Ghost Equity — the House Next Door

Oct 30, 2012

The biggest problem I encounter when speaking with people who are up to date on their payments is why should the others get a break when they are still paying. My answer of course is that they probably shouldn’t be paying because their debt was probably paid long ago through multiple sales of the same loan.

The OTHER major reason is that whether you think the person next to you is being foreclosed and is not deserving any relief, is that while you are standing on principle, the banks are standing on your money. Homes that were unaffected by direct foreclosure lost nearly $2 Trillion in equity as a result of the foreclosure mess and the unwillingness of the banks who created it, to cure it.

So your equity just flew out the window with the guy who is being foreclosed. But it doesn’t stop there. Housing drives the economy as the biggest consumer item offered for sale. The entire economy went into a near greatest of all time depression because the housing sector had, as President Lincoln once remarked (“the bottom has fallen out of the tub”).

So ALL marketplace activities were depressed which caused massive layoffs of up to 800,000 jobs per month as Bush handed the problem off to Obama. This caused an even greater loss in real median income, making it unlikely that your house will ever see the equity that you thought it had — at least not in your lifetime.

Then you have pension funds who have already announced they are under funded because of losses associated with buying the mortgage bonds that are being used as an excuse to foreclose on your neighbor and thus depress the value of your home. 2013 will be the year that pension funds cry for bailout because they don’t have the money to pay current pensioners their share of the pension money that they were promised. People on fixed income of social security plus pension won’t be happy. Are you one of those people?

foreclosures-wipe-out-2-trillion-equity-neighboring-homes

Tags: economy, home equity
Posted in bubble, Corruption, Eviction, securities fraud |