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Title: Orwell Watch: Banks Put a Happy Face on Demolishing Foreclosed Homes
Source:
Naked Capitalism
URL Source: http://www.nakedcapitalism.com/2011 ... olishing-foreclosed-homes.html
Published: Jul 28, 2011
Author: Yves Smith
Post Date: 2011-07-28 09:32:22 by lucysmom
Keywords: Happy Free Market Sacrifice, Market Efficiency
Views: 10990
Comments: 31
In the through the looking glass world of reality according to banks, tearing down foreclosed houses is a good thing. Really. The spin that Bank of America is using to justify the notion of bulldozing buildings is that the houses in question are worth bupkis, say $10,000 or less. There’s a wee omission in their discussion. Many if not most of the houses in question have fallen in value because the bank failed to maintain them on behalf of investors. They were stripped for copper and appliances, or got moldy, or had squatters move in and make a mess of the place. I’ve heard numerous stories from not only foreclosure attorneys, but also from readers bidding on properties out of foreclosure. For instance, one attorney told me of a house with a $1.3 million mortgage where the owner had arranged a short sale at $1.1. million. The bank refused to take the offer, foreclosed on the house, sat on it, and eventually sold it for, if I recall correctly, $200,000, which I’d bet was the value of the land. The bank made marginally more in fees via this route and delivered a much bigger loss to investors. I’ve heard similar tales from readers greatly lowering their bids on bank owned properties because they deteriorated so much as the process dragged on. But here is the scam, um, program, via Bloomberg: Bank of America Corp. (BAC), faced with a glut of foreclosed and abandoned houses it can’t sell, has a new tool to get rid of the most decrepit ones: a bulldozer.
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#1. To: All (#0)
In our area, a man with a million dollar mortgage arranged a cash sale for the entire amount and the bank refused it because it didn't include certain penalties.
"...all of the equations in neoclassical economics are rubbish. The differential equations describe nothing. Economics is not about mathematics, it is about the human being." Sandeep Jaitly
Mickey Marzick in Akron, Ohio says: Bulldozing homes that could be used, but not sold profitably, is merely the invisible hand reducing supply to bolster demand. Creative destruction? In time there will be a shortage of housing driving up the price of those that remain [appreciation] or maybe even new homes will have to be built, facilitating the recovery of the residential construction industry. And as we all know, recovery of the housing market is key to the larger econommic recovery… Irrational exuberance? Plow the crops under, pour the milk down the drain, let the grain rot in mountainous piles, let people starve. Demolish houses to solve the homeless problem! But never sell at a loss to clear the overproduction that can never occur in the first place… efficient market hypothesis at work? Or is it irrational exuberance? Or creative destruction? Please choose one or more. After all, you are free to choose! Hungry, jobless, homeless persons with signs begging for your help on main thoroughfares outside opulent gated communities [castles without the moats?]. So many roads to serfdom … Pick one!
"...all of the equations in neoclassical economics are rubbish. The differential equations describe nothing. Economics is not about mathematics, it is about the human being." Sandeep Jaitly
"...all of the equations in neoclassical economics are rubbish. The differential equations describe nothing. Economics is not about mathematics, it is about the human being." Sandeep Jaitly
Oh really. What was his name and address?
That's not my information to share, is it?
"...all of the equations in neoclassical economics are rubbish. The differential equations describe nothing. Economics is not about mathematics, it is about the human being." Sandeep Jaitly
That's not my information to share, is it? Yes it is your information to share. You just seem to have a story for every situation that we discuss here.
As compensation for being over the hill, one has as mass of experience and thus a lot of stories.
"...all of the equations in neoclassical economics are rubbish. The differential equations describe nothing. Economics is not about mathematics, it is about the human being." Sandeep Jaitly
Ok. I'll have to take your word for it. Even though to be honest I'm a bit and have been a bit suspicious.
How well did you know this man? Why was his mortgage late?
In many parts of California a million dollar mortage and a million dollar cash sale generally are considered to be......NO BIG DEAL.
Ping to above.
Remember ARMs and the first wave of defaults?
"...all of the equations in neoclassical economics are rubbish. The differential equations describe nothing. Economics is not about mathematics, it is about the human being." Sandeep Jaitly
Such a dilemma for poor BOA. By the time they have thrown money down the remodeling hole, they could have built a much better home. Plus there's a large surplus of homes anyway. But then we need to leave up the shanty towns so the growing legions of the poor will have a domicile. Sounds like they are opting for the tent approach.
How did you know this man?
Socially.
"...all of the equations in neoclassical economics are rubbish. The differential equations describe nothing. Economics is not about mathematics, it is about the human being." Sandeep Jaitly
They probably would have been better off (and us too) by rewriting loans and being more flexible at the front end.
"...all of the equations in neoclassical economics are rubbish. The differential equations describe nothing. Economics is not about mathematics, it is about the human being." Sandeep Jaitly
Socially. So you know him socially and he is in your area. So if you follow this thread from above It sounds like you must be one of those rich people. Are you a limousine liberal? If so why not give your money to help the poor.
Quit being such a dick.
Take a day off.
Communist central planing at it's best. Compare the above to FDR's "Agricultural Adjustment Act". Roosevelt secured passage of the Agricultural Adjustment Act, which levied a new tax on agricultural processors and used the revenue to supervise the wholesale destruction of valuable crops and cattle. Federal agents oversaw the ugly spectacle of perfectly good fields of cotton, wheat and corn being plowed under (the mules had to be convinced to trample the crops; they had been trained, of course, to walk between the rows). Healthy cattle, sheep and pigs were slaughtered and buried in mass graves. Secretary of Agriculture Henry Wallace personally gave the order to slaughter 6 million baby pigs before they grew to full size. The administration also paid farmers for the first time for not working at all. Even if the AAA had helped farmers by curtailing supplies and raising prices, it could have done so only by hurting millions of others who had to pay those prices or make do with less to eat. Obama's watch stopped on 24 May 2008, but he's been too busy smoking crack to notice.
I did today. Tomorrow I have to take a little old lady shopping for an hour or so.
Roosevelt sucked.
I drive my own car. Take heed that ye do not your alms before men, to be seen of them: otherwise ye have no reward of your Father which is in heaven. Therefore when thou doest thine alms, do not sound a trumpet before thee, as the hypocrites do in the synagogues and in the streets... when thou doest alms, let not thy left hand know what thy right hand doeth: That thine alms may be in secret...
"...all of the equations in neoclassical economics are rubbish. The differential equations describe nothing. Economics is not about mathematics, it is about the human being." Sandeep Jaitly
You make a great poster boy for the first generationn in the history of this nation that wishes a lower standard of living upon the next.
No, just the opposite. I'm an American nationalist. America First second and third. I am opposed to NAFTA and GATT etc. Those are jobs killers. Obama your apparent Messiah here on earth supports those things. You liberals told us Reagan was bad because he gave us debt. His debt was minuscule compared to Obamas debt. You liberals with your giveaway programs have already reduced the living standards of people who have to work. You libearals are the party of welfare deadbeats and abortionists. It should shame you. The tea party is represents the working men and women that people like Godwinson and McCain call hobbits and rubes.
The hell you are! You already admit you put another country first Since you claim to be the Tea Bagger poster boy I would have to assume the rest are traitors too.
Of course Reagans debt was smaller, he raised taxes several times during his administration - he didn't have Grover Norquist pledgers to deal with.
"...all of the equations in neoclassical economics are rubbish. The differential equations describe nothing. Economics is not about mathematics, it is about the human being." Sandeep Jaitly
Cause and effect is a foreign concept to a Tea Bagger.
Being a true believer means kissing one's brains good-bye.
"...all of the equations in neoclassical economics are rubbish. The differential equations describe nothing. Economics is not about mathematics, it is about the human being." Sandeep Jaitly
You're delusional. Put up or shut up.
(chuckle)
Proxy IP's are amusing.....lmao
For instance, one attorney told me of a house with a $1.3 million mortgage where the owner had arranged a short sale at $1.1. million. The bank refused to take the offer, foreclosed on the house, sat on it, and eventually sold it for, if I recall correctly, $200,000...
#2. To: All (#0)
Comment:
July 28, 2011 at 6:38 am
#3. To: Badeye, A K A Stone, hondo68, Fred Mertz, Godwinson, go65, war, no gnu taxes, Skip Intro, ferret mike, jwpegler, brian s, mcgowanjm, Capitalist Eric, Mininggold (#2)
Hungry, jobless, homeless persons with signs begging for your help on main thoroughfares outside opulent gated communities [castles without the moats?]. So many roads to serfdom … Pick one!
#4. To: lucysmom (#1)
In our area, a man with a million dollar mortgage arranged a cash sale for the entire amount and the bank refused it because it didn't include certain penalties.
#5. To: A K A Stone (#4)
What was his name and address?
#6. To: lucysmom (#5)
What was his name and address?
#7. To: A K A Stone (#6)
You just seem to have a story for every situation that we discuss here.
#8. To: lucysmom (#7)
#9. To: lucysmom (#1)
In our area, a man with a million dollar mortgage
#10. To: A K A Stone (#8)
(Edited)
Ok. I'll have to take your word for it. Even though to be honest I'm a bit and have been a bit suspicious.
#11. To: lucysmom (#9)
#12. To: A K A Stone (#9)
How well did you know this man? Why was his mortgage late?
#13. To: lucysmom (#0)
(Edited)
Bank of America Corp. (BAC), faced with a glut of foreclosed and abandoned houses it can’t sell, has a new tool to get rid of the most decrepit ones: a bulldozer.
#14. To: lucysmom (#12)
#15. To: A K A Stone (#14)
How did you know this man?
#16. To: mininggold (#13)
By the time they have thrown money down the remodeling hole, they could have built a much better home. Plus there's a large surplus of homes anyway.
#17. To: lucysmom, Badeye, sneakypete, Hondo68, cz82 (#15)
How did you know this man?
#18. To: A K A Stone (#17)
#19. To: Fred Mertz (#18)
#20. To: lucysmom, A K A Stone (#2)
Plow the crops under, pour the milk down the drain, let the grain rot in mountainous piles, let people starve. Demolish houses to solve the homeless problem!
FDR talked Congress into creating Social Security in 1935 and imposing the nation’s first comprehensive minimum wage law in 1938. While to this day he gets a great deal of credit for these two measures from the general public, many economists have a different perspective. The minimum wage law prices many of the inexperienced, the young, the unskilled and the disadvantaged out of the labor market. (For example, the minimum wage provisions passed as part of another act in 1933 threw an estimated 500,000 blacks out of work).[24] And current studies and estimates reveal that Social Security has become such a long-term actuarial nightmare that it will either have to be privatized or the already high taxes needed to keep it afloat will have to be raised to the stratosphere. 
"We (government) need to do a lot less, a lot sooner" ~Ron Paul
#21. To: A K A Stone (#19)
#22. To: hondo68 (#20)
#23. To: A K A Stone (#17)
Are you a limousine liberal? If so why not give your money to help the poor.
#24. To: A K A Stone (#22)
Roosevelt sucked.
#25. To: mininggold (#24)
You make a great poster boy for the first generationn in the history of this nation that wishes a lower standard of living upon the next.
#26. To: A K A Stone (#25)
(Edited)
No, just the opposite. I'm an American nationalist. America First second and third. I am opposed to NAFTA and GATT etc. Those are jobs killers. Obama your apparent Messiah here on earth supports those things.
#27. To: A K A Stone (#25)
You liberals told us Reagan was bad because he gave us debt. His debt was minuscule compared to Obamas debt.
#28. To: lucysmom (#27)
Of course Reagans debt was smaller, he raised taxes several times during his administration - he didn't have Grover Norquist pledgers to deal with.
#29. To: mininggold (#28)
Cause and effect is a foreign concept to a Tea Bagger.
#30. To: mininggold (#26)
#31. To: A K A Stone (#17)
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