Banks Manipulating Housing Prices


Editor’s Note: Buyers Beware! The Banks are manipulating housing prices like the Arabs manipulate oil prices. When it suits them the prices go up and down depending upon whether they let the flow of empty houses flood the market or they hold back.

When we think about the tens of thousands of homes that were forced into foreclosure after so many of the homeowners requested a modification payment that they could meet, it isn’t hard to come to the conclusion that the banks are not interested in preserving housing prices, they are interested in foreclosures and making the housing prices bottom out far below market forces would allow. They have cornered the market on housing and they are using it the same way they cornered the market on money.

If you’re are thinking that this is all conspiracy theory answer this: “why were tens of thousands of homes bulldozed in Cleveland, Detroit, Indianapolis and other cities when many of the homeowners had submitted modifications proposals? The servicers and banks had a duty to “consider” those proposals which is to say they had a duty to accept the proposals if they made sense. They didn’t consider the proposals. They pretended to consider the proposals. So the pretender lenders are at it again.

They want the foreclosures because they want the foreclosure deed. That deed is evidence of the fact and carried a presumption of validity that the credit bid was valid, the beneficiary or mortgagee was properly identified and that the amount due was correctly stated. None of those things are true in most cases. Why law enforcement is not grasping this simple fact begs a political question in an election year.

Wall Street is now forming partnerships and other vehicles by which they are pooling their money and buying the homes at the rock bottom prices that they are creating.

They can do so with full confidence that the market will not go up until they want it to do so, based on their control of the housing supply (defined as houses for sale).

Why are we letting the banks take us for another ride? And while I am at it, why are we not holding candidates feet to the fire on the new Dodd-Frank Law and the regulations for the Federal Consumer Financial Protection Board?

The arguments against implementing proper regulations are completely discredited by the mortgage meltdown and the historical similarities with the great depression.

If you take the referees of the field, the players are going to make up the rules as they go around. The clearinghouses that were supposed to be transparent transactions and exchanges are now all but dead as the banks have created “innovative” ways to avoid them. The referees should step in and put some teeth behind the bite of Dodd-Frank.


7 Responses

  1. The one I have is Not from BofA … they dont want their name involved. Its from one of their chronies … Independent Mortgage Relief Program. Did you notice the wording …. Something to the Effect they many have indicated you were denied. LOL! BofA tried that along time ago. Why would they want us to apply for a Mod? Oh yeah …. the admission. Silly Me! I called you Out … Tender for Performance! What is that you say Mr Bankster.. If the homeowner cant perform … you get a free house? Vise Versa …. Whats that you say Mr Bankster… If you cant perform … The homeowner gets a free house. NICE! Ut Ohhh ……

  2. @shadowcast. same thing happened to me. i received a letter from wells fargo i was denied a mortgage modificatio i never applied for. does this make them look good? it also said i was denied a mod by the investor who”ultimatley” owns my note and mortgage. now who would that be if wells fargo is foreclosing and claims owner ship of note. i email it to my lawyer and the paralegal asks me if i 0sent them my financils is she on crack? why would i pay a lawyer to defend my foreclsoure but negotiate with wells fargo for a mod. she should never have accused me. have not heard back for my lawyer re the mod denial and investor issu

  3. Java,

    “how about just a simple Fraudclosure Moratorium”

    If a moratorium had ever been a consideration, we would have had one long ago. It is not in the picture… yet for a few reasons:

    1) Banks don’t care about the house. They care about the land.
    2) Once the land is theirs, they rebuild on it.
    3) Constructions have always been the barometer according to which a country’s economy is rated. The more ongoing construction, the stronger the economy.
    4) As construction picks up, jobs are created and the economy improves.
    5) Banks can then resell that same land and recreate a new bubble.
    6) Having saved the economy, banks endear themselves to government officials even more than they already have by facilitating investments and speculation.
    7) They become forever exempted from any regulation whatsoever since it becomes obvious that they have the know-ho and the power to get government out of the pickle it has created for itself.

    Machiavellian and yet so… elementary!

    I believe it was the original idea. Obama was too naive to see it when he should/could have and had surrounded himself with bankers such as Geithner anyway. I doubt he will have the opportunity to make amends, even if he ever wanted to: e second term seems to become elusive Romney will push for the banks: he owes them everything. They taught him well! Either way, the plan was very well laid out.

    I don’t know if you are currently watching that History Channel multi parts documentary “The men who built America”. I happened to catch it Saturday. You look at Vanderbilt (Anderson Cooper’s great grandfather, mind you…) and how he was destroyed by Rockefeller who, in turn crushed Scott but was defeated by Carnegie, etc.

    Nothing has changed. Today’s names are different. The methods haven’t changed a bit. For right now. But it is changing. Very, very slowly.

  4. dcbreidenbach, on October 20, 2012 at 7:46 am said:

    All respects but if somebody presents a note—it defies common sense to say it is not effective……the theory would undo all debts—-

    the investor suits are for securitizing crappy loans—–the travesty is that there is no recognition that homeowners were set up with unrealistic predatory loans intentionally so the trusts would implode on a predictable time schedule—like rigging the bottom story of a building with explosives.


    Here is ANON’S answer:

    “Simply put, just because someone produces a note, does not mean it is valid.

    The subprime fiasco was about fraud.

    This is not about predatory loans, although many of the modifications (falsely called notes) were predatory.

    This is about LOAN fraud itself.

    This is about converting a valid GSE loan into a fraudulent “default” loan.

    This is about fraudulent subprime refinances – falsely presented as mortgage refinances.

    A note is not a note if is was procured by fraud, and if the prior mortgage is not discharged.

    And, THIS is what occurred.”

  5. how about just a simple Fraudclosure Moratorium

  6. Just recieved a Notification …We may have been indicated you were denied for a loan modification you applied for recently. There is a specific time period you may re-apply for additional probgrams …… New programs will allow you to modify your existing mortgge down to as low as $000,000. (aka .. the current balance due) LMAO! What part of We didnt apply for anything .. No Hardship …. No Mod Needed do these Buttwipes not Understand. This is what happens when you want to Tender and Demand Performance of a Contract. Shits gettin Deep!

  7. Nope … Not getting my Deed Back Ever Again! There are two sides to a contract and they were betting you were not goning to be able to perform … You dont perform, they take you to court, they get deed. If they dont perform … you take them to court …. or Not ….. and you keep deed. Buttwipes!! They profited off your failure to perform at my Expense ….. Buttwipes!

Contribute to the discussion!

%d bloggers like this: