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Keeping The 'Recovery' Dream Alive; 3 Big Banks Halt Foreclosures In May
What is the only thing better than Foreclosure Stuffing to provide an artificial supply-side subsidy to the housing market? How about completely clogging the foreclosure pipeline, by halting all foreclosure sales, which is just what the three TBTF megabanks: Wells Fargo, JPMorgan and Citi have done in recent weeks. Under the guise of 'ensuring late-stage foreclosure procedures were in accordance with guidelines', the LA Times reports that these three banks paused sales on May 6th and all but halted foreclosures. Perfectly organic housing recovery - as we noted earlier... and guess what states the greatest number of 'halts' are in from these banks - California, Nevada, Arizona - exactly where the surges in price have occurred.
Sales of homes in foreclosure by Wells Fargo & Co., JPMorgan Chase & Co. and Citigroup Inc. ground nearly to a halt after regulators revised their orders on treatment of troubled borrowers during the 60 days before they lose their homes.
The banks said they paused the sales on May 6 to make sure that their late-stage foreclosure procedures were in accordance with the guidelines. The banks wouldn't say exactly which issues had been under scrutiny.
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Wells and Citi were still on hold as of Friday, according to PropertyRadar.com, which tracks foreclosure filings in California, Nevada, Arizona, Oregon and Washington.
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"We simply needed to take the time to assure that we can validate and document our compliance," Wells Fargo added.
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At Wells, the biggest mortgage servicer, foreclosure sales in the five Western states fell to 17 for the week beginning Monday, May 6, from 298 the previous week,
A bank official predicted Wells would soon resume selling the houses of defaulted borrowers. "It won't be long,"
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Aren't we still waiting for the commercial real estate collapse? Magical Fiat Tour.
http://goldsilverbitcoin.com
The S&P is up and paper gold is down. Everything else is irrelevant to these guys. The fact that the ten year is falling out of bed might be a little bothersome.
"There's never been a better time then now to grab a 'no-money-down house' (that you can't afford)... move in and simply don't pay the mortgage."
It's all the Rage. Why pay a mortgage when you can buy yet another iPad or Smart phone, esp one with a cool cracked screen.
Smashed smartphone screens become status symbolhttp://www.theage.com.au/digital-life/mobiles/smashed-smartphone-screens...
Cool, Dude!
Stupid Sheeple!....thats just sad!
But,with teachers like these,what do you expect???
http://news.yahoo.com/obama-end-mount-rushmore-third-george-washington-p...
If they foreclosed they would sit on the properties for awhile anyway since prices are going stupid upward. So might as well let the people live there in the mean time, it's better to have people living in a place than have it sitting vacant for a length of time. These days if they want to dump a property quickly they wouldn't foreclose anyway, too much of a hassle and politically unpopular. Much better to just do a short sale; the borrowers take less of a hit on credit so they are motivated to take care of the place during the sale process and not trash it with a foreclosure Sharpie party.
These three "banks" need to step it up a notch, like Bank of AmericaCountryWideMerrillLynch, which is obviously in full compliance of everything, everywhere, and forever. God Bless Linda Green.
This shit is just unbelievable...
I'm listening to Art Cashin tell me today is a relief rally becuase volatility in Japan is finally calming down...
Well good ole' Arthur ain't seen nothin' yet.....volatility just gettin' started
Did Art happen to mention 20 out of 20 Tuesdays?
Art did mention "up on a long weekend" has kept him employed.
Why foreclose?? It's much, much cheaper to pick them up in the tax sales.
A no good title is a no good title, seem's they are smartening up a little on the acquisition part.
So, halt the foreclosures, let them go to the county tax sale, pick them up for back taxes, rehab, falsify the title and sell it to some subprime borrower, who will never own it anyway.
What's the benefit?
Why, a HOUSING RECOVERY!!
LOLOL!!!
Buying the property in a tax sale is the one sure way to get good title. Seizure by the taxing authority supercedes all other prior claims.
I agree but paying the bank and paying property taxes are two different things. If the occupier keeps paying taxes, the state is happy.
No... it's contested title. The right of redemption, among other things, keeps the matter "in the air" for quite some time (statutory periods). Here, it's 30 days following sale to redeem + 2 year litigation period, depending on the vintage of property (how long the state has had title). While the state does have title to the property, it's a contingent title.
Also, you typically do not get the benefit of any improvements made during the litigation period (despite general laws to the contrary, aka "betterment statutes"). So you have to buy the house and let it sit... or, if it's habitable, then rent it out... no one will pay cash for it given the title issues/contingent liabilities. If the debtor is still living in the house, then you'll have to sue them to boot them out, which then in turn gives them an opportunity to litigate the matter.... thereby defeating the entire purpose.
It's not cut and dry... and any purchaser worth his salt is going to get a court order quieting title in the property to himself...
The other thing, that's pretty fucking hilarious... is that many creditors do not even have systems in place to account for tax sales. In other words, the creditor gets notice from the state of the tax sale and then fails to exercise its right to redeem... oops. Collateral gone...
There shouldn't be many foreclosures, anyway. Housing and the economy are in a recovery.
http://dareconomics.wordpress.com/2013/05/28/around-the-globe-05-28-2013/
that is the power of moar debt.
Dem price controlz works out.
yeah its good to wait until the economy improves.
Foreclosures have ground to a halt in CA due to new laws at the beginning of the year. Helps the recovery monologue.
That and case law that is rapidly developing in CA and elsewhere. The courts more and more are seeing the fraud and utter ridiculous defenses that the TBTF's are presenting. This baby ain't over yet by a longshot.
It won't be long? When you say that do you really mean that it won't be long before you are swinging from a bridge some place?
It won't be long now!
Famous words followed unceremoniously by this:
O Great Pumpkin, where are you?
It won't be long before they sell the surveyed and assessed properties that do not meet their need for future appreciation.
Because when the swoosh finally happens and the fiat exits equities it will want to go somewhere. And, there is only so much gold.
To his credit, Jim Rogers said this first. Just because it is being taken to the nth does not mean the theory is not valid.
Too many dollars will seek a return, even in a crashing economy. In tangible assets.
When the Fed is handing the bankers free money they have no incentive to foreclose. Losses are simply passed on to innocent taxpayers in one form or another, usually thru inflation and loss of purchasing power.
Withholding supply is the chief tool of monopolists. Not only does it lend to the false recovery meme, it helps the mark-to-market of the ugliness that is their balance sheets. The desperation is starting to stink.
The bank not mentioned(BofA) is probably the beneficiary of all this. They have all kinds of junk, in that region, thanks to CountryWide.
Wow, must be a lot of dopes out there bidding up prices to buy a piece of housing bubble part II.
...or a lot of bankers and their agents sitting on more "reserves" than they know what to do with and need to stuff 'em into something other than stawks (so no one suspects that a bubble could possibly be forming in SPY). Nah, couldn't be that.
does that mean the bankers are now giving each other the NINJA loans they used to give the rest of us? because I don't think the banks have any actual income to point to.
They're trying not to give birth to new squatters.
Ebworthen: There are well-capitalized firms that are swooping in to snatch up bargains (aka ex-homeowners who have been punched in the gut one too many times) and immediately flipping at bubbled-up prices. All your bargains are belong to us.
I'm sure this is all just some big coincidence. Not coordinated with federal authorities at all.
things are worth whatever jpm says they are worth. that is all.
Why would anyone ever buy a foreclosed home?
and BTW, Whatever happened with PrimeX?
Yup. Ca, Az and nv all big Case Shiller winners and foreclosure denial states.
Thank god I live in a managed economy... and to think... there was a time I had to think for myself... now where did I put that application for food stamps...?
so they aren't allowing homes to be foreclosed on? or they are not selling any more foreclosed homes? i.e. suppy down, demand relatively constant, prices up.
Prelonging the inevitable
When Detroit starts to recover then I will be a believer.
Mother nature is recovering Detroit.
Time to start raising real estate taxes again and prices in general.
check the title recorords before you buy to make sure the proper transfers have been recorded
That's their gift to the debt slave peasents that make up their customer base. The far more interesting number are the 90 day late notices, the Notices of default and the REAL number that these bloated jokes have on their balance sheet and continue to hold because of the Chairsatan giving them free money and purchasing defaulted securities. The real numbers will be found at Corelogic if anyone wants to do the work.
Why sell on the market when you can turn them into MBS and let the Fed buy them at twice the price?
Banks have stalled the listing of foreclosed homes (by hanging them in their internal foreclosure processes) for several years - recall a ZH on the subject.
In some cases, squatters moved in and took over the foreclosed property for nothing.
Sounds like the game is still on.
Killing the "real estate recovery dream" means killing all TBTF banks in the US and Europe. This leads to the total collapse of the global financial system. Such a collapse has been avoided since 2008 and will be avaoided at all costs into the long term future. The averaqe person living in the US and Europe has stuck their head in the sand and believes the propaganda thrown his way daily by the MSM. Many, do not want to accept the fact that their country may be insolvent or their job hanging by an economic thread. Denial and liies are the most powerfull tools in the bankster/politician tool box.
It was just in the paper this weekend too that the banks are now going to outsource the foreclosure process to be handled in India, all the paperwork, signatures, etc. that lead up to the final act.
I know a guy that has been almost three years (August will be 3 yrs) that he hasn't made one payment and is still in the house. His lender is BofA and still no foreclosure
The housing market in the southeast is catching quite a bid, due primarily to cheap financing and substantially lower bars on loan qualification. I listen to a local real estate radio show where they actually do live financing deals during the show itself, and it is fucking absurd some of the stuff that gets greenlighted; just a couple of days ago someone got a greenlight on the following:
$125K gross household income
3.5% down
$960K purchase price
670 FICO score
If that doesn't have BUBBLE written on it in all caps, I don't know what will.
Someone with that kind of income is probably going to have a hard time keeping the lights on in that place... here, that would probably be 8k+ sq ft. with some very nice acreage. I'm guessing ~$850/mo in property taxes, maybe $500/mo. in insurance, $1,000/mo. in maintenance accrual, $750/mo. in utilities, $5-6k/mo in note payment, + mortgage insurance.... The costs of the house are more than the folks are bringing home... and that doesn't include any living expenses.
They must be huffing and puffing to hold the prices up in certain areas. Where I live house sales are flat....dead...nothing's moving despite the Fed's zero interest rate policies and all the banker efforts. Sellers are beginning to try renting them out as they get desperate.
Shiller says houses are still about 20% overpriced but it looks like it's more then that for many areas.
damn i just heard on cnbc housing prices keep going up.
i know why.
oooh my god this whole game is rigged beyond repair. lol but how long can they keep going like this q.q
A RICO action is on order, price fixing/manipulation is still a crime yes?
3X damages bitches
Not with ToBig2Jail... It really is sad how relatively intelligent people waste their energy debating Team Red/Blue bullshit while the Republic is pillaged. If only every hamburger came with a Red Pill...
There has to be collusion between the banks, an "illegal cartel" otherwise Well Fargo would dump while prices are high and leve the other 2 holding the foreclosure bag.
I remember a paper in my evolution class in my college in the purple valley of the Berkshires in the 70's. The class was taught by Dr Grant.
The paper was entitled "The evolutionary advantages of being stupid." It summarized the survival/reproduction advantage seals had by having a small brain. In theory, they could dive deeper and longer to find food, since a smaller brain required less oxygen.
It seems to me that we are in such a world now, where those investors blindly ignore the obvious and go on in a carefree existance, i.e., keep investing in the stock market, buying real estate with zero down etc, nevertheless seem to prosper, while people like me, who have read ZH etc., have suffered from anxiety and dread in the face of such totally off the wall social/political/economic shenanigans are wondering when it is all going to collpase, but as a result are in many ways worse off than the dummies.
Now who is the dummy? (don't say it! I'm already having a bad day.)
But back to the seal. If it has a small brain, it may allow it to feed more and longer, but, as in nature, there is always a downside. Smaller brain may mean less chance to recognize a predator such as Killer whale or shark sneaking up on them.
The housing recovery makes perfect sense to me, with all the fine jobs out there,( you know the one where you get your 4 year degree and start at $80k a year) the 20 and 30 somethings can take all the inventory off the market as the baby boomers downsize. Just think, since they're already living in those homes they won't have pay for movers. Win Win
I have been thinking alot about foreclosures lately. The Swiss (Austrians?) made a big plunge in the Polish housing market but they put in the contract that the repayment had to be in Swiss francs. So the Polish economy tanked,the currency nosedived 40%,and all the nice houses went into foreclosure. Here is a case of Banks trying to protect themselves,and it ends up exacerbating the problem.The reason I mention this is I read somewheres that the one good thing about the Weimar hyperinflation was that those with mortgages were able to pay off their houses in a few weeks.I doubt if they will let it happen a second time though. The 1% get the good deals and the rest of us get the fuzzy end of the stick...
Since BofA isn't on the list, then I'll guess this is a way to support BofA. What did they do this month?
My two cents. So, everyone believes the story the presstitutes are handing out, about how there is a housing boom now. Buy that house before it goes up in price. The same mantra shill reporters repeated ad nauseum until everything real esate went smash in 2008. Before anyone decides to go into debt to buy a once foreclosed home, watch a few episodes of the cable show "Holmes on Homes." Just remember, rates for electricity are at an all time high in most places, flood and storm insurance have gone up plenty in coastal areas and real estate taxes are too high. Home ownership was an American Dream decades ago but now, unless you are upper middle class with plenty of savings, the cost of home ownership may not be worth the economic risks involved.