Shadow Inventory: 1 in 5 homes are underwater and current on payments

HOME PRICES SET TO DROP AGAIN!

Editor’s Comment: You can spin this anyway you want, but the facts speak for themselves. People are worn out living under mountains of debt, some need to move for job purposes, and some need to reduce their payments because they are running out of resources to pay a mortgage balance that is based upon a valuation that was never valid in the first place.

With no proper redress of grievances from government despite thousands of cases showing that the banks were engaged in the largest economic crime in human history, these people will be forced to make the decision of strategic default — albeit on loans that are probably invalid starting at origination for reasons expressed in most of recent articles.

As pensions get slashed, household income continues to drop, wages are cut and expenses rise, it is fantasy to think or believe that most of these people won’t eventually walk from their homes, grieving over their loss of lifestyle and loss of social networks built up over years or even decades where homeowners were scammed into refinancing their homes based upon fraudulent appraisals.

The goal of the banks in pushing foreclosures is obvious. They are not stupid. The lower they can get housing prices, the less it will cost to buy them and the more profit they will get when they sell or rent them. Where they are mistaken is that they seem to believe that the bottom is near, and that their profits from these foreclosures will materialize anytime soon. True, since they were neither the lender who funded the loan nor were they the purchaser who bought the obligation, note and mortgage, whatever they get is profit — the ultimate “free house.”

When you combine the huge numbers of homes where the homeowners are declared delinquent or in default and combine those with the even larger number of homes where the owners simply cannot stay, there is nothing other than an over-abundance of supply and an underwhelming number of people who are willing or able to buy.

lps-underwater-borrowers-face-challenges-if-prices-drop-again

8 Responses

  1. Ivent: YES, but how could we get the bastards???

  2. Tobias Levkovitz. Citi’s US equity strategist. And speaking to CNBC, to boot!

    Some reliable sources…

  3. BOMBSHELL…Guest on CNBC …. a banker…Tobias Lekovitz.. said ….What is going on in Europe will NOT effect the U.S. economy. He said unless the (fake) Fiscal Cliff happens or some (fake) terrorist threat, the U.S. economy is fine.

    So why are we still bailing out these FED crooks….? Because….the criminal politicians want complete control…COMPLETE COMMUNISM..They want a NATION OF WELFARE CASES…A NATION OF RENTERS WHO OWN NOTHING OF VALUE..THAT’S WHAT A FIAT CURRENCY DOES….IT IS NOT A MONETARY SYSTEM..IT IS A CREDIT SYSTEM…NOTHING HAS REAL VALUE EXCEPT TO THE CROOKS AT THE TOP OF THE PYRAMID SCHEME …THEY USED THE FED AND MARXIST SOCIALISM…VALUELESS CURRENCY, FAKE MONEY LENDING AND FRAUDULENT INVESTING TO HIJACK AND CONTROL US FROM BEHIND THE SCENES.

    WE NEED TO SEIZE THE FEDS HIDDEN WEALTH…IT IS OUR STOLEN WEALTH…..PAY THE TREASURY BACK.. OPEN STATE BANKS…PRIVATIZE OUR WEALTH…WE NEED REFERENDUMS ON THE 2012 BALLOT TO RESTORE THE U.S. CONSTITUTION..ISSUE OUR OWN CURRENCY…U.S. BANK NOTES…ABOLISH OBAMACARE..

    ABOLISH THE FED FOREVER..!

  4. @Neil: Thanks, but a year ago 30% were underwater, now it has to be at least 40%, or 2 out of five: http://www.zillow.com/blog/2011-11-07/home-values-flat-in-third-quarter-on-slow-road-to-housing-market-bottom/

  5. @javagold….like the song goes…dirty deeds done dirt cheap.. Don’t people wonder how it is possible that banks who LEND NO MONEY ARE SO RICH….AND WE ARE STRUGGLING…? THE FED and the crooked POLITICIANS ARE FAT BECAUSE THEY ARE THE FISCAL CLIFF…BY ROBBERY…!

  6. The properties were never worth the bubble price. They are saving this to use as part of their nation of renters scam. Like their fictional FISCAL CLIFF. Everything they do is about making US believe lies to CONTROL US. The underwater properties are just one of many of their mind control games they will use to employ more of their financial weapons of mass destruction. Fiscal Cliff is said about 50 times a day…and Medicare and Medicaid are broke….50 more. Thats because they are the ones who helped steal it. It was all STOLEN like the MF GLOBAL and LONDON WHALE customer money. BLOOMBERG NEWS REPORTED MONTHS AGO…. THE FED COLLECTS TRILLIONS…A MONTH IN MORTGAGE MONEY….! COME ON AMERICA…! WE ARE NOT BROKE…..WE ARE BEING HELD HOSTAGE AND ROBBED OF EVERYTHING BY THE ROBBERBARONS FOR THE RICH…..THE FED CROOKS.

  7. Interesting comment at the bottom by LPS, the biggest fraudster ever, to try and sway judicial states to become non-judicial – you watch!! These are CRIMINALS making this statement!

  8. when you get something for FREE, any price you sell it for , is a PROFIT

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