Why I think all of these foreclosures are happening.

I am reading on a lot of these foreclosures. While these things seem illegal the banks seem to be able to get out of any lawsuit. I believe it is the era we are coming into. Right now here is what I am seeing.

Music is downloaded, hardly a physical copy is "owned" anymore.

Entertainment is going towards the internet. We have all seen DVD's going out. Soon all shows/movies will be on a different media, Again, never a physical copy in your hands.

EBooks are becoming popular. They are gaining ground in colleges especially. You rent these ebooks, then lose the license at the end of the semester. Never owned.

Leases on cars have been gaining traction for years now.

You don't own ANY data you receive off of the internet. Data caps are catching up and soon we will all have one. This ensures that you cannot copy too much onto your computer.

Video games are the same. Only they come out incomplete and you need to by the DLC at a later time. This will all tie into the "rental" age soon. Yahoo; in fact, wrote up an article the other day on how $60.00 games are going out of style. The video game industry also wants to stop all resell of its media. What better way than just renting it. You most likely will only play it once anyways.

Now homes come in. They are collecting all homes and property right now. The housing market is going up as they do this. This is because they have no intention of anything more than just renting them in the future. I am sure all of this will come with furniture as well some day.

I am not big on materialism, nor have I ever been. I must say though, that possession is 9/10's of the law. Logically I will assume that the owners of the materials will only have more control over what you do. Just some fodder for you guys. ::

I can see where this is heading as well. The shadow inventory is in the millions of homes that are not on the market but owned by the lenders. I've seen a lot of ads for the new comcast in home video camera systems where you can view your home's interior from your smart phone. Once we become accustomed to such ideas, the banks will want these in the homes of the renters in the name of protecting their property. They will be able to keep an eye on things via a network. Throw in a data log of your online activities and the banks will have that information as well. From there they can better create a profile assessment of your character much like a credit score but far more diverse and controlling. A digital imprint containing data on your payment history, job history, online interests, medical history, friends, etc. Where does this go from here? We built our own free range prison system and defaulted it to the money changers.

Interesting thought.

Overall it could be more profitable to a bank to rent property rather than sell. It would be a defined income that has a more flexible adjustment versus a standard mortgage. As the monthly rental fee could be adjusted every time the lease expires in 1-5 years. Homes bought in the 70's are hitting their 30-40 year marks now. Think of all the homes that were only gaining $200-$250 a month that if they were rentals would go for $500-$800 a month the past 20 years.

With the job market in the tank, by that I mean long term quality paying jobs. It would make sense to have a more flexible housing arrangement than being tied to a mortgage. The only real downside is what happens when people realize that they don't have to be tied to an area? That boom towns and ghost towns will no longer be small unheard of places like Dry Gulch but have names like Wichita or Detroit or the most recent perfect example of both...Las Vegas?

By being unshackled from a mortgage, will people no longer care about their communities and neighbors? Will their be bigger chances of problems and divisions between people? Already in Florida if you are not a native Floridian you are treated as a second class citizen, especially if you are from "up North".

All the while there will be those that take advantage of the situation... most call them the rich.

My wife and I are going through a reductionist phase trying to get rid of all the clutter and finishing off any of our debt...

All in prep to buy land, or possibly a small house in the middle of nowhere, maybe build a home outta cargo containers.

I think only good things could come from people simplifying their lives, getting rid of debt, remove yourself from their system and game.

Btw nice avatar

the dude abides.

You mean banks renting out houses? I don't think that would be in their interests.

Or do you mean they will, in effect, become public housing?

reply to post by ventian


Good observation.





We work hard for things we want and by them at an inflated price.

The true worth of these items is discovered when we try to sell them. If you really need money these things are worth pennies on the dollar.

Now with some things, we can't even keep the pennies.


They've built a better mousetrap............

It is more economical to rent a house than it is to pay a mortgage. As a consumer you can rent a house for less than a mortgage repayment. Sure you do not own the property at the end of 25 years of mortgage repayments, but the extra cash you have in your hand at the end of the month means a better quality of life.

I know which one I chose.

Insight: The Wall Street gold rush in foreclosed homes

Dan Magder recently gave up a top job with private equity firm Lone Star Funds to strike out on his own and become a landlord.

He's joining a growing list of big and small investors who see fat profits to be made in renting out foreclosed homes, especially now the U.S. government is moving ahead with a trial project to sell big pools of single-family homes that Fannie Mae currently owns in some of the hardest-hit housing markets.

Investors seeking higher yields are drawn to foreclosures because the rental market is red hot.

www.reuters.com...

Critics, meanwhile, contend the federal government is fostering a transfer of wealth of sorts by selling big pools of foreclosed homes to big fund investors and high-net-worth individuals. There's also concern that some of the players who helped create the housing crisis will now benefit by buying foreclosed homes at a steep discount.

Those who helped create the crisis are now in a position to benefit from it. Sounds about normal. It's probably why the banks are so heavy handed and deceitful in foreclosure proceedings.

Originally posted by magma
It is more economical to rent a house than it is to pay a mortgage. As a consumer you can rent a house for less than a mortgage repayment. Sure you do not own the property at the end of 25 years of mortgage repayments, but the extra cash you have in your hand at the end of the month means a better quality of life.

I know which one I chose.

I actually decided to mortgage. I went from an apartment that was going up to $650 a month to a house with a half acre for under $600.

Better neighborhood and neighbors to boot, at least here I don't have to worry about drugs and violence from the neighbors.

I used to see families talking about being a few hundred dollars short of their monthly mortgage payment.

Now, i see them not bothering to pay it, just defaulting for months and spending the money on other material trash and entertainment.

I suppose many people have zero or negative equity in their homes and just use them as an intrument to borrow as much money as they can until its foreclosed and seized.

Alot of new homeowners are being visited by the FBI and I suspect it is the FBI trying to crack down on these bad loans people are taking out 2nd 3rd morths on homes that are already negative equity.

It must be really bad out there for all these people to be wrecking their credit, guess they plan to use their tax return $ to pay for bankruptcy and wipe their maxed out debts clean??

The possible goal: Effectively turning into:rentals with everything.

Banks rent with hiring management companies to market and overall maintain the properties. More plan to.

Earlier this month,

The Federal Reserve took steps to encourage banks to turn more of their foreclosed homes into rental properties in new policy guidelines issued on Thursday (cont...)

Source

reply to post by BiggerPicture


Holy crap! People with bad credit are being visited by the FBI? Where is the story for this at in the media? Where did you hear about this? The banks shouldn't have been giving the money to these people at all. I have known one family that does this, and I mean they do it all the time with their house. They haven't received a visit from a government entity, though. Please provide me some linkage buddy. This is a major issue that this family needs to hear about.

I totally forgot to respond to the OP, sorry about that.

Yeah, I can definitely see this being a bad thing. Almost every where you go you get "licenses" for use and not the product itself. Think about amazon.com. They have the kindle (I'm going to focus on their Fire for this rant ) since the fire is like their little kiosk machine.

The videos you buy are actually licenses to watch. You cannot download and burn to a dvd or anything like that.

The apps are the same way, although I don't think they limit the amount of devices to the account, it must still be linked in order to use them, including the free apps you can get from googles market.

Then their are ebooks. I was told that the publisher decides on how many licenses but it defaults to 6. They are not owned, just allowed to be used.

The mp3's Ive got no issues with, there is no DRM in those from Amazon.com.

I do like them over apple as you have so many choices for your content, its just I would like to put it all on my ps3 (videos ) and have that as my media center. (I know that they finally got on the PS3 but its not download its streaming only).

I don't like the deceptive practice, you are led to believe that you purchase the content, when in reality you purchase a license (or more than 1) to use the stuff.

reply to post by calnorak


Well let me go OT right now and say Gratz on your house!!!!!!

Now just make sure you hold on to it.

Can't believe the response I am getting on this. Thanks guys. I am off to bed now. I will see ya'll in the mornin'.

We know the B of A#*holes need to make money however they can - so make it impossible for a homeowner to avoid foreclosure and then profit from it. So evil.

BofA launches second round of bulk sales of foreclosed homes

For the second time in five months, Bank of America is tapping the red-hot market for foreclosed homes by seeking bids on a bulk offering of several hundred single-family homes.

www.reuters.com...

Nice racket.

reply to post by Maluhia


And if we keep getting poorer, we will all be living in the projects.

could be cash-flow,

loaning out 400k is just peanuts. would rather have a monthly paycheck of about 1000.

the loan doesnt help them stay in business the cash-flow does.

im no economist, so just my 2c

you are completely wrong

real items like tools, furniture, old machinery and cooking utensils are given away for free and homes can be brought for a fraction of thier original construction price all over America

reply to post by Maluhia


I guess it depends on which housing market. We had to abandon our lovely home in the DFW area in January 2011. We were sent foreclosure papers in April 2011. Fine, take it, we said.

We tried for over a year to sell it, but even at 20% less than what it was worth in 1999, no takers. Everybody wanted to buy it for 1/3 of what it was worth, and I guess I don't blame them for trying, because a B of A foreclosed home across the street that went for $150,000 in 1999 was sold by them for $50,000 in 2011.

So we bought a little country house on 5 acres 400 miles away, sent B of A the keys to the old place and said, here you go, take it back.

They never foreclosed on the house last April. They badgered us to death on the phone until we told them that we were recording each and every phone call, to which they said, "You are not allowed to record these calls". We said, "Why not? You state at the beginning of each call that you are recording it. Yet you state that we cannot record the exact same conversation?"

Thereafter, the phone calls stopped cold. We still get a bill every month, in which it politely states that we are a mere 15 months late on our payments, and they sure would like to "help us" make it right again.

We begged them, just take the house. They said we needed to fill out new paperwork. We said, "Um, NO, the original mortgage paperwork should provide you with sufficient legal rights to foreclose upon this property."

The house is just sitting there. It was in perfect condition when we left it....Don't know how it is now. Not one peep about them foreclosing like they said they were going to do a year ago.

My point is, I'll bet certain housing markets are "hot" and they are much more likely to foreclose on those properties much quicker. In our case, DFW is saturated with foreclosed homes. There is also the possibility that they cannot find the original paperwork, hence their push to try and get us to fill out all new paperwork just so they could foreclose.

We felt bad for having to abandon the house, but we had to leave the area, we tried to sell for a year, poured a lot of money into the house to make it more sale-able, all for naught.

A relative purchased us a little house and land. It is completely paid for, we have no mortgage, and the banks were cut out of the loop entirely. I find it highly amusing when I get letters from mortgage lenders stating that they KNOW we have a mortgage on this place we have now, and they'd be willing to give us a better deal.

I anticipate that, eventually, all the homes will be foreclosed upon, and investors will snatch them up and rent them out. I cannot see the banks being in the rental business, but then again, who but a few wise sages could have seen the death of the American dream in the form of the middle class being divested from their only source of true equity?

The housing market crash was just a means to an end. In order for Agenda 21 to be realized, private property ownership must be abolished, so that the few survivors of the global Apocalypse (food shortage, nuclear war, asteroid strike, alien invasion, etc.. name your catastrophe) can all be herded into sustainable development centers.... basically a "Hunger Games" or "Judge Dredd" type of scenario is the desired end result.