This is what is scaring the big boys that are siphoning every penny out of every American citizen whether they own property or not. If the rush toward strategic defaults continues, it is quite possible that many people will get a large share of the transfer of wealth from poor to rich. The fact remains [...]
Filed under: bubble | Tagged: strategic defaults | 40 Comments »
Editors Note: If anything shows the extent of appraisal fraud, it is the sheer number of homes that are under water. These figures while high, report only a fraction of the actual number of homes because of the way they are computed. If you take the asking price, reduce it by at least 4% (which [...]
Filed under: bubble, CORRUPTION, Eviction, expert witness, foreclosure, foreclosure mill, GTC | Honor, HERS, investment banking, Investor, MODIFICATION, Mortgage, Motion Practice and Discovery, securities fraud, Servicer, STATUTES, trustee | Tagged: appraisal fraud, Bloomberg, Brian Louis, broker, Celia Chen, commission, Edge Simonton, fair market value, foreclosure, HERS, house arrest, Moody’s Economy.com, RealtyTrac Inc, selling expenses, strategic defaults, under water, Zillow.com | 14 Comments »
New research suggests that when a home’s value falls below 75 percent of the amount owed on the mortgage, the owner starts to think hard about walking away, even if he or she has the money to keep paying. See the whole article in New York Times. Extensive discussion of the issue. It’s beginning to [...]
Filed under: bubble, CDO, CORRUPTION, currency, Eviction, foreclosure, GTC | Honor, Investor, Mortgage, securities fraud | Tagged: David Streitfeld, house arrest, jingle mail, New York Times, principal reduction, strategic defaults, walking away | 6 Comments »
see Morality NO Issue in Big Strategic Defaults Of residential property Why Not for Homeowners No Worries About “Morality” in Biggest Real-Estate Default in History Posted Jan 25, 2010 11:59am EST by Henry Blodget in Investing, Recession, Banking, Housing Related: dia, spy, xlf, len, kbh, blk Over the past few months, arguments have raged about [...]
Filed under: bubble, CDO, CORRUPTION, currency, Eviction, foreclosure, GTC | Honor, Investor, Mortgage, securities fraud | Tagged: morality, strategic defaults | 3 Comments »
A provocative paper by Brent White, a law professor at the University of Arizona, makes the case that borrowers are actually suffering from a “norm asymmetry.” In other words, they think they are obligated to repay their loans even if it is not in their financial interest to do so, while their lenders are free [...]
Filed under: bubble, CDO, CORRUPTION, currency, Eviction, foreclosure, GTC | Honor, Investor, Mortgage, securities fraud | Tagged: $800 fee, ARIZONA, Booth School of Business, CALIFORNIA, Department of Housing and Urban Development, Eric Posner, fee for non-recourse option, Lease, Luigi Zingales, mortgage default, New York Times, non-recorse, Option, pool, recording, Richard Thaler, strategic defaults, sublease, Susan Woordward, swap, University of Chicago, walking away | 18 Comments »
