Banks and Foreclosed Homes

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By JazLive

Investor Savvy


Are Banks competing in Real Estate?

In the current economic bust for many investors; prior home owners and business failure to name a few, is the banking industry competing with potential buyers of real estate by asking for bail out funds?

I am a former student of financial analysis and dropped the studies because information was too corrupted to compute. Meaning financial reports had either too much pork in one figure or another that benefited management, while operations figures starved to justify survival.

It does not take a rocket scientist to realize that if operations are starving, the business will cease to exist. Management can just go on to other management positions until operations in their new position transforms from grapes to raisins. If the market requires grapes well you know, operations slows to a halt.

Why would banks want an inventory of failed real estate? Real estate represent grapes to present as justification to apply for bail out funding. Managers are only interested in keeping their lifestyles afloat.

Bailout funding also allows financial institutions to buy up real estate because they know some one somewhere could be a potential client.  Depending on the location; price and overall value of the real estate this is just a block in the way of moving inventory because if the purchase price includes unrealized equity then it should not be considered in resale price.  The unrealized equity becomes another taxing issue that further diminishes the amount of incoming tax dollars to the taxing system.  Losses diminishes the amount of tax burden to the business sector, which means they can roll back losses to get tax refunds in prior years they did pay taxes, while current wage earners taxes increases to maintain incoming tax dollars to the taxing system.

Increase taxing is just not the annual tax return, taxing occurs when prices go up whether it is in pennies, nickles, dimes ... It is taxing when one has to pay more for less.

Investors are not as impressionable as they were just 11 years ago. Everyday, in the investment market is a new day. There are no set parameters in the investment market for behavior can no longer be harnessed via textbook models.

There are a few stocks that remain green for investment credibility; however, the risk taker has moved on to new grounds to gain an edge beyond hedge funding and trusting advice from his/her banking institution.

Local is no longer relative when access to the International Community is at large. Investors can now directly access, investigate and fund projects that suits his/her return on investment expectations.

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AEvans profile image

AEvans  says:
13 months ago

mmm...Interesting I am always open to learning something new. :)

Cameron Brown  says:
11 months ago

Great post, good content. I definitely learned something, as I was able too see things in a different perspective.

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Banks and Foreclosed Homes in the News

  • Despite Altering Loans, Many Lose HomesCBS News29 hours ago

    Only 4% of Borrowers in Gov't Plan Have Had Mortgages Modified, While Banks Auction Off Properties

  • More homes are poised to hit the marketLos Angeles Times25 hours ago

    A 'shadow' inventory of properties close to foreclosure or seized but not yet for sale has been growing. A supply of 1.7 million homes headed for sale because of foreclosure or delinquency looms over the nation's housing market, which could dampen progress toward recovery should the Obama administration fail in its efforts to aid struggling homeowners, researchers said.

  • Tampa creates foreclosed property registry to help city code enforcementSt. Petersburg Times2 days ago

    Tampa's City Council wants to keep track of foreclosed properties and their upkeep.

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