‘We’re in the Middle of a Crash’: Black Swan

[CA renter]

[quote=peterb]There’s a reason the foreclosure process exists! It’s because it’s a clean way to get accounts settled and move on. It needs to happen. All this talk about modifications and renogiations etc, is just stalling the inevitable. The methodical process of highly leveraged assets unwinding is hard enough as it is. Throwing this into the mix only screws it up more and prolongs the pain. If you think it through, foreclosure needs to be allowed to run its course.[/quote]

Amen, peter!

[greekfire]

Peter is exactly right, but the powers that be (voted in by all of us) are doing everything they can to prevent the market from correcting.

[greekfire]

Peter is exactly right, but the powers that be (voted in by all of us) are doing everything they can to prevent the market from correcting.

[greekfire]

Peter is exactly right, but the powers that be (voted in by all of us) are doing everything they can to prevent the market from correcting.

[greekfire]

Peter is exactly right, but the powers that be (voted in by all of us) are doing everything they can to prevent the market from correcting.

[greekfire]

Peter is exactly right, but the powers that be (voted in by all of us) are doing everything they can to prevent the market from correcting.

[patientrenter]

[quote=greekfire]Peter is exactly right, but the powers that be (voted in by all of us) are doing everything they can to prevent the market from correcting.[/quote]

Which is why we should all be making an effort to get in front of our Congressman and vigorously make our case. The people who want to avoid consequences for their bad decisions are in total control right now, with all the top finance Congressmen (Frank, Dodd, Schumer) in their pocket. Maybe we cannot make a difference, but we shouldn’t be too cynical. Life does bring opportunities, and being too cynical means you miss lots of opportunities. We should at least make these Congressmen feel uncomfortable whenever they let borrowers, investors, and bankers off the hook for another trillion dollars.

[patientrenter]

[quote=greekfire]Peter is exactly right, but the powers that be (voted in by all of us) are doing everything they can to prevent the market from correcting.[/quote]

Which is why we should all be making an effort to get in front of our Congressman and vigorously make our case. The people who want to avoid consequences for their bad decisions are in total control right now, with all the top finance Congressmen (Frank, Dodd, Schumer) in their pocket. Maybe we cannot make a difference, but we shouldn’t be too cynical. Life does bring opportunities, and being too cynical means you miss lots of opportunities. We should at least make these Congressmen feel uncomfortable whenever they let borrowers, investors, and bankers off the hook for another trillion dollars.

[patientrenter]

[quote=greekfire]Peter is exactly right, but the powers that be (voted in by all of us) are doing everything they can to prevent the market from correcting.[/quote]

Which is why we should all be making an effort to get in front of our Congressman and vigorously make our case. The people who want to avoid consequences for their bad decisions are in total control right now, with all the top finance Congressmen (Frank, Dodd, Schumer) in their pocket. Maybe we cannot make a difference, but we shouldn’t be too cynical. Life does bring opportunities, and being too cynical means you miss lots of opportunities. We should at least make these Congressmen feel uncomfortable whenever they let borrowers, investors, and bankers off the hook for another trillion dollars.

[patientrenter]

[quote=greekfire]Peter is exactly right, but the powers that be (voted in by all of us) are doing everything they can to prevent the market from correcting.[/quote]

Which is why we should all be making an effort to get in front of our Congressman and vigorously make our case. The people who want to avoid consequences for their bad decisions are in total control right now, with all the top finance Congressmen (Frank, Dodd, Schumer) in their pocket. Maybe we cannot make a difference, but we shouldn’t be too cynical. Life does bring opportunities, and being too cynical means you miss lots of opportunities. We should at least make these Congressmen feel uncomfortable whenever they let borrowers, investors, and bankers off the hook for another trillion dollars.

[patientrenter]

[quote=greekfire]Peter is exactly right, but the powers that be (voted in by all of us) are doing everything they can to prevent the market from correcting.[/quote]

Which is why we should all be making an effort to get in front of our Congressman and vigorously make our case. The people who want to avoid consequences for their bad decisions are in total control right now, with all the top finance Congressmen (Frank, Dodd, Schumer) in their pocket. Maybe we cannot make a difference, but we shouldn’t be too cynical. Life does bring opportunities, and being too cynical means you miss lots of opportunities. We should at least make these Congressmen feel uncomfortable whenever they let borrowers, investors, and bankers off the hook for another trillion dollars.

[ucodegen]

@XboxBoy

You missed one of the choices of the bank in dealing with the delinquent home ‘owner’.. the forth is to take the property in foreclosure and then lease/rent it back to the previous ‘owner’ they foreclosed on. The bank then takes the lease payments and applies them to the banks cost of capital for the money the bank borrowed to finance the mortgage in the first place. This gives the banks time for/to:

1) find a better tenant.
2) sell the property when real estate prices have stabilized.

Admittedly, #2 has risks, but it may be better to the bank instead of flooding the market with foreclosed properties. All they time that the banks are waiting for the prices to stabilize/inventory to decrease, they are getting ‘rental’ payments on the property.

[ucodegen]

@XboxBoy

You missed one of the choices of the bank in dealing with the delinquent home ‘owner’.. the forth is to take the property in foreclosure and then lease/rent it back to the previous ‘owner’ they foreclosed on. The bank then takes the lease payments and applies them to the banks cost of capital for the money the bank borrowed to finance the mortgage in the first place. This gives the banks time for/to:

1) find a better tenant.
2) sell the property when real estate prices have stabilized.

Admittedly, #2 has risks, but it may be better to the bank instead of flooding the market with foreclosed properties. All they time that the banks are waiting for the prices to stabilize/inventory to decrease, they are getting ‘rental’ payments on the property.

[ucodegen]

@XboxBoy

You missed one of the choices of the bank in dealing with the delinquent home ‘owner’.. the forth is to take the property in foreclosure and then lease/rent it back to the previous ‘owner’ they foreclosed on. The bank then takes the lease payments and applies them to the banks cost of capital for the money the bank borrowed to finance the mortgage in the first place. This gives the banks time for/to:

1) find a better tenant.
2) sell the property when real estate prices have stabilized.

Admittedly, #2 has risks, but it may be better to the bank instead of flooding the market with foreclosed properties. All they time that the banks are waiting for the prices to stabilize/inventory to decrease, they are getting ‘rental’ payments on the property.

[ucodegen]

@XboxBoy

You missed one of the choices of the bank in dealing with the delinquent home ‘owner’.. the forth is to take the property in foreclosure and then lease/rent it back to the previous ‘owner’ they foreclosed on. The bank then takes the lease payments and applies them to the banks cost of capital for the money the bank borrowed to finance the mortgage in the first place. This gives the banks time for/to:

1) find a better tenant.
2) sell the property when real estate prices have stabilized.

Admittedly, #2 has risks, but it may be better to the bank instead of flooding the market with foreclosed properties. All they time that the banks are waiting for the prices to stabilize/inventory to decrease, they are getting ‘rental’ payments on the property.

[Author]

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