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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: Moominoid who wrote (87963)	9/3/2007 12:12:16 PM
From: Dale Baker	Read Replies (1) \| Respond to of 306849

Someone can confirm this but I don't think banks are allowed to operate real estate, in the terms of the charter which licenses them to operate as banks.

To: Moominoid who wrote (87963)	9/3/2007 12:29:51 PM
From: 10K a day	Read Replies (2) \| Respond to of 306849

the debt was wrapped and sold to investors, china et al. J6P is left w/ rubble (and bad credit) . Wallstreet got their money when they sold the debt. Who really owns that house? Does BearStearns Own that house. I don't think so. Does WellsFargo own that house? I don't think so. Does CountryWide own that house. I don't think so either. Does some shell corp own it? Maybe. Does ChaseMorgan or PRU own that house? Who knows? That money was created out of nothing. It may get collected at 30 cents on the dollar? You can't sell that asset. What the heck is going on here. The Fed is going to solve all your problems by lowering interest rates? Yah right.

To: Moominoid who wrote (87963)	9/3/2007 1:23:59 PM
From: 2sigma	Respond to of 306849

Two points: 1. My guess is that banks have an obligation to maintain the integrity of their collateral. 2. There are companies which specialize in providing individuals who live in, protect and take care of houses while they are up for sale. In return, the individual(s) who are living in these homes receive free or a deeply discounted rent. Haps.

To: Moominoid who wrote (87963)	9/3/2007 6:06:26 PM
From: Tradelite	Read Replies (1) \| Respond to of 306849

<< Why don't/can't banks rent out the property and keep it till the market is better?>> This would turn banks into property managers, which I don't think they want to get into. They'd have to pay someone (probably an outside management firm) to sign up tenants and collect rents, potentially accomplishing nothing but piling more costs on top of the uncollected debt. They'd rather get the foreclosure process over with and get on with the business of banking. Plus, I believe the mortgage document calls for disposing of the property to collect as much of the unpaid loan balance as possible, once the note is in default, so banks aren't given the right to hang onto it. I just glanced at a textbook describing all the various types of mortgages and how they can vary from state to state. If the mortgage document contains an "assignment of rents" clause, a bank has the right to collect rents being paid by any tenants the borrower might have while failing to pay the note. (I imagine this happens in commercial real estate.) That's the only reference I've seen to banks getting into the rental biz, directly or indirectly.