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I Warned That Banks Will Soon Be Forced To Walk Away From Homes… Guess What!

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Joanne98 Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Jan-17-11 09:38 AM
Original message
I Warned That Banks Will Soon Be Forced To Walk Away From Homes… Guess What!
About 4 months ago, I claimed that Banks Will Be Forced to Forgo Certain Foreclosures, Even If the Borrower Has Admittedly Defaulted! In summary:

Without an economic incentive to foreclose, it would not be in the bank shareholders best interests to pursue foreclosure even though borrowers clearly defaulted & owe money to the lender. The economics of distressed assets in mortgage and commercial banking are quickly changing. I am quite open to discussing this in the mainstream media if any are interested in hearing the “Truth go Viral!” I want all to keep this in mind when pondering the release of reserves by the banks.

This was taken by many readers as sensationalist and unlikely. As a matter of fact, much of my writing is taken in a similar way, most likely due to the fact that I have an uncommon proclivity to state things exactly as I see them, sans the sucrose patina. This is not a pessimistic (bearish) outlook, nor an optimistic (bullish) outlook. It is simply called, the TRUTH! Realism! Something that is increasingly hard to come by in these days of media for a purpose and embedded agendas.

You see, the United States, much of Europe, and China have sever balance sheet issues that are ravaging their respective economic prospects. The media, analysts, and investors are gingerly mozying along as if this is not the case. Well, no matter how hard you ignore certain problems, no matte how hard you try to kick the can down the road – the issues really do not just “disappear” on their own.

With these points in mind, let’s peruse this piece I picked up from the Chicago Tribune: More banks walking away from homes, adding to housing crisis blight: the bank walkaway.

http://www.zerohedge.com/article/i-warned-banks-will-soon-be-forced-walk-away-homes%E2%80%A6-guess-what

This will change everything!
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fascisthunter Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Jan-17-11 09:44 AM
Response to Original message
1. wow... thanks for posting this
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Joanne98 Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Jan-17-11 10:02 AM
Response to Reply #1
2. You're welcome!
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OneTenthofOnePercent Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Jan-17-11 10:14 AM
Response to Original message
3. How crappy does a house have to be to walk away from it?
The neighborhoods must be terrible for even the land to not be worth it.
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Demeter Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Jan-17-11 10:18 AM
Response to Reply #3
4. It Has to Be Unsalable and/or unprofitable
Edited on Mon Jan-17-11 10:19 AM by Demeter
Not worth the legal and carrying fees. The owner is on the tax rolls for property taxes, maintenance, keeping the heat on so the pipes don't freeze, etc, etc. Banks don't want to own property.

This is nothing new. It has happened in Detroit for 40+ years. That's how the city ends up with so many abandoned houses--taking them for unpaid taxes.
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OneTenthofOnePercent Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Jan-17-11 10:25 AM
Response to Reply #4
6. So how does the current squatter maintain utilities?
Don't utility holders require that the "owner" of the house control the utilities or give permission for another party to control the utilities? If there is no "owner" I imagine it would be difficult for someone illegally squatting in home that isn't thiers to aquire utility service and I'm sure the utilities would cut off services to the property.
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Demeter Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Jan-17-11 10:31 AM
Response to Reply #6
7. Most don't
Sometimes the system has flaws that can be exploited. But mostly, no utilities.
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jeff47 Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Jan-17-11 05:28 PM
Response to Reply #6
10. They don't validate the ownership
You tell the power company "I own this house, put the bill in my name" and they say "Yes, sir!".
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OneTenthofOnePercent Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Jan-17-11 06:24 PM
Response to Reply #10
11. I wonder if you could do this to someone elses house that they ARE living in...
and then shut off the utilities.
Bad neighbor? End his utilities. LOL.
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ret5hd Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Jan-17-11 10:20 AM
Response to Original message
5. Familys should move in, pay the property taxes for a few years,...
then file for title.
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Joanne98 Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Jan-17-11 10:31 AM
Response to Reply #5
8. Good idea! A new HOMESTEAD ACT!
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Demeter Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Jan-17-11 10:32 AM
Response to Reply #5
9. Depends on the state
Sometimes, that's not possible. Need homesteading laws.
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