Country Wide

[AAbsolute]

What are you talking about?

It just might be true that investors bought property on speculation that they would earn money through the eventual sale at a higher price.

It may be true that some of those folks bought more than one property with the same intention.

Further, it might be true that it was better financially for them to look at short sale theories for disposal of the property when the market fell.

It could be true that this caused amplified erosion of property value within communities.

It may be true that some people have legitimate non-investor reasons to sell their property like relocation for work, retirement, etc. and the amplified erosion of value was the proximate cause of their property being worth less than their mortgage amount.

It may be true that some of those people don't walk away from their loan agreement as a moral decision even though they have the mental skill to incorporate a legal strategy that is better financially.

It may be true that the government will inject funds into the finance system to cure problems for financial institutions hurt by the amplified erosion of value.

 

[YoungFT]

Not to pour fuel on a fire here but talking about the taxpayer taking it in the shorts while simultaneously watching the tape on Washington Mutual's stock price (traded below $2 per share this morning) is making me think it was a bad week to quit drinking.

Seeing as misery loves company I thought I might shed some light on a little understood fact...there is no deposit insurance fund. It's as imaginary as the social security "lock box".

Any funds paid by banks in insurance premiums to the FDIC get turned over to the US Treasury and are used to fund the budget.

So what happens when banks go under and people want to be made whole on their insured deposits?

The US Treasury has to borrow the money.

And who pays the interest on this borrowed money?

You and me - the taxpayer. It always come back to the taxpayer.

(sigh)

 

[Bob]

would you also admit the employees of WAMU, the borrowers, the depositors, and the stockholders are all taxpayers?

 

[YoungFT]

I would agree that employees, borrowers, depositors and stockholders are most likely US taxpayers.

I would also suggest that many US taxpayers who never chose to be employed by, borrow from, save with or invest in WaMu will be left holding the bag.

Privatized profits / socialized risks - it seems to be the way of the world these days.

 

[SHELLY]

I would agree that employees, borrowers, depositors and stockholders are most likely US taxpayers.

I would also suggest that many US taxpayers who never chose to be employed by, borrow from, save with or invest in WaMu will be left holding the bag.

Privatized profits / socialized risks - it seems to be the way of the world these days.

I have no problems with the FDIC/taxpayer taking care of the depositors at WAMU up to the guaranteed $100K. The banks pay FDIC for the insurance policies and if the government spents all the proceeds that's not the fault of the depositors.

I did take issue with the FDIC paying the IndyMac depositors 50-cents on the dollar of their deposits over the insured $100K limits What the hell was up with that??

.

 

[scooterbug44]

I did take issue with the FDIC paying the IndyMac depositors 50-cents on the dollar of their deposits over the insured $100K limits What the hell was up with that??

They did WHAT!?!
What part of "insured up to $100K" is pucking open for interpretation! :angry:

 

[YoungFT]

[FONT=arial, helvetica, sans-serif]From the FDIC press release at the time IndyMac was taken over...

"At the time of closing, IndyMac Bank, F.S.B. had about $1 billion of potentially uninsured deposits held by approximately 10,000 depositors...The FDIC will pay uninsured depositors an advance dividend equal to 50 percent of the uninsured amount."

It was an "advanced dividend" taken out of the assets of the Bank - looks like the FDIC was putting uninsured depositors at the front of the line before they paid any dividends to preferred shareholders, common shareholders or debt holders.
[/FONT]

 

[scooterbug44]

Why is ANYONE getting a dividend? Crappy stock/company performance doesn't qualify for a dividend IMO.

Heartless, but I just thought of a way to save us 1/2 a billion..............

 

[TheSheep]

Is that some of the reason why it is taking 7 months to get a short sale to close?

More often than not, the clearance of all liens and encumberances, some whch do not come to light for several months.

Is it legal to list a property as a short sale just because the seller is upside down?

Only if change is coming out off his pockets....and he's a midget.

 

[Babyblue]

Short Sales

Looks like tonight that our government has taken care of short sales. Watch the banks start dumping property.