General Discussion
Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsWonder why Housing Market is moving upward? Wall Street is buying up foreclosed properties...
putting them on the markets as rentals, bundling them up and selling to banks..
Ready for another disaster similar to 2007?
From TPM...
http://www.motherjones.com/politics/2013/11/wall-street-buying-foreclosed-homes
Th1onein
(8,514 posts)They won't be happy until we're all slaves.
giftedgirl77
(4,713 posts)occurring but not that they were bundling them in such a manner. People need to avoid these companies like the plague, this is going to get ugly on so many levels.
Nye Bevan
(25,406 posts)as opposed to sitting empty and decaying with broken windows, thieves stealing the copper, and grass and weeds growing out of control? Moreover, I'm sure plenty of DUers would be complaining if real estate prices were continuing to fall.
busterbrown
(8,515 posts)Banks which own these failing properties should be forced to clean them up..
Id much rather have prices fall, then not understand that Wall Street is putting the country in harms way again.
defacto7
(13,485 posts)Question... Is there any reason to think that banks should be banned from owning and running properties? Of course they may have to have a lean due to a loan or the legal control in financial respects of a loan on a property, but it seems to be a monopoly of self regulating control to be able to loan, forclose, own said property, use it for a business venture, cause the market to shift, sell at profit, and loan on it again... all at the same time.
This is truly a messed up financial system and legal system that would allow this kind of racketeering... and call it legal.
busterbrown
(8,515 posts)She has an ability to simplify this stuff so that the average person (like me) can understand it all..
And she sounds sincere..
RobertEarl
(13,685 posts)The various 'loans' the government has been giving the banks is where the money comes from. It is called bailout money and may just save the banks from their crooked and foolish endeavor of blowing the 2000's real estate bubbles.
New Golden Rule: He who has the gold makes the rules.
busterbrown
(8,515 posts)Have everything tied up for what you feel is a comfortable couple of years and then w/o notice thrown out on your ass.. Not that easy finding another place, moving all your crap etc.. But if the banks are forced to abandoned, what a mess!
quaker bill
(8,224 posts)In basic summary, a bank is losing sometimes 100K+ on an existing note. They are losing this kind of money over and over again in a particular market. Other banks, seeing this, are very unwilling to toss their money into this bonfire. So bottom line, short sales go to people with available cash. These often happen to be investors, who happen to have the cash.
I have been following some markets fairly closely. I would like to swap out my equity here, with some cash, for a paid off home there. Since I am downsizing anyway, this could easily be done.
What I am seeing is that prices accelerated out of the deepest portion of the trough about 18 months ago, rising quickly as investors snapped up really cheap deals. Some of these were turned into rentals and many were repaired and somewhat upgraded, then went back on the market for double the money paid (still historically cheap, but more expensive than 2 years back). This increase in value has driven banks to act on previously issued foreclosure notices to complete that process and bring more properties to market. The increased number of properties for sale has tapered off the price increases and has actually caused modest declines over the last 4 or 5 months.
I live in a neighborhood where the foreclosures were few and happened some time ago, so where I am sitting, prices are accelerating upward. For me looking to purchase just 1 home there, the news is pretty good. It could get interesting for folks currently owning a portfolio of them there.