Quickly find foreclosures in Eagle Idaho here.
Homes for sale in Eagle Idaho that have been foreclosed on by the mortgage lien holder are typically 10% to 30% under market price. But, beware. In some instances the homes are being offered “as is” and the lender will not be willing to repair any defects. That being said, you can generally close and move into a bank REPO in as little as 45 days after mutual acceptance of the offer (unlike most Short Sales).
Vincent Benard , President of the Institute Hayek, has just published Foreclosure Gate. Gangs of Wall Street against the U.S. State and launch the site Understanding Foreclosure Gate . Maintenance.
To hide the fraud, the banks failed to pass in due legal form all regulatory documentation loans – “subprime”, “Jumbo”, “ARM”, etc … – and delivered in a very cavalier, fund issuers of these products derivatives to hide the traces of their criminal behavior to originate loans.
The problem is that by not submitting these documents is beyond reproach, the banks have created a huge legal issue: the courts are increasingly likely to feel they can not, therefore, seize houses data as guaranteed by the borrowers, because the chain of legal proof of ownership is broken. This may look like a “simple technical problem”, that is indeed what the big banks wanted to believe a time, but it is far worse: the risk is that banks can not simply raise more mortgages on millions of loans in default!
Is there a real risk for the U.S. economy?
Much of the risk has already materialized in the form of the financial crisis we are living: these fraudulent practices were central to the formation of the credit bubble we just experienced. The outstanding mortgage rose from 5,000 to 12,000 billion between 1998 and 2007 in the United States, including 4,000 billion, at least, belonged to a pure expansion speculative nature “bullaire”.
The problem is that today, only half of these 4,000 billion has been purged from the record of US banks.
If no drain mechanism of Bankruptcy “in good order” is established in the United States for very large collection networks and large mortgage banks (the famous banks “too big to fail”, abbreviated TBTF) , then the revelation of the extent of losses will disrupt severely the new financial system, with all the consequences that can be imagined on the real economy.
But this is not the most likely hypothesis. The biggest risk, and carries far more serious dangers in the medium term, is that the federal state, once again, does not organize a rescue, official or stealth, of TBTF, a new “bailout” that succeeding of 2008 which has already greatly damaged the finances of the U.S. government. This would mean an even more uncontrollable increase of U.S. debt, a resort to monetization of debt increased, amplifying the threat of return to high inflation.
But even worse, such a “bailout” would once again say to the Americans: “be honest does not pay. Become too big to fail “. It would legitimize the procedure of some leaders who, sheltered behind the irresponsibility of that gives them the status of TBTF, would direct the money to finance speculative investments generate profits and bonuses in the short term, but absolutely does not help the growth of new business growth in the long run.
America then come out of the crisis with a middle class completely leached, which may not invest as she was able to do in the past, in the winning technologies of tomorrow, and a financial sector dominated by large banks generating hard- investment. Not to mention confidence in capitalism strongly altered.
European banks should they fear something the matter?
A priori, it is not on the case that European banks are most exposed. Certainly, Deutsche Bank, through its U.S. subsidiary, is accused of having participated in the grand ball securitizations fraudulent by the report by Senator Levin. While the first phase of the crisis has sunk the Icelandic banks, and some other industry heavyweights have failed to pass by the wayside, as Royal Bank of Scotland, UBS, Natixis, etc … All these people did owed his salvation to the public bailouts.
But since 2008, most European banks have managed to jettison much of their titles as “toxic”. We can therefore assume that if there are potential losses on their balance sheets, they should not exceed a reasonable proportion of their equity.
This does not mean that real estate will not pose a problem auxbanques European – He has already cast the Irish banks, but it will be ours, not that of the United States …
What steps should then be considered to avoid that such a case happening again?
There is no miracle measurement. Simply, all that happened was prompted by a plethora of regulations, accumulated over years, allowing the top names of the major banks overpaid business to find any loopholes imaginable.
Add to that the political will of the U.S. State change the outcome of the action of economic agents free on the open market, leading to heavily subsidize credit to poor households …
By cons, when the warning signs of massive fraud in the mortgage market have emerged, from the early 2000s, the U.S. administration and justice have pointed conspicuously absent: this would compromise the results of the machine “make the poor owners” … Not to mention strong suspicions of corruption in American public life because of campaign finance …
“Rather than seeking to regulate bank capital, which will not serve much, [the state] should force the banks’ balance sheets to be transparent and honest”
The state must stop believing that he can find “The” good regulation. He must let the banks choose their business model, but must restore the full responsibility of financial firms and their leaders, or in case of bankruptcy, fraud is proved. Moreover, rather than seeking to regulate bank capital, which will not serve much, he just needs to force the banks’ balance sheets to be transparent and honest, to reduce the use of tools “off balance sheet” off shore, and let investors scrutinize the strengths and weaknesses of these banks in this transparent framework.
Legal reform of bank failure for a quick conversion, as provided for in advance of debt capital bank insolvency, would greatly help to improve the situation, because then the fear of major bank runs would disappear. But it is obvious that neither the current shareholders of banks or their creditors (usually other banks!) Do not want such a solution. They prefer their ill-investment is paid off by the taxpayer!
Do you think such measures can be adopted?
We do not take the path of improving banking climate in America. Barely passed, the law of “regulation” of financial sector known as “Dodd-Frank”, 2300 pages, has already been shelled by many analysts who identified structural weaknesses, even if she tried to make some good answers the problems discovered. No doubt the large financial institutions already know under what flaws they will be engulfed: legislation will solve the problems of the last crisis but create the conditions for the next, as always.
In addition, major players of fraud discovered, as the former CEO of Fannie Mae, Lehman Brothers, or Countrywide, have not been convicted of criminal offenses, civil judgments and banks such as Goldman Sachs for acts that may hardly be described otherwise than serious deception of investors, were much lower than the benefits that these maneuvers have concluded successfully.
Finally, everything seems to allow banks to reap easy profits time to compensate for the inevitable future losses from real estate, through ultra accommodative policy of the Fed both in relation to interest rates that kept very low the repo directly by the FED of several trillions of toxic assets, revealed through the Dodd Frank, precisely.
Under these conditions, no chance that the US financial sector again becoming virtuous. It’s a shame, because if there is a score of big fish a little rotten at the top of the establishment, the United States there are over 4,000 banks small and medium that have not committed the same excesses and that could very well take the market on a sounder footing.