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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.
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.
How would you like your paycheck to drop by 40%?
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.
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.
A live discussion on bank abuses......bank break ins
A SPECIAL LIVE BROADCAST...LEARN HOW BANKS ARE GROSSLY VIOLATING BASIC RIGHTS AND BREAKING INTO HOMES ALL ACROSS AMERICA
TODAY, 12:30 PM…A LIVE BROADCAST EVENT-Bank Break Ins, Foreclosure Property Preservation And Burglary of Occupied Dwellings, DANGEROUS BANK PRACTICES in foreclosure
Join Me LIVE today at 12:30 pm for a broadcast discussion:
As part of the foreclosure process, banks rely on contractors to assess what are supposed to be vacant properties. Often this means break-ins of occupied homes. Is this fair practice or just a necessary evil of foreclosures?
Click here to join the discussion and watch the broadcast:
The foreclosure review produced lessons in advanced planning and establishing mechanisms to monitor progress toward goals.
FORECLOSURE REVIEW: CONGRESS REPORTS ON THE FRAUD AND THE CONSPIRACY OF THE REGULATORS AND THE UNREGULATED
This is a long and nauseating report. What do we learn from the report?
GOVERNMENT IS TOTALLY, HOPELESSLY CORRUPT
THE BANKS OWN OUR GOVERNMENT AND THE PEOPLE WILL BE PUNISHED.
Why will Americans be punished? They’re being punished every day in foreclosure, with no help for foreclosure victims and no one to explain the steps in foreclosure. Americans are abused because we have become weak, lazy and complacent. No one can hardly manage even a good protest anymore, much less any good civil disobedience and you can forget about any real bloody resistance. And so what should we expect….do we really think the bad guys will play nice?
Delusional you are. At some point in time, Americans will wake up and realize that we have all been robbed. That our children’s entire future has been mortgaged off and sold on terms that will never allow them to have any future. We did this to them. We all sat on the sidelines and read these dense reports and skimmed a few headlines.
But no one did anything about it. So the bankers and their government enablers spat in our faces and continued to laugh at us.
From the report:
Consistency impeded the ability of the Office of the Comptroller of the Currency (OCC) and the Board of Governors of the Federal Reserve System (Federal Reserve) to achieve the goals of the foreclosure review—to identify as many harmed borrowers as possible and ensure similar results for similarly situated borrowers. Regulators said that coordinating among foreclosure review participants was challenging, and consultants said that the reviews were complex. In spite of regulators’ steps to foster consistency, broad guidance and limited monitoring reduced the potential usefulness of data from consultants and increased risks of inconsistency. For example, GAO found that guidance was revised throughout the process, resulting in delays. Other guidance did not specify key sampling parameters for the file reviews and regulators lacked objective monitoring measures, resulting in difficulty assessing the extent of borrower harm. Good planning and collecting objective data during monitoring provide a basis for making sound conclusions. Without using objective measures to assess sampling or comparing review methods across consultants, regulators’ ability to monitor progress toward achievement of foreclosure review goals was hindered.
Although regulators released more information than is typically associated with consent orders, limited communication with borrowers and the public adversely impacted transparency and public confidence. To promote transparency, regulators released redacted engagement letters and guidance on remediation. In addition, OCC released two interim progress reports. However, some stakeholders perceived gaps in key information and wanted more detailed information about how the reviews were carried out. Regulators stated they considered publicly releasing additional information, but expressed concerns that releasing detailed information risked disclosure of confidential or proprietary information. Further, borrowers who requested reviews experienced gaps in communication. For example, borrowers who submitted requests when the submission period opened waited nearly a year before receiving an update.
The foreclosure review activities to date highlight key lessons related to planning, monitoring, and communication. GAO’s prior work shows that assessing and using lessons learned from previous experience can benefit the planning of future activities. The foreclosure review produced lessons in advanced planning and establishing mechanisms to monitor progress toward goals. Without assessing and applying relevant lessons learned, regulators might not address challenges in the continuing reviews or similar challenges in activities under the amended consent orders. In particular, regulators announced the agreements that led to the amended consent orders without a clear communication strategy. Although the regulators plan to release reports on the results of the amended consent orders and the continuing foreclosure reviews, neither regulator had made decisions about what information to provide to borrowers.
Full Report Here:
The Banks Have Decided....THEY CAN BREAK INTO YOUR HOME AND COMPELTELY DEMOLISH AND DESTROY IT....WHENEVER THEY WANT TO!
The Banks, Breaking Into Homes, Destroying Property, Terrorizing Homeowners…..AND NO ONE WANTS TO STOP THEM!
I wonder what would happen if more Americans knew the banks have decided they can break into homes, terrorize homeowners and destroy their personal property?
I wonder what would happen if Americans realized that the banks took the position that if they wanted to break into properties and use sledgehammers, crowbars and baseball bats to COMPLETELY DESTROY AND DEMOLISH THE HOME THEY COULD DO SO….WITHOUT EVEN PROVIDING ANY NOTICE TO THE HOMEOWNER?
What if you left your home one day and when you left the doors and the walls were completely intact? But you returned later to find workers in your home knocking down every single wall…with reckless abandon?
And what if you learned that because these workers were violating state law, were unlicensed and did not have any permits, you, the homeowner faced a $500 per day fine? Doesn’t that sound INSANE? Well, take a look at these before and after pictures. In the first picture you see a perfectly fine home…right? Walls intact? Floors clean…a little bit of work being done? Well, that’s they way my client’s home looked when they left it.
The next picture should shock and appall you. What this picture shows is what happens after a bank.enters into my clients home, without warning that they were going to do so….and completely demolish the property.
This was your country folks….but now the banks do what they want. My disturbing case is hardly isolated. Read from today’s Huffington Post:
Last March, a 23-year-old bank contractor cut through the secured gate at the entrance to a farm in Little Rock, Ark., and proceeded to a small house on the property. There, according to a police report, he broke the lock off one of the doors and forced his way inside.
The man, who police would later identify as David Cole, was allegedly there on official business: He worked in a little-known but booming industry that maintains and inspects millions of foreclosed and abandoned homes owned by mortgage lenders in the wake of an epochal real estate bust. The bank responsible for this particular home had presumably decided that the home was another discarded mess, and Cole’s company had been dispatched to shore the building against the ravages of weather and decay.