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Strategies & Market Trends : The Residential Real Estate Crash Index
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To: jrhana who wrote (85158)8/14/2007 11:09:19 AM
From: ChanceIsRead Replies (2) of 306849
 
>>>What is he going to do about the tax? What are all the thousands and thousands of short sellers going to do? What is the IRS going to do? If they issue a lot of liens, the short sellers won't be buying any houses, cars, or any other confiscatable assets for a long, long time.<<<

You forgot to mention that interest accrues on the COD obligation to the state.

Isn't it also a little ironic the Hillary Clinton and Chris Dodd wail on and on about the lack of disclosure in mortgage loans and how prepayment penalties should be banned. I wonder if they will begin to require disclosure of post default penalties - ie COD income tax.

The federal government does such harm by intervening so much in the economy. The premium for Greenspan put - given for free back in '99 and '01 - is now coming due.

What is he going to do about the tax??? Nothing. Neither you nor I can get blood out of a stone. The government will have to somehow forgive this.

Can the IRS attach the home some how??? I doubt it. It will have been sold to someone else. Mortgage insurance companies might make out here.

What will the government as a whole do??? The banks need to address their losses. Their profits are revenues less expenses. Can the government even think to void the expense of a failed mortgage??? At a minimum home loan rates would soar. Will the government supply assistance the the homeowners through the banks?? If things are sliced and diced, how can they. Its basically just another form of transfer tax from the wealthy/competent to the "poor."

I keep liking the drug addict analogy more and more. The FEDs kept injecting more money supply (heroin) into the collective veins of society. They had to inject more and more to get the same growth (high). After a while the society just pale, wasted, shaky and tends to sleep in the gutter (detox).
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