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Authored by: MadTom1999 on Monday, May 28 2012 @ 10:34 AM EDT |
The reason they do this is they are actually bankrupt. They need the cash. The
loan to buy the house will have been insured so they don’t take a huge hit on it
but when they leverage every real currency unit 50* or so 1/10th the house value
is worth 5 times the sale price in the false accounting terms banks have been
allowed to use since deregulation. When their losses are paid for out of our
pockets any manager who wasted a lot of time actually trying to make real
financial sense of the situation would be fired.[ Reply to This | Parent | # ]
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Authored by: Anonymous on Monday, May 28 2012 @ 11:31 AM EDT |
What if all mortgage holders simply refused to pay the bank?
It would be two weeks of doomsday prophesies, fire, and brimstones before the
banks crumbled.
Out of the smoking crater would come a new finance system, cheaper properties,
and a healthier government (of, by, and for the people - remember?)
Nah, won't happen.
At least not yet.[ Reply to This | Parent | # ]
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- Mob rule? - Authored by: Anonymous on Monday, May 28 2012 @ 12:28 PM EDT
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Authored by: PolR on Monday, May 28 2012 @ 11:35 AM EDT |
Mortgages are either insured or securitized nowadays. What sounds like a stupid
course of action may be a rational thing to do for the bank because either the
insurance covers the loss or the risk has been shifted to someone else by
securitization. The bank is cutting out an unnecessary cost and leaves someone
else holding the bag.
If you wonder why you have a hard time renegotiating a bad mortgage on an
underwater property, this may be it. The bank may be winning more by letting you
hanging dry than by being reasonable.
[ Reply to This | Parent | # ]
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Authored by: Anonymous on Tuesday, May 29 2012 @ 02:29 PM EDT |
MBA actaully stands for "My Bonus Awaits".
Whoever left these guys in charge should be drawn and quartered.[ Reply to This | Parent | # ]
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