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It might not make financial sense for institutional investors to keep buying if the payoff continues to soften, but it could be different for small investors.
Foreclosure Auctions And Foreclosed Homes….The Investor Fad Is Wearing Off
The policy makers in this country have spoken: There will be no assistance to those in foreclosure. We will not help Americans avoid foreclosure. We will not help to delay or stop foreclosure. Instead, we will work with the banks to throw American families into the street so that we can sell their home for pennies on the dollar to investors.
Now for the first couple months, there has been a bit of an investor frenzy with prices being bid up. But the bloom has started to fall off that onion and investors are admitting what I’ve said all along:
Investors are paying far too much for the homes they’re buying at foreclosure auctions!
The numbers they have been quoting, and the prices they have been paying do not cover the cost of holding, much less maintaining….and certainly not improving…the real estate they are buying. That means the assets they are holding will be declining in value. And once a decline starts in real estate…..that decline is very difficult to stop.
And so at some point in time we’ll all get around to asking the question….
Why won’t we modify mortgages in the same terms we will sell these homes to private investors?
FORTUNE – When the U.S. housing market crashed in 2007, millions lost their homes to foreclosure. With their finances in shambles, they picked up the pieces by renting rather than buying. Big institutional investors quickly caught on, snapping up foreclosed properties on the cheap and renting them out.
All this has helped drive the recovery we’re seeing today: Investors effectively absorbed the excess inventory of homes for sale, which in turn has helped push home prices higher. Prices for rentals have also risen rapidly, as families who either lost their homes or put off buying found rentals to live in.
While this has gone on for some time, the investor frenzy might have peaked. Rents for single-family homes have essentially flattened — rising just 0.1% in March from a year earlier, according to a report released Thursday by real estate listing website Trulia. What’s more, in some cities where investors had the biggest appetite for properties on the cheap, rents have fallen: Take Los Angeles, where rents fell 1.9%; rents in Orange County slipped down 0.7%; Las Vegas saw a 1.9% drop. And in two other key investor markets — Atlanta and Phoenix — single-family home rents remained flat, rising less than 1%.
Meanwhile, rents for apartments have continued to rise, climbing 2.9% in March from a year earlier.
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Think about all of that next time you hear how this country cannot spend a dime to assist the millions of Americans who are suffering and need foreclosure assistance.
America, Foreclosing on Itself And Waging War Around The World, Murdering Innocents (and no help or foreclosure assistance)
I know you count on this website for foreclosure assistance, advice on the foreclosure process and the steps in foreclosure, but I want to engage in a much larger discussion to help all of us understand why, while there is virtually no assistance available in foreclosure, our nation has an unlimited budget to make war. Trust me, the two things are connected……
As the chickenhawks and war profiteers bang the drums of war, preparing to send our nation’s men and women into battle across the globe, it’s time we all look back at two of our nation’s biggest and most diabolical frauds, the Vietnam War and the Iraq War. The justifications for full US Military involvement in these wars were complete frauds and fabrications perpetrated upon the American military and the American people by political forces and private industry that profited from war, at the expense of the blood of American soldiers and the lives of millions of innocent civilians.
The Vietnam war was a war of aggression started by the United States of America. In 1964, the US military was fully deploying into southeast Asia, but there had been no direct, aggressive hostilities, at least the kind that would justify all out war. At least not the kind that would justify the overwhelming presence of the US military in the region. And so, on August 2, 1964, three tiny North Vietnamese boats attacked a US Navy Destroyer. Yep, those three little speedboats decided that they would take on a full sized US Destroyer and the US Navy and Air Force planes. Kinda like little ‘ole me armed only with a pocket knife deciding that I’d go pick a fight in a darkened alley with a whole platoon of well-armed special forces soldiers. A few days later, on August 4, a very similar thing happened…..the North Vietnamese decided that they would attack the United States Navy. Faced with these brazen attacks, the President of the United States solemnly appeared before the people of the United States of America and declared that our National Security was at stake and we needed to start a full blown war with Vietnam….passing the Gulf of Tonkin Resolution just five days after the first “attack”.
The only problem is, neither of those two “attacks” occurred. Probably not at all, and definitely not as originally reported to Congress and to the American people. At least that’s what was finally revealed to the American people, by the American government…many decades later. Understand these absolute facts as a baseline for the horrifying fact that millions of innocent men, women and children were killed and millions of soldiers were killed based on these grotesque frauds:
| Vietnam War Casualty Statistics | |
| Total number of U.S. soldiers deployed to Vietnam | 536,100 |
| Total number of U.S. casualties in the Vietnam War | 58,220 |
| Total number of U.S. soldiers wounded in the Vietnam War | 303,644 |
| Total military casualties from both sides | 1.475 million |
| Total wounded from both sides | 2.094 million |
| Total civilian casualties from both sides | 4 million |
| Age of the oldest man killed during the Vietnam War | 62 |
| Total number of KIA’s soldiers who were less than 20 years old | 11,465 |
Next, let’s look at the Iraq war. A little closer to us today. A little nearer and dearer to the American heart and psyche. You’ll remember George Chickenhawk Bush and Dickhead The Coward Cheney, both cowards that never had the balls to really serve in the military and yet these two monsters appeared before the American People repeatedly and engaged in a campaign of lies, fraud and propaganda over and over again until they got what they wanted….America went on a war of aggression, attacking Iraq.
First, and before there was any direct military or political justification, they started mankind’s largest military mobilization. Hundreds of millions of pounds of munitions and heavy armor, tanks, planes, resources were sent into the theater of battle. While his was occurring, the political administration and then intelligence community were directed to build the case FOR ALL OUT WAR. Find the weapons of mass destruction, find those WMD’s. Find the love letters between Saddam and Osama Bin Laden. Find the camps where Saddam was training Bin Laden’s forces.
The only problem was, there were absolutely, positively no WMDs and there was absolutely, positively no connection between Saddam and Osama. Even at the time, the bulk of the US intelligence community were fairly certain of those two facts. But as the Great Bush/Cheney Lie continued, it became fairly clear that the entirety of the US and world intelligence community were certain of those two facts.
And yet, despite clear evidence that Saddam had no WMDs and in fact hated Osama, America, personified by Bush, by Cheney, by Colin Powell, appeared before The World and especially before the United Nations and repeated blatant and bald-faced lies over and over again.
What must the Iraq delegation thought as they sat there in the United Nation’s General Assembly and listened to Bush talk about Yellowcake and Mobile Weapons Labs and Aluminum Tubes? Knowing full well that these absurd statements were all lies?
Well never know because all of them are dead, along with millions of other innocent Iraqi citizens. Millions dead, millions more tortured and dying. Tortured to this day. Suffering daily from the most monstrous and horrifying torture, disease and cancer and lifelong suffering because we turned the entire country into a toxic wasteland. Blanketing the entire country in chemical weapons and munitions that might very well have violated the chemical weapons treaties we were there ostensibly to enforce. The sulfur bombs, the depleted uranium shells, all the toxins and chemicals that we blanketed the nation with in search of weapons.
It was confirmed and totally undisputed shortly after the US invasion that Iraq had no WMDs. Confirmed and undisputed by American sources. But rather than make amends for these most grave lies and atrocities, and engage in a war to rebuild the nation we so wrongly attacked, the political leadership attacked our nation’s own military leadership and continued with a campaign to destroy the nation and in the process we maimed and destroyed millions of innocent civilians and hundreds of thousands of our own soldiers.
The United States military is supposed to serve the People of the United States of America. And the People of the United States of America must work to serve the good men and women that serve us. Those in uniform cannot speak out. They took the noble call and they must fulfill their obligations and respect the oaths they took. But we as civilians must speak for them. We must serve as their voice and do our jobs to try and protect them…both before they are sent and after they return. We honor their sacrifice and commitment by directly and repeatedly challenging the evil forces that sent them into battle, using lies, fraud and deceit as their own weapons.
And as promised…what does this have to do with foreclosure? Well, can you imagine what these United States of America would look like had we not squandered trillions of dollars in wars, both declared and undeclared, all across this planet? Can you envision a world where trillions were spent not on munitions abroad but on roads and hospitals and infrastructure here in the United States?
Why have we carpet bombed entire regions of the world, destroying roads and schools and hospitals all across this planet, then set about (halfheartedly) to rebuild the same when we’ve got entire cities and regions in fact here in the United States that are devastated War Zones that are already demolished and which could use the engineering and the building that we’re busy doing all across the planet?
Think about all of that next time you hear how this country cannot spend a dime to assist the millions of Americans who are suffering and need foreclosure assistance.
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BOMBSHELL FORECLOSURE FRAUD REPORT….From Naked Capitalism…
Those seeking foreclosure assistance or wondering what help there is to them in foreclosure should read this article from Naked Capitalism
It was a rude introduction to what was to become staples of foreclosure
fights: the bank side producing documents that were clear fabrications to
fix the ownership problem; a servicer employee sternly insisting that the documents
had only been in certain locations when Fedex tracking codes showed
him to have perjured himself; a lawyer for the foreclosure mill admitting to
conduct that should have gotten her disbarred.
The foreclosure reviews showed persistent, widespread efforts by Bank of
America to avoid any finding of borrower harm. These efforts were supported
and enabled by Promontory. The whistleblowers, told their role would be to
act as investigators and help borrower get compensation they deserved, all
described the review process as seriously flawed. Yet even with those obstacles,
they saw abundant evidence of serious damage to borrowers.
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How would you like your paycheck to drop by 40%?
THANKS TO FLORIDA LEGISLATORS…PAYCHECKS COULD DROP BY AS MUCH AS 40%!
The Florida Legislature is hard at work this session!
Those seeking foreclosure assistance or wondering what help there is to them in foreclosure
The Florida House just passed a bill that overrides local living wage and sick time ordinances, meaning that South Florida employees could take a 40 percent cut in pay.
Miami-Dade and Broward counties both have local laws that require companies who work with the county to pay a higher living wage than the statewide minimum of $7.79.
For 2012-2013, the living wage in Miami-Dade was set at $12.06 with a health plan and $13.82 without.
Rep. Jason Brodeur (R-Sanford) supports preempting local living wages, arguing that “Businesses … need to know they have consistency and stability in the environment in order to drive economic growth,” as reported by the Orlando Sentinel.
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