As I study the foreclosure crisis daily and in particular what lenders are doing to offer loan workouts and loan modifications to homeowners, the more I realize that this may be all part of a grand scheme. A scheme to take people’s homes using the laws of this country, to become the largest real estate holders in the world. What I would like to call, “The Great American Homeowner Swindle”.
Let’s take a look Countrywide’s REO portfolio and some stats to back up my predictions. I seem to pick on Countrywide a lot and for good reason. I don’t make the facts, I just report on them.
Countrywide California REO inventory is growing to mammoth proportions. Just last month Countrywide added 506 California properties to their website here. Up 315% since the subprime crisis began last Spring. Keep in mind, that this is only California.
Here are the numbers for as of September 1st.
What’s disturbing, is that Countrywide is the largest lender and one of the largest servicers in the country. Many of these REO properties are being serviced by Countrywide, but are actually owned by the investors. If Countrywide continues at the pace, they could easily have $2 billion dollars of California REO properties in their portfolio by the end of the year. Making them and investors one of the largest real estate holders in the Golden State. Now, add in all the other states and now you have quite a monopoly going that will be essentially controlled by Countrywide.
And Countrywide claims they are not in the real estate business! If you believe that, then you might as well believe that Mr. Angelo Mozilo doesn’t go to the tanning bed.
As I study loan workouts and loan modifications by lenders and receive reports like Moody’s recent article claiming only one percent of U.S. subprime mortgages with interest rates that began to adjust in January, April and July were modified to help homeowners avoid default. Moody’s surveyed 16 servicers that manage $950 billion in subprime mortgages — roughly 80 percent of the market.
$950 BILLION DOLLARS! WOW! That equals a lot of real estate that lenders will essentially control and
hold borrowers like puppets as they try and seek relief from their lender. Dangling by strings and making them jump through hoops for help. Did they do that when they sold them the darn loan? Hell no! Then why are we letting them get away with it now?
I feel like I’m playing a twilight zone game of monopoly.
Is this all part of their plan to enter the real estate arena and push out mortgage brokers and real estate brokerages?
Think about it?
So why are lenders claiming that they are working with borrowers, when in fact anyone who knows what’s really going on in regards to loan workouts and loan modifications, will testify to the fact that this couldn’t be farther than the truth. Most of the time it would make perfect sense for the lender or servicer to work with the borrower, fix their loan and everyone would be happy and live happily ever after.
But that just doesn’t happen very often and as you see this happening to hundreds and thousands of people. You have to think beyond what is going on right now and think, “Is this all part of some kind of sick plan to take peoples homes as a result of the toxic loans that were sold to them?” Then enter and control the real estate market and thus also have a monopoly on the mortgages business.
I also predict many lenders will shut down their wholesale divisions by the end of the year.
Hell, why do we need brokers anymore when there is no subprime for them to pedal. The only reason brokers thrived and loan officers lived like rock stars was because of subprime. Don’t believe me? Then where the hell did all the brokers and loan officers go? They went from rolling in $10,000, $20,000 a month to a big fat $0.
No more subprime, no more business for brokers. Their just middle men. Why go to a broker (if you can even get a loan) when you can go straight in the bank and get a no cost loan?
Soon real estate brokers will be the next target on the Countrywide hit list.
Countrywide recently sent mortgage consultants to hold open houses on their foreclosed homes as part of their new marketing campaign. When have they ever done that? Think here with me. So, now they will capture loans at open houses in the homes they just foreclosed on? Multiply that by thousands and thousands of homes and now you have a real estate company to compliment your lending division. Why pay agents all that money to sell YOUR houses? That is just stupid business if you do. Right?
Countrywide Real Estate & Loans
Heck, you might as well open an escrow company and hire out of work real estate professionals for $10 an hour to run your new real estate company and sink every other real estate brokerage that is left standing.
Shit, as a matter of fact, I know about 100,000 out of money and out of work real estate professionals that would jump at the chance to work for you, Angelo. Not because they want too, but because they have too.
Before this mess is all cleaned up later in the non so “NEAR” future, you would have already taken Park Place and Boarwalk in every town in America. By then it will be too late to turn back time and you will have already dominated the monopoly game and have used all your get out of jail free cards.
Isn’t that the next logical step Mr. Mozilo?
I mean why pay a real estate agent 5-6% when you can control the entire transaction from A-Z? What about property management? You’re going to need to have that service because the majority of your real estate inventory will not sell. Now you will be renting homes to the American people and I’m sure you will be calling them at dinner to sell them a mortgage while they send you rent every month.
“The Great American Homeowner Swindle”, starring Angelo Mozilo, coming to a foreclosed home near you.
{ 1 trackback }
{ 20 comments… read them below or add one }
In response to Countrywide Real Rstate & Loans,you may have a good point there, banks have been trying to grasp the RE bubble for some time, with foreclosure in mammoth proportion as it stands now the banks certainly have the upper hand….
To date in Jacksonville, Fl there are over 1000 bank owned properties: according to the records accessed online at the property appraiser’s office, the biggest owners of vacant homes in Jax are: Wells Fargo Bank, Wells Fargo Home Mortgage, Bank of America, Deutsche Bank National Trust, Bank of New York as trustee, Countrywide Bank, Countrywide Home Loan, Ameriquest, Chase Home Financial, Citimortgage, Washington Mutual Bank, Wachovia Bank, SunTrust, Homecomings Financial Network, US Bank, as trustee; Aurora Loan Services, EMC Mortgage Corp., JP Morgan Chase Bank, as trustee; HSBC Bank as trustee; Mortage Electronic Registration Systems; HSBC Mortgage Services;
April,
I suspect we will see many areas like California and in Jacksonville, Florida where lenders have the largest inventory of homes. Soon, they will be renting them and lease optioning them. How long can they just sit without selling? The only next logical and smart business move would be to either acquire a real estate firm or open up a separate division to handle the real estate sales, property management and mortgages.
Thanks for sharing that. Very interesting and it confirms my suspicions.
Moe
Yes, they are now the dealer in a game of poker we did not want to play.
Sheesh, Moe… if the muckety mucks at Countrywide hadn’t already thought of making themselves the biggest landlords of single family homes in the nation, then you just gave them the idea. Nice going.
- Paul
San Francisco Countrywide employees get a memo from Mozilo.
That’s a great picture, I love it! Thanks for letting me use it on my blog.
Excellent Article
Thanks for taking the time to say that! It is much appreciated.
I’m not buying it! These lenders who made a lot of loans they shouldn’t have are now paying the price. They are all losing an enormous amount of money and the last thing they want to do is accumulate REO properties. Most residential property values are going down not up so every day they own that property only adds to their loses. If you were faced with huge loses you too would be looking for ways to minimize them. Business isn’t all that easy in times like this for Mortgage Brokers or Real Estate Agents so many will quit and find other work. Believe me, it has very little to do with lenders like Countrywide and what they are doing with their REO properties. My experience suggests to me that within two years we’ll see many more new loan programs once again. And once again it will create more opportunity, leading to more people getting into the business. I have no idea what type of effort lenders are giving to loan workouts and modifications but you sure can bet that if it’s better for their bottom line to do so then they will. Contrary to what the Lenders may say or people may think, these companies are in business to make money and keep their shareholders happy, not keep borrowers in their home.
Why can’t you buy it? Most every loan that was originated by a lender was then sold to “investors”. The key here is “SOLD” When you sell, as you know, you no longer own that thing you sold. So most of these loans are now owned by “investors”. Are you following me here?
So lenders are losing yes, but it’s really investors are the ones losing big time. So why wouldn’t they want to work with people? Because these loans are insured sir. They get full face value if the borrower defaults. So why would an investor take less by working with a borrower when they can get their FULL investment by letting you foreclose and getting all their money.
What you said pretty much sums it up, ” Lenders may say or people may think, these companies are in business to make money and keep their shareholders happy, not keep borrowers in their home. “
They are in the business of making shareholder happy and shareholder want ALL their money, which they will get in the insurance policy.
polomurinureon 98 post
all about polomurinureon and top news
svirtokilo 39 post
all about svirtokilo and top news
plogonot 96 post
all about plogonot and top news
zzraabcu
zzraabcu
zzraabcu
zzraabcu
Buy 180 xanax 2mg.
Side effects of drug xanax. Xanax presciption. Xanax withdrawal symptoms. Buy xanax without prescription in usa. Cheap generic xanax 2mg bars. Xanax.
Carisoprodol.
Pharmacy online carisoprodol description price. Carisoprodol. Buy carisoprodol online lowest price guarantee.
Meridia diet index dietlist net.
Meridia forum. Meridia generic. Meridia. Meridia without prescriptions.
Method of action of ephedrine.
Ephedrine faq. Interactions between ephedrine and lexapro. Brewing your own ephedrine.