The Banks and their New SCAM - an industry laden with crooks!

With Foreclosures topping 5 million and another 7 million in the wings, the banks now have a new SCAM. They foreclosed on our homes, taking the home at the bottom of the market. Collected the insurance on the difference between the Note (They didn’t Own) and the market value they created by the volume, velocity and volatility of their foreclosures. Initially dumping the home cheap to bring down the market even further, in order to acquire the properties at an even lower price, they now are holding several million homes off the market, to force the value of these properties back up in order to make an additional windfall.

Real Estate Brokers across America have stopped submitting offers to Banks relating to their REO’s because they have found that the banks are playing games with the potential buyers, the Banks have no interest in selling their foreclosed properties until the market returns, and they (the Banks) are the ones who can make it return.

Meanwhile the Banks have been made whole, and in some cases have not only collected the insurance, but sued the former homeowner for a deficiency, that difference between what the home was foreclosed for and the mortgaged amount.

We are in an inflationary market, and the Banks realize that they were the cause of the market collapse, by placing a volume of homes on the market they caused the value of the homes to fall, now by restricting the homes they place on the market the values are expected to rise, it’s the old game of supply and demand, a lot of money chasing a few homes will cause the value of the homes to rise, by releasing a few thousand homes at a time, the market will stabilize in the banks favor.

Initially, the Banks, because of this SCAM and their insatiable greed blocked the borrowers attempt to sell their home instead of it being foreclosed. They accomplished this by the shear volume of the foreclosure frenzy. Now the Banks are primed to reap the windfall of a market they created at the peril of the borrower.

There is a lot of money that has been created over the past 8 years. The market has inflated for almost every other commodity but Real Estate, now we can expect to see this market inflate again.