Whats going to happen to Foreclosures?

What guarantee do we have that the government wont foreclose on our homes?or the lending banks?

Where is all this REALLY GOING?

Goldman Sacks and Morgan Stanley are the biggest speculators. This is a monster we have created with this bail out.

Everything is collapsing. The level of this black hole is incredible.

I think we dont really grasp the depth of how dire things are.

Is anyone with me on this?

I ask this with all respect and as such i hope i dont get a warn just because i'm questioning whats happening. Thank you.

What is wrong with this entire picture? Has anyone had a chance to digest whats going on with the bailouts?

We owe hundreds of trillions and will bail out the parasites.

Is there something i'm not getting?

I listened to Alex Jones and according to him this situation is dire.

Any thoughts?

My thoughts are, you are right. This is dire.

So dire, that no one even knows how to handle it at all.

I dont even know what to say about it other than that. It pisses me off that we have just been turning a blind eye to corporate mismanagement and greed for so long, and that now we are going to have to bail the incompetents out.

All I can say is when it is all said and done I hope that those who have acted to cause this are called to account for it. And I hope the American people learn something from it about letting companies get so big that the only choice we have when they screw up IS to bail them out.

Ideally, they would have been allowed to fail. Thats natural selection, and it is consistent with the true meaning of the word capitalism. We need to get serious about what we are as a country. We either need to seriously let the markets "invisible hand" make corrections, or we need to admit we are unwilling to do that and regulate the crap out of these short sighted greed machines.

I don't think it is dire. I have reason for new optimism. This will not be a bailout for banks, but it will allow the insolvent banks to go out of business without seriously affecting the rest of the economy..

The way i see it the goverment will buy the bad loans but will not give the banks a good price for them say 25-50% of the loan value. Then the banks will have to write off the losses. Depending on the losses they will stay in business or not.

So now the goverment has these mortgages and in most cases will have paid less than they are worth. I think the most likely scenario is that refinance with the delinquent/upside homeowner lowering the amount of the mortgage to reflect current values. At that point the mortgage will be much more secure and can then be sold into the market for probably 60-70% on the dollar. Everyone wins execpt the banks that issued the mortgage in the first place. Even they win in a way because no one else is willing to pay much of anything for these mortgages even though they have underlying value.

Follow this plan and goverment makes money and leads America into a new decade of prosperity.

Chances are they though that they will let vulture investors buy them instead of helping out the homeowner. We need to make sure that we let our congressmen and women know that this is not acceptable. We can fix this economy for everyone by just adjusting our view on bailing out dumb homeowners.

Originally posted by dgtempe

Where is all this REALLY GOING?

The department of real estate has just been created. It's anyones guess as to what the government will do with all of these houses now.

It's like a giant magic trick. All the banks need to do now is send thier bad debts to uncle samuel and then they can show that they are profitable again. They live another day to write more bad loans with no consequences.

The government will probably give them right back to the people who were foreclosed on, everyone else gets to pay cash.

We are witnessing the birth of the United American Socialist States, you may now kiss the good 'ol USA Good Bye.

Originally posted by disgustedbyhumanity
I don't think it is dire. I have reason for new optimism.

I would love for you to be right, but what about all of that chatter going on that there arent actually properties to "buy" from the banks? That derivatives have twisted everything around in such a way that it is impossible for it to be as cut and dried as the previous savings and loan fiasco?

Anyway, I absolutely agree with you that we the solution should include more support of the homeowners. I think this whole thing could have been avoided had the government gotten serious when this first started to come to light and people began to realize that this was going to be a three part series of foreclosures. I know someone who used to be in mortgages, and he said back in Dec of last year that the first round of foreclosures was nothing compared to what was coming because of the way the loans were structured.

Add all the economic fallout this panic on Wall Street is going to cause and in my opinion it would have been much less financially painful for the country, (read; us taxpayers) if the government had stepped in to ensure those crappy home loans were refinanced so that they werent foreclosed in the first place.

Don't be so hasty now see when America comes to the auction block for sale every fall, our government or the fed whatever is now in charge in Washington will have a new item to sell, China will be more than gladly to buy some of the foreclosures.

Have to give it to them the fat rats of this nation has gone away with all they can and is no over, after all they control the world, lives, how we wag wars and to whom, attacks like 9/11 to justified the wars and now they will own real state.

Welcome to the new America.

[edit on 19-9-2008 by marg6043]

The short answer to your question... They will continue to grow.

My neighbor lived in his house without making a payment for nearly 18 months. After electricity, car payments, food, etc... he banked a little over $24,000 over that period by not making his mortgage payment.

He bought the house when values were high and put little or nothing down, so he was weeded to say the least. He felt that the banks "screwed him royally" over the years and figured if it's going to be like this, he may as well bank the money until he was kicked out. He figured he'd be out in a little over 90 days.

After what felt like an eternity to me I stopped by one day and asked him if he had caught up his payments and decided to stay, he said "no". I asked him if they started to kick him out yet and he said "not yet", "they called a couple of times and wanted to add payments on to the end of my loan but they aren't kicking me out yet".

About 18 months after he stopped sending his payment in he was finally out. He finally moved out around January of this year, well before this most recent collapse. I've got a feeling if everyone just stopped making their mortgage payments, we'd have our revolution! What could they possible do? Think about it!

CDD

Wouldnt something like the year of Jubilee work in a situation like what we have now ?

Every 50 years peoples debt was wiped clean .

Thats really what we need is a new start .
(not that I think we will be here for long because I still believe the end is near for all things) ...

Real simple. You miss three mortgage payments in a row. The bank sends out a sheriff. Send you packing. And they quick sell your house for what they can get.

You live out of your car. Or a tent. Or both.

What was that Steve Martin movie with the eyeglasses that bankupt him?

And all I need is this lamp. And this pillow. And this ashtray.....

[edit on 9/19/2008 by jpm1602]

reply to post by Simplynoone

Not if me and others like me have any kind of rights.
www.youtube.com...


[edit on 19-9-2008 by Idiotrocker]

The way I look at it is the banks and corps all think they are playing with funny money, we on the other hand had to earn our money to pay our depts, while they just played with numbers on balance sheets as long as they could.

reply to post by TheRooster


Your friend will feel really lucky when he gets a 1099 and a call from the IRS about that money he saved.

Or maybe he will just get sued by the holder of the mortgage. Sure he can file bankruptcy put the laws are a lot more strict on that now and there still is the 10 years of bad credit.

reply to post by Idiotrocker


So whats your answer to these problems ?

At slightly above minimum wage and taxes from every where hitting our wallets then debt on top of that ..and the price of gasoline and electricity and water and food ...What on earth could ever get the (Little people who do all the HARD WORK for the RICH MAN TO SIT COMFORTABLY) people out of this mess ?

I know I work a full time day job running a small business (Self Employment taxes apply ) and I work a weekend job when needed ...cleaning RICH INVESTORS rental properties ..Which they make sure and let me know that an extra 10 dollars (to add to my measly 100.00 per duplex) for that horrible messy house is TOO MUCH for them to pay me for .....and they refuse to pay it ...

And they sit back eating their steaks (which I helped them buy by doing the hard work for them to get rich ) while we eat corned beef hash LOL ..well if I am lucky to be able to afford that even ....

For some reason this just does not equal out to me .
I wonder how they even sleep at night ..or do they ..

reply to post by jpm1602


Not really, the banks lose a ton of money by holding on to empty houses. They have to pick up all the expenses of holding and auctioning the house until it is out of their hands. Additionally, if they were strict on kicking people out of their homes after three months, there would be a massive glut in homes and would further erode values that are eroded enough from auctions.

And they are still stuck with the bad loan.

So might as well let the defaulting home owner stay a bit and pay the property taxes. There are people that stay in their homes up to 2 years here in California after declining to pay their monthly mortgage bill.

reply to post by earthspace1st

You against the world. super cool

[edit on 19-9-2008 by Idiotrocker]

I had no idea wutone. I am 11 months out of total default after I sell my Lexus. Due to health issues and unemployment. I was looking at a first floor efficieny.

I have renewed hope.

Yea but you can still be sued or the bank can report your non-payment as a loss while the IRS can claim it as additional income.

Either way it isn't easy street, I feel for you.

Blah. LOL. Those little pencil necked irs types don't scare me none. I have squatters rights after fifteen years of home ownership and 25 years of regular employment. At time two full time jobs. I'll snap their little number twos with my teeth.

I know. I'm in for a rough ride.