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Banks Will Be Forced to Forgo Certain Foreclosures, Even If the Borrower Has Admittedly Defaulted!
Summary: Without an economic incentive to foreclose, it would not
be in the bank shareholders best interests to pursue foreclosure even
though borrowers clearly defaulted & owe money to the lender. The
economics of distressed assets in mortgage and commercial banking are
quickly changing. I am quite open to discussing this in the mainstream
media if any are interested in hearing the “Truth go Viral!”
About a week or so ago, I posed a controversial question, Is the US Government About to Forgive Mortgage Debt? Let’s Crowdsource Our Way Through a Scenario or Two!
In that missive I warned that the recovery rate on many of the
repossessed properties was not only at a historic low, but actually
approaching zero, save a few blips from .gov bubble blowing and
shenanigans by banks in the form of kicking cans down the road. I also
said that the time may very well come when there may be no economic
incentive for banks to foreclose on certain properties, and that pool of
properties may grow larger than many could imagine. I know it is
difficult for many to come to grips with this, but the math really ain’t
that hard.
Even Tyler Durden, whose controversial ZeroHedge site I read and
contribute to with a passion, is being too optimistic. Yeah, that’s
right! You know things are bad when ZeroHedge is too optimistic! In his
post “Quantifying The Full Impact Of Foreclosure Gate: Hundreds Of Billions To Start“ he
assumes there WILL be something to foreclose upon. I assert that in
increasingly more common instances, there will be no economic interest
to foreclose upon. It is starting at the fringes and the margin, but it
is moving closer to the center faster than many think. And the longer,
and deeper “Fraudclosure” investigations continue, the closer and faster
to the center it will get. This is, of course, not even considering the
fact that all of this investigating and shining the light in dark
corners will reveal the true elephant in the room (and it is not hastily
signed affidavits that can be quickly fixed) which is that many, if not
most, high LTV mortgage originations were fraudulent to begin with.
That means that not only would it not be cost effective to foreclose,
but everybody and their momma will be scrambling to put the fraudulent
loans back to the originating banks – see The
Robo-Signing Mess Is Just the Tip of the Iceberg, Mortgage Putbacks
Will Be the Harbinger of the Collapse of Big Banks that Will Dwarf 2008!
for my realistic take on the situation and the expenses that it
entails. Yes, the elusive recovery rate is going to be pushed that much
lower. Long story short, bank expenses will skyrocket, along with
efficiency ratios, which were already increasing to begin with at the
same time housing sales economic activity and prices will drop and
credit losses will spike. Oh, what fun we have in store.
Here is and excerpt from Is the US Government About to Forgive Mortgage Debt? Let’s Crowdsource Our Way Through a Scenario or Two
to refresh your collective memories and then I will run through an
example that clearly shows a high LTV property in Nevada that the lender
literally has no economic incentive to foreclose upon if there is
litigation to be had.
As you can see, the charge-offs on
1-4 family residential housing skyrocketed nearly 1,500% (yes, that
is a lot) from the bursting of the bubble in ‘06.
Both recoveries have increased and
the charge-offs decrease, giving us an increase in recovery rates over
the last two quarters. Now, before we get all giddy about the
improvement in the credit situation in residential real estate finance
and blow out all of our provisions, let’s take a more careful look at
the chart. For one, although the recoveries have increased very
slightly, it is the drop in the charge-offs that has served to boost
the recovery rate. So, that leads us to ask “What has changed so
positively in the market to cause such a drop in charge-offs?” Well,
for one the Case Shiller Index has shown a rise in prices. Of course,
BoomBustBloggers don’t really go for that, because the Case Shiller
Index rise fails to capture many of the elements that are causing
aggregate housing values sold to fall on an economic basis. See Why the Case Shiller Index, Although Showing Another Downturn Coming, is Overly Optimistic and Quite Misleading! then reference this chart below.
I will make the analytical model that created this chart available to all paying subscribers
in my next post on this topic, which will drill down on why a lagged,
highly filtered price model (no matter how sophisticated, and they did
do a good job on it) will often mislead you in regards to the true
economic direction of assets as such as housing. You must measure sales
activity (which has slowed to a level that nearly approximate 1963
levels) as well as sales prices – and those prices have to capture all
aspects of housing. The CS index excludes the most distressed
categories, which causes it to have an optimistic skew.
So, if it is not the rising prices of
indicated by the Case Shiller index that caused the drop in
charge-offs, then what was it? Well, I believe it was something much
more old fashioned and mundane. It’s called LYING! See Anecdotal Evidence That Banks Are Hiding Depressed High End Real Estate, as excerpted…
Why are Banks Hiding High End Residential Real Estate? Courtesy of the Real Estate Channel:
- Without the FTB tax credit, the housing market is receiving
artificial demand and price support from the FHA loan guarantees and
banks sitting on mortgages of homes once valued at $300,000 - Banks in areas that were severely damaged by the downturn in
domestic real estate (Cook County, Illinois, Miami-Dade County,
Florida, Orange County, California) have significant inventories
of homes worth more than $300,000 that they will not put on the
market, even after foreclosures lasting more than 2 years
If that doesn’t get you going, reference “They ARE trying to kick the bad mortgages down the road, here’s proof!” and “More on kicking that housing can down the road…“.
Now, taking the above into consideration, let’s run through an example of a high LTV single mortgage home purchased in Nevada.
| Sales price | Loan, expenses | Equity | ||
| $ 250,000 | $ 312,500 | $ (62,500) | Starts off with negative equity | |
| Current retail value | $ 100,000 | $ 300,000 | $(200,000) | prices drop |
| Distressed value | $ 64,000 | $ 300,000 | $(236,000) | distress discounts |
| Carrying costs/maintenance@5 m, taxes/utilities@24 m | $ 12,480 | $ 312,480 | $(248,480) | can’t hold the property for free! |
| foreclosure costs | $ 6,000 | $ 318,480 | $(254,480) | cost to foreclose |
| Broker costs@6% | $ 3,840 | sales costs | ||
| Recovery to bank if sold withing 4 months and not drawn into litigation | $ 41,680 | net recovery in a perfect world | ||
| Recovery if marketing period=12M | ~35000 | recovery if sales continue to slow | ||
| Recovery if litigated (win or lose?) | $ - | If there is a legal battle (there cropping up all over the place), the bank is better off letting it go. |
This example is not far fetched, and can take place in condos in
Florida, California and New York where extra costs can drive down
recovery, or the humid coastal regions (ex. Florida) where humidity can
drive down recovery over time, or cold weather states, or high crime
areas (theft, vandalism), etc.
Methinks it is time to start rethinking the dynamics of distressed
real estate, foreclosures, REOs, and recoveries for the economics are
definitely starting to morph on the margin and that morphing can quickly
spread to the more mainstream.
More Reggie Middleton on residential real estate:
- As Earnings Season is Here, I Reiterate My Warning That Big Banks Will Pay for Optimism Driven Reduction of Reserves
- The
Robo-Signing Mess Is Just the Tip of the Iceberg, Mortgage Putbacks
Will Be the Harbinger of the Collapse of Big Banks that Will Dwarf 2008! - The Truth Goes Viral, Pt 1: Housing Prices, Economic Sales and the State of Depression
- Pay Attention to the National Association of Realtors and Their Chief Marketing Agent At Your Own Risk!
- Those
Who Blindly Follow Housing Prices Without Taking Other Metrics Into
Consideration Are Missing the Housing Depression of the New Millennium. - Is the US Government About to Forgive Mortgage Debt? Let’s Crowdsource Our Way Through a Scenario or Two!
- Why the Case Shiller Index, Although Showing Another Downturn Coming, is Overly Optimistic and Quite Misleading!
- More Doom and Gloom: Homebuilders Making Better Money as Hedge Funds than Home Builders
- Yes, Housing Prices Have Much Farther to Fall. We’re Talking Years…
- Even at Marquis Trump Properties, Your Lyin’ Eyes are Belying the Real Estate is Bottoming Mantra
- advertisements -





Reggie, Has anyone examined the consequences on property tax ? Who is obligated to pay and under what circumstances ? Municipalities may also be losers and they are already struggling with revenue loss
Just caught some douchebag analyst on CNBC's "Fast Money" saying that the putback and foreclosure issue was an "earnings issue" and will be contained to between $6 and 10 billion in losses by the big four banks - JPM, BofA, Citi and WFC. This particular ass-hat called the banks a definite buying opportunity and Karen Finerman (I'm crazy about her, despite her obvious failure to grasp the obvious) and the others nodded in agreement.
BTW: I'll bet that Melissa Lee is a wild banger. Probably likes to do it while after hours quotes whiz by on Bloomie.
$6-10 billion my ass. Even David Faber calls it a much larger issue. MBIA, Ambac and the other insurers were up massively. Smart money already in. Get ready for wickedness.
Wasn't this posted just like, a week ago?
Also, recommendation for Mr. Middleton:
- Intro, with main point
- 3 supporting points
- Conclusion
*No more than 2 charts or boldface paragraphs...
There is a vital lesson from 1972 Andes plane crash [Parrado; Miracle in the Andes].
After the crash there were incidents of failure to distribute and hiding the little food available. The selfish behavior was discovered.
After discussion among the survivors, all agreed that unfairness causes chaos, and any departure from fairness would lead to chaos and all would suffer.
That viewpoint applies here in our banking/financial mess. Long-term unfairness is the cause. The chaos is now clearly recognized.
The remedy is a new understanding of justice, as fairness.
The mis-leaders of the unjust activities must be recognized for their anti-social acts and restrained from causing further harm.
JoeSixPack and I will bear any burdens when our mis-leaders confront justice and are restrained bars for an effective duration.
No 1st-offense/ community service/home-detention/Hollywood bullshit.
Unfairness causes chaos.
market finishes flat? Fed's one step ahead. Already "QE'ed." The question therefore is "are we on QE 3" already? Probably "in deep." As in "doo-doo." Hawaii might be nice but Singapore is better.
must watch
http://money.cnn.com/video/news/2010/10/14/n_foreclosure_lawyer_sig.cnnmoney/
does this mean that I can get a free house? if so, how?
http://covert2.wordpress.com
It seems to me that the thought of the bank taking over the house when there are no buyers is stupid. If I'm still in the home and its still in my name am I not responsible for the taxes being paid , water, electric ? Living here in NY my fuckin taxes are about 8K a year for a house thats a pile of crap !! I'm not underwater YET but its getting real close. My next step would be to walk away. keep the cash I have and buy a short sale somewhere.
FINALLY. a real person. stick a "i'm a former marine corp sniper" sign on your pad and take a close look at that tax bill.
your solution fails to take into account that the government would then be lending money to all people regardless of income, on property whose value has shrunk to an unknown amount. It also leaves all purchasers of MBS with no income stream or asset for all of the $ they paid as an investment. What happens when suddenly all of the retirees need their pensions and they are worthless due to the government takeover of assets which they don't own and can't legally offer title to? So, what, a moratorium on legal titles too? The only solution is exactly what's been done for hundreds of years, follow the rule of law and contract law, if the contract is bad, fraudulent, etc, then someone has to eat the investment, same as any other deal. Just because its these TBTF banks doesn't mean the law changes
I agree, but the natural outcome of that process is that there will be huge losses on several fronts: MBS investors will lose because the banks will be unable to compensate them fully; banks will be bankrupted by the judgments obtained by the investors and tax authorities; stockholders in the banks will lose the value of their investments. It will become a vicious circle, because the loss of all of that value will reverberate through the housing market, in the form of fewer buyers with sufficient financial strength to buy, fewer lenders with sufficient strength to lend, and more inventory sitting unbought due to the uncertainty created by the fraud. THIS WILL NOT END WELL.
Yes, that is true.And a lot of U.S. pension funds and 401k and retirement fund are investors in MBS !
Banks, title insurance companies are NOT the only ones getting screwed, eveyone is, except Defaulters not to pay mortgage but staying in the house for free, or may may eventually get some forgivenment on their mortgage.
MBS purchasers? You mean the Fed?
Even if Bennie and the Inkjets haven't made the original purchasers whole yet, you know they will. TBTF and all that.
"Bernanke paid for my house and all I got was this stupid foreclosure."
I have a number in my head. If my house drops to that point I am sealing my check book and daring them to come take my house. In the words of the Soup nazi....... NO PAYMENTS FOR YOU!!!
put your house on the market for that price, if you get no offers, you have your answer, prices falling more than I thought, and I was bearish
a little while ago ZH covered the practice of reporting sale prices that were really the asking price. maybe you have arrived at your price already?
The Houses aren't worth that much..this is going to be a Big surprise to the banks.
See what the prices are at Dow.. 4000 or so.
As I said last night. A solution might be this.
U.S. Treasury (Not the FED) offers all residential mortgage holders a 3% 30 year mortgage on the outstanding balance. That's everyone top to bottom.
In order to get this new mortgage, residential homeowners would need to sign new documents and forgive any legal action.
Special situations could be settled apart, but litigation would exempt them from the 3% mortgage.
This would bypass the FED and establish the U.S. Treasury as new top boss.
Would put huge amounts of money into the hands of homeowners, increase tax receipts across the board, improve household balance sheets,eliminate massive lawsuits, get things moving quickly again, stabilize real estate prices.
Establish the U.S. Treasury as the right-full representative of our finances and NOT THE FED or the TBTF Banks.
people considering strategically defaulting due to being way underwater would not take such a deal, and that's a good 3-5 million or (11 million are underwater, so say 3-5 million are way underwater)
3%? How bout -3%, better yet, how about -50%? (so that at least housing prices can return to normal historical ratios with incomes)
Otherwise, show me the note!
That still leaves a few million foreclosed homeowners left to sue the banks...
does this stock market never acknowledging what seems obvious, seem a lot like spring 2008 to other people besides me?
Seems to me some people are missing the overall big picture. Moneymutt assumes only 1 in 50 or 1 in 100 houses in foreclosure can be successfully contested. From what I'm reading, with MERS etc all loan written from 2000 thru 2010 maybe be fraudulent in that the securitization, pooling, and selling are illegal. Thus all mortgages have broken chain of title. Not to mention that by using MERS, the purpose was to avoid having to constantly pay county registration and recording fees every time the property asset was sold. Which means MERS owes lots of money to every county. If MERS owes more than they make, bankruptcy may make things interesting. In my mortgage, MERS is the mortgagee, even though they gave no consideration. This mortgage issue goes way deeper than just foreclosed properties, its EVERY property.
MERS can't go bankrupt.
Not all mortgages are underwater. If you 50, 100, 300k in equity are you going to stop paying and chance that you will get title to your house?
I don't know much about banking so I'll stop there, but unless/until the SCOTUS announces that all mortgages handled by MERS are unsecured debt (not likely ever, and not likely soon if ever), I don't think your scenario is right. And even then, it would make sense to pay on some mortgages just to avoid hit to credit rating, just as it makes sense for some people to pay down 30k in credit card debt even tho they certainly can walkaway.
posted this on another thread but now I see Reggie thread available, I'd like to know a conservative estimate on the hit to banks bottom line do to the best possible (for banks) outcome going forward
repost:
I'd like to see the real numbers if you figure some certain percentage of additional defaults if they don't find a political solution soon...and there will be no political solution til late Nov.
Some numbers questions:
1) so how many previously foreclosure takings of house will be contested?, maybe 1 out of 100? a lot of people never contested, a lot of people put keys in the mail etc...but some fought it and lost due to forged documents. So what does 1 out of 1000, 1 out of 100, 1 out of 50 houses already taken and sold now being contested in court, do to banks. And now that even not-contesting may not be an issue, what is the ratio?
2) how much does this accelerate existing strategic defaults...what percentage of 11,000,000 underwater houses have already been strategically defaulting? how much does this increase that percentage, how much in certain states? While someone with equity and good credit would need high level of confidence to default as they have lot riding, someone way underwater has little to lose now by going for it and defaulting...even if realize they may never get their house for free, they now know, depending on their state and the type of loan they have, they may get house rent free for 2-3 years...thats a lot of encouragement. In addition, now the banks are shown publicly to be cheating, less moral reason to honor contract, gives people an excuse to quit their end. And strategic defaulting is contagious.
I'd love to see what the datamining guys at the bank who are looking at loan performance in the next month, I bet there will be a huge spike in underwater folks stopping payment. Even if banks get these houses eventually, loss of income and great increase in expense in meantime.
3) How much is this going to cost the banks in legal fees and additional staffing? Is this significant to their bottom line? Now foreclosures will be fought tenaciously by every laid-off lawyer in town. They will have to address the now-building back log. There will be class action law-suits, depositions of their staffs. The will be new legal challenges to previously foreclosed and closed loans. There is the AG and DOJ investigations to respond to and, and there is having to do more expensive, more thorough job on tracking title on all new sales.
4) Plus, any foreclosed REO they try to sell make less as the REO will be brand tainted for some time, even if they are cleaned by political court action, individual homeowners will be wary, value of REOs will go even lower. How much?
If you put some conservative estimates each of these increase costs/losses, even if we factor in some sort of political/court stick save for these too big to jail types, I bet we see a blood bath. And if there isn't a political save that holds up in court, ouch.
Reggie, where are you, I need some numbers...
Here's some eye candy for you:
http://www.ritholtz.com/blog/wp-content/uploads/2010/10/14mortgage-graph...
http://www.ritholtz.com/blog/wp-content/uploads/2010/10/Equity-Delinquen...
My best bank anlayst and I have been working on this all month - individual valuations for each bank that we cover - with the real stuff taken into consideration. Everytime I'm about to say we're finished, there's some other little critter we find hiding under a rock.
I'd love to post everything for free, but unfortunately that analyst (and my kids) needs to eat. I will be releasing a higher level overview on my site and probably discussing it in the media some time very soon. I usually repost at least half of the free stuff from my blog here. As you can tell from what I have posted on ZH thus far, fundamentally it looks as if the jig is up for several banks, but they have managed to levitate above the fundamental waterline since Q2-09, so it may take some time but it will bring share prices and fundamental back together again.
Thanks Reggie - I knew you'd be doing these numbers, can't help yourself can you :), and I was just joking about giving us the numbers, realize all your research can't be free...you give us plenty for nothing already.
The fundamentals on the banks are bad, but as we have seen, that does not mean their value goes to nothing, it seems the FED and congress have a million tricks to help them, so I'm just wondering, do you think they'll actually let the bank stock/band holders lose their money?
have you included the Fed in this calculation?
Tyler is much too optimistic about his audience too @]
So I paid off my house (Phoenix) in 11 years a couple of years back through living below my means and paying extra. I keep hearing about large scale forgiveness, etc. Can someone tell me how I am supposed to take it if we get people keeping 'their' houses for free on a large scale, and I paid mine off like you are supposed to?
Telling me I was an idiot for paying off the house does not count as an answer.
Right, the government is about to finesse things so that if you bought a house you couldn't afford with 1% down and then defaulted on the mortgage...that will be the smartest financial decision you ever made in your life. The second smartest thing, you will soon be reminded, is to re-elect Team Obama who made it all happen for you.
I'm sure this is bad for the banks and Reggie has done a great job being on top of all this but so what? The government will probably just wave it's wand again and make the banks -the big ones at least- all better (again).
It's bad enough that our crony-capitalist system arbitrarily selects a few mega-winners at the top of the pyramid but it will be much worse when the system starts arbitrarily and more visibly picking millions of mega-winners from the worst stock (financial idiots) near the bottom of the pyramid. My humble prediction is that social unrest on a huge scale will result from this. This is a total disaster and as usual the government is pushing toward the stupidest solution with both hands as it lurches from crisis to crisis.
And oh yeah, I almost forgot...shut up and pay your taxes.
What seems to be little mentioned is that the mortgages are security for some sliced and diced franken-investments which are held by folks other than "the banks". Those entities range from foreign municipalities to your local retirement funds. It is those end investors who have yet to hit the front pages. It is their "income" from the loan payments that is going missing. Banks don't own these loans, the gov't doesn't own these loans. Some people only own a small part of a bunch of loans. It's the worst clusterFK that has come down the pike yet. It is FAR from over!
take out a mortgage! if you stick it in a quality yielding equity or corporate debt (Ford debt if you're feeling randy). you not only can get an interest rate higher than the mortgage interest rate, you get the "equity kicker"!
some people that were born in 40s and 50s had a wonderful job market their whole lives, had houses that always increased in value, and stock investments always go up, retired with pensions and investments, and lived really really well despite never having to go to college, never having to pay student debt, never paying much for their kids to go to colleg in late 70s early 80s, the just had a working class job, lame job that wouldn't pay $8 hour how, and had a very good life.
But someone born in late 70s,, that bought a house in say 2003, had 50k in student load debt, is working two jobs to get health insurance, can hardly afford to put money in 401k and save for kids college, they are screwed compared to previous generation...how are they supposed to take it?
FEMA camp debtor's prison?
Can someone tell me how I am supposed to take it?
Like a man... Life is not & never will be fair....
Newsweek cover:
"FICO Score Over 620? We Are All Chumps Now"
Reggie - Great stuff as usual, nice deep analysis.
Quick question. Taking your thought a step further, "Gov't to forgive mortages".... I think it may go down more like Gov't fogives mortgage, but owns the property. You get to stay if....you behave.
Is this a segway to no real property rights (like in China).
Based on recent FOMC purchases won't the Fed eventually also own all Treasuries pretty soon? Would that theoretially lead to complete Gov't ownership of all assets (they are buying lots of equities lately)?
If so, then I believe that would be closely followed by a Dollar revaluation (to conveniently eliminate all that gov't debt without upseting any foreign nations).....providing a clear balance sheet (with no outstanding obligations except for Social Security - only for those who "served the state"). hmm
...women and children are torn apart like so much fresh bread!!!
The latest Black Swan to come in for a landing is the Foreclosuregate
Clusterfuck. So far this appears to have had negligible impact on the Capital
Markets, but you can smell Sulfur in the air here. Everybody from the TBTF
Banks, the McMansion Dwellers, the Servicers and the MBS holders are Lawyering
Up. Whether or not Obama-sama declares a National Moratorium on foreclosures or
not, on a State by State basis this is going to completely lock up the
Foreclosure system. Unless of course CONgress passes some Law which with a
stroke of the pen absolves the TBTF Banks of the fraud and then proceeds to make
EVERYONE whole here in this mess by printing an ungodly amount of Funny Money.
I can't see Helicopter Ben doing that, but ya never know.
The biggest disaster is in the so called "Chain of Title" of ownership, which
appears to have been irretrievably broken here. At this point from a Legal
Point of view, it appears close to impossible to determine WHO actually "owns"
any of these properties or has clear title to them in the event of a default.
Title Insurers are walking away from this mess like the Plague it is destined to
become.
You have to remember that Debt is Money, and the Mortgage Market is the source
of a HUGE percentage of the Money in our economy. Anybody who is continuing to
pay on these mortgages even if they still have a job is just NUTS. Even if you
have a prime Old Fashioned Mortgage to keep paying on it is nuts. EVERYBODY is
going to start "Strategically Defaulting" here, since the courts are going to be
Locked Up and nobody can move on anything. This should quickly kill Cash Flow
into all the TBTF Banks, at which point they will need another BAILOUT to stay
floating. Do you think CONgress has the BALLS to drop another huge Bailout onto
the TBTF Banks now? Stealth Monetezation and QE is one thing, forking over
TRILLIONS to the TBTF Banks AGAIN now is quite another.
You know that "Go Galt" Moment everyone talks about, when J6P says, "I'm Mad as
Hell and I'm not gonna TAKE IT anymore!" and stops paying his Taxes and just
says FUCK THE SYSTEM? This is IT. What happens if EVERY mortgage holder in the
country (or just a very large percentage) takes this Opportunity to STOP PAYING!
Talk about Instaneous DESTRUCTION of a Monetary system! Talk about your "Sudden
Stops".
All it takes here for this to occur now is for J6P to realize he has been Conned
and for a large enough percentage to simply stop paying. On the good side, this
would Juice the rest of the economy, since Joe would now have a lot of extra
disposable cash to spend at Wally World buying Preps. That would of course set
off the Hyperinflationary scenario in the commodities, as everyone takes all
their newly available dollars and starts clearing the shelves of all merchandise
while its still there.
TPTB are going to do everything in their power to keep J6P from reaching the "A
HA!" moment, and playing Propaganda Morality arguments about the importance of
"fulfilling your Obligations" to keep paying your debts. If any real
significant portion of the population joins the Bandwagon of Debt Repudiation
and simply stops paying, Cash Flow in the TBTF Banks will dry up to a TRICKLE.
The ONLY way they will be able to stay floating and keep paying even a Skeleton
Staff is if Helicopter Ben shovels more money at them hand over fist as a "loan"
to tide them over until the "mistakes" in the paperwork are "corrected". Again,
its going to be a Political Nightmare to try to pull off that kind of Bailout in
this situation.
For all you folks who have been looking for a way to STICK IT to the TBTF Banks
and get this bizness settled here once and for all, you now have the Golden
Opportunity to put your Money where your Mouth is. You want to know how to
Revolt? STOP PAYING YOUR MORTGAGE! I mean EVERYBODY! You really think they
have enough Bill Collectors and County Sheriffs to Evict EVERYBODY?
Downside of this of course is that it will plunge us almost immediately into Mad
Max territory, as all Fiat Money will go worthless virtually Overnight. Not
just the US Dollar, this will take down every other currency as well, since all
the Big ones are large holders of Treasury Notes, which now would be worthless.
Besides that, I don't see why once J6P in the FSofA repudiates all his debt, why
J6Ps around the world from France to Germany to the PIIGS wouldn't pull exactly
the same stunt. The Illuminati would be INSTANTLY Impoverished, except for their
Basement Safes full of Gold Bars.
The Golden Moment to DESTROY the Illuminati has arrived, if J6P is smart enough
to grab the opportunity. It's the Power of Numbers. If everyone at the same
time says "we don't BELIEVE in your Money anymore", the Illuminati are
IMPOVERISHED along with everyone else. They won't be able to PAY private
Security Forces to protect them, because they will quickly be divested of any
Gold they try to pay them with.
Just have to see how it goes here. This is getting very entertaining though.
RE
....how 'bout we do the same thing with our taxes? When is the last time you were represented whilst having your pocket picked by every level of governmental thief? The mad max moment is coming anyway, whether we stop paying or not.
golden balls! golden balls! golden balls!
Bravo! I am almost at the "fuckit" moment myself.
I still think the MBS bagholders with deep pockets will take aim at the originators and securitizers who sold them fraudulent securities. I know this will play out like a Rocky movie, but this could play out like the Abacus deal did for Goldman Sachs x 100,000+ MBSs.
I like it. Can we begin now?
So nobody knows who owns these properties?? I know, you know and the residents of these properties know who owns the house - the banks do - but that won't stop there being an orgy of litigation resulting in huge profits for the lawyers, the TBTF banks being made whole again and the sometimes irresponsible defaulting homeowners being handed the property.
The real owners of these houses are the responsible taxpayers of america who, via the fractional reserve ponzi system are now taking the hit to their fixed incomes (assuming they haven't lost their jobs).
If there was any justice the banks would be allowed to fail, the lawyers wouldnt get a cent and the houses would become property of the US taxpayer to sell at their leisure after a few years of super-high inflation.
Big mess getting bigger
just in time for the election
tyler, are you going to let reggie talk about you like that? next he'll be saying that your mother wears army boots.
i happen to agree with you reg. RE is and will continue to fall and as it does it becomes even more of an expense and liability. some of these lenders came to this conclusion 2 years ago, telling people to just forget about it and giving them the keys back so they could repair the vandalism before it got too bad. those properties were not high end but it has spread up since then. there are lots of early RE vultures finding out that they were way too early and are walking away where they can. it is still to early to look for a bottom and CRE is starting to crack now as well. lots of pain left to go around i'm afraid.
Locally, the RE "vultures" are going bankrupt as well, with their "cheap" property returning to the courthouse steps for another round of catch the falling knife.