Comical isn't it. Banks can put whatever price tag on their houses to keep their balance sheet healthy. It doesn't matter if comps are selling for 100k less. The banks can ignore that and claim their house is worth whatever they want. Simply crazy!
There have been so many well documented cases of "homeowners" in foreclosure OR on the brink of foreclosure who were told that they could not qualify for HAMP or whatever the hell it was called BECAUSE they needed to miss a few payments first. So, they dutifully complied, sent in the paperwork numerous times (it's always in processing) and eventually the bank turned down the assistance. I was in a store a few months back and overhead an elderly couple going thru this exact process. I'm fairly certain they had no idea how much of a scam it was to begin with as they seemed really earnest about following the procedures, yet they were still getting reamed. For all we know, just as you said, the money just gets funnelled off into "administrative costs". Another bullshit "bailout" for the "people" that is nothing more than a backdoor bailout for the TBTF's. The only upside to all of this is that there are enough people caught in the crosshairs of this debacle that they are experiencing firsthand the bad behavior. For a long time, the only guys who really saw this kind of graft were in the financial markets.
The irresponsible got a windfall. The responsible folks get screwed under Obumda. May I have a link to send my friends & contacts?
People have given up paying their mortgages and are squatting.. Banks get another bailout. This isn't helping any homeowner, these are now bank owned, squatter or not. This is delaying writing these properties down to market. I swear sometimes I think the end of the world people are right. This is so insane, its almost like the government doesn't even care. They must think for some reason, it doesn't matter. New currency? Alien invasion? Giant Space fart bubble? None of this makes any sense. They do not care, and I can't figure out why. Even corrupt politicians would care about their future ability to be corrupt. Shrug
what about china ? it is us vs china. chinese playing bubble us can t afford to stay behind. if they did, chinese would take even greater lead. It is game - who will drop dead first.
just like the eventually version of obama cares showed in the insurance companies owned congress... these bailouts show congress is bought and paid for by banks. On each important issue congress is bought by someone who profits from it. War... banks heathcare clinton and gore even turned a blind eye when china was stealing military secrets. without campaign finance reform and term limits, we will keep get screwed by our corrupt congress. You can't blame buinesses from buying congress... its their competitive advantage... we must stop congress.
it should have said just like the final version of obamacare... showed that the insurance companies owned congress...
And while on the subject of irresponsibility, where were you when Bush was waging wars while simultaneously cutting taxes?