would really, really, really hate to make that decision for 300 million people. I don't believe "Too big too fail" will work this time. I think the banks take it on the chin and it's going to be an epic fight.

http://www.zerohedge.com/article/citigroup-call-implications-foreclosure-crisis-just-tip-iceberg


Simi family changes locks, retakes foreclosed home ? Ventura County Star
 

gmarc

Beach Fanatic
Jan 19, 2009
506
65
I'll believe it when i see it. wall street will never fall as long as we have a corrupt money printing fed and gov't. anytime things get bad helicopter ben just prints more money. If the banks get in trouble with this they'll simply print even more. The $ has been collapsing as oil and all commodities are sky rocketing. corn is up 50% in a few months.by taking rates to zero helicopter ben has stoeln from ever saver and given the green light to banks and brokers to use free money to speculate
 

TNJed

Beach Fanatic
Sep 4, 2006
589
118
53
Seagrove Beach, FL
couldn't have said it better, ray. It's rather hard to move a divided and "wedged" population against any one cause isn't it? The politico machine did it's job by getting the herd all riled up over stuff that the Constitution made clear 200 years ago. Ridiculous.

Now, the banksters and their elected secretaries can ram thru anything they want, again. At least I hope not! Most people are reactionary and not precautionary. Just maybe when this is at their front door the masses will start talking amongst themselves instead of screaming at each other and do what needs to be done.
 

TNJed

Beach Fanatic
Sep 4, 2006
589
118
53
Seagrove Beach, FL
Wells Fargo circling the drain...


Wells Fargo Prepares For Tsunami Of Loan Repurchase Demands | zero hedge


Zero Hedge has obtained Wells Fargo's brand new confidential protocol guidelines on loan repurchase demands by investors and mortgage insurers, sent out on October 15, and which becomes effective tomorrow. We have reproduced these below to see just how much more "streamlined" the process is, now that the bank is fully aware of the massive liability it faces as a "loan puttable" entity in a world that is suddenly replete with pervasive and rampant title fraud. Amusingly, in the CIM, Wells states: "Wells Fargo is committed ? just like you are - to honoring contractual obligations with investors and mortgage insurance (MI) companies*. We want to ensure that the resolution process for Repurchase and Rescissions is as smooth and swift as possible." And even so, Wells continues to refuse to halt foreclosures knowing full well it would face billions in impairments should it do so voluntarily, even though as we confirmed Warren Buffett's pet bank was recently caught with its robosigning pants down as well (an event which was sufficient for everyone else to invoke a self-imposed moratorium, even Goldman, whose Litton Loan Servicing unit was rumored to have serviced about 4 or 5 mortgages in the past century... but not the California real estate monster). What is critical, is that Wells Fargo admits that should all avenues under existing legal guidelines be exhausted, and robofraud is certainly a dealbreaker that can not be "explained or validated away", then the bank will be forced to repurchase the loan. In other words, starting tomorrow Wells is preparing for the loan repruchase tsunami to hit the fan as investors and insurers everywhere swamp the bank with tens if not hundreds of billions of repurchase and recissions demands. Suck it in, Wells investors.
 

melscuba

Beach Fanatic
Apr 22, 2009
260
38
Roswell, Ga hoping SoWal someday
Wells Fargo circling the drain...


Wells Fargo Prepares For Tsunami Of Loan Repurchase Demands | zero hedge


Zero Hedge has obtained Wells Fargo's brand new confidential protocol guidelines on loan repurchase demands by investors and mortgage insurers, sent out on October 15, and which becomes effective tomorrow. We have reproduced these below to see just how much more "streamlined" the process is, now that the bank is fully aware of the massive liability it faces as a "loan puttable" entity in a world that is suddenly replete with pervasive and rampant title fraud. Amusingly, in the CIM, Wells states: "Wells Fargo is committed ? just like you are - to honoring contractual obligations with investors and mortgage insurance (MI) companies*. We want to ensure that the resolution process for Repurchase and Rescissions is as smooth and swift as possible." And even so, Wells continues to refuse to halt foreclosures knowing full well it would face billions in impairments should it do so voluntarily, even though as we confirmed Warren Buffett's pet bank was recently caught with its robosigning pants down as well (an event which was sufficient for everyone else to invoke a self-imposed moratorium, even Goldman, whose Litton Loan Servicing unit was rumored to have serviced about 4 or 5 mortgages in the past century... but not the California real estate monster). What is critical, is that Wells Fargo admits that should all avenues under existing legal guidelines be exhausted, and robofraud is certainly a dealbreaker that can not be "explained or validated away", then the bank will be forced to repurchase the loan. In other words, starting tomorrow Wells is preparing for the loan repruchase tsunami to hit the fan as investors and insurers everywhere swamp the bank with tens if not hundreds of billions of repurchase and recissions demands. Suck it in, Wells investors.

This is all just a little bit over my head. I think mainly because I'm getting bits and pieces. Is the jist of it that these banks are not going through proper due process in the foreclosure? and therefore, these homes have been illegally seized and resold? or is that another story I am getting a whiff of and this is something else? Bottom line, I am thoroughly confused and want to know what this means... not just in business, but to me as a homeowner, and potential purchaser of a home in short sale or foreclosure.
 

melscuba

Beach Fanatic
Apr 22, 2009
260
38
Roswell, Ga hoping SoWal someday
This is all just a little bit over my head. I think mainly because I'm getting bits and pieces. Is the jist of it that these banks are not going through proper due process in the foreclosure? and therefore, these homes have been illegally seized and resold? or is that another story I am getting a whiff of and this is something else? Bottom line, I am thoroughly confused and want to know what this means... not just in business, but to me as a homeowner, and potential purchaser of a home in short sale or foreclosure.

o.k. this helps a bit.... still confusing, but I'll keep researching.

Banks Committed Fraud on Investors of Mortgage Backed Securities

activerain.com/blogsview/1914838/banks-committed-fraud-on-investors-of-mortgage-backed-securities
 
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