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Old 02-18-2011, 05:02 PM
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grassman177 grassman177 is offline
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Location: leavenworth, kansas
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Quote:
Originally Posted by PROCUT1 View Post
Ive never been on of those "redneck, the revolution is coming" types....But I now believe its going to happen.

Millions out of work......Millions losing their homes......Very few jobs out there......And a government that wants to cut all assistance and help to people that need it......All the while throwing money and tax cuts at people with billions in the bank...The very ones that are the reason this country crashed....

Eventually its going to boil over...

A quick explanation to why you dont understand why banks would rather foreclose on people and sell at a loss, than work with them to start making their payments again.........

Banks dont operate the way we think they do. Take deposits and loan money.....Thats the old way before deregulation.

They now make most of their money in "fees" and have experts working figuring out how to best screw their customers.

In the computer age. Banking transactions are instant.

When I get a customer check and deposit it, INSTANTLY the money comes out of their account. 3-5 days later it goes into my account.

Why the hold? Years ago a hold was necessary. My bank would have had to physically present the check to my customers bank, they would then do a physical transfer of money, then they would give me the money. That took time.

Now that its computerized and instant....Why the hold?

Because most of us dont have piles of money in the bank. We get a big check from a customer and we need to use that money to pay bills.

They realize this.

So what they do is, hang on to the money. You write checks on it. Those checks get paid......Along with charging you a $39 overdraft "COURTESY FEE"

Even though there is no risk on their part. They know the second you deposit the check if its good, and they already have the money before you walk out the door.

But they make billions on this scheme. And our government allows it because the banks have a lot more to offer a congressman than we do.


So heres the scenario. Lets say......

You have a great payment history......You lose your job, exhaust your savings and finally run out of money.....You miss a few mortgage payments
Your house is now in foreclosure....

Even though its worth far less than you owe on it......You want to keep it and keep your end of the commitment.

You get a new job and can start making your payments again.

You figure the bank will work with you now right? Great history, got into a little trouble, but you want to start paying them again.

You think that makes the most sense for the bank too......To get paid on the loan instead of getting stuck with a house that is worth less than you owe them....


Youre wrong.

Heres why.
Its a complicated process but Ill give the general idea.
When you took out the mortgage for 200,000. The bank would get paid back lets say 400,000 over the 30 year term.

The bank has to wait 30 years for the full profit.

The bankers get bonuses on THIS YEARS profits. So how do they maximize that? Credit default swaps.

They give you the mortgage.....And anybody else that wants one whether or not they are qualified. They take pieces of each mortgage, cut them up, and sell them as investments.

They also buy insurance on those investments.

Heres what happens in a nutshell.

Having insured your house not for the 200k you owe them, but for the 400k you are paying back over 30 years.

So.....You default.....The bank can do one of two things.

Work with you to get your payments back on track. And wait 30 years to get their profit and bonuses.

OR

Force the foreclosure. They make an "insurance claim" which pays them the FULL 400K THIS YEAR. Huge profit on the banks books, translating to multi million dollar bonuses to the bankers.

Whatever they get for your house is just extra profit.

It now is a much better deal for the bank to throw you out of your house even if youre ready willing and able to pay.

If all else fails. The government will step in. Pay the banks for your house, give them some extra money to throw you out. Kick in some tax breaks so they dont have to contribute back to the government that allowed this....

And we have our current lifestyle
exactly, and why did we put more RED necks back into office?

you just made me fightened even more by someone else confirming exactly what i think on the subject
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