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Ouch. That's going to leave a mark on the TBTF.
Oh hey, thanks for the bailout, and BankofAmerica returns the favor by closing 10% of its branches. But sshhhhh, they keeping it quiet.
Call to Action: Help close ALL the branches. Put them out of business. Move your money to a credit union or local bank. Refuse to do business with them.
The TBTF's don't want pesky retail deposits anymore, now that Bernanke gives them less than zero real interest loans.
Well if there were ever one that needs to be PUT out, the Morgue has to be it.
Not only are they stupid, because this will only cause folks to use credit cards they won't pay, it shows how corrupt they are as an entity.
Anyone who does business with this gang of hoods should be shot.
Just out of curiosity, what would this mean to someone who is (and always have been) current on his prime mortgage (which isn't underwater) and is looking to refi?
Any info would be greatly appreciated.
It is possible that, through an overly complicated web (and likely purely academic argument) the payout for your home would go to the wrong person/entity and some type of lien remains. More practically speaking, it means that if there is an issue with assignment of your mortgage that would prohibit them from foreclosing on you, it will likely be cured in the refi, given the previous chain would be "paid". Given that you actually pay your note and apparently are not at risk of default, it means little... other than less foreclosures should help prop up prices... at least temporarily. Price discovery be damned.
the Zombies are in trouble
Good thing we have a debt-backed monetary system where all of these bad mortgages (and the ones that will go bad when mortgagees see they can get away with defaulting) are someone else's money. You don't have any money lent on deposit to a bank do you?
Less foreclosures, equals less supply, equals higher prices, equals less delinquincies and less foreclosures! It is a virtuous cycle. Green shoots, bitches.
Not so much a virtuous cycle, but the same old hygiene motivator theory that is the only concept our current masters of the universe understand. History will look back at MBAs in the same way we look at psychatrists who advocated lobotomies for anyone who did not act like they did.
"Some people got nice houses. Some people lost nice houses. It is up to you, my fine young (nurse/consumer/animal spirit) to keep my tools sharp, be here early, leave late, and follow my orders so you might be in 'the position' to purchase one of these beauties when we decide to put them back on the market."
Good ol' snow being blamed again... is there anything it CAN'T do? Anyone know if it snowed in Libya recently?
February seems so long ago now ... wasn't that when the scum CEO of MERS quit?
My bad, I meant to cross out scum. Or CEO
I tried to tell my friend out in LA to stop 'investing' in RE out there and to come over to the dark side with us silver sluts.
Blue Pill time.
BAC has basically ceased its foreclosure ops in most of California since October.
But I have a theory.
Its called the "What could be the new fun and games inside a QE3?" Real Estate.
Real Estate, President election, bank bailouts. Its a perfect storm.
The banks are going to negotiate "free homes" for Obama to hand out across the country in order to get votes in 2012. The government cheese and the 99 weeks are up. Somehow 44+ million on food stamps and Section 8 - call it "Section QE3" can only make the transformation of an Amerikan serf class complete.
When the banks learned that the OCC could not force a fire sale of OREO as far back as 2008, a few RE bankers saw the returns of being landlords verses the actual mortgage market. Surely the Fed, the Banks and Obama can see that by not foreclosing, but accepting a deed in lieu of foreclosure and then having short/defaulting borrowers pay rent on homes they will never own, the banks can keep their RE investments until they make their numbers, the shadow inventory melts away quicker and the poor are not kicked out on the street - Obama earns the thanks of millions of voting serfs. The Fed will in turn pay subsidized rents to the banks in order to avoid more foreclosure hitting the books, or the Fed and FHA will buy mortgages outright, only to turn around and give them away to a greatful and desperate nation.
There are over 115 million households in America and over 130 milliion housing units.
If you are a democrat in Ohio, Illinois or Michigan how could sanely vote for Obama again - unless you are getting a free place to live. Just put it on your tab with mandatory health insurance.
that doesn't sound as improbable on second reading as it did on first. note to default world: never move out until the sheriff escorts you out.
This has got to be the Ultimate cognitive dissonance inducing development in recent US history, which is choc-a-bloc with said moments.
1) See the ownership of a house as THE American Dream
2) Give a couple of generations the false belief that they actually do live it
3) Junk succeeding generations on a ration of Flouride, aspertame, poor schools, entitlement mentality, cheap credit
4) Drive the housing bubble to said junk generations with insta-wealth dreams 9the creatred dot.con scam shows it is possible)
5) Once big enough, pierce said balloon
6) Rip all the foundations of the dream, turn it into a nightmare
7) Suddenly show massive fraud in said bubble blow-up
Now everyone from Generation Junk is confused. Do I own it? Free and clear? Yee haw.
As if the banks will let anything go so cheap or easy.
The next move in this game will be a rocker and a shocker.
All part of the plan. Since nothing happens anymore without a 24/7 "crisis", TPTB will manufacture one to replace the nation's current state of narcoleptic apathy. I'm thinking it will unfold in stages leading up to the elections in 2012. The first stage is a takedown of equities and commodities by the Fed, followed by nationalization of the major banks later this year. This will be the setup for Obama's master stroke -- a "resolution" of the states, mortgage and pension funding problems by swapping assets in private retirement accounts for guaranteed federal annuities. Individual state bailouts will be offered in exchange for loss of sovereignty (DHS takes command of the national guard & state police).
If it works, interest rates fall, the DX is back at 90, and since China's economy is likely in chaos, employment picks up again in the U.S. during the months leading up to Obama's reelection. Of course the budget deficits will still be a problem, so the Fed can roll out the tried and true QEx.
I think you hit the wrong key when you typed that. It should read DX is back to 60 under the scenario you laid out.
It took off like a rocket in Q3 '08 when TSHTF. That was the test run, since then the Fed has fine-tuned their system.
At what point does the dollar see diminishing returns from staged flights to quality, if not already?
What does the Bruce Krasting have to say now?
Bank Of America admitted yesterday that it is servicing $1Trillion worth of mortgages that are at least 60 days past due and worse. Of those, B of A owns 25% of them. The total is about 7 million mortgages. Let's face it, most of them will end up in foreclosure. Maybe all. So B of A has $250 Billion of its mortgages in trouble. If it has to take a 40% haircut, that's $100 Billion. Yikes. Plus another 7 million homes foreclosed on. Not good for the real estate market. If they're going to take a haircut anyway, why not just write down the loan for the current mortgagor, and take an equity position on the upside?
Foreclosures down? How hard will CNBC try to turn this into GOOD news?
Diana Olick is about the only CNBC'er that knows what they are talking about.
That locomotive and several cars are now airborne over the cliff. Running toward the back of the train at this point is a bit, well, pointless.
How about a side-ways leap out the carriage?
At least you'll hit bottom on your own Gravitas (Grabitass?).
Mandatory Housing Bitchez
Uh oh, this smells like a big stinky problem.
Isn't there a whole buttload of ARM resets this year too? With rates artificially at zero I see this is a gift horse for these ARM resets, banks aren't going to be happy with this unless the reset rates are fixed at signing...which they could be, certainly I don't know.
Tyler has Tiger Blood. From Bloomberg re PIMCO dumping Treasuries:
"The Zero Hedge website first reported the change in assets today. Pimco doesn’t comment on changes in holdings."
3 Trillion in Bailouts & QE + 0% interest rates for 2 years + 2 year artificial rally+ 250 NFLX Stock + 45 Million record on Food Stamps + 99 Weeks of unemployment benefits + Mark to Unicorns accounting + Unlimited Federal Reserve Repos to Euro Banks + 1 Trillion in ECB Debt monetization + Sky High Wheat, Grain, Sugar, Cotton, Cocoa, Rice costs + Cash for Clunkers + 105.00 Oil + Held back shadow inventory = Housing prices still declining
= We are super fucked. And for all the quants interested you can keep the above algo.
Awesome. It should drop by whoever is in 'default' for fraudulent MERS securitized loans in perpetuity. So to just about 0.
But Fascist NerObama is trying to cut a 'deal'. Bennie has the inkjets warming up backstage. The TBTF's are at the ticket counter.
Pay for the fraud! It's your patriotic duty?
In the end, cutting or printing for fraud is the hallmark of a true Scrumdiddilydumbshit. Oh and a fascist Benedict Arnold.
MERS, the Mortgage Holder You Might Not Know
The MERS Corporation, claims to hold title to roughly half of all the home mortgages in the nation — an astonishing 60 million loans.
How can MERS claim title to those mortgages, and foreclose on homeowners, when it has not invested a dollar in a single loan?
And, more fundamentally: Given the evidence that many banks have cut corners and made colossal foreclosure mistakes, does anyone know who owns what or owes what to whom anymore?
The answers have implications for all American homeowners, but particularly the millions struggling to save their homes from foreclosure. How the MERS story plays out could deal another blow to an ailing real estate market, even as the spring buying season gets under way.
Nifty Updates :
Forelosure is DOWN and american homeowners are in better shape!!
Cheer up and BTFD!!!
Here comes a dip now....Silver and Gold Flash Crash?
Zombie housing mkt.
Look for a new form of QE disguised as another help the citizens TARP program. They will attempt to fool the public by softening the blow with a much propagandasized principle reduction (PR) for some home owners underwater. Coincidently (not), the ones chosen for the PR will only qualify if their mortgages have broken chains of ownership.
Bailing out the banks in this fashion will fool the public into thinking that the citizens are being helped, and the banks are paying, but in reality the banks will be getting a huge bailout as the bad loans are shared in a TARP pool with the banks, FED and -the GSEsFannie and Freddie. Hence another bailout paid for with taxes by the sheepie.
How much shadow inventory is there is the real question.
Also here is the chart for those who forgot what the next ramp up in loan resets and foreclosure activity will look like:
We still have yet to weather the true storm. Time to drop the sails.
Great. Now, how big, deep & wide is the shadow inventory (those homes sitting empty, not foreclosed on, not for sale)? I understand these are kept off-the-books to keep the banks balance sheets "cleaner"....
It's going to be HUGE. Just wait until June/July when the glut of 5-year option arms start to reset. I work on pre-foreclosures in a mid-sized city for a major bank and last year we worked on 3000 different properties. All of them are just sitting there, no sale dates even set.
@andybev: first you need an appraisal from a firm that is lender recognized, and you will only be able to borrow 80% of that amount. Shop around: the TBTF will hit you for around 6-7% points as fees; title, processing, etc. It should be only 3-4%. If you can afford the payments, go for 15 year term, rather than 30 year.
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