The Treasury and FDIC have laid out the plans to acquire bank assets with private investors is fraught with danger for the homeowner's of America. This published plan is set to "encourage" (finance would be a better description) the acquisition of these "legacy"... "toxic"... in reality these are non-performing real estate loans and a far more accurate description, into the purchase of these assets (item of economic value).
The issue here is that virtually 100% of these assets are secured by 1-4 residential real estate. Once these mortgage loans are sold to the investors (Wall Street?) they become the new "bank"; and are free to move rapidly forward with the foreclosure process. Thus, they are "buying" these loans, thanks to the generosity of "we the people", with only 6% down, leveraged with government guarantees ... not a bad deal... buy a $100,000 loan for $6,000... then foreclose on the note... next turn around and resell the underlying asset... the house... for, say $50,000 in a fast sale... now think in terms of hundreds of billions of dollars, several million homes included in this next fiasco... if you think that real estate values have gone down... wait for this blood bath...
I warned of this 18 months ago... that UNLESS these loans are modified prior to any sale to these private investors, the bloodbath of foreclosures will make what has already passed seem like a family picnic in the park... Go back and read the Housing & Economic Reform Act and EESA; that provide the Secretary of the Treasury with unlimited authority to acquire these assets and sell them as he sees fit...
We are sitting on the precipice of a real estate Armageddon... should congress refuse to amend these grossly flawed laws and exercise its responsibilities, it will be complicit in the further rape of the American homeowner...
