There are a ton of aspects to this bail out that may or may not effect us. I am curious about one of those aspects. Will the bail out make the short sale market and the REO market get tougher or dry up?
If the banks are having their paper being bought up will they still be looking to "deal" on these ? I am seeing this as a potentially unintended consequence of the bill. But I am not sure if my logic is correct. So please email me or comment on this blog. Do you think the bailout will make banks less likely to deal on REO's and Short Sales?
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I do not think it will change too much. But banks might be willing to accept more short sale requests.
good question Charlie, but, how can the banks still own these if we the taxpayer just paid for them? why didn't the ownership of assets like properties change with the paid bailout? I'm just such a doofus that I can't get it. When I buy something or pay off a loan I own it. Didn't I just pay off $700 BILLION dollars of bad debt? attached to what?
I think they will take a time out and wait to see what it means for them.
Cahrlie
I am with you;it is like a big Insurance policy. Banks are covered either way now.
Everyone is gearing up to sell short sales, and we need to stay to the basics of this business as well.
Sincerely
Tom Braatz
Charlie, Who knows? The European and Asian markets think so!. It will be interesting to see what happens today in our own.
Bo
Charlie The bailout will fix nothing. Increasing FDIC insurance to 250K will encourage people to sell off stocks and put the money in the bank, but as business declines and layoffs increase people will not qualify
Charlie- I think your logic is exactly correct... They are already slow on accepting most short sales so whats their motivation to accept a short sale now when they can just sell the bad debt to us taxpayers for what was owed and not lose anything.... or if it was a debt they picked up in a merger they can sell it to us for more than its worth, talk about b.s. Thank you government for really going to bat and getting something done to help america LMAO
I have no idea, Charlie. I'd like to think positively about this and hope it would help to speed up REOs and short sales, but given the way most things work in the government, I have my doubts.