“Because in America, it’s far more shameful to owe money than it is to steal it.”

From the Rolling Stone:

Matt Taibbi: Courts Helping Banks Screw Over Homeowners

The foreclosure lawyers down in Jacksonville had warned me, but I was skeptical. They told me the state of Florida had created a special super-high-speed housing court with a specific mandate to rubber-stamp the legally dicey foreclosures by corporate mortgage pushers like Deutsche Bank and JP Morgan Chase. This “rocket docket,” as it is called in town, is presided over by retired judges who seem to have no clue about the insanely complex financial instruments they are ruling on — securitized mortgages and laby­rinthine derivative deals of a type that didn’t even exist when most of them were active members of the bench. Their stated mission isn’t to decide right and wrong, but to clear cases and blast human beings out of their homes with ultimate velocity. They certainly have no incentive to penetrate the profound criminal mysteries of the great American mortgage bubble of the 2000s, perhaps the most complex Ponzi scheme in human history — an epic mountain range of corporate fraud in which Wall Street megabanks conspired first to collect huge numbers of subprime mortgages, then to unload them on unsuspecting third parties like pensions, trade unions and insurance companies (and, ultimately, you and me, as taxpayers) in the guise of AAA-rated investments. Selling lead as gold, shit as Chanel No. 5, was the essence of the booming international fraud scheme that created most all of these now-failing home mortgages.

The rocket docket wasn’t created to investigate any of that. It exists to launder the crime and bury the evidence by speeding thousands of fraudulent and predatory loans to the ends of their life cycles, so that the houses attached to them can be sold again with clean paperwork. The judges, in fact, openly admit that their primary mission is not justice but speed. One Jacksonville judge, the Honorable A.C. Soud, even told a local newspaper that his goal is to resolve 25 cases per hour. Given the way the system is rigged, that means His Honor could well be throwing one ass on the street every 2.4 minutes.

Foreclosure lawyers told me one other thing about the rocket docket. The hearings, they said, aren’t exactly public. “The judges might give you a hard time about watching,” one lawyer warned. “They’re not exactly anxious for people to know about this stuff.” Inwardly, I laughed at this — it sounded like typical activist paranoia. The notion that a judge would try to prevent any citizen, much less a member of the media, from watching an open civil hearing sounded ridiculous. Fucked-up as everyone knows the state of Florida is, it couldn’t be that bad. It isn’t Indonesia. Right?

This entry was posted in Foreclosures, Housing Bubble, National Real Estate. Bookmark the permalink.

177 Responses to “Because in America, it’s far more shameful to owe money than it is to steal it.”

  1. grim says:

    From CBS News:

    Tax Appeals Force NJ Town To Reevaluate All Property Values

    Property taxes have been going up across the tri-state are, but in one New Jersey town, they’re reevaluating all of the town’s property.

    Many residents fear that this time the tax man’s axe may fall so hard they’ll have to move, reports CBS 2’s Marcia Kramer.

    The “For Sale” signs are going up in Maplewood. Many fear that a move to reevaluate taxes this year for everyone in town will mean they just can’t afford to live there anymore.

    “I’ve been here since 1965, and progressively, it’s gone up and up and up every year,” resident Sondra Somer said. “The problem is with that, I don’t know if I can stay in my house.”

    “Property taxes have gone up quite a bit already,” added resident Mark Janiw. “I don’t want to, but I’m thinking of moving out of town.”

    Local real estate agent Stephanie Mallios said Maplewood – like many towns in New Jersey – has had to reevaluate property because so many people appealed their property taxes as the real estate market declined. The successful appeals then left huge holes in local budgets.

  2. grim says:

    From Bloomberg:

    Atlantic City Casino Gambling Fell 12% in October

    Atlantic City’s casino gambling revenue fell 12 percent in October, after Pennsylvania and West Virginia added table games and new casinos opened in Philadelphia and Maryland.

    Gambling proceeds declined to $284 million, the New Jersey Casino Control Commission said today on its website. Slot machine revenue at the 11 casinos slid 10 percent from a year earlier to $199.4 million. Table proceeds were down 17 percent to $84.6 million.

    The results extend three years of declines for the New Jersey seaside resort, the second-biggest U.S. casino city after Las Vegas. Philadelphia’s first casino, SugarHouse, opened Sept. 23, attracting gamblers who live in a key Atlantic City market. Penn National Gaming Inc. opened Maryland’s first slots casino in Perryville Sept. 27.

    Atlantic City has been hurt by the economy and growing competition from surrounding states such as Pennsylvania, New York, Delaware and Maryland. Six of the casinos went through bankruptcy or restructured debt in the past year, and development has stalled.

  3. grim says:

    From Bloomberg:

    Mortgage Modifications Aren’t Stopping Foreclosures

    Jill Gray of Mesquite, Tex., says her 3-year-old son, Anthony, often tells her before he goes to bed: “I wanna go to the other house.” Last month Gray, Anthony, and Tiffy, their black Labrador mix, moved about 12 miles to a rental after their one-story brick house in Garland was auctioned in a foreclosure. Gray, 38, tried for almost a year to get her mortgage modified. Bank of America (BAC) initially agreed, only to rescind approval, telling Gray that documents were missing—documents that Gray says she sent.

    Gray’s experience of being evicted while participating in a program designed to avert foreclosures is being repeated thousands of times at the biggest mortgage firms, according to groups that aid borrowers. The government’s Home Affordable Modification Program (HAMP) came under fire at hearings late last month for granting homeowners “trial modifications” during which late fees and debts can stack up and documents can disappear, triggering foreclosures.

    “Many homeowners end up facing foreclosure solely on the basis of the arrears accumulated during a trial modification,” said Julia Gordon, senior policy counsel at the Center for Responsible Lending, in congressional testimony on Oct. 27. “One incomplete payment or one accounting mistake can land you on an apparently unstoppable conveyor belt to eviction.”

  4. grim says:

    From MarketWatch:

    Foreclosures fall 4% in October: RealtyTrac

    Foreclosure filings fell 4% in October, compared with September, according to RealtyTrac’s monthly foreclosure market report, released on Thursday.

    The volume of filings was about the same as in October 2009. Some 332,172 housing units in the country received a foreclosure filing during the month. Filings include default notices, scheduled auctions and bank repossessions.

    “The numbers probably would have been higher except for the fallout from the recent ‘robo-signing’ controversy — which is the most likely reason for the 9% monthly drop in REOs we saw from September to October and which may result in further decreases in November.”

  5. grim says:

    From CNBC:

    Foreclosure Activity Falls ‘Artificially’ Due to Moratorium

    Foreclosure activity fell in October due to the so-called “robo-signing” scandal that caused large mortgage lenders to put a temporary freeze on foreclosures, according to a report released Thursday by RealtyTrac.

    Foreclosure activity was down 4.39 percent in October from the previous month, but was practically flat (down just 0.04 percent) from the previous year, according to the report.

    “The drop is probably artificial,” said Rick Sharga, senior vice president of foreclosure data web site RealtyTrac. “Unemployment is still high. None of things that would lead to a recovery have come to the forefront.”

    “By the time we get to the first of the year we’ll probably see numbers escalate again,” he added.

  6. Mike says:

    Good Morning New Jersey

  7. grim says:

    From the Press of Atlantic City:

    Trump casinos cut 50 management positions in Atlantic City

    Trump Entertainment Resorts Inc. laid off about 50 managers Wednesday at its three casinos in a cost-cutting move by the company’s new boss.

  8. Mike says:

    JJ No. 120 from yesterday, I agree it’s a whole other world down in Dixie. But at least a middle aged white man is not letting pride get in his way by working in a fast food place. Where up here even after the unemployment is sucked dry they won’t dare take one of those jobs I just don’t know if I could take that southern lifestyle. Waiting 15 minutes for a burger in a fast food resturant once when I was down there I almost left across the counter and wanted to strangle the guy. Also weird all these white middle aged guys serving me burgers and stuff at fast food places. How bad is it down there that a 40 year old guy’s career is do you want fries with that?

  9. Mike says:

    Sorry this was the post from yesterday I just don’t know if I could take that southern lifestyle. Waiting 15 minutes for a burger in a fast food resturant once when I was down there I almost left across the counter and wanted to strangle the guy. Also weird all these white middle aged guys serving me burgers and stuff at fast food places. How bad is it down there that a 40 year old guy’s career is do you want fries with that?

  10. yo'me says:

    Erskine Bowles, Morgan Stanley, and the Deficit Commission
    Thursday, 11 November 2010 05:08
    The deficit report put out by the commission’s co-chairs, Alan Simpson and Erskine Bowles, had one striking omission. It does not includes plans for a Wall Street speculation tax or any other tax on the financial industry.

    This omission is striking because the co-chairs made a big point of saying that they looked everywhere to save money and/or raise revenue. As Senator Simpson said: “We have harpooned every whale in the ocean – and some minnows.” Wall Street is one whale that appears to have dodged the harpoon.

    This omission is made more striking by the fact that at least one member of the commission, Andy Stern, has long been an advocate of such taxes. Presumably he raised this issue in the commission meetings and the co-chairs chose to ignore him.

    The co-chairs apparently also chose to ignore the I.M.F.. Noting the waste and extraordinary economic rents in the sector, the I.M.F. has explicitly recommended a substantial increase in taxes on the financial industry. It is even more striking that the co-chairs apparently never considered a speculation tax since Wall Street’s reckless greed is at the center of the current economic crisis.

    In this context, it is worth noting that one of the co-chairs, Erskine Bowles, is literally on Wall Street’s payroll. He earned $335,000 last year for his role as a member of Morgan Stanley’s (one of the bailed out banks) board of directors. Morgan Stanley would likely see a large hit to its profits from a financial speculation tax.

    It would have been appropriate for the reporters covering the report to ask about a financial speculation tax. It would also be appropriate to explore the connection between Mr. Bowles role as a Morgan Stanley director and the absence of any financial taxes in this far-reaching report

    Dean Baker

    What is with lowering taxes with this commission.Cut everything and lower taxes.30 years,it was found only the top 5% earners benefitted the most.Spreading the income gap.

  11. Confused In NJ says:

    Interesting if they finally drop Employer Health Insurance Tax Deductibility. Should cause a number of Private Employers to drop their plans, and a lot of Public Sector employees to scream about taxes, although Public Sector will probably Gross up the Tax Liability and pass it on to the Soccer Moms, who will still vote “Yes” on the School Budget. “Pogo, we have met the Enemy, and They is Us”.

  12. Mike says:

    THAKK YOU VETERANS! For protecting our freedom and my right to post here

  13. yo'me says:

    (“Why Are Banks Holding So Many Excess Reserves?”) that describes how paying IOR at the Fed Funds target rate would stop the “money multiplier” process dead in its tracks. Unfortunately, no one at the Fed seemed to realize that IOR might also stop the economy dead in its tracks (an impact that I predicted in an article published on December 9, 2008 http://www.realclearmarkets.com/articles/2008/12/why_the_economy_is_in_a_tailsp.html).

    The creation of new money is supposed to set off an endless chain of transactions. The Fed creates a dollar by buying something from someone and then paying for it by creating an entry in its books. The newly created dollar then appears both as a balance in the seller’s checking account and as reserves for the bank in which that dollar is deposited.

    In the absence of IOR, there is an incentive for anyone who receives a dollar to immediately pass it on by doing another transaction. There is also an incentive for banks to lend out their excess reserves. This lending produces a “money multiplier” effect that amplifies the impact of the creation of new dollars. If enough new dollars are created and enough new transaction chains are initiated, some of the transactions will involve items that show up in GDP. This is the basic mechanism by which an increase in the supply of money creates demand.

    The payment of IOR at an “above market” interest rate (which has been the case for the past two years) short-circuits the processes described above. IOR creates a “roach motel” for money – the dollars go in and they don’t come out.

    http://www.realclearmarkets.com/articles/2010/11/11/why_the_feds_qeii_will_not_work__98753.html

  14. grim says:

    Fraud, fraud, everywhere is fraud..

    From Barry Ritholtz:

    Latest Mortgage Scandal: Force-Placed Insurance

    What is force-placed insurance? If any homeowner fails to keep up their insurance premiums, then their loan servicer can step in to buy a comparable insurance policy (theoretically on the loan holder’s behalf), to ensure the mortgaged property remains fully insured.

    It’s sensible in theory, but in practice, it’s ripe for abuse. And when the servicer owns the insurer, abusive practices, excessive commissions, and self-dealing transactions have become the norm.

    Consider one case found by Horwitz. A homeowner’s $4,000 insurance policy, was paid by the loan servicer, Everbank via escrow. But Everbank purposely let that insurance policy lapse, and then replaced it with a different policy – one that cost more than $33,000. To add insult to injury, the insurer, a subsidiary of Assurant, paid Everbank a $7,100 kickback for giving it such a lucrative policy — and, writes Horwitz, “left the door open to further compensation” down the road.

    Here’s where things get interesting: That $33,000 insurance premium is ultimately paid by the investors who bought the loan.

    These investors are not happy.

  15. Fast Eddie says:

    They certainly have no incentive to penetrate the profound criminal mysteries of the great American mortgage bubble of the 2000s, perhaps the most complex Ponzi scheme in human history.

    Please, go ahead, define “market value” for me again, I want to laugh my f*cking @ass off.

  16. Fast Eddie says:

    Local real estate agent Stephanie Mallios said Maplewood – like many towns in New Jersey – has had to reevaluate property because so many people appealed their property taxes as the real estate market declined. The successful appeals then left huge holes in local budgets.

    167 cops in Newark are getting pink slips. It’s just the beginning. Privatize education and services, eliminate “overtime” fraud and abuse across the board, eliminate assistants to the assistants and hold everyone accountable. It’s not even a choice anymore, the public sector has been diagnosed and it’s fatal.

  17. Jase Rion says:

    where can i find information on a company’s filing of its upcoming layoffs? thanks.

  18. Fast Eddie says:

    Here ya go, an updated gem priced with “value” in mind. This, and affordable property taxes at just over $18,000 per year. $160,000 down and monthly PITI of just under $5000 will have you sleeping like a baby.

    http://www.realtor.com/realestateandhomes-detail/319-Dunham-Place_Glen-Rock-Boro_NJ_07452_M57832-59315?ex=NJ524071982

  19. Tom says:

    Florida is the first state I heard of where someone is suing to get their house back after it has already been sold at auction.

    While he was negotiating bringing his mortgage current the home was sold and he didn’t receive notice.

    “Notice of the foreclosure action was given to the tenant’s 17-year-old son, according to an affidavit in the court file. Seeking to find Carlson in California, a process server gave a copy of the complaint to “Jane Doe,” an unidentified tenant in a three-unit apartment building in Alameda, Calif.”

    http://www.miamiherald.com/2010/11/09/v-fullstory/1916515/florida-man-sues-to-reverse-foreclosure.html

    New Jersey on the other hand is helping their residents by buying some of the foreclosures on the market. Just this week River Vale bought a foreclosed country club for over $17 million that only had a judgement of $6.6 million.

    $17 million would have been enough to satisfy the judgments of ALL the recent foreclosures in River Vale including this one.

    There was one other incident I remember the town buying a foreclosure. I think it was Mahwah if I remember correctly. They bought at auction some woman’s condo. Never found out why though.

  20. Fast Eddie says:

    No description on this one, the realtor tried for days to create an opening statement and just gave up. But, does it matter? I’m sure there will be multiple bids near asking price for this charmer, any…. moment…. now.

    http://www.realtor.com/realestateandhomes-detail/Glen-Rock_Nj_07452_M60949-52391

  21. Lamar says:

    yo (10)-

    Just another coverup of the biggest daylight bank robbery in history.

    Bipartisan? Yeah, being a thug tool of the banks is definitely something both political parties can get behind. Reaching across the aisle to the reach into our pockets has been raised to an art form in DC.

    Burn the mf’er down. Burn it to the ground, execute the politicians, and start over.

    Nothing else will work at this point. We’re too far down the path to oblivion.

  22. Al Gore says:

    Unemployment benefits will have to go as well. Time to watch the 99 er’s fall off the gravy train. The grinding stones of taxation and inflation continue and will not abate. The tolerance of the American people is pretty remarkable.

    The escape routes are becoming pretty small at this point.

    Now I am interested in that ex pat report.

  23. Mr Wantanapolous says:

    “The “For Sale” signs are going up in Maplewood.”

    Can’t be. Proximity to NYC and a downtown train, with a quaint city feel? At closing the lender should require that each buyer provide proof of gun ownership. In addition to this, they must purchase gap insurance.

  24. Mr Wantanapolous says:

    AG,

    I know you have seen this. Present day, funny to look back as the foundation’s of the exchanges are shifting.

    http://www.youtube.com/watch?v=eVB-SSkkLnY&feature=player_embedded

  25. Al Gore says:

    24.

    In addition you get to live next to lovely Irvington and when collapse happens fight off the rampaging hordes looting their way West for provisions etc. I propose cutting off all state aid to the communist enclave of Montclair and sending reinforcements to Maplewood in the form of ammunition, concrete barriers, and concertina wire.

  26. grim says:

    26 – you aren’t the first to suggest a wall.

  27. JJ says:

    I guess it is good, but also shows a lack of education or lack of business sense.
    Mike says:
    November 11, 2010 at 6:25 am

    JJ No. 120 from yesterday, I agree it’s a whole other world down in Dixie. But at least a middle aged white man is not letting pride get in his way by working in a fast food place. Where up here even after the unemployment is sucked dry they won’t dare take one of those jobs I

  28. chicagofinance says:

    Mike says:
    November 11, 2010 at 6:29 am
    Sorry this was the post from yesterday I just don’t know if I could take that southern lifestyle. Waiting 15 minutes for a burger in a fast food resturant once when I was down there I almost left across the counter and wanted to strangle the guy. Also weird all these white middle aged guys serving me burgers and stuff at fast food places. How bad is it down there that a 40 year old guy’s career is do you want fries with that?

    A little early in the year…..sorry…..
    http://www.youtube.com/watch?v=QFQyib5ZQZY

  29. JJ says:

    entire town of maple wood is getting re-accessed. People are scared their 24k taxes will be 36k taxes.

    mr Wantanapolous says:
    November 11, 2010 at 8:19 am

    “The “For Sale” signs are going up in Maplewood.”

    Can’t be. Proximity to NYC and a downtown train, with a quaint city feel? At closing the lender should require that each buyer provide proof of gun ownership. In addition to this, they must purchase gap insurance.

  30. SG says:

    Zillow’s Humphries Discusses U.S. Housing Market

    Nov. 10 (Bloomberg) — Stan Humphries, chief economist at Zillow Inc., talks about U.S. home prices and the outlook for the housing market. Humphries speaks with Carol Massar and Matt Miller on Bloomberg Television’s “Street Smart.”

  31. Al Gore says:

    Wantan,

    Thats classic.

    Looks like Ireland is going down the tubes rather quickly but are funded until Mid 2011. TPTB must like the month of May for European economic doom. I wonder if Ireland has any gold mines. I remember they had one property in the North that was being explored but it had only 200,000 ounces.

  32. Schrodinger's Cat says:

    Al 23

    Re 99ers,

    Some are mooching off of the system but there are a fair number of 50+ workers who will be lucky to ever work again once they get laid off. I know of 2 different 50+ guys who have been out of steady work for over 2 years and have applied for every job they can find. One of them has been laid off 3 times in the interim. Until we rebuild the production capacity things get and stay ugly.

  33. Al Gore says:

    34.

    Yeah I agree. Everyone is going to get screwed. No one will escape. I believe it is wise for anyone over 50 to start a side business doing anything. With pending social security cuts and inflation they are going to need the income because they are too old to be hired.

  34. Mr Wantanapolous says:

    “Until we rebuild the production capacity things get and stay ugly.”

    Cat,

    Capacity utilization is at record lows. First, we have to destroy the excess. It will take years of deleveraging to accomplish this. Then build back thru savings, investment, innovation, productive and intellectual capacity. Blow it out, 5-7 years of hard labor rather than 20-30 years of a slog.

    In the meantime, the fed is pissing in the wind, trying to reflate a bust. They will be successful; unfortunately, not the sectors which they are targeting.

  35. Mike says:

    Chicago No. 29 LOL He doesn’t have a southern accent though!

  36. Schrodinger's Cat says:

    Good morning all. Welcome to another fabulous day of Schrodinger Economics

    Schrödinger’s Cat: A cat, along with a flask containing a poison and a radioactive source, is placed in a sealed box shielded against environmentally induced quantum decoherence. If an internal Geiger counter detects radiation, the flask is shattered, releasing the poison that kills the cat. The Copenhagen interpretation of quantum mechanics implies that after a while, the cat is simultaneously alive and dead. Yet, when we look in the box, we see the cat either alive or dead, not both alive and dead.

    http://en.wikipedia.org/wiki/Schr%C3%B6dinger%27s_cat

    Schrodinger Economics: Economic systems in which the system functions only so long as the majority of the participants agree to disregard contraindicating factors such as the mass insolvency of the American consumer or the fractional mark-to-market value of mortgage derivatives. Any significant acknowledgment of the factual status of the economic system would result in its immediate collapse. As a result, the economic system is simultaneously dead and alive similar to the case of Schrodinger’s Cat. For additional examples see COMEX precious metals markets.

  37. chicagofinance says:

    Cisco is off 16%+ pre-market…..

  38. Mike says:

    Chicago Loved Beavis & Butt Head in their day still have copies on VHS

  39. Schrodinger's Cat says:

    36 wantan

    An enthusiastic asian conflict could reset the system quit nicely.

  40. Mr Wantanapolous says:

    Cat [41],

    Yes, a war is part of the recipe.

  41. Lamar says:

    Endless war is part of the recipe.

  42. Lamar says:

    Thanks for the article on Liverpool yesterday, chi.

    No doubt, Henry got them on the cheap and will make them champions again. The guy knows how to run a sports club.

    Amazing to see Torres and Gerrard come back to life. Their play up to now wasn’t entirely hampered by injuries. Hard to go all out for a club you think is going to sell you off to pay down debt.

  43. Lamar says:

    That being said, I fcuking hate Scousers.

  44. Schrodinger's Cat says:

    Wantan

    Looks like china will be getting antsy for a population reduction / agression redirection mechanism in the near future

    BEIJING, Nov 11 (Reuters) – China’s headline inflation rose to a 25-month high of 4.4 percent in the year to October from 3.6 percent in September, the National Bureau of Statistics (NBS)
    said on Thursday. ….

    One such victim of inflation is Liang from Guangzhou who has to cook for a family of six. Just last year, her family could eat heartily for 1,200 yuan (US$180) a month. This year she needs to spend 2,200 yuan (US$330) per month to maintain the same quality of meals.

    Don’t forget their significant over population of young males with no future prospects of wives.

  45. Confused In NJ says:

    entire town of maple wood is getting re-accessed. People are scared their 24k taxes will be 36k taxes.

    It would be better if their taxes went to $100K per year, then maybe they will wake up.

  46. Xroads says:

    Jill Gray of Mesquite, Tex., says her 3-year-old son, Anthony, often tells her before he goes to bed: “I wanna go to the other house.” I would love to know the rest of the story here. We articles like this all the time with one sided sympathy theme about a family being foreclosed on. How about showing us the terms of their mortgage vs their income did they falsify there application? Did they ever belong in the house? I’d like to see a story with kids asking when are we buying a house? And mom and dad answering when the gvt. Gets the Fu@k out of the way and we go back to free markets

  47. grim says:

    Going back to “free markets”, implies that markets were once free. When was that?

  48. Al Gore says:

    Good thing its a POMO day.

  49. JJ says:

    what did these guys do for a living pre-lay-off?

    Schrodinger’s Cat says:
    November 11, 2010 at 8:38 am

    Al 23

    Re 99ers,

    Some are mooching off of the system but there are a fair number of 50+ workers who will be lucky to ever work again once they get laid off. I know of 2 different 50+ guys who have been out of steady work for over 2 years and have applied for every job they can find. One of them has been laid off 3 times in the interim. Until we rebuild the production capacity things get and stay ugly.

  50. Confused In NJ says:

    I think all the amputees from Iraq & Afghan IED’s should have their missing body parts dropped off Daily in Congress & the Oval Office so that they have a Real appreciation for whats going on.

  51. Juice Box says:

    Perfect for this crowd.

    * What is the Wall of Worry?

    * Since the 1930’s, when Benjamin Graham created the concept of “Mr. Market”, investors have been trying to figure out what events or fears are influencing the market. Investors call this body of concerns the “Wall of Worry.”

    Oddly, no one has ever kept a list of the worries, except for me. I’ve been managing money for the last 20 years and keeping a running tally of all the things that are bothering investors. It’s an important part of my value investment discipline, because when Mr. Market gets nervous, stocks tend to get cheaper.

    As Warren Buffett says: “Be fearful when others are greedy and be greedy when others are fearful.”

    * Roll over each “worry” for a short comment.
    * -Lloyd Khaner

    http://www.minyanville.com/investing/lloyds-wall-of-worry/11/9/2010/

  52. JJ says:

    On Saturday I am looking at my first bank owned property in awhile. A small bank in CT owns it and it is the most expensive REO on their books so I need the banks BOD approval to sell it.

    I want to put a fairly low ball offer in. The bank just winterized it and since property is on LI it is a pain to manage. However, house is in really nice condition. Guy who owned it bought it to live in not to flip and HELOC’d the heck out of it on renovations at peak However, the style is very much his style and not everyone may like and since he never actually 100% finished it the work is a little rough in parts, However, it has a new kitchen and three new bathrooms and he painted everything and put in new windows and roof before calling it a day.

    With a low price offer, what else should I include in offer to make it more attractive. Say I will show my financials. say I will make it non contingent. Pre-approvals is meaningless as realtor told bank I can do deal

  53. safe as houses says:

    I take no one here is going to run out and buy a 500k house in Maplewood that has 12k in taxes.

  54. Schrodinger's Cat says:

    JJ

    One was an ATT exec and one was a director in Pharma.

  55. Fabius Maximus says:

    #19 Tom,

    I think Mahwaw bought the condo as it was a cheap (80-100K) buy and as they rented it straight back to the owner it really helped them meet their COAH numbers.

  56. Al Gore says:

    Wantan,

    Im loving this markets down miners up action especially since many are busting through massive short positions.

  57. Nomad says:

    Cat & Want,

    US Manufacturing base is a must. Tax imports so it is economically feasible for Mfg to grow in this country.

    See what is going on with China and rare earth metals?

    It’s simple, control your distiny or someone else will. As far as excess capacity, start making things in this country and the excess capacity goes away.

    Honda seems to be doing OK making products in Ohio while paying their line workers over $50k (living wage in that part of the world) so if they can do it, other industries can too.

    BTW – ever wonder where the components to a military field radio used by US troops are made? Any of you read about how Sprint is going to start getting their telcom equipment from – they heavy duty equipment (not the cell phones) that makes countries very dependent (and very uneasy) on the entity that produces said equipment.

  58. Nomad says:

    distiny = destiny

  59. Mr Wantanapolous says:

    “With a low price offer, what else should I include in offer to make it more attractive.”

    JJ,

    Tell them you are a playa and front running Bergabe. If that doesn’t work bring him to Score’s. A few lap dances will seal the deal.

  60. Mr Wantanapolous says:

    AG [59],

    It could be the start of unwinding massive spreads; long bullion/short miners.

  61. safe as houses says:

    #55 JJ

    Tell them you’ll give them autographed copies of your autobiography. “JJ, lover of junk bonds and junkier women.”

  62. Xroads says:

    50 grim
    How about back to a housing market where you have to actually pay for a house and qualify for a loan and be held accountable for your actions( lender and borrower)

  63. Schrodinger's Cat says:

    Now this is a protest (assuming the report is relatively accurate)!

    German people in unprecedented rebellion against government: 1000 injured in protests in nuclear protests: police at breaking point

    The German people stopped a train–guarded by 17,000 police troops!– from delivering nuclear reactor radioactive waste that would have endangered people. This report of events in Germany emphasizes the non-violent aspect of the rebellion, but some of the protestors, contrary to the philosophy of nonviolence, applied force: “A water cannon truck [that would have been used by the police to remove protestors] was blocked by tractors.” Despite it being contrary to the philosophy of nonviolence, it seems like an excellent thing for the protestors to have done.

    http://axisoflogic.com/artman/publish/Article_61620.shtml

  64. Juice Box says:

    JJ – we are still in the bottom of the third.

    The bagholders are being booted and the better properties are now just headed to auction block, how about this long island steal in Westbury?

    21+ ACRE ESTATE – FULLY APPROVED 4 LOT SUBDIVISION

    Situated on the Gold Coast of Long Island
    #10 Wealthiest Town in United States
    $4,900,000 Opening Bid (70% Off Last Asking Price of $17,750,000)

    http://www.maltzauctions.com/auction_detail.php?id=146121

  65. Schrodinger's Cat says:

    A more mainstream reference, still impressive

    For nearly four days, anti-nuclear protesters have rappelled from bridges, undermined roads, and formed human shields across the shipment’s route in an attempt to slow it down. A shepherdess even herded 500 sheep and some 60 goats across the road Monday between Dannenberg — where the shipment was offloaded from train cars onto trucks — and Gorleben in a bid to slow it down.

    The German nuclear waste, which is reprocessed in France, set off by train Friday on a 930-mile (1,500 kilometer) journey from Valognes to Gorleben. The trip took 92 hours — making this the slowest journey the regular transport has ever taken, after a 79-hour trip in 2008.

    Some 20,000 German police sporadically clashed with demonstrators to secure the transport route although the protests remained largely peaceful.

    http://www.latimes.com/sns-ap-eu-germany-nuclear-waste,0,3595473.story

  66. Mike says:

    Schrodinger No. 42 They’re the best

  67. Fabius Maximus says:

    #50 grim

    Interesting comment on the concept of a “free market”

    http://www.guardian.co.uk/politics/2010/nov/11/free-market-doesnt-help-poor

  68. JJ says:

    I actually like this house, it is pre-war which is cool. I mean really pre-war revolutionary war, house originally built in 1690. Last guy paid 1.3 million for house in late 2006, then did the kitchen, nice Viking stove, Fridge etc and three bathrooms. I mean the guy went to town on the master bathroom, dual showers, dual sinks, huge raised tub. Looks like he put 450K at least into house. 3,500 square foot 2 + acres. I might just buy it to rent anyhow as it is turn key. Plus I used to date a girl whose mom had homes on the northshore and she said anything over an two acres in a good town from a bank buy as they don’t come up too much. I found 2000 pictures of house and it was already in good condition. So he just re-did inside. House sold for 710k in 1994 unrenovated, and since then it had a 400K renovation in 2007 (the helocs that brought the house down. If I got it for 1.1 million I am basically paying 1994 prices the 710K plus the 400K renovation. Prior guy price and purchase was in it for close to 1.7 million, so 600K off 2006 prices.

    House has three full baths and 2 1/2 baths and huge kitchen. He did all five bathr0oms plus kitchen in 2007 all top of line, that is a huge chuck of coin.

    I might just rent it anyhow. This is a FU house. Driveway holds like 30 cars. Not many FU houses under 1.2 million.

  69. Schrodinger's Cat says:

    Matt Taibbi:

    …….The rocket docket wasn’t created to investigate any of that. It exists to launder the crime and bury the evidence by speeding thousands of fraudulent and predatory loans to the ends of their life cycles, so that the houses attached to them can be sold again with clean paperwork. The judges, in fact, openly admit that their primary mission is not justice but speed. One Jacksonville judge, the Honorable A.C. Soud, even told a local newspaper that his goal is to resolve 25 cases per hour. Given the way the system is rigged, that means His Honor could well be throwing one ass on the street every 2.4 minutes……”

    “……And that’s just the economic side of the story. The moral angle to the foreclosure crisis — and, of course, in capitalism we’re not supposed to be concerned with the moral stuff, but let’s mention it anyway — shows a culture that is slowly giving in to a futuristic nightmare ideology of computerized greed and unchecked financial violence. The monster in the foreclosure crisis has no face and no brain. The mortgages that are being foreclosed upon have no real owners. The lawyers bringing the cases to evict the humans have no real clients. It is complete and absolute legal and economic chaos. No single limb of this vast man-­eating thing knows what the other is doing, which makes it nearly impossible to combat — and scary as hell to watch…

    http://www.rollingstone.com/politics/news/17390/232611?RS_show_page=0

  70. 30 year realtor says:

    JJ #55 – You truly believe that some grandstand ploy is going to make the difference? Been selling REO for more than 20 years and never seen that kind of BS matter.

    The bank has one of 3 things on the subject property, a low value, an accurate value or a high value. If their value is too high only time will get them down to reality. An accurate or low value will result in a sale. If the bank has a low value and you present an offer quickly, perhaps you can get a reasonable deal. The only steals in REO are improperly valued properties.

    Present offer with proof of funds or pre-approval subject only to appraisal. Always reserve the right to do inspections, even if they are only for your information.

  71. Fast Eddie says:

    More news on the job market: Just a FYI, the job market is worse now than a year ago. There is absolutely no full time opportunities available. It’s all contract positions on a per diem basis and even if the economy starts humming, there is no indication that companies will hire full time with perks and bennies. I had three conversations with recruiters this morning and they all said there’s no reason for any firm to commit to anyone. If you don’t like the deal or don’t agree, they will simply get someone else. Companies are sitting on tons of cash and continuing to reduce cost so there’s no reason to change. This is gradually going to happen to every industry, both large and small. You either accept it or starve. The majority of companies profits are now coming from emerging markets. They don’t need you to spend for their products or services nor work for them to sustain growth.

  72. Schrodinger's Cat says:

    More from Talibi

    In one case handled by Jacksonville Area Legal Aid, a homeowner refinanced her house in 2005 but almost immediately got into trouble, going into default in December of that year. Yet somehow, this woman’s loan was placed into a trust called Home Equity Loan Trust Series AE 2005-HE5 in January 2006 — five months after the deadline for that particular trust. The loan was not only late, it was already in foreclosure — which means that, by definition, whoever the investors were in AE 2005-HE5 were getting shafted.

    In short, all of this was a scam — and that’s why so many of these mortgages lack a true paper trail. Had these transfers been done legally, the actual mortgage note and detailed information about all of these transactions would have been passed from entity to entity each time the mortgage was sold. But in actual practice, the banks were often committing securities fraud (because many of the mortgages did not match the information in the prospectuses given to investors) and tax fraud (because the way the mortgages were collected and serviced often violated the strict procedures governing such investments). Having unloaded this diseased cargo onto their unsuspecting customers, the banks had no incentive to waste money keeping “proper” documentation of all these dubious transactions……

  73. Fast Eddie says:

    Another tidbit: after 40 years in business, my neighborhood pharmacy will be closing because everyone is being forced to purchase through a select few large pipeline distributors. For weeks, everytime I walk in the store, the owner is in a perpetual state of tears. Consolidation is coming everywhere.

  74. JJ says:

    I think the bank may have an improper value. The bank never made the loan, secondly they got the REOs as part of a portfolio from a hedge fund and an employee at the hedge fund in CT owned the house himself, said employee was fired when Hedge fund shut down and walked away from house that he got a loan to buy from his own hedge fund he worked at. The single branch bank in CT originally wanted to make money when they got home in late august by bidding loan amount on court house steps. Now 60+ days later I think they may want to break even. A winterized house on long island with an agent and property manger in CT is a PITA.

    The bank seems ready to deal. I told them verbally I have no mortgage on current home, it will be my primary residence and I had no problem in days of RTC of raising hand at auction and buying and I bought my current home in distress. Then guy goes so you are an “experienced RE investor”, who wants to buy non-contingent on a mortgage and can make a very quick decision if price is right as you have cash to do this deal and if necessary can prove it. Guy told me yesterday BOD of bank wants me to put in an offer, any offer, maybe we may just want to move it before year end. Just give them a number verbally or in email and if numbers match I put in formal offer and the board will bang the gavel down. If we are too far off oh well.

    I have all the internal bank paperwork and appraisals marked confidential only and can talk direct to BOD. When I dance I dance. No BS> I am a dream buyer, but you have to give me a good deal. I will buy as is, but put in I am getting an inspector and if something big is wrong I can back out.

    30 year realtor says:
    November 11, 2010 at 10:42 am

    JJ #55 – You truly believe that some grandstand ploy is going to make the difference? Been selling REO for more than 20 years and never seen that kind of BS matter.

    The bank has one of 3 things on the subject property, a low value, an accurate value or a high value. If their value is too high only time will get them down to reality. An accurate or low value will result in a sale. If the bank has a low value and you present an offer quickly, perhaps you can get a reasonable deal. The only steals in REO are improperly valued properties.

    Present offer with proof of funds or pre-approval subject only to appraisal. Always reserve the right to do inspections, even if they are only for your information.

  75. 30 year realtor says:

    JJ #71 – Your reasoning on the value of the property in question is pointless at best. None of the factors you cite has any reasonable relation to the property’s current value.

    If a client of mine proposed the scenario of renting the property in question, I would ask if they lost their fcuking mind. Facing further depreciation and values likely bumping along the bottom for years, what exactly do you hope to accomplish?

  76. 30 year realtor says:

    JJ #77 “A winterized house on long island with an agent and property manger in CT is a PITA.”

    This is not a PITA, it is just plain stupid! No shortage of RE brokers in the area of the property. Always troubled by the stupidity of those managing real property assets.

    Seller sounds ripe. My only question is, if this is for any other reason than personal residence, why would you buy into decline?

  77. Tom says:

    JJ,

    Some people try and increase the value of the home by making improvements. Others try to do so by telling you it’s in a “hot” area or that it needs approval from the BOD.

    You just have to make them realize that while the house is special to them because of it’s unique circumstances, it doesn’t translate into intrinsic value in the house’s local real estate market.

  78. Mr Wantanapolous says:

    JJ,

    Turn the basement into a boom-boom room.

  79. Juice Box says:

    JJ – not too many homes on long island built in 1690.

    THE wood frame building on Oyster Bay Road in Locust Valley, known as the Joseph Weeks house and built around 1690, is believed to be one of the two oldest homes on Long Island.

    http://www.nytimes.com/2001/09/02/nyregion/1690-s-home-survives-in-development-fight.html

  80. 30 year realtor says:

    #82 – If the house in the article is the house JJ is interested in, I wouldn’t do anything without some thorough investigation into the matter. So many potential complications.

    Not an investor buy/rent kind of property. Not a typical property in any respect. When ever anyone asks what I look for in a property I buy for any purpose, my response is I only want typical properties. Unusual is usually a problem!

  81. NJGator says:

    Shore – Here’s another one for you. Although I have to say there is serious renewed debate going on again in the Gator/Stu household as to your actual existence :)

    http://shine.yahoo.com/channel/life/35-secrets-your-pilot-wont-tell-you-2399544/

  82. Confused In NJ says:

    Interesting, Ireland did a Timmy & Benny to themselves;

    Ireland on the Brink as Budget Crunch Looms
    by Simon Kennedy
    Thursday, November 11, 2010

    Austerity threatens growth, but markets leave Dublin little choice

    After promising a 15 billion euro ($20.7 billion) austerity package of spending cuts and tax hikes, Ireland’s government may be facing its last chance to avoid a bailout by persuading markets that the country can repay its debts.

    Yields on government bonds have soared in recent days as investors increasingly fear that the only long-term option for Ireland will be a bailout from Europe. But sympathy for Brian Cowen’s Fianna Fail-led coalition is almost non-existent among Dubliners, who see the government as the biggest villain in the collapse of the Irish economy.

    In a country where the prime minister, or taoiseach, is reportedly the highest paid politician in Europe and where each member of the lower house represents just 26,000 constituents — compared to over 94,000 in the U.K. — there is palpable anger that those seen as most responsible also appear to be hurting the least.

    “People are really angry. People on social welfare, pensioners and lower income earners feel that they’re going to be hit in December’s budget, and when that happens there’s going to be outrage, because those at the top of the food chain aren’t being touched,” said Laura Waters, a former employee of retailer Laura Ashley, who lost her job when the company closed its flagship Dublin store.

    After an economic boom that saw the country dubbed the Celtic Tiger, which lasted more than a decade, the Irish economy has shrunk for nine of the last ten quarters. Construction, which fueled the boom, has collapsed and taxpayers are facing a €50 billion bill from bailing out the banks that funded the unsustainable growth.

    “The people who made the money during the Celtic Tiger and the boom time are now just plowing all their assets in the [National Asset Management Agency] and being protected by the government,” Waters said, referring to the agency set up to buy toxic construction loans from banks.

    That anger is compounded, for some, by the political infighting in the run up to the budget. See Wall Street Journal story on Irish mortgages.

    Massive Cuts

    The government’s plan is to cut the budget deficit to 3% of gross domestic product by 2014 from what some economists estimate is a gap of 32% this year. The other main parties have largely signed up to that target figure, but getting any kind of consensus on the details will be far harder.

    The first stage will be a four-year budget plan later in November, giving forecasts on how the government wants to implement €15 billion of cost cuts and tax increases — twice the initial estimate of the cuts required.

    That will be followed by the 2011 budget in December, at which Finance Minister Brian Lenihan will spell out €6 billion of specific measures for the first year of that plan, which must be passed by the parliament in what’s set to be a nail-biting vote.

    The coalition government’s majority has been whittled down to just three and the Green Party, which holds six of the coalition seats, is reportedly threatening to vote against any budget that cuts pensions.

    If the government fails to win approval for the budget, it will have to call a general election. And, a vote could still come within months as by-elections for four currently vacant seats will likely see the coalition majority wiped out.

    The infighting prompted Olli Rehn, European commissioner for economic and monetary affairs, to call for a political consensus on the budget after meeting with all the major parties earlier this week.

    Yields on 10-year Irish bonds have soared in recent days and hit around 8.5% on Wednesday.

    The political uncertainty is adding to the pressure on borrowing costs created by Germany’s demands that bondholders absorb some of the losses in any future bailout, which has also undermined demand for debt in Portugal and other higher-risk countries

  83. jcer says:

    Noticed the conversation on Maplewood. Seems like a nice town but the property taxes are crazy. Wife likes the Tuscan area, the prices aren’t too bad but the taxes are nuts, I’m seeing 20k in taxes on homes that wouldn’t sell for more than 550k. Why are the taxes so high in that town?

  84. Fabius Maximus says:

    “If a client of mine proposed the scenario of renting the property in question, I would ask if they lost their fcuking mind. Facing further depreciation and values likely bumping along the bottom for years, what exactly do you hope to accomplish?”

    The short answer is it stanches the loss. If you can get someone to cover the taxes and property management you can show some positive cashflow against the capital. Otherwise that is hard dollars heading out the door for taxes and management. If they can sell, they take the loss on the sale and the capital is reduced,

  85. Galvin says:

    Wow… it is really something to think that this is the conversation in our country. It is amazing to consider these are the options that we have to consider.

  86. Libtard says:

    All Hype:

    You going to the Cuse game on Saturday? If so, care to give an invalid a ride? I’ll provide gas, tolls and the annoying conversation.

  87. Wag says:

    Anyone have any info on MLS 2765486? Seems to have dropped of the market.

  88. Anon E. Moose says:

    Cat [38];

    “the cat remains both alive and dead (to the universe outside the box) until the box is opened.”

    Argues for willful ignorance: the economy isn’t dead if we don’t take its pulse.

    I spent a couple of fall days in Tahoe a few years back, and took the opportunity to put a $10 spec bet on the Rangers to win the Stanley Cup. When the Rangers failed to make the playoffs, I hadn’t yet pitched the ticket. As I explained to a friend, “Until some team wins the Stanley Cup, the Rangers haven’t lost it yet.” Reply: “By that logic, the Yankees could still win the Stanley Cup.”

    As long an one is willing to intentionally ignore facts, all sorts of fanciful potentialities remain open. Which reminds me of the joke about the difference between potential and reality.

  89. JJ says:

    Nope, the house I am looking at says it is built in 1900s. What happened is sometimes in 1970s owner took over plot next door with a 1690’s house bought it dragged it across property connected it to this house and created a new wing on house. Therefor house is only listed around 100 years old instead of 310 years old. But still cool it has a wing on house that is 310 years old.

    I think starting mid 2011 we are going to see inflation. RE is a good hedge. Also my lowball might be low enough they may mull on it. If come week before Christmas they accept I get it in early Feb then only a few weeks till spring.

    Remember, I always buy when everyone is selling. That is why I am happy to dump all my junk bonds now and roll into something. I bought places in December 1991 and bought Christmas week 1999 when Y2K people were in a panic. I bought a bmw at auction when Lehman was going down, I bought insane amounts of junk in 2009 when it was crazy to do.
    Juice Box says:
    November 11, 2010 at 11:29 am

    JJ – not too many homes on long island built in 1690.

    THE wood frame building on Oyster Bay Road in Locust Valley, known as the Joseph Weeks house and built around 1690, is believed to be one of the two oldest homes on Long Island.

    http://www.nytimes.com/2001/09/02/nyregion/1690-s-home-survives-in-development-fight.html

  90. Mr Wantanapolous says:

    “I think starting mid 2011 we are going to see inflation.”

    JJ,

    Assuming that inflation will juice RE? Maybe, if we bulldoze 2-3M homes. If you want a hedge buy grains, energy, minerals, metals, AD, CD, etc.. If you want a roof, buy RE.

  91. Anon E. Moose says:

    Xroads [49];

    +1. I’ve seen other (Ahem) ‘reporting’ on the FL Foreclosure ‘Rocket Dockets’. All it takes to get off the treadmill is to show up and be able to demonstrate that you’ve made your mortgage payments. If there is any credible doubt about that, your case get put to the back of the line ‘for further consideration’. In reality that means that regardless of the merits of the case, the home-loaner is likely to kick the bucket before any shows up to put their crap out on the street.

    Rolling Stone takes a brave moral stand to keep deadbeats in homes they can’t afford.

  92. Al Gore says:

    Talk radio is buzzing about this deficit commission. Here are some of the proposals.

    “Under one option, income-tax rates would be reduced to three levels: 8 percent, 14 percent and 23 percent. Now there are six tax levels ranging from 10 percent to 35 percent. The corporate income-tax rate would be cut to 26 percent from 35 percent.

    The plan includes two less sweeping alternatives to ending all tax breaks, including one in which a pared back mortgage tax deduction would be retained. Under that proposal, homeowners could not take the break for second homes, mortgages worth more than $500,000 or home equity loans. ”

    http://www.bloomberg.com/news/2010-11-10/deficit-reduction-panel-s-plan-would-seek-to-cut-social-security-medicare.html

  93. All "H-Train" Hype says:

    Libtard (89):

    I have the wife, her parents and another friend piled into my car. I have to go to South River for an early lunch with my folks. I do not have room, sorry dude!

  94. Tom says:

    relo,

    I remember seeing Artie Lange’s house on an episode of ‘Man Cave’. It was pretty funny because he didn’t really want to do any work. He broke a sweat ‘helping’ to install a piece of baseboard.

    Videos on YouTube http://www.youtube.com/watch?v=4xGcUv6HH8c

    One of the hosts, Jason Cameron, does or at least used to live in Hoboken.

  95. Libtard says:

    Thanks for responding All Hype. You’ll have to tell me where you tailgate so we can get together. I’m at the 16E Winnebago with some hard corp alumni. (old). Look for the guy in the stormtrooper boot.

  96. Schrodinger's Cat says:

    Al 96

    Window dressing. Those who pull the strings are playing a grand game of chess and have already planned several moves ahead of the current play. Although, those with significant financial resources who are taking delivery of PM”s could in theory be quite a fly in the ointment.

  97. wtf says:

    (23) “Now I am interested in that ex pat report.”

    ——————————

    I posted it yesterday at 2:54pm

  98. Essex says:

    Thanks to all who served! Booyah!

  99. JJ says:

    Mr Wantanapolous says:

    I thought you had no money anyhow. Therefore what are you hedging?

    November 11, 2010 at 12:25 pm

    “I think starting mid 2011 we are going to see inflation.”

    JJ,

    Assuming that inflation will juice RE? Maybe, if we bulldoze 2-3M homes. If you want a hedge buy grains, energy, minerals, metals, AD, CD, etc.. If you want a roof, buy RE.

  100. Anon E. Moose says:

    From RS;

    homeowners don’t know they can fight their foreclosures,

    Silly homeowners, they think that just because they don’t pay their mortgage it means they can’t keep their home. How pre-2005 can you get?!

  101. dan says:

    Ireland’s solution is pretty simple, actually. After all, they can keep all the generous social programs if they would only get their forces out of Iraq and Afghanistan and cut their huge military budget. Oh wait!!!!!!!

  102. Anon E. Moose says:

    Mechanized misery and brainless bureaucracy on the one hand, cash for the banks on the other.

    In Matt Taibbi’s world that big check that the bank wrote to put the deadbeat in their home in the first place doesn’t seem to register. Its not cash if the bank is paying, I suppose.

  103. Fabius Maximus says:

    #96 Al

    “The corporate income-tax rate would be cut to 26 percent from 35 percent.”

    I would take this if they would close the loopholes and actually collect it. I think a company paying 35% is like a unicorn in that it doesn’t exist. When you have Google paying a 2.4% tax rate, shows there are some fundemantal flaws in the system.

    There are two sides to the equasion, spending and revenue. 200Billion is a good start. Increase the Revenue fairly across the board (including the corporate person) to balance the budget and start paying down the debt.

  104. Anon E. Moose says:

    a tallish blond woman named Shawnetta Cooper walks in with a confused look on her face. A recent divorcee delinquent in her payments, she has come to court today fully expecting to be foreclosed on by Wells Fargo. She sits down and takes a quick look around at the lawyers who are here to kick her out of her home. “The land has been in my family for four generations,” she tells me later. “I don’t want to be the one to lose it.”

    Four generations and she still has a mortgage on it? I din’t know anyone wrote a perpetual mortgage ever. Did she drive to court in the car her cash-out refi money bought?

  105. Mr Wantanapolous says:

    JJ,

    I’m not hedging, I’m speculating. Then again, I do luv Texas hedges.

  106. Anon E. Moose says:

    Cooper’s case perfectly summarizes what the foreclosure crisis is all about. Her original loan was made by Wachovia, a bank that blew itself up in 2008 speculating in the mortgage market.

    Point in fact, Wachovia blew itself up by making bad loans to people who couldn’t pay them back. QED

  107. JJ says:

    lots of trading companies pay a night NY tax rate.

  108. Anon E. Moose says:

    Grim,

    Where can I get back the 90 minutes of my life wasted reading that piece of trash?

  109. Fabius Maximus says:

    #105 dan

    There is a very fast fix for Irelands economy. A two year 0.5-1% surcharge on all profits flowing through the country. While half the Dow and Nasdaq would scream, they would quite happlily pay as the downside is having to send a lot more back to Uncle Sam, Her Majesty, the republic, the sultan etc etc etc.

  110. Orion says:

    iStar took over the redevelopment rights from another bankrupt entity, Asbury Partners last year. Now iStar is on the brink. I swear, there must be a curse in Asbury Park.

    http://www.bloomberg.com/news/2010-09-21/istar-may-seek-pre-packaged-bankruptcy-amid-8-6-billion-debt-shares-drop.html

  111. dan says:

    Taibii’s also a big fan of Obamacare. Surprised?

  112. Mr Wantanapolous says:

    Orion [114],

    My City of Ruins, in mod.

  113. make money says:

    We’re getting closer to 8 ounces. Not bad, considering equities have been booming.
    I’ll call Schiff and put in a sell order when we get closer to 2:1. Untill then, I have to take my annual winter trips down under. Considering its a 24 hour flight, this is not a walk in the park.

  114. Juice Box says:

    First time ever cruise ship passengers lose weight.

    http://www.cnn.com/2010/TRAVEL/11/11/cruise.ship/?hpt=T1

  115. Schrodinger's Cat says:

    Make,

    Your not gunning for 1:1 ?

  116. Schrodinger's Cat says:

    your = you’re

  117. joyce says:

    (112)
    I wouldn’t say trash- I would say factual but slanted.

  118. Nomad says:

    Lamar,

    Regarding your comments on placed insurance and what they charge so much and rebate decision makers, given that it is basically a duopoly between Assurant & Balboa (Owned by BOA) they do have a bit of pricing power don’t they. BOA is trying to sell Balboa so if you want to get in on the action call up Brian Moynihan and see what kind of deal he will cut you.

    http://moneymorning.com/2010/11/11/kickbacks-force-placed-insurance-us-mortgagegate-scandal-gets-deeper/

  119. Schrodinger's Cat says:

    Robo-Signing Is Child’s Play Compared To This – Bank of America Allegedly LYING To State & Federal Courts About Fraudulent Foreclosures in Kentucky »

    Bank of America appears to have improved the state of the art in the creative foreclosure procedures department. I started hearing a few months ago about a sudden and suspicious increase in the number of foreclosures Bank of America was making in its own name. BofA was in effect saying that it owned these loans and had never securitized them. That seemed questionable, since the bulk of Bank of America’s mortgages had been originated by Countrywide, and Countrywide has said in its SEC filings that it securitized 96% of them. Why would the courts see such an explosion in foreclosures in the relatively small proportion of mortgage that BofA had kept on its books? Lawyers suspected that BofA was falsely claiming that it owned the loan to circumvent questions about standing (if the note had not been conveyed to the trust properly, then the trust might not be able to foreclose).

    We now have some evidence that these suspicions are correct. A bankruptcy attorney in Kentucky has been working with clients who have lost their homes in foreclosures in the name of Bank of America. After taking the house, the bank has been filing deficiency judgments for the remaining mortgage balance. The attorney files a Chapter 13 bankruptcy. In the example we have here, Bank of America next files an objection to the bankruptcy plan. The attorney for Bank of America makes a response to the objection. Before the confirmation hearing, the same attorney files a second objection to the plan in the name of a Countrywide trust.

    The attorney for the borrower, needless to say, raises all kinds of hell in the hearing, and wants an explanation of how two creditors, each representing the same debt obligation, can each object to the plan, when neither has yet filed a Proof of Claim.

    Here is the juicy part. A Proof of Claim is filed later that day. It shows a series of assignments that were executed after the judgment (meaning after the house was taken by BofA) and after the borrower’s attorney filed the bankruptcy petition. The assignment is from MERS to Bank of America executed on September 29. The second assignment is from Bank of America to trust CWABS 2003-B6. This assignment has not been recorded in the land office as of November 10. And even more fun, the allonges look odd.

    SEC filings show the loan as asset of CWABS 2003-BC6.

    So we have:

    1. Either Countrywide lied in its 2003 SEC filings or the loan was never on Bank of America’s books. Which would you believe?

    2. Even though Countrywide appears to have intended to convey the loan to its CWABS 2003-BC6 trust, it appears never to have completed the steps. The assignments are legally void by virtue of being out of time and by being inconsistent with conveyance chain stipulated in the PSA (which would have been from Countrywide through at least one intermediary entity to the trust. So the trust does not now own the note either.

    This means the odds are awfully high that Bank of America committed multiple frauds on the court, first on the state court in the foreclosures process, and now on the Federal bankruptcy court.

    http://dailybail.com/home/robo-signing-is-childs-play-compared-to-this-bank-of-america.html

  120. Schrodinger's Cat says:

    Anyone still believe that most if not all of the MBS in the wild are nothing but empty boxes???? Anyone wonder why the FED spent 1.5 trillion buying MBS?

  121. speedkillsu says:

    what’s up with Glen Rock taxes ? house asking price is 310K taxes 11,600 …?..http://www.realtor.com/realestateandhomes-detail/730-Ackerman-Avenue_Glen-Rock_NJ_07452_M59865-82297

  122. Mr Wantanapolous says:

    “Anyone wonder why the FED spent 1.5 trillion buying MBS?”

    Cat,

    Because we ran out of fools to buy?

  123. Schrodinger's Cat says:

    Speed,

    Thats a steal!!!! the taxes are only about 40% of PITI!

  124. Anon E. Moose says:

    Cat [124];

    If the same bank (or some successor to that back, as BOA to Countrywide) originated the note, services the note, and is trustee for the REIT/SPV, I see it as a distinction without a difference.

    I also don’t see evena mention that the deadbeats in question actually paid their nut. The closest that clown Taibbi gets is talking about one case with a supposed rejected check. I read it as quite possible the loan was already behind and the check rejected might not have been for a full payment – the typical note gives the bank the right to reject partial payments, which they do for logistical reasons.

  125. Comrade Nom Deplume says:

    [23] Al Gore

    “ex pat report”

    Haven’t been looking as I think that State and IRS have simply given up any pretense of compliance. This jives well with what I have heard about the unreliability of that report.

    At some point, this will wind up on Congress’ and MSM’s radar. At that point, it will be too late.

    A second passport is like insurance: Better to have it and not need it, than, well, you get the idea.

  126. Comrade Nom Deplume says:

    [113] Fabius

    That is indeed something that would work and work quickly, but the tradeoff would be assurances that Ireland would not do anything to harm its status as a quasi-tax haven, like enter into a newer and stronger TIEA with the U.S.

  127. Anon E. Moose says:

    Con’t [129];

    Nor am at all hot and bothered about the dates of transfers and foreboding tax implications and misrepresentations to the bondholders – none of that has any bearing on the deadbeat’s obligation to pay.

  128. Comrade Nom Deplume says:

    [101] wtf

    “(23) “Now I am interested in that ex pat report.”

    ——————————

    I posted it yesterday at 2:54pm”

    Wow, I thought I was the only wonk following this???? Will have to go look at it, but I have very little faith in it at this point.

  129. Schrodinger's Cat says:

    Moose,

    You work for BofA eh? What that case documents is FRAUD, plain and simple. It also makes a good case for RICO.

  130. Anon E. Moose says:

    Rolling Stone ‘logic’: if the big bad bank defrauds money from MBS bondholders, they should be made to give deadbeat idiots who default on their mortgages free houses as compensation. Screw the people actually paying their mortgage, and screw the bondholders (just like GM and Chrysler). That’s what passes for enlightened ‘justice’.

  131. Comrade Nom Deplume says:

    [113] [yesterday] WTF

    “The IRS has announced that 397 individuals lost their U.S. citizenship within the meaning of Code Sec. 6039G during the quarter than ended on September 30, 2010. In addition, during the quarter that ended on June 30, 2010, 560 individual lost their citizenship within the meaning of Code Sec. 6039G .”

    Thanks for covering for me.

    Recall I said weeks ago that any number over 350 would be a monster number. This surpasses the monster 502 posted at the end of 2009. And another 400 in the quarter just ended. That is nearly 2,000 in the past year, approximately NINE TIMES the normal rate. If you charted expat numbers based on this report for the past 10 years, you’d see a flat line, more or less, with a huge spike in 4th quarter, 09, a retracement in the following quarter, but still high, and now this plateau.

    This is just a guess but I am willing to project that more Americans have renounced their citizenship under 18 months of Obama than under 8 years of Bush.

    We have crossed the Rubicon. I am now officially scared shiiteless.

  132. Anon E. Moose says:

    Cat [134];

    No I don’t. What I’d really like to do is buy the deadbeat’s house and only have to compete with other bidders with the intention and ability to pay back any money borrowed to do so, unlike the deadbeats. I really think the price amoung such a pool of bidders would be much lower than the deadbeats got themselves talked in to.

    The deadbeats’ mortgages never would have been scrutinized, and Rolling Stone wouldn’t have given two flips about FRAUD FRAUD FRAUD FRAUD FRAUD, if the deadbeats weren’t deadbeats – meaning their mortgages never ended up in court. I don’t hear anyone screaming for justice about supposed FRAUD FRAUD FRAUD FRAUD FRAUD in mortgages that are current.

  133. Mr Wantanapolous says:

    “If you charted expat numbers based on this report for the past 10 years”

    Nom,

    Safe to say a bull market with a parabolic rise?

  134. Comrade Nom Deplume says:

    And here is the circumstantial evidence (if any was needed) that the Administration held up release of this very damaging report:

    “Dated: August 3, 2010.
    Angie Kaminski,
    Manager Team 103, Examinations OperationsPhiladelphia Compliance Services.
    [FR Doc. 201028316 Filed 11910; 8:45 am]”

    This is the footer from the Federal Register publication. The IRS completed this report on August 3 (only 3 days late), but it did not make the Federal Register for MONTHS, until just after the mid-term elections.

    Now, as a practitioner, I don’t want this fact publicized, but as a citizen and taxpayer, I would love to know what Herr Gibbs has to say about this. Will it be another “editing error” like the study that was used to justify the drilling moratorium and falsely implied that “experts” had suggested it?

    Hope and Change.

    [and Fab/Schab, feel free to justify the Administration’s actions here]

  135. Schrodinger's Cat says:

    Moose,

    You seem to have the Bof A attorneys line down pretty well.

    DOW JONES NEWSWIRES

    Bank of America Corp. (BAC) has urged a federal judge to dismiss a racketeering lawsuit over its alleged use of “robo-signers” in foreclosures, Reuters reported Thursday, citing a filing with the U.S. District Court in Indianapolis.
    The bank said the Indiana plaintiffs, who lost their home to foreclosure in 2009, neglected to show they were harmed by its alleged practice of routinely submitting perjured affidavits, given they might have lost their home anyway.
    It also said the plaintiffs aren’t eligible for relief against Bank of America and its Countrywide Home Loans unit under a federal debt collection law because foreclosures are intended to protect lenders’ interest in homes, not to collect debt, the news agency reported.

  136. Schrodinger's Cat says:

    Moose

    of course assuming that BofA really did falsify the documents, then the plaintiffs were harmed, because they would not be released of their debt by a foreclosure to a party that has no standing to foreclose!’ On top of that the party who legally owns the home has also been injured as BofA has wrongfully foreclosed on their property.

  137. 30 year realtor says:

    #138 Moose said “The deadbeats’ mortgages never would have been scrutinized, and Rolling Stone wouldn’t have given two flips about FRAUD FRAUD FRAUD FRAUD FRAUD, if the deadbeats weren’t deadbeats – meaning their mortgages never ended up in court. I don’t hear anyone screaming for justice about supposed FRAUD FRAUD FRAUD FRAUD FRAUD in mortgages that are current.”

    For once I agree with you, but I think we differ on the solution. I believe that everyone with a mortgage should withhold their payment, pay into escrow and demand the holder produce the note. If anything relevant is improper the mortgagor SHOULD NOT PAY!

    Those involved in this conspiracy broke the system! They need to be punished and money is the only punishment they understand.

  138. Thanks for the blog loaded with so many information. Stopping by your blog helped me to get what I was looking for.

  139. Nice to see you back. And again by having an interesting post.financial help

  140. Comrade Nom Deplume says:

    [139] BC

    Let’s put it this way: I had not planned on applying for PR status in Canada because I really don’t fit the profile of one that would benefit from taxpatriation.

    But if that door is going to be boarded shut in the next few months, perhaps it is worth spending the money on the application fee.

  141. Mr Wantanapolous says:

    Nom,

    Like buying an insurance policy. How much is the app fee?

  142. Anon E. Moose says:

    30-yr [143];

    I believe that everyone with a mortgage should withhold their payment, pay into escrow and demand the holder produce the note. If anything relevant is improper the mortgagor SHOULD NOT PAY!

    Escrow? Like to the bank itself? If the deadbeat is stupid enough to put it into a bank owned by the servicer (and don’t say it hasn’t happened) they’ll just grab the money. If another bank, you’ve created an interesting way for the banks to recapitalize one another.

    Those involved in this conspiracy broke the system! They need to be punished and money is the only punishment they understand.

    You say that as if the deadbeat wasn’t in on the conspiracy! You want a pound of flesh from the banks? Fine. In fact, >$fine$<… and a big one. But I still don't hear a compelling argument that the deadbeat is the deserving windfall beneficiary, when their lack of payment is the reason the case is in court in the first place (just to name one of their transgressions).

  143. Comrade Nom Deplume says:

    [147] BC

    For a family, around $1,800. I think individual is $1,100, but it has been months since I checked this.

  144. joyce says:

    (148)
    Yup, let’s just fine the banks. Why not criminal prosecution? At some point, in all of these frauds, these conspiracies, a person was committing fraud and breaking the law. No way to hide behind the corporate shield. Plus, the corporate officers should be prosecuted as well because they attest to the financial statements (SOX). Plus, the corporate charter should be revoked the Federal/State level.

  145. grim says:

    But I still don’t hear a compelling argument that the deadbeat is the deserving windfall beneficiary, when their lack of payment is the reason the case is in court in the first place (just to name one of their transgressions).

    There isn’t one, foreclosure is a solution, not a problem.

  146. Ben says:

    “I think starting mid 2011 we are going to see inflation. RE is a good hedge. Also my lowball might be low enough they may mull on it. If come week before Christmas they accept I get it in early Feb then only a few weeks till spring. ”

    JJ, you want to elaborate? Everyone’s definition of inflation is different. Some people claim rising prices is inflation. Some people claims monetary expansion is inflation. Some say that rising interest rates is inflation. Some say rising commodity prices is inflation. What’s the JJ definition of inflation?

  147. Ben says:

    What’s everyone’s opinion on the current state of the local NJ markets? Personally, IMO, the quality properties have disappeared and the listings are littered with run down garbage. I’ve seen homes in perfect condition, go at a premium, much to my dismay. Is anyone noticing anything similar here?

  148. safe as houses says:

    #153 Ben

    A house in good shape in a good location moves fast and attracts multiple bids. Everything else rots. I think that’s why inventory keeps building. People are no longer willing to pay 500k for a rundown house on the tracks or busy road. Same house in good shape 3 blocks in on a side street will move the first week.

  149. 30 year realtor says:

    #153 – Yes, homes in top condition draw premium dollars. In today’s market they draw substantially more than buying a fixer upper and having a contractor repair it for you.

    There are some decent renovation loan products available including FHA 203K. The lend you the money to purchase and repair. Just make sure that the home is in poor enough shape that you don’t pay for what you will end up throwing away.

  150. 30 year realtor says:

    Moose, The mortgage doesn’t go away. Just because the lender can’t enforce their rights under the note doesn’t mean the mortgage disappears. Mortgagor who is underwater cannot sell the house and run away with the money.

  151. spyderjacks says:

    153: Ben: I have been looking to upgrade the home all year. Anything good is either waiting for better days or gone before the listing ink dries. Everything else ‘looks’ ok.. and then you find the power lines, main roads, in-ground oil tanks, 1950’s kitchen, abandoned pool, rotting deck, rotting sun rooms, unusual renovations – what have you. Bid (1) nice one – and lost (went for 15k under ask). Bid (2) foreclosures, waited months and gave up. Wasted a year.

    All of my other choices, which were initially too high, have come down 100k to 225k. I’d make an offer… but I’m not certain they couldn’t drop lower. Decided to gut-renovate my current kitchen and sees what things look like in the spring.

  152. wtf says:

    (137) “This is just a guess but I am willing to project that more Americans have renounced their citizenship under 18 months of Obama than under 8 years of Bush.”

    ————————————–

    Wouldn’t that make sense since they changed the law in 2008, before Obama came into office, making it easier and more favorable to do it? I know you know this – I remember you posting about the Heroes Act. So I can’t understand why you seem so surprised by the rise in the numbers.

    Besides, for every person who wants out of this country, there are thousands and thousands who want in (even some wealthy ones).

  153. Confused In NJ says:

    Teachers $500B & Growing Pension Shortfall

    http://news.yahoo.com/s/time/20101112/us_time/08599203070800

  154. Lamar says:

    30 year (73)-

    There you go, being rational and shit again.

  155. Lamar says:

    I wish my brain weren’t sizzled. If it weren’t, I’d be 30 Year.

  156. Lamar says:

    jj (77)-

    I never had a problem raising my hand and bidding at RTC auctions, either.

    Just sometimes, I had a hard time holding my lunch down afterwards and had some difficulty sleeping. That was when I found the miracle cure, otherwise known as whiskey.

    All those RTC plays I did turned out well in the end. However, nothing about anything that happens in this market makes me think of happy endings.

    “…I had no problem in days of RTC of raising hand at auction…”

  157. Lamar says:

    BC (94)-

    JJ has yet to be caught in a one-way bet on a street where the gubmint has barred the exit with a tank.

    All the inflation is being stimmed in all the wrong things. However, it’s pretty obvious that no one can patch, much less reinflate, a RE balloon that has burst into a gazillion little pieces.

    However, creating a $27 BLT is quickwork for the Geniuses In Charge.

  158. Al Gore says:

    POMO bonanza starts tomorrow! Free money folks.

  159. Lamar says:

    al (96)-

    The first thing the Deficit Commission should’ve suggested ought to have been that Erskine Bowles sit on an Exocet missile.

  160. Lamar says:

    Moose (106)-

    So it’s ok for the banksters to make themselves whole by committing fraud?

    “In Matt Taibbi’s world that big check that the bank wrote to put the deadbeat in their home in the first place doesn’t seem to register. Its not cash if the bank is paying, I suppose.”

  161. Lamar says:

    cat (124)-

    Big rush of BAC FKs in central NJ over the past few months, too.

    As far as forged allonges and affidavits go, none are cheesier than Wells Fargo’s. It’s like they used first graders and rubber stamps like the ones you can buy at Staples.

  162. Lamar says:

    Funny. During the boom, BAC’s own mortgage lending was as sleepy and conservative as it gets. They lost tons of borderline customers to Countryfried, and they didn’t jump into the slop until the tail end of the boom…and, most of their action was in seconds and HELOCs.

  163. Lamar says:

    moose (135)-

    OK, I’m with you on this. However, how do you finesse the forgery/perjury thingy that the banksters are doing?

  164. borat obama says:

    Jj =braveheart

  165. borat obama says:

    Hi fiveeee

  166. borat obama says:

    Last

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