My Old Condo got sold! LOL - I thought this was amusing...

[goodyphilips]

i think goodyphilips...and i'm not certain, but i think, and it's just my opinion here....that the banks sell them and really don't care what they sell for since they go back to the government to bale them out of the "difference"...i this is most likely part of the reinbustment process...but i'm just guessing because like you said...what the heck kinda sense does it make at all?? unless, somehow, somewhere the banks are going to recoup those loses in the form of the stimulas package...all wrapped up nicely under the banks Christmas trees??...just a thought?

Yes you are right other wise they would infact 'invite' and welcome the losses.

[goodyphilips]

i think goodyphilips...and i'm not certain, but i think, and it's just my opinion here....that the banks sell them and really don't care what they sell for since they go back to the government to bale them out of the "difference"...i this is most likely part of the reinbustment process...but i'm just guessing because like you said...what the heck kinda sense does it make at all?? unless, somehow, somewhere the banks are going to recoup those loses in the form of the stimulas package...all wrapped up nicely under the banks Christmas trees??...just a thought?

Yes i completely agree with you because ca not be so large hearted with out any reason. there must be some body who will more than fill the difference.

[goodyphilips]

Tobee,

Completely agree with you, otherwise why these banks would let these losses to occur, if there was no body to fill up the difference.

[tobee43]

Tobee,

Completely agree with you, otherwise why these banks would let these losses to occur, if there was no body to fill up the difference.

well...it's just a thought...only for the lack of any other explanation...the only other thing that makes sense and someone mentioned it on another post, is the banks are scared to foreclose more homes, because their losses will be so high and the news will smash them and us with the devastating stats...or what they REALLY are.

[Amy26]

They really don't want to foreclose on properties... at least not underwater ones. While their losses are backed up, either by reinsurance or the government they still take a hit on their financial statements. The loss shows up on their financials in a different line item than the money that they get back from bailouts. So, even though they are propbably getting back some money it still hurts their bottom lines.

I used to work for an insurance company and even though you're getting the kick back from the insurance your premiums are still going to keep going up and up and up. We had one company that had so many losses that their insurance premiums were over 1m a year...and this was a small company. 1 million a year was a huge payment for them.

Now, with all the government assistance for banks... I'm not sure how that works, but I know that they are taking losses on this stuff even if they are getting refunded for it.

[tobee43]

They really don't want to foreclose on properties... at least not underwater ones. While their losses are backed up, either by reinsurance or the government they still take a hit on their financial statements. The loss shows up on their financials in a different line item than the money that they get back from bailouts. So, even though they are propbably getting back some money it still hurts their bottom lines.

I used to work for an insurance company and even though you're getting the kick back from the insurance your premiums are still going to keep going up and up and up. We had one company that had so many losses that their insurance premiums were over 1m a year...and this was a small company. 1 million a year was a huge payment for them.

Now, with all the government assistance for banks... I'm not sure how that works, but I know that they are taking losses on this stuff even if they are getting refunded for it.

yeah amy, i agree, i don't really think that the banks want all these loses showing up on their end year financials....it's going to look really bad. i actually think that besides the document mess that some banks are dealing with, i also think the banks are "pacing" the foreclosures as to not send the country into a state of REAL shock.

[goodyphilips]

i think goodyphilips...and i'm not certain, but i think, and it's just my opinion here....that the banks sell them and really don't care what they sell for since they go back to the government to bale them out of the "difference"...i this is most likely part of the reinbustment process...but i'm just guessing because like you said...what the heck kinda sense does it make at all?? unless, somehow, somewhere the banks are going to recoup those loses in the form of the stimulas package...all wrapped up nicely under the banks Christmas trees??...just a thought?

Yes you are correct. there must be some body or some method which is paying for the difference or the losses.infact it could making more than bridging the difference.

[Peeps]

ok, I'll do it. I'll say it.

Sorry, but every time this thread pops up I just have to shake my head in wonder. I realize this post won't be a popular post but dang, someone needs to point out the obvious...

Do you really think the mortgage company didn't have a clue that they were cutting you a home loan in the middle of a giant housing bubble? So you "bought" your condo at a hugely inflated price and probably paid mostly interest on the loan for the years you lived there. What did you pay on that front-end-interest-loaded (read "pure profit") loan through that time? $50k? $75k? More? And had absolutely nothing to show for it when the day was done. The bank had the asset AND a bunch of your money.

So the bank turned around and eventually sold the property for what it was really worth. After draining a big chunk of profit from you. Yeah, there's a tax benefit to them. But think about it... they sold a property for market value to another person who will now pay either them or another bank interest on that loan for 30 or so years. The banks aren't losing money. People are. You did. What part of that is amusing?

It has long been said that the Great Depression was the biggest land grab in the history of the United States. Twenty years from now they'll probably be saying it paled in comparison to today's activity. Just think of the millions, if not billions of dollars that people like you paid in interest and taxes just to live in homes for a couple of years that the banks are now selling - practically new - at fair market rates.

I wrote this post not because I want to spark a debate on the cause/effect/blame-game of a nationwide housing bubble, but because I think that if we don't understand our history, we're doomed to repeat it. We need to take what we can learn from this experience and make sure our grandkids are armed with knowledge (yes, I realize how insanely impossible it is to tell kids anything as boring as this stuff) because their generation is lined up to take the next hit when it happens again.

[SPalin]

With the current bail-out of Banks, whatever the difference is from what is owed on the note and what they sell it for is not only a right-off for them, but they can put a claim in for reimbursement from the government! I paid $98,000 for my house in 2002, made improvements and refinanced to a 30 year fixed for $238,000 in 2006 (last payment balance was $229,000 10/09), sold at the Sheriff's sale for $119,000 10/2010 and is listed for sale at $84,000 and has been on the market since. The Banks are not loosing money, as the last balance on the house was $254,000 for late fees/foreclosure before the sale back to the Bank. That's over $170,000 adjustment for the Chases' books!

[goodyphilips]

well...it's just a thought...only for the lack of any other explanation...the only other thing that makes sense and someone mentioned it on another post, is the banks are scared to foreclose more homes, because their losses will be so high and the news will smash them and us with the devastating stats...or what they REALLY are.

thats another point of view though entirely agree with it but yes there is certainly truth at what you say.

[discouraged]

One thing that does worry me is when so many of us are losing our homes and going into rentals, are the rentals going to be like they were for awhile - where a person could hardly find something affordable and it was the landlord's game?

Even though renting got easier and better, for awhile it was really hard to find something livable and affordable. I kick myself now for buying this house as I'd finally found an apartment that was both those things but the looking for it was scary and when I had the option, I bought my house.

Can't wait to see what this one goes for when it goes. If it even does. Bought as a fixer upper and have done a lot of work but still needs a ton more. Nothing that couldn't have been managed in a realistic economy, but not now without a job or resources, I'm no longer working on it. Could be a really cute place to live if I had the funds again, but I don't.

They'll probably get next to nothing for it. Sigh.

[goodyphilips]

Well foreclosures are rising exponentially with every passing year and there will be no respite unless economy comes back to its booming ways.I do not think this is the time to buy a new house unless you are very sure that your job not will be gone few months from now. Its better to go rental.

[Amy26]

ok, I'll do it. I'll say it.

Sorry, but every time this thread pops up I just have to shake my head in wonder. I realize this post won't be a popular post but dang, someone needs to point out the obvious...

Do you really think the mortgage company didn't have a clue that they were cutting you a home loan in the middle of a giant housing bubble? So you "bought" your condo at a hugely inflated price and probably paid mostly interest on the loan for the years you lived there. What did you pay on that front-end-interest-loaded (read "pure profit") loan through that time? $50k? $75k? More? And had absolutely nothing to show for it when the day was done. The bank had the asset AND a bunch of your money.

So the bank turned around and eventually sold the property for what it was really worth. After draining a big chunk of profit from you. Yeah, there's a tax benefit to them. But think about it... they sold a property for market value to another person who will now pay either them or another bank interest on that loan for 30 or so years. The banks aren't losing money. People are. You did. What part of that is amusing?

It has long been said that the Great Depression was the biggest land grab in the history of the United States. Twenty years from now they'll probably be saying it paled in comparison to today's activity. Just think of the millions, if not billions of dollars that people like you paid in interest and taxes just to live in homes for a couple of years that the banks are now selling - practically new - at fair market rates.

I wrote this post not because I want to spark a debate on the cause/effect/blame-game of a nationwide housing bubble, but because I think that if we don't understand our history, we're doomed to repeat it. We need to take what we can learn from this experience and make sure our grandkids are armed with knowledge (yes, I realize how insanely impossible it is to tell kids anything as boring as this stuff) because their generation is lined up to take the next hit when it happens again.

Hehe ok, I'm sorry you felt the need to "point out the obvious". And no I did not have an interest only loan (and I only had the loan for 2 years, so they didn't make a huge killing on me) and no I don't believe I made any assumptions that the mortgage companies are clueless. And my "amusement" isn't strictly because I'm laughing at the mortgage company for taking a loss my amusment is a generalized amusment on the housing industry as a whole and how a property went from 270k to 120k in less than 3 years and yes partly on ourselves for what we get ourselves into.

I don't understand why you felt the need to "educate" us on the "history".... just because things were not spelled out exactly as you would have liked them to be doesn't mean we are oblivious to them.

And yes, they get kick backs, reinsurance and compounding interest...but it still has to be written off as a loss and the money they get back may come in a different period and gets reported on a different line item on their financial statements. So, while they may still be reporting profit, the losses are still being reported and as someone else pointed out, this is what the media and everyone else pays attention to. I also checked out the financials on my mortgage company and they ain't lookin to good. They have reported losses in the last two quarters and declining revenues. Different banks are going to have different outlooks depending on how large they are and how diverse their investments are... but smaller banks, like the one that had my mortgage, does suffer from all these foreclosures.

[discouraged]

I bought mine for $98 - was valued at $124 8 years ago. Put $20 into it and now the last time I looked, taxes were for $84 and the real estate agent that did the CMA had the neighborhood valued at $52 - $57. So, since mine still needs work, I assume they won't get over $40 or so for it. Thankfully mine was not an interest-only so I wasn't paying as much as I could have been. More than an apartment, but not bad for a house.

I am letting it go though. Time to move on. They wouldn't work with me on a loan mod so they can have it.