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Man Dares Bank To Foreclose Unless They Reverse Bad Fee... - 12/15/2010 9:42:42 AM   
pahunkboy


Posts: 33061
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From: Central Pennsylvania
Status: offline 		Man Dares Bank To Foreclose Unless They Reverse Bad Fees, Wins
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RE: Man Dares Bank To Foreclose Unless They Reverse Bad... - 12/15/2010 1:00:55 PM   
kinkbound


Posts: 387
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Status: offline 		That fellow has iron gonads, even though he did have a back-up plan to buy the house back if the bank proceeded to foreclose.

(in reply to pahunkboy)
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RE: Man Dares Bank To Foreclose Unless They Reverse Bad... - 12/15/2010 1:48:21 PM   
Termyn8or


Posts: 18681
Joined: 11/12/2005
Status: offline 		Well, now I'll let myself in for education I guess. I thought you weren't allowed to buy the property back yourself. The problem here is I don't remember where I heard that, or if it applies universally or just in certain states, or whatever.

For the sake of argument though I'll assume that he was able to buy back the same property. This opens the door to alot of abuse, which would effectively stick it to the banks. With so many owing more than the place is worth, I guess some of that bailout money would effectively trickle down so to speak. Actually, if, in whatever area you are not allowed to buy it back, what is to stop you from having someone else do it. Granted there are few people who can be trusted to that level, but they exist.

Leave it to a psycho like me to figure out how to get over in a situation like that. Let's say you wanted a new kitchen and bath. Concievably you could tear the place up, just leaving the bare necessities, which you would've done anyway. Later you evict yourself (lol) and live there without a house payment. It would make those granite countertops and gold plated fixture a bit easier on your wallet without having to pay that pesky house payment.

Something like this would never work if prices were stable, as bidders would be all over it. That would of course include the bank. Of course if I were the bank I could just bid double what it was worth and simply pay myself - kinda. But in today's market while the banks take advantage of people, there might be a real possibility of returning the favor.

No doubt some banks want the properties as long as they can afford to hold onto them until the prices are not so depressed, and we've seen instances where I think that is what happened. But perhaps they might get overstretched doing so, making them victims of their own vice.

That would be nice. And if Ron Paul has anything to say about it they won't get much help from their big brother, the fed.

Nuff said.

T

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RE: Man Dares Bank To Foreclose Unless They Reverse Bad... - 12/15/2010 1:55:21 PM   
pahunkboy


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From: Central Pennsylvania
Status: offline 		I doubt you can buy the place - at a foreclosure sale.  I been to those- the bank sends a rep to make sure theu get full price- even if they have to sit on it for 6 years. 

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RE: Man Dares Bank To Foreclose Unless They Reverse Bad... - 12/15/2010 2:08:24 PM   
Moonhead


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quote:

ORIGINAL: kinkbound

That fellow has iron gonads...

Penicillin's good for that, I'm told.

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RE: Man Dares Bank To Foreclose Unless They Reverse Bad... - 12/15/2010 2:09:32 PM   
mnottertail


Posts: 60698
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Status: offline 		Millions for defense, not a penny in tribute!!!! A very american outlook.

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RE: Man Dares Bank To Foreclose Unless They Reverse Bad... - 12/15/2010 3:22:01 PM   
willbeurdaddy


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quote:

ORIGINAL: pahunkboy

I doubt you can buy the place - at a foreclosure sale.  I been to those- the bank sends a rep to make sure theu get full price- even if they have to sit on it for 6 years. 


Its called an auction. They take the top bid, period.



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RE: Man Dares Bank To Foreclose Unless They Reverse Bad... - 12/15/2010 5:47:02 PM   
pahunkboy


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quote:

ORIGINAL: willbeurdaddy


quote:

ORIGINAL: pahunkboy

I doubt you can buy the place - at a foreclosure sale.  I been to those- the bank sends a rep to make sure theu get full price- even if they have to sit on it for 6 years. 


Its called an auction. They take the top bid, period.




Haha you are funny.   Why would anyone bid serious cash on a house you can not go into and inspect- and even if you do get into it none of the utilities are on.
Would you buy a house like that- at the highest bid???  ;-)

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RE: Man Dares Bank To Foreclose Unless They Reverse Bad... - 12/15/2010 6:02:59 PM   
Termyn8or


Posts: 18681
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Status: offline 		No no no. Just like the guy could go and bid (assumng of course), or using a representative to do it, so can the bank. But in the end the bank gets the money. Sure they would like to see someone else pay the taxes and upkeep, so they are not likely to bid beyond their percieved value. But yes, they will hold on to the property if they think they can make a profit. Their main advantage is using other people's money.

T

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RE: Man Dares Bank To Foreclose Unless They Reverse Bad... - 12/15/2010 6:20:23 PM   
pahunkboy


Posts: 33061
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From: Central Pennsylvania
Status: offline 		To make a rational bid- one has to presume that everything is broke.   Literally.   The most you can see of any such house in this town is to walk in  the yard.  But you wont get in.



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RE: Man Dares Bank To Foreclose Unless They Reverse Bad... - 12/16/2010 7:15:13 AM   
MrRodgers


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quote:

ORIGINAL: kinkbound

That fellow has iron gonads, even though he did have a back-up plan to buy the house back if the bank proceeded to foreclose.

Those 'iron gonads' are otherwise known...as money. He could legally buy the house back only, if he had...the money.

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RE: Man Dares Bank To Foreclose Unless They Reverse Bad... - 12/16/2010 7:22:33 AM   
MrRodgers


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quote:

ORIGINAL: pahunkboy

quote:

ORIGINAL: willbeurdaddy

quote:

ORIGINAL: pahunkboy

I doubt you can buy the place - at a foreclosure sale.  I been to those- the bank sends a rep to make sure theu get full price- even if they have to sit on it for 6 years. 


Its called an auction. They take the top bid, period.


Haha you are funny.   Why would anyone bid serious cash on a house you can not go into and inspect- and even if you do get into it none of the utilities are on.
Would you buy a house like that- at the highest bid???  ;-)

Hardly. If lenders waited 6 years, they would take a real bath with all of that mortgage money on the non-performing side of the books.

Lenders almost always will bid the most and almost always up to the loan balance. Then if any other bidder outbids the bank...they get the house.

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RE: Man Dares Bank To Foreclose Unless They Reverse Bad... - 12/16/2010 9:15:36 AM   
kinkbound


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quote:

Lenders almost always will bid the most and almost always up to the loan balance.


What if the mortgage on the property is upside-down (LTV exceeds 100%)? Seems to me that the lender wouldn't be motivated to bid in excess of the current market value.

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RE: Man Dares Bank To Foreclose Unless They Reverse Bad... - 12/16/2010 9:19:58 AM   
mnottertail


Posts: 60698
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Status: offline 		Why not?  then thats what they own it at and their books make reserve regulations.  If they gotta carry it at actual value on book, they are gonna be in violation and therefore at some point insolvent, and thats also why the goverment changed the accounting so they could hold them at upside down price to keep their books looking good.

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RE: Man Dares Bank To Foreclose Unless They Reverse Bad... - 12/16/2010 10:01:47 AM   
pahunkboy


Posts: 33061
Joined: 2/26/2006
From: Central Pennsylvania
Status: offline 		I made some mistakes in life- but I sure the heck aint gonna to pay retail on a house that I do not know if the electric, plumbing, heat, basement, attic works.

Who wants to buy a pig in a poke?

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RE: Man Dares Bank To Foreclose Unless They Reverse Bad... - 12/16/2010 10:11:31 AM   
kinkbound


Posts: 387
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quote:

ORIGINAL: mnottertail

Why not?  then thats what they own it at and their books make reserve regulations.  If they gotta carry it at actual value on book, they are gonna be in violation and therefore at some point insolvent, and thats also why the goverment changed the accounting so they could hold them at upside down price to keep their books looking good.


On one hand, we've got Rodgers suggesting that non-performing assets on the lender's books for long periods of time is detrimental to the lender. On the other hand, you're suggesting that the government (recently?) changed accounting procedures which allow lenders to base their reserves upon upside-down assets.

If I understand fractional reserve banking correctly, the bank needs to have at least 10% in reserves in relation to the loans it can make. In this event, it would seem beneficial for the bank to hold upside-down property assets.

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RE: Man Dares Bank To Foreclose Unless They Reverse Bad... - 12/16/2010 10:17:46 AM   
mnottertail


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Status: offline 		A bank that trades heavily in mortgage-backed securities is in trouble if the market for those assets dries up — and it has, and they are — but regular loans are different. So long as a bank intends to sit on them and collect the interest rather than sell them to another company, the government lets that bank use its own secret financial formula to determine the loan values. In short, banks have carte blanche to claim their assets are worth far more than they really are....

Given this long leash, banking executives have naturally inflated the book value of their mortgages. And even as more and more of their customers fail to make payments, bankers have proved reluctant to admit their hubris and take a hit on the balance sheet. Why is that? Well, the government says banks have to keep enough assets on hand to cover their behinds if things go south. So if a bank that has foolishly overextended itself admits it was overvaluing its loan assets all along, it will fall short of this critical regulatory requirement. And when that happens, under the "prompt corrective action" laws enacted after the savings and loan crisis of the 1980s, federal regulators are obliged to invoke the N-word: nationalization.

excerpted from a quick article, cuz I didn't want to type the shit out.

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Have they not divided the prey; to every man a damsel or two? Judges 5:30


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RE: Man Dares Bank To Foreclose Unless They Reverse Bad... - 12/16/2010 10:20:07 AM   
pahunkboy


Posts: 33061
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From: Central Pennsylvania
Status: offline 		I dont know guys-  my town is very close to making laws against empty houses here.    At some point- I think they will. 

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RE: Man Dares Bank To Foreclose Unless They Reverse Bad... - 12/16/2010 10:27:05 AM   
Hillwilliam


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quote:

ORIGINAL: willbeurdaddy


quote:

ORIGINAL: pahunkboy

I doubt you can buy the place - at a foreclosure sale.  I been to those- the bank sends a rep to make sure theu get full price- even if they have to sit on it for 6 years. 


Its called an auction. They take the top bid, period.




Wilbur. the bank will have a rep at the auction to make sure that the bidding is at least the outstanding amount on the loan. If not, they take posession and that is the amount written (loan payoff) on the trustee's deed.

(RE Broker here)

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RE: Man Dares Bank To Foreclose Unless They Reverse Bad... - 12/16/2010 10:28:23 AM   
mnottertail


Posts: 60698
Joined: 11/3/2004
Status: offline 		wilbur is an insurance peddler, he thinks he is an analytical financial expert but as anyone can easily see..............

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Have they not divided the prey; to every man a damsel or two? Judges 5:30


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