Quote:
Originally Posted by joe bloe
I'm in the real estate business. The real untold story behind the collapse of residential real estate values is walk aways. A very high percentage of foreclosures and short sales are by people that are perfectly capable of paying their mortgage payments. I see people letting their house go into foreclosure or short sale that have new Porshes and Mercedes in their garages and a house full of new flat screen TV's and expensive furniture. They still have the same income level as when they purchased the home. What happens is, when they find out that their house is worth less than the loan amount, they walk away. This drives the market down very quickly which of course causes more walk aways; it's like a run on a bank. Whole subdivisions turn into ghost towns. I see starter home subdivisions where almost every house has gone into foreclosure or resold as a short sale. There's no way all those people lost their jobs.
The reason people feel entitled to not pay debt that they are ethically obligated to pay is that most Americans have bought into the victim mentality. Everything is someone else's fault. No one thinks that they should be responsible for their own actions. People can't build equity in their homes because of the average home owner's lack of integrity. It's just another aspect of the liberal mindset that's destroying the country. We've become a nation of cry babies expecting that someone will take care of us.
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This may true in some cases but not the majority. By the way I have background also in the mortgage and title company business. That mortgage insurance you are forced to pay at closing? Guess what? The banks capital is tied up in your home. They don't want to wait for that capital over a 30 year payout. They get paid big bucks if you default on your loan in addition to the exorbitant costs they charge and interest for a write off. They make money on the foreclosure they make money selling your bad debt, they make money on so many ends it will make your head spin. They have incentive for this whole foreclosure process to start so they get their money faster and more of it.
The banks had a huge incentive to sell bad loans from the get go to people who they knew couldn't afford their homes. The real estate was overpriced and they knew it.. so they sold the loans to other banks who paid them on it so they got the capital immediately. Then those banks who bought the loans got more insurance on top of that on those loans. Everyone was make big fast money. Then the bubble burst in real estate and they made huge profits off the public.
I could go on and on but honestly I am not sure how much of this will sink in with most. Unless you have been in the business and you were in it during the 2008 ordeal then you may not understand what really happened. Now this same crap practice is going on with commodities such as our food and gas. Just a matter time till the things bust out as well.
There is incentive for the banks to foreclose on homes..
