InnoVest Resource Management's Foreclosure Forum

Home Discussion Board "Hands-On" Training Title Holding Trust Annual Reunion Speaking Schedule Store Foreclosure Fundamentals Code References 50 State Foreclosure Basics Foreclosure Glossary Foreclosure Statistics 70+ Yrs Interest Rates Fillable Forms Archived Articles Dingbat Retirement Plan Links Contact / Map About Us Home

[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Reasons Posted by Alfred, SoCal on March 08, 2010 at 4:56 PM In Reply to: Re: What if the banks choose to never foreclose? posted by Big Red on March 07, 2010 at 5:37 PM 0 New govmt regs have allowed them to hold off and not have to list these non-performing assets on their balance sheets. 1 They are holding back, waiting for more govmt aid. 2 They don't want to depress the value of their assets any further or have to show them on their balance sheets. 3 They want to have as much cash as possible to recapitalize when the next wave of residential defaults occur (4-5 million) and commercial RE begins its big slide downwards. 4 It's better for the big banks to borrow for nothing from the Fed and put the money into US Treasuries at 3.5% (helps them to recapitalize and no risk). 5 And most importantly, if they stay in good condition they are candidates to receive the assets of the banks that the FDIC will be closing down this year which gives much better profits than making loans (400-700 regional banks will fail this year.) All in all, thank your government for interfering and keeping the RE market from going through the natural correction that it should. They are intervening, attempting to sustain the unsustainable, and setting us up for more trouble than we could imagine which will manifest in a double dip recession of great length (which may as well be called a depression). Figure out how you can profit from this and go for it. Follow Ups: Re: Reasons Freeflyer 9:41 PM, 03/08/10 (0) Post a Followup: Name : E-Mail : Subject : Comments: : 0 New govmt regs have allowed them to hold off and not have to list : these non-performing assets on their balance sheets. : 1 They are holding back, waiting for more govmt aid. : 2 They don't want to depress the value of their assets any further : or have to show them on their balance sheets. : 3 They want to have as much cash as possible to recapitalize when : the next wave of residential defaults occur (4-5 million) and : commercial RE begins its big slide downwards. : 4 It's better for the big banks to borrow for nothing from the Fed : and put the money into US Treasuries at 3.5% (helps them to recapitalize : and no risk). : 5 And most importantly, if they stay in good condition they are candidates : to receive the assets of the banks that the FDIC will be closing down this year : which gives much better profits than making loans (400-700 regional banks : will fail this year.) : All in all, thank your government for interfering and keeping the RE : market from going through the natural correction that it should. They are : intervening, attempting to sustain the unsustainable, and setting us : up for more trouble than we could imagine which will manifest in a : double dip recession of great length (which may as well be called : a depression). : Figure out how you can profit from this and go for it. [ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] WWWAdmin 2.0a © 1997 Matt Wright and DBasics Software Company, All Rights Reserved

Information provided by this website is for informational purposes only and is not a substitute for professional advice. Please consult your investment advisor and/or attorney before entering into any transaction. Read our privacy policy.

Copyright © 1997-date("Y"), InnoVest Resource Management
http://www.foreclosureforum.com

InnoVest Resource Management, 4569-A Mission Gorge Place, San Diego CA 92120-4112
(619) 283-5444, Fax (619) 283-5455