March 8, 2010


Oh. Dear. God.

Either they're corrupt, or they're idiots. One or the other.

If this news is to be believed, the Treasury Department is going to try to stimulate short sales, and as part of the process they're going to have lenders enlist REALTORS ON COMMISSION to tell them what a fair price should be for a short sale property.

Not appraisers (who are corrupt anyway and got us into this mess). Not government-hired investigators. Not CPA's.

No, they're going to ask REALTORS ON F*CKING COMMISSION. You know, the ones who will MAKE A F*CKING COMMISSION when the short sale goes through, they're going to ask what the fair price of a home is.




Please, MSM and bloggers, pay attention to this issue. This is, I believe, the single worst idea and single worse government meddling scheme I've seen during this whole housing fiasco, and it must be stopped.

From the report:

Under the new federal program, a lender will use real estate agents to determine the value of a home and thus the minimum to accept. This figure will not be shared with the owner, but if an offer comes in that is equal to or higher than this amount, the lender must take it.

And wait, it gets worse. The govenment is going to PAY HOUSING GAMBLERS WHO GAMBLED AND LOST to short sale their homes. Seriously. THEY'RE GOING TO PAY FAILED GAMBLERS $1,500 IN COLD HARD TAXPAYER CASH:

To bring the various parties to the table — the homeowner, the lender that services the loan, the investor that owns the loan, the bank that owns the second mortgage on the property — the government intends to spread its cash around.

Under the new program, the servicing bank, as with all modifications, will get $1,000. Another $1,000 can go toward a second loan, if there is one. And for the first time the government would give money to the distressed homeowners themselves. They will get $1,500 in “relocation assistance.”


laughable said...

The realturds will most likely set low prices, sell them to their other realturd friends to flip.

Anonymous said...

By government you mean Democrats and Obama . Just checking !
Sounds about right in keeping with the rest of the logic implored so far . No i am not a republican . Just a realist . Both parties are filled to the brim with corrupt greedy lying fools .So much for Obama being so much smarter than that idiot Bush . He is i will agree a better sounding hand puppet. Keep it real....

keith said...

You're seeing the power of the NAR lobby right here.

Our government is corrupt. And it's just so obvious.

casey said...

The corruption is so obvious anymore.They use to try and hide it but since americans have no balls to do anything the doors are wide open.

Charles said...

This is irrelevant...

the endgame of deflation is coming whether the Gubment likes it or not. I'm personally happy they're stretching it out.

We're gonna get to see a whole new round of flipper and would be landlords get burned because they thought they could make a quick buck!

In the HP days we used to say this would take YEARS to play out and so it shall. The working class has already taken their ht and I doubt it will gt much worse. Now it's time for the faux rich who thought they we're up there with the "Real owners of this country" (hat tip George Carlin) to tumble down the broken economic ladder.

Phase 2 of this recession is inevitable. In the end we'll be better for it.

SAWB said...

Yes, Mr. Obama is the gift that just keeps on giving. Thanks so much to all the enlightened, progressive, and oh-so hip folks who voted him in to office. Your epic act of communal stupidity will be remembered for generations to come.

Anonymous said...

Calm down. All of these programs under Obama have failed to date, so what makes this one special?

It will fail, like your president.

Banana Republicrat said...

Realtor is one of the few decent lines of employment left for uneducated folks. With that in mind, this seems like a backdoor jobs program to me --keep 'em off of unemployment (not for the $ savings, but for the face savings) and keep 'em busy, maybe catch some more suckers in the process.

Keithareeno it's time to grab another big bag o' yellow kernels. Hell, I've waited this long to buy, I can wait another five-ten years. Meanwhile formerly middle class households are going broke all over America...

??? said...

Yeah Keith, when I read that article this morning on msnbc I threw up in my mouth a little. Aside from throwing out the incumbents this November, what the hell else can we do??? The gov't and all the lobbies are out to destroy america completely and I just feel that we're all fucked no matter what we do.

Angry Leprechaun said...

Well so much for them trying to keep housing prices from falling. This is an act of desperation. I have little confidence it will work nor do I want it to.

I wonder what Joe Pryer has to say about this? I mean this would really make his superhero powers invincible.

Angry Leprechaun said...


Can we get a conversation going about what piece of shit Rahm is. If the fucker came up to me in a threatening manner in the shower, he would be picking tile fragments out of his scalp.

Anonymous said...

Just remember everybody:

1) The Libruls did it

2) We were in great shape January 19, 2009


Anonymous said...

That article(and the underlying reality) is such a clusterfuck I don't know where to begin:

"...multiple benefits...more money with a [short]sale than with a foreclosure.

For the borrowers...less damage to credit ratings...they will not later be sued for an unpaid mortgage balance..."

Riiiight. It gets better...

"...Many would-be short sellers have second and even third mortgages on their houses. Banks that own these loans are in a position to block any sale..."

And why wouldn't they? The best part of that are the reports of widespread closing fraud from all the major banks.

"...if the first lender knows they are getting paid, the first lender will kill the short sale," says Brandt. "So these second lenders are asking for the payments off the closing documents, off the HUD statement, usually in a cashiers check prior to closing. Once they receive that payment, they will allow the short sale to go through...

...Clearly illegal..."

Anonymous said...

I can't wait for a Realtor to set my house price high! Happy times are here again, here again!

gutless and lazy said...

"Either they're corrupt, or they're idiots."

I vote for corrupt AND idiots.
It is possible.

Randy said...

Keefer, you are 100% correct on this one..

It is already going on by the banks with the huge 'shadow inventory' as well as the foreclosed houses allowed on the market.

Realtwhores being the 'experts' are being looked to, to define market value and set the price.

It is why majority of current Foreclosed properties up for sale are still a rip-off and way over priced.

This may be the only blog community that understands the key part Realtwhores played in the current economic crisis.
Most people focus only on the banks for easy lending, but lets not forget that the greedy bankers also bought into the NAR propaganda that houses only go up, and figured that so long as they have precious real-estate as collateral who cares if the borrower defaults, the 'experts' had graphic charts showing that banks will always be able to quickly re-sell the properties for even more than the original loan.

But but they are merely old ladies being sales people... OK

They have destroyed the free market in housing, it is practically impossible to negotiate a price with a seller or a buyer because the 6%er has their own interest, the MLS system is still a mafia-like cartel.

The pendulum will likely begin swinging the other way when people begin realizing that affordable housing is better for the economy then the current strategy of doing everything possible to prop up prices at all costs.


OPM said...

Anon sais:
"I can't wait for a Realtor to set my house price high! Happy times are here again, here again!"

Wait until your property is re-assessed by your local tax Assessor and you'll quickly learn the expense side of higher prices.

Dont forget school teachers are due their annual raise..Its for 'the children'...

Anonymous said...

We can only hope that everyone under water takes them up on it, attempts to dump the over priced crappy property and run with the $1,500 wining.

This should place just about all homes sold after 2001 up for sale and flood the market.

Perhaps it is just what the doctor ordered.

Yeeee Haaaa!

yoski said...

laughable said...
The realturds will most likely set low prices, sell them to their other realturd friends to flip.

That's the first idea that immediately popped into my mind. Set the price low and have your buddy bid just over the reserve price.
To avoid fraud on a grand scale they should require the property to be listed for at least 30 days to attract multiple bids.
I also occaionally see properties listed from a different city. I suppose some realtors do that purposely to hide the juiciest deals from the general public.

Anonymous said...

Where in this post on such a mundane subject as housing or economics is the hateful rant against (1) Sarah Palin (preferably), (2) Republicans generally (next best choice), (3) all who don't subscribe to a formerly libertarian, but now crazy-left agenda?

Let's return to all-Olbermann all-the time!!!

Anonymous said...


Corollary #1: How bad will it be when it finally blows?

That the bill cannot even approach being paid is beyond all dispute.

This is an absolutely fascinating piece of history we are all living through.

Because the events comprising it do not play out in hours, days, or weeks, it is impossible to fully appreciate it's gravity in real time.

Only quite a few years later will we come to our senses and some small measure of honesty about it.

Seriously. Picture the enormous herd of elderly in 20-30 years; unable to be cared for. A tiny workforce having been handed the bag for all the excesses of the prior 50 years...

too much rope said...


If you think that's bad, try this out: Look at Internal Revenue Code sec 108. Under most circumstances, if a person has a discharge of a debt, that person is required to report the amount that they don't have to pay back as income (and therefore pay tax on it.) Sec 108 has provisions that allow homeowners to exclude up to 2 million from the discharge of mortgage debt (such as if the debt is restructured, or if they are foreclosed upon).
This exception expires at the end of 2012.

In plain english, it allows you to bail out of your mortgage without facing the tax consequences most people would face. There are certain limitations on this exclusion that are too complicated to get into here, but its enough to say that this totally encourages people to bail out of their sinking ships, no matter what we hear to the contrary. Something is very, very wrong in this country

yoski said...

Anon 3:37 am says:
"Seriously. Picture the enormous herd of elderly in 20-30 years; unable to be cared for. A tiny workforce having been handed the bag for all the excesses of the prior 50 years..."
Em yes, that would be called austerity measures.
Medicare will be reduced to take an Asprin and hurry up and die.
Social security and unemployment will consist of a soup kitchen and mass shelters.
Taxes for those lucky enough to have a job will be around 50%.
But which politician cares about the future if today we can fight two land wars in Asia and bailout every deadbeat or political donor that asks for it?
By voting for either party Americans get exactly what they deserve. It'll be interesting to watch once reality sets in.

Bukko Canukko said...

When you look at how the entire worth of the U.S. dollar, the planet's reserve currency, is tied into house prices, it's easy to see why TPTB have resorted to another "extend and pretend" plan like this. The Fed has swapped untold trillions in money/guarantees for bullshit "financial products" based on house loans. Bankmaggots gave the Fed sacks full of bogus securitized debt, the Fed gave them U.S. dollars. And if the loans crap out, or are exposed as fraud, then the collateral backing the world's main money is revealed as a steaming sack of shit.

So who better than skeeving realtwhores to certify the "value" of the false promises underlying the dollar? Wait -- since we're talking realtwhores here, let me spell that "under-lie-ing"...

How long can the game go on? By all rights, it should have collapsed years ago. But fiat money is an artificial thing, a manmade concept. It can go on as long as men keep believing in the game. They have no choice but to believe.

Still, crap like this is another tick on the hyperinflationary/destruction of the U.S. dollar side of the ledger. It will be fascinating to see how it plays out. Fascinating, that is, if you have enough gold and golden kernels of popcorn...

Guberville Smack said...

"In plain english, it allows you to bail out of your mortgage without facing the tax consequences most people would face".

You are soo quick. Finally figured out that if you are underwater in a non-recourse state and have never refinanced and only own this one property, just walk away.

I did. LMFAO!!!

Bukko Canukko said...

Seriously. Picture the enormous herd of elderly in 20-30 years; unable to be cared for. A tiny workforce having been handed the bag for all the excesses of the prior 50 years...

The question is, can you picture yourself being one of the wretched, starving, "hurry up and die" people yoski refers to? Because if things keep going on the present trend line, yoski is right.

The question is, is that how you want YOUR life to end? "Hurry up and die"? Because it doesn't have to be that way.

I've had the privilege of living in Australia and Canada now, and I believe those societies will protect their citizens. People pay higher taxes there, but in return they get the social security of knowing they won't be abandoned when they fall on the wrong side of the "work or die" equation. They probably won't be kept up in the style that old, sick, non-productive people are kept in now (which is certainly not glorious, even in these relatively flush times) but they won't be put on ice floes like the (mythical) Eskimos.

I have not lived in Somalia or Afghanistan or other low-tax, "free from government interference" nations where you live only as long as your money and family support system holds out. I prefer society -- and high taxes -- to anarchy. It will be a damn shame if the U.S. chooses to go down the libertarianarchy road.

But hey -- it's not my problem any more! Good luck with the future, eh? Because if you live in the U.S., it's YOU that the anonymous is talking about.

Anonymous said...

Bukko Canukko said...

...can you picture yourself being one of the wretched, starving, "hurry up and die" people yoski refers to?..."

Easily. There are worse fates in life than holding one's chin high, telling the truth, and accepting the consequences.

We allow immense growth in both health care cost and financial parasitic activity. There is no way we can even pay the interest on the tab we've run up.

Atadperturbed said...

Please please please won't this hulking fiasco called America please get on with it and do a face plant already.