"The bottom line is this. Bankers are controlling the game. There have been multiple moratoria in place for at least six months. The latest one end around September 15 (2 more weeks). This was a state mandated moratorium from your wonderful Governer, Arnold."
Evidence?
It's no secret. Do you read at all?
http://www.kcbs.com/Calif--Foreclosure-Moratorium/4601947
"These moratoria have only served the interest of the government and bankers (mostly bankers) by artificially propping up the value of modest homes. They decared these moratoria under the guise of protecting homeowners. However, they truly don't give a rat's-ass about homeowners. It's all about protecting the value of bankowned notes (mortgage loans) and properties as well as protecting higher tax revenues based on higher property values."
And current home owners - and there are a lot more of them than buyers. And people who might need to refi, because of a loan adjustment. The majority screwing the minority? That's democracy (by some definitions).
"30 - 40 percent of all So-Cal homes are under water."
Do you mean mortgages? Many homes don't have a mortgage. Again, can you provide some evidence?
Here you go slick. Ever heard of Google?
33% of Homeowners w/Mortgages Are Underwater
The Treacherous Path for Housing - 42 Percent of California Mortgages with Negative Equity: $1 Trillion in Mortgages Submerged Underwater in California. $3 Trillion in U.S. Mortgages Underwater and Risking Foreclosure.
"The banks can not continue playing this game forever as they're not in the business of holding properties that long."
Banks are in the business of making money. If they dump a whole load of homes on the market, they will lose (more) money.
"Look for heavily rising inventories starting 09/15/2009 through spring 2010. That is unless another moratorium is declared in the name of protecting joe-loan-owner."
Or joe home-owner.
Nobody's a homeOWNER until they pay off the mortgage. Until then they're all LOANowners.
"It wouldn't surprise me a bit to see Obama or Arnold come out in the name of the homeowner (really themselves and their banker bosses) and declare another hold on foreclosures for an additional 90 days in which case you'll have more of the same. "
Agreed.
"Banks trickling out properties to create artificial demand."
Actually, they're reducing supply. And that increases prices, and reduces demand.
Uh... that's a completely FALSE statment!
"If they do release the tons of shadow inventory (short sales, etc. where previous owners haven't paid their mortgage for a year or more), sales will rise but prices will fall rapidly."
Agreed again.
"Also, mark my words, the $8k tax benefit WILL be extended and possibly even increased to $15k to further stimulate sales."
Maybe. But you seem very confident in your ability to predict the future. Perhaps you could tell me what stocks I should be this week, and sell next week. Or the next winner of the Kentucky Derby?
I'm confident because I'm knowledgable and I read. I removed my sheeple blinders years ago. You should try it.
"Any SUCKER who is overbidding right now to avail of the tax bene is a complete FOOL!"
"Moreover, what is seen as a great deal today will be the source of much pain six months from now when prices are far lower yet. NO DOUBT ABOUT IT! Just as the dorks who bought a year ago are completely miserable today because they're already under water!"
Unless the banks hang on to the inventory because of a moratorium, thereby pushing prices up. In which case you'd be a fool not to bid. But you don't know which of these is going to happen, and nor do I.
"Don't be a dork! Wait until mid October or so and you'll see much clearer where things are truly headed!"
It's very nice of you to spend this time explaining things to us, to help a bunch of people you don't know. Unless you're trying to buy now and hoping that posting messages like this will reduce the number of bidders on the home you're making an offer on this weekend. Which seems more likely to me.
You've been posting this sort of message since February. No luck finding a place you can afford yet?
The reasons for my postings here are due to my disgust for bankers and agents. Especially unethical agents in the SoCal market. What do you know about me or how much house I own or can afford? Actually... I own properties in several markets in the US and Mexico. Los Angeles by far contains the most corrupt, unethical agents out there!
In fact, considering your lame response to my post, You're probably one of them!
If you really want to educate yourself, instead of just running your mouth. Read the following blog... continuously.
These guys have called everything accurately since 2005.
http://patrick.net/housing/crash.html
