At one time, the year was 2007, America was known as The land of the Home Owners. Those days are gone forever. Today, America is known as the Land of the Renters. The Home Owners are Banks.
From 1990 to 2007, Americans were intentionally deceived into signing contracts for homes they could never afford. These homes were built in like the castles of millionaires. Large Walk-in Closets, enormous Master Bed Rooms, Play Rooms, Three Car Garages, Two Floor Ceilings, and all the accouterments of the highest of the upper class. They always included swimming pools and fancy built in Jacuzzis.
And yet, the owners were clerks or used-car salesmen, or hair dressers. The bank didn’t care who you were, or whether you could pay the electric bill for running all the fancy new stoves and equipment.
Just sign the nineteen page agreement, where in the small print it said that the U.S. Government was ultimately responsible, though their agents: Freddy and Fanny Mac.
So the crash came and with it the foreclosures. Hundreds of the banks closed their doors, because even with the backing of the government, which took over a year to effectuate, they had such little capital they could not carry on day to day business.
IT TAKES 30 YEARS TO PAY OFF A HOME MORTGAGE!
That fact was pointedly overlooked by the geniuses in the banks.
The people who signed the mortgages are now in other states looking for work. Those mortgages are worthless pieces of paper. The banks are becoming the home owners of the American homes!
Here is a silly article from Bloomberg. It is written so that you will cry about the idiotic purchaser:
Aug. 12 (Bloomberg) — Nan Holmes, a senior escrow officer at a title insurer, says her insider’s view of the local market gave her the confidence three years ago to pay $370,000 for a new home in Boise, Idaho. She got a price she liked from the builder and 100 percent bank financing.
That was before the bottom fell out of the housing market in California, Nevada and Florida as borrowers with bad credit began defaulting in record numbers, setting off a recession. Holmes, who had earned $150,000 a year when real estate was booming, saw her compensation shrink by half when business cooled, forcing her to dip into savings and sell jewelry. She stopped paying the mortgage in April and has put the house on the market for $145,000 less than she owes the bank.
“How long will it take for the market to turn so I can just break even?” Holmes, 55, said as she sat in her house in Boise’s tree-lined Cloister neighborhood, four miles (6.4 kilometers) from the state capital.
BUT, HERE IS THE NEXT PARAGRAPH:
Home foreclosures are climbing in the Northwest and Midwest, areas that had earlier dodged the worst of the mortgage crisis, according to real estate data firm RealtyTrac Inc. With 14.6 million Americans out of work and consumer spending declining, further weakness in housing could push the economy back into recession, former Federal Reserve Chairman Alan Greenspan said Aug. 1.
Foreclosure rates in Utah, Idaho, Illinois and Colorado rose in the second quarter compared with a year earlier, and rank among the 10 highest in the country. The number of homes seized by lenders at least doubled in 19 states and more than tripled in seven of them, according to Irvine, California-based RealtyTrac.
REMEMBER: 30 YEARS TO PAY OFF THE DEBT
Does anybody in their right minds think this 55 year old lady, whose job is in real estate, will pay off a $370.00 debt?
Not unless you believe in Black Magic. Her only hope is that raging inflation will suddenly supervene. It will, but not in time.
In the meantime, the banks and the U.S. government better get their check books out to pay the painters, the grass cutters, the roof repairers and all the other people who maintain homes.
Then, they better pay the insurance companies for fire and flood and home owners insurance.
And last of all: Local Taxes.
Owning a Home is the biggest lie in the Universe. What you own is a living animal that will eat you alive if you don’t feed it money on a daily basis: Cut the lawn, repair that hole, kill the cockroaches and the ants, keep the kids off your fence, rake the leaves and on and on.
Let the bank have it. Be a tenant and smile for a change. In the meantime, your favorite government will go another two trillion dollars into debt.