DISQUS

The Washington Independent: The FDIC Finally Figures Out that Banks Don’t Play Fair

  • gilmanc · 1 year ago
    Fantastic.



    A consumer walks away from a house because it is economically prudent to do so, and that consumer is penalized for life via FICO and credit reporting.



    A corporation walks away from a house because it is economically prudent to do so, and it is applauded until the government steps in to stop the practice.
  • housingwire · 1 year ago
    Ouch. Lumped in with FDIC. That's something I never thought I'd see. For the record, we've known about bank walkaways for awhile as well, but nobody was listening either when we wrote about it late last year.



    And judging by the response we're now getting over that graf, it now looks like it's on everyone's radar.



    Our only take is this: it's a mess, it will continue to be a mess, and there is no such thing as blame when everyone's guilty.....



    bregards,

    Paul Jackson

    Publisher, Housing Wire
  • whs806 · 1 year ago
    Banks speculate in oil and other commodities and get involved in sub-prime loans thanks to legislation signed by Bill Clinton.



    Since then the FED has bailed out Bear Stearns, printed tons of money, kept interest rates below inflation, and the American Tax Payer gets to pay the bill while the dollar tanks, oil prices go thru the roof, and home prices tank.



    Why fix our tax policy and our energy policy? It is much easier to blame the oil companies and other companies for moving off shore.

    Our tax policy is the 2nd worst in the world and results in exported American jobs and imports of everything from energy to food.



    Start by fixing tax policy. Implement the Fair Tax Plan. That will bring those jobs back home where they belong and will reduce oil demand in China and India at the same time.
  • sharon · 1 year ago
    Letting the foreclosed houses be sold for back taxes is good! Talk about affordable housing! Most likely the successful bidder would only need to pay the back taxes to get a Collectors Deed. In my neck of the woods, that means a bidder might be able to buy a house for $2,000.



    I'd say the banks have the same right to let properties go for back taxes as anyone else.



    There is only one problem with Collectors Deeds obtained at tax sales, and that is that no one will write title insurance on them. A Collectors Deed is an automatic cloud on the title. I think that if banks let REOs go for back taxes, they should be required to resolve the cloud on the title. If I remember right, that would mean providing a Quit Claim Deed.