just between us-the topic of foreclosure

[kimba1]

if you think about it wouldn`t foreclosure be a gaurantee loss for the banks and it`ll be a certain lowering cost of housing and the people who save thier money can finally afford homes the old fashion way?

additional question which is better for banks ,bali-out or forclosure on these home loans.

[Xavier_Onassis]

If the bank forecloses on a $200,000 loan and gets a house that can  be sold for no more than $75,000 and maintained until the sale, it is not making money. Each case depends on the specific mortgage and the specific house.

I don't think banks actually give a damn about providing anyone with a house. Banks are about money, not real estate.

[Christians4LessGvt]

kimba there is so much corruption going on you would not believe it.

i have a very close friend that had a house she needed out of
and was behind on her payments. they had it on the market for
well over a year. they bought it for like 1.2 million. no luck
with the housing collapse. then they got the bank to agree
to a short sale. some asian guy offered 800K and he had
the credit, had the down payment, had everything. the
bank kept stalling. finally the bank let it go into forclosure
on the court house steps. guess what it went for? 600K!
And guess who bought it on the court house steps? A banker!
so the original bank had a great offer at $800K, but let
it go on the court house steps for $600K! I told her maybe
these huge banks have pressure to forclose on all levels
so no one cries foul....so they would rather take less
money a few times to make it look like they are being
fair and not just forclosing on low incomes? It's insane
how corrupt the gvt and large institutions have become
in this crony-capitalism!

[kimba1]

I believe I read somewhere this is happening ALOT.

[Christians4LessGvt]

so the banks...we the taxpayers are bailing out....
are leaving $800K offers on the table to take $600K from banker friends
she said the banker guy that bought it has already flipped it & made a quick $150K

[Christians4LessGvt]

.

[Xavier_Onassis]

It's insane
how corrupt the gvt and large institutions have become
in this crony-capitalism!

This is a case of bank corruption or perhaps bank incompetence.
Perhaps there are cases of government incompetence, but this is not the case here, assuming that all the facts given are true.

House flippers are execrable people. They serve no useful purpose and lamentably, there is no way to subject them to public stoning.