patrick.net

I am waiting for a day when people,banks,wall st asks guvt to step aside and deal with the problems among themselves. Where is the independent market?

http://www.housingwire.com/2010/07/14/lenders-slow-foreclosures-by-5-in-2010-boosting-shadow-inventory-realtytrac

Lenders Slow Foreclosures By 5% in 2010, Boosting Shadow Inventory: RealtyTrac

Foreclosure filings dropped 5% over the first half of 2010 as lenders continue to delay proceedings to focus on short sale and loan modification efforts, according to RealtyTrac, an online foreclosure marketplace.

http://www.realtytrac.com/content/news-and-opinion/banks-delay-foreclosures-and-pray-property-values-increase-6049

Banks Delay Foreclosures and Pray Property Values Increase

You've probably heard that the nation's banks had a $21.6 billion profit during the second quarter, reason enough to celebrate with big executive bonuses for our financial leaders. But before we break out the champagne it might be good to mention that the profits enjoyed by our bankers are no more believable than Bernie Madoff's sworn testimony.

To untangle what's going on we have to start with the idea that a sound financial system is crucial to the economy and thus to everyone. If that means a few rules must be bent to create the fiction of bank stability, so be it. Unfortunately, the financial system remains painfully and deeply unsettled, a reality which impacts home prices and foreclosure practices nationwide.

In The Beginning
In 2008 the government created the TARP program, $700 billion largely set aside to prop up big lenders. Happily, most of the money was unneeded, “only” $190 billion remains outstanding and much of what's unpaid is related to non-banks such as GM and AIG.

However, less visible and perhaps equally important was a quiet accounting change.

“Rule 157” used to say that assets on lender books should be appraised as if they were being sold today, the “mark-to-market” valuation method. This was a great rule when values were increasing, but if left in place during down times it would force banks and others to show huge mortgage and property losses. So, of course, the rule was changed, replaced by what the Wall Street Journal calls the “mark to wish” standard.

... ... ...

Now BOA is going to suspend them in 50 states. This is going to drive demands for existing home higher,which means increase in home prices although temporary. Any thoughts?

bubblesitter says

Any thoughts?

and suddenly 50% of the MLS listings dissappeared

I don't know what people are so upset about. MERS states clearly:

"Welcome to MERS!

MERS is an innovative process that simplifies the way mortgage ownership and servicing rights are originated, sold and tracked. Created by the real estate finance industry, MERS eliminates the need to prepare and record assignments when trading residential and commercial mortgage loans."

It's INNOVATIVE and it SIMPLIFIES things, how can you peasants not understand that organizing contracts for the convenience of real estate finance industry is good for everyone?

bubblesitter says

Now BOA is going to suspend them in 50 states. This is going to drive demands for existing home higher,which means increase in home prices although temporary. Any thoughts?

It will reduce the number of forclosures for sale, but it will really spook the banks about mortgage lending too. Who wants to lend when you can't get your money back and can't get the collateral either? So I think the overall effect will be yet tighter lending and lower prices.

On the other hand, maybe the gov't will just screw us patient renters yet again by buying up even mortgages that can't ever be foreclosed or collected on, encouraging the banks to simply dump all default risk on the public.

I'm tempted to short MERS, or buy puts on them, but Yahoo Finance stalls when I do a symbol search. Anyone know if MERS is publicly traded?

I don't think MERS is public. Lender Processing Services however is, check LPS.

You may be a bit late on this though, the put volume has been pretty high for days.
I picked up some LPS puts using my pocket change.

"Being that I am sitting on the sidelines here waiting for the government to get out of the housing market and letting the market clear, I don’t like this latest political brouhaha."

That is why I bought now, and don't give a crank if/that I'm buying early or not.
I got tired of putting my life on hold. Not living like "I" want to live, instead of being a Victim of this Administration and the failed policies of the Administration that preceded it.
That's gotta be worth something I figured. 10 to 20% over priced is better than when they were 100% and more overpriced.

So I bought, my advice to anyone on the sidelines, that really wants to own, but is waiting on Washington get their shit together. Would do wise to just buy now and stop worrying about 10-50K either way. That is if houses are in your price range now, but you're expecting more for what is out there. Either pay the extra 50K and get one that suits your expectations, or expect less and get the house in your price range(Most house for the least money).

And don't worry about that 10, 20, 50K the value might go down, due to the way economic policy is dictating. Is still peanuts compared to the 100K - 200K people who had that house before you lost.
And being out of the rat race, and not being in a position where all of the news that negatively effects me one way or another. But make no mistake it effected my purchase decision.

We're just one bad day away from the whole damn deal being called off, for indefinitely. Or at least until further notice. Banks just wont loan money for a house, and Government will have all its money tied up in Houses that are worth a fraction of what they paid for them. And the unmitigated risks of Houses that can't even be foreclosed on.