Beware The Second Real Estate Collapse is Coming

[george4title]

[ame]http://www.youtube.com/watch?v=tOmjYYaudU8[/ame]

Government, in collusion with the banks are doing everything to keep main street real estate prices from going into free fall. With a stagnant economy, and slow or next to nothing job growth, what do you think is going to happen to real estate? 21% of home owners in FL, NV & MS live in their homes without paying rent. Can you imagine half of the country living rent free? Banks no longer can handle the tsunami of mortgage defaults so expect more banks to stop the foreclosure process. In the end, the the market will win. WE MUST see lower home prices and rental costs! The current stagnation is only hurting the responsible Americans that continue to pay their ULTRA HIGH mortgage payments and those like me, waiting on the sideline for an inexpensive place to lay my head.

The recession is clearly not over, at least when it comes to the United States' inability to protect its citizens homes. Americans continue to lose their homes and foreclosures continue to rise, who is to blame for this crisis? Many people have said that the banks are to blame for fraudulently processing financial documents. George Hemminger the founder of Survive and Thrive TV believes the US Federal Reserve is to blame for this "Wall Street engineered collapse" because it injected too much liquidity into the market.


Home / the foreclosure crisis / The Lender-Wall Street Foreclosure Consiracy

http://surviveandthrivetv.com/the-for...
Well it looks like the massive fraud perpetrated by Wall Street and lenders who package, securitized and sold their loans is finally getting the attention of the main stream media. Only this time if they follow "the rule of law" they would bankrupt all the major money center banks on Wall Street. And of course "the rule of law" was the reason why the federal government refused to force lenders to write down loans to current market value if the homeowners promised to stay in their home and make payments for 3 or 5 years.

 

[william the wie]

Three major problems with the analysis:

The states can and in some cases will remand plaintiffs to the state criminal courts for fraud and extortion if the federal government attempts intervention.

Voters are in a state of revolt over this mess and Republicans see this as a wedge issue that can be used to partially or totally destroy the appeal of Democrats to independents. Since the Democrats realize this federal intervention is unlikely in the extreme.

Most of the holders of bad paper are overseas or in Democratic strongholds so the GOP can and will blame Obama for any and all fallout from this mess.

I am not saying that the Dems in congress will not commit mass political suicide I am saying that it will be political suicide to touch this issue even with a ten foot pole. There will be a second meltdown and it will be bigger than the first one and it will happen prior to the first Tuesday 11/12.

 

[Wry Catcher]

Wall street, not individual homeowners created the housing crisis. Bank loans were sold and sold so that the bankers who made the original loan escaped with profits, and those at the end of the line suffered.
This is and continues to be a classic ponzi scheme.

BTW, how has deregulation of the airlines worked out?

 

[Toro]

There will be a second meltdown and it will be bigger than the first one and it will happen prior to the first Tuesday 11/12.

I am very interested to know why you think this.

 

[Big Fitz]

The market bottom has not been reached. This is obvious because prices are STILL declining and demand is not returning.

The moratorium on forclosures is only going to further delay the recovery and/or make the collapse even worse.

The Mr. Potters of the world are going to make out like bandits once they decide to get back in the game and everything can be had for a very cheap song.

We've only government to blame. And now if we could only prosecute, find guilty and execute the deserving parties.. I would be happy.

 

[william the wie]

There will be a second meltdown and it will be bigger than the first one and it will happen prior to the first Tuesday 11/12.

I am very interested to know why you think this.

Government leniency towards irregularities in titles ended when county clerk's offices throughout the nation found out that MERS-3 was bypassing their fee structures. While it depends a lot on locality the clerk of the court office is usually one of the three big cash cows of county government and most importantly the one least likely to cost votes if it raises fees. The gals who run the office are friends and relatives of the local police, judges, school board and property appraiser as well. Throw a book at the president and you won't get in as much trouble as pissing off your local clerk's office will get you in. Even moving may not help.

I have a cousin who committed what sounded like first degree murder to me who spent a year minus a day in county jail for the crime. His mom aunt Marie was number two in the clerk's office of Tallapoosa County AL at the time. Dadeville, the county seat is part of Boone valley, which if I am not mistaken was known as Death Valley for having at the time the highest death penalty conviction rate of anywhere in the country. The clerk's offices are very powerful nationwide and the mortgage industry decided to screw them out of their money, not smart. Wall St. or somebody is going to pay heavily for that error.

 

[loosecannon]

Three major problems with the analysis:

The states can and in some cases will remand plaintiffs to the state criminal courts for fraud and extortion if the federal government attempts intervention.

Are you sure that is true?

I heard today that the Federal Government is busy foreclosing on more homes than any private bank or party. Beyond the alphabet soup agencies the Federal Reserve itself accepted gazzillions of mortgage backed securities from the banks as reserves and via the bailouts and now has to unwind many of them.

Which adds a completely different dimension to the problem. The sleaziest, dirtiest and most corrupted mortgages tranches are likely now owned by our own government.

 

[loosecannon]

There will be a second meltdown and it will be bigger than the first one and it will happen prior to the first Tuesday 11/12.

I am very interested to know why you think this.

If nothing else a moratorium on foreclosures and this kind of pressure on the mortgage securitization industry could rattle the developed world's economy to it's knees. Add to that the new complications to the existing foreclosure stream and you have a much bigger problem than the original housing collapse.

The risks of a domino effect are very high if this isn't managed top down, quickly and with a lot of savvy.

 

[loosecannon]

MERS-3

I just ran a search on this and found nothing. Got any more info on it to share?

 

[Toro]

There will be a second meltdown and it will be bigger than the first one and it will happen prior to the first Tuesday 11/12.

I am very interested to know why you think this.

Government leniency towards irregularities in titles ended when county clerk's offices throughout the nation found out that MERS-3 was bypassing their fee structures. While it depends a lot on locality the clerk of the court office is usually one of the three big cash cows of county government and most importantly the one least likely to cost votes if it raises fees. The gals who run the office are friends and relatives of the local police, judges, school board and property appraiser as well. Throw a book at the president and you won't get in as much trouble as pissing off your local clerk's office will get you in. Even moving may not help.

I have a cousin who committed what sounded like first degree murder to me who spent a year minus a day in county jail for the crime. His mom aunt Marie was number two in the clerk's office of Tallapoosa County AL at the time. Dadeville, the county seat is part of Boone valley, which if I am not mistaken was known as Death Valley for having at the time the highest death penalty conviction rate of anywhere in the country. The clerk's offices are very powerful nationwide and the mortgage industry decided to screw them out of their money, not smart. Wall St. or somebody is going to pay heavily for that error.

How did MERS bypass county fee structures?

 

[william the wie]

I am very interested to know why you think this.

Government leniency towards irregularities in titles ended when county clerk's offices throughout the nation found out that MERS-3 was bypassing their fee structures. While it depends a lot on locality the clerk of the court office is usually one of the three big cash cows of county government and most importantly the one least likely to cost votes if it raises fees. The gals who run the office are friends and relatives of the local police, judges, school board and property appraiser as well. Throw a book at the president and you won't get in as much trouble as pissing off your local clerk's office will get you in. Even moving may not help.

I have a cousin who committed what sounded like first degree murder to me who spent a year minus a day in county jail for the crime. His mom aunt Marie was number two in the clerk's office of Tallapoosa County AL at the time. Dadeville, the county seat is part of Boone valley, which if I am not mistaken was known as Death Valley for having at the time the highest death penalty conviction rate of anywhere in the country. The clerk's offices are very powerful nationwide and the mortgage industry decided to screw them out of their money, not smart. Wall St. or somebody is going to pay heavily for that error.

How did MERS bypass county fee structures?

It pocketed or did not charge the fees required for note transfer at least many clerks offices can find no record of the money owed them. And LC MERS or MERS-3 is the term being used in legal blogs, journals and books such as "Clouded Title" (which may have not dropped yet.) M(ortgage)ER(ecords)S is simply a utility that keeps track of ownership changes in notes and titles. If note transfers are not recorded in the Clerk's office they have no standing and a fee must be paid for the recording.

 

[william the wie]

MERS-3

I just ran a search on this and found nothing. Got any more info on it to share?

See above. I have no idea whether it is a virtual or actual company or whether it onshore or off shore. I just ran into the term yesterday and today saw a post by a lawyer who is getting ready to launch a class action lawsuit over the legal deficiencies involved. Within a week I suspect at least civil suit ads will be popping up and more information will be available. I kind of doubt that any unrecorded note transfer will automatically void a mortgage but trillions of notes could be declared null and void.

 

[loosecannon]

well if deed transfers were recorded using a proprietary software instead of a legal recording then we have a major f-ing problem and Obama should have passed the bill he vetoed last week.

There is nothing to prevent the deed transfers from being filed retroactively I assume.

But for folks who have already been forced from their homes....the mind can only wander.

County filing fees are cheap. And at least in our state they are legally the last and binding word. You are right about that much.

Can we all agree to kill the mortgage securitization industry and never look back?

 

[william the wie]

well if deed transfers were recorded using a proprietary software instead of a legal recording then we have a major f-ing problem and Obama should have passed the bill he vetoed last week.

There is nothing to prevent the deed transfers from being filed retroactively I assume.

But for folks who have already been forced from their homes....the mind can only wander.

County filing fees are cheap. And at least in our state they are legally the last and binding word. You are right about that much.

Can we all agree to kill the mortgage securitization industry and never look back?

I need to correct an error on my part. Mortgage Electronic Registration Systems (MERS) is a company in Reston VA on Liberty Rd. MERS-3 is a reference to some sort of legal filing. By failing to document that all filing fees were paid to all counties most, the SWAG I hear is 90%, foreclosures involving MERS are invalid. Of the remainder many will be voided for other fatal legal errors like sending deeds out to the shredder, fraudulent inducements used in the buying of the mortgages and so on. Most of this could have purportedly been avoided or bypassed by paying a fee to one of the big three credit agencies to make sure the paperwork was kept straight at all 2500+ county seats. That was not done apparently.

 

[loosecannon]

can we please kill the mortgage securitization industry?

That is the real problem here.

 

[B. Kidd]

WTF?
A 2nd real estate collapse?
In Vegas, we haven't gotten over the 1st one for chrissakes.

 

[topspin]

don't let facts get in the way of a good rant. Home prices have been rising for several months.

 

[william the wie]

Well mortgage securitization and other derivatives need to be publicly traded but that battle has been ongoing publicly since the 1990s and privately since I would presume the 80s or earlier.

 

[editec]

Hey there's a coming commerical RE crises coming, too according to some RE mavens.

I am informed that $1.4 TRILLION dollars worth of commercial mortgages with variable rates (or bubble payoffs) are slated to come into effect this year.

According to Greenspan, the market has ALREADY taken that into account given that (again, according to Greenspan) the commercial RE values are already down by 50%.

DEflation, folks.

That is the problem we're dealing with right now.

Oh, I know many of you are terrible worried about INflation in the future, but I cannot see how that's going to happen until/unless the economy improves.

Does anyone see anything that leads them to think that the economy is really improving to the point where inflation will rear its head?

 

[topspin]

yes, the global economic recovery will spark inflation. First in food (corn is already heading higher). Oil is about to go way higher, China which already buys more cars than us just reported 19% increase yr/yr in car sales. Housing will be the last piece of the inflation puzzle about 3 yrs down the road.