The stronger banks survive and the weaker, more crooked ones fall. Everybody has their time in the sun. You can't reign forever. - Og

 

The only thing that bothers me about what you say here is the trickle down effect. I remember back in Abilene, TX in the late 80s when the oil industry crashed. Many people were happy that the oil men were getting a "comeuppence". They where going out of business right and left. But, then the businesses that supplied the drilling and exploration services started closing. Pump, hose, cable companies, you name it. Then the restaurants, no one could eat out. My partner owned a restaurant supply company. It closed, no new restaurants openning up.

This is the only reason that I feel there should be a bailout. You have no idea how letting it fail will trickle down to every person you know.

 

Yeah, I remember all that, I was just a kid. My dad's Uncle invested my widowed Grandmother's savings in oil back then, lost just about all of it. She wasn't happy.

But, there's always a but.

 

Here is something I never understood...If your car gets repoed they sell it as close to market value as they can. Why in the face of so many foreclosures have banks ALWAYS sold repoed homes at such a drastic loss.
Makes no sense and I already heard the line about banks are not in the business of selling homes....but they will try and sell a car for market value and they are not in the business of selling cars either.

They have always been able to write off loss on homes?
Why did this law get written this way in favor of the banks?
Lobbist?

 

Because they knew they had an advantage. To recuperate the losses off the backs of the American taxpayer. - Og

 

Yup. I say we give them a hard landing.

 

When the banks own the homes, there is a lot of overhead expense. Property taxes, keeping the home and yard maintained, fire insurance, security, property management, etc... Plus there are risks. Teens may break in and party, trashing the place, stealing the appliances, the plumbing can be ripped out for scrap metal, etc... Also, in a declining market, they are worried the value in the future will be lower than it is today.

When things get bad for the bank, the shareholders want liquidity (a bird in the hand), not real estate that may or may not be worth more in the future.

Basically, the bank management is on a teeter-totter as to whether to try to get the most out of the property and market it for 6 months or so, or to dump it for whatever they can get. When they realize they can't sell if for anywhere near the loan balance, they will often dump them ASAP.

 

What can we do? I heard a couple of suggestions:

1 - Stop paying your credit card bills. (?)
2 - Light torches and have a good 'ol barnfire in Washington, DC.

What you guys got? - Og

 

Buy alcohol, tobacco and guns.

 

!. is breaking a commitment I have made, a promise to pay.
2. is breaking the law, endangering people.

Don't see how either one can help the situation, and would just cause me more grief. About the only thing you can do is email your congressman. Email the TV stations and newspapers. Go to any public forum and speak out.

 

I agree. People are upset. Some don't think straight when their mad. And rightfully so. - Og

 

Same thing the property owner has to deal with on investment property. When they give the homes to speculators at bargain basement prices they lose anyway...

They haven't gone the town cryer route yet but I will bet my bank saved money if people are loosing homes at the rate they are there is some HUGE unpaid credit card debt somewhere building also that will need taxpayers bailout money.

They treat us like children passing bad news one piece at a time...
Or they act like children passing the bad new out in parts...

 

A lot of times a repo'ed home is im a poor state of repair and is not worth normal market value.

 

I often see them at 10-20% of market value.

If I wasn't so burnt out on property management I would make a killing.

Very soon if you have money to spend, life will be very good.

 

This is exactly why these lenders should have thought long and hard about floating a loan to home buyers who didn't qualify under traditional guidelines. When banks created financial products like 0 down, no points, no closing cost, 100% financing so that everybody could afford a home, then these banks must have foreseen the substantial risk that they were putting themselves and their shareholders in.