When I take a break from blogging, I’m a real estate title abstractor. I’m….in-between…. employers at the moment. Why? Nope. Not because of the foreclosures. If every house on the market that should be foreclosed was being sold, I would have a job. My industry depends upon the transaction, the sale, of homes. And responsible banks and buyers get titles checked before they buy. And lenders and buyers need title insurance.
THIS is why I’m sittng at home, blogging.
About 1.2 million loans out there are in limbo : The borrower is in serious default yet the bank has not started the foreclosure process. Another 1.5 million are in early stages of the foreclosure process but the bank hasn’t yet taken possession of the home. Counting these and loans that are highly likely to end up in default, one analyst estimates three million to four million foreclosed homes will come on the market over the next few years.
…state mortgage-mediation schemes as well as the Obama Administration’s Home Affordable Modification Program, which at last count had managed to prevent 235,247 homes from coming onto the market…
Between ACORN (ie, the government) pressuring banks to give out bad loans, bank bailouts reducing the risk of the banks, and Barney Frank and co. wanting to reignite the housing mortgage bubble, and the press not wanting to give any bad news to the public because that would make their heroes look bad, we are screwed. The banks don’t want to take the loss that reduced prices would bring. Remember, when the owner is the bank on an "underwater" mortgage, they are in the same boat as the previous owner. They want the money to pay their debts. No one is willing to take the loss and Congress wants to save their investment money bail them out.
You think that the FDIC is broke now? That banks are going under now? Just wait.
A comment from the post:
The FHA is writing about a third of all purchase mortgages, most of them with no money down (after the 8% tax credit). Believe it or not, USDA mortgages are gaining market share too. Yeah, USDA. And the mortgages the private sector writes, it quickly turns around and sells. The biggest buyer is, you guessed it, the government.
God forbid that any possible Democrat voters have pain. We must buy their vote help them! The government can buy all that debt! We have our money invested in those banks! We have to help the poor! We’re with the government and we’re here to help.
But all that money is going to be for naught.
Because the commercial real estate foreclosure crisis is on the way. Won’t THAT be fun?