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Banks Withholding Huge Inventories Of Repossessed Houses From Market

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Peter Schiff's view on the latest Jim Cramer claim that the banks are gonna make windfall profits and thus save themselves by withholding huge numbers of homes from the market, to prevent increased price falls.

12 mins 46 seconds in.

PeterSchiff-07-01-2009.mp3

There's loads out there on this. But here's just one link to a report quoting Realty Trac's Rick Sharga.

The San Francisco Chronicle (from April 2009)

'"We believe there are in the neighborhood of 600,000 properties nationwide that banks have repossessed but not put on the market," said Rick Sharga, vice president of RealtyTrac' Rick Sharga

What makes me think the UK banks are doing this exact same thing?

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Peter Schiff's view on the latest Jim Cramer claim that the banks are gonna make windfall profits and thus save themselves by withholding huge numbers of homes from the market, to prevent increased price falls.

12 mins 46 seconds in.

PeterSchiff-07-01-2009.mp3

There's loads out there on this. But here's just one link to a report quoting Realty Trac's Rick Sharga.

The San Francisco Chronicle (from April 2009)

'"We believe there are in the neighborhood of 600,000 properties nationwide that banks have repossessed but not put on the market," said Rick Sharga, vice president of RealtyTrac' Rick Sharga

What makes me think the UK banks are doing this exact same thing?

On our road there is a repo - we offered on it at a very realistic level in August 2008 - 10% more than its actual last sale price in 2005. Anyway agent thought offer was very reasonable but bank (HBOS) not selling. They have reduced the price a bit, but still 10% higher than what we offered, and will not accept any lower offers!

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On our road there is a repo - we offered on it at a very realistic level in August 2008 - 10% more than its actual last sale price in 2005. Anyway agent thought offer was very reasonable but bank (HBOS) not selling. They have reduced the price a bit, but still 10% higher than what we offered, and will not accept any lower offers!

Yep. I bet that kinda thing is going on everywhere. Houses sitting empty all over the place.

I have an awful feeling the Banks are going to create their own "bank made 'shortage of supply'" to prop up the prices.

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My landlord was repossessed and we are living in the house as the bank says it is happy to keep us as tenants. Next door was also owned by the same landlord and this has been empty for 16 months and is for sale priced at £35,000 over the selling price of others in the street.

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Well then the obvious solution is organised squatting.

It's gotta come. All my generation will be squatters soon.

No jobs, no home + thousands of empty properties = squatting.

My landlord was repossessed and we are living in the house as the bank says it is happy to keep us as tenants. Next door was also owned by the same landlord and this has been empty for 16 months and is for sale priced at £35,000 over the selling price of others in the street.

What on earth do the banks think is gonna happen? 16 months! Surely houses like that are gonna be faling into disrepair. Who's mowing the lawn? how does the place look?

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It's gotta come. All my generation will be squatters soon.

No jobs, no home + thousands of empty properties = squatting.

What on earth do the banks think is gonna happen? 16 months! Surely houses like that are gonna be faling into disrepair. Who's mowing the lawn? how does the place look?

blame it on the tories

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It's gotta come. All my generation will be squatters soon.

No jobs, no home + thousands of empty properties = squatting.

What on earth do the banks think is gonna happen? 16 months! Surely houses like that are gonna be faling into disrepair. Who's mowing the lawn? how does the place look?

I mow the lawn, the place is looking OK as it was a new build so little to go wrong and really Im happy we have nobody next door as we can use their driveway sometimes.

Not sure what the bank wants, I can only see prices dipping further. We are hoping to buy our for around £180,000 (original price was £360,000). Next door is up for £225,000 and was originally sold for £279,500.

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I mow the lawn, the place is looking OK as it was a new build so little to go wrong and really Im happy we have nobody next door as we can use their driveway sometimes.

Not sure what the bank wants, I can only see prices dipping further. We are hoping to buy our for around £180,000 (original price was £360,000). Next door is up for £225,000 and was originally sold for £279,500.

I hope to hell the bank is paying you to mow the lawn?

And have you asked for a reduction in your rent, considering there's obviously not enough demand to rent next door out? I would.

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I hope to hell the bank is paying you to mow the lawn?

And have you asked for a reduction in your rent, considering there's obviously not enough demand to rent next door out? I would.

We had a fantastic weed growing next door which got to around 9 foot tall. I went and strimmed and cut the lot down. Have only done the mowing once in 16 months so not sure Ill submit my invoice to the bank just yet :)

We have toyed with a reduction but we are paying £895 for a 6 bedroom, 5 bathroom house in a lovely village with fantastic views and Im not one for rocking the boat.

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What makes me think the UK banks are doing this exact same thing?

I thought someone posted on here that the banks where just letting the arrears mount up rather than repossess for exactly this reason.

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Five bathrooms??!! Is that a little excessive, do you think?

It probably is since there is only my wife and our son living here.

Means you never have to queue though.

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I have an awful feeling the Banks are going to create their own "bank made 'shortage of supply'" to prop up the prices.

In order for that to happen, we'd need to see a lot of repos, and under such conditions all the market fiddling in the world wouldn't hold prices up.

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I thought someone posted on here that the banks where just letting the arrears mount up rather than repossess for exactly this reason.

True.

So if I had a mortgage, I'd really be better off not paying, and let the banks eat it while I live there free.

Suppose it avoids bankers having to go round mowing lawns!

Sir-Fred-Goodwin-001.jpg

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In order for that to happen, we'd need to see a lot of repos, and under such conditions all the market fiddling in the world wouldn't hold prices up.

You're probably right.

But as another poster said, if they're going easy on people struggling to keep up payments on their mortgages, they're essentially just using the "homeowner" as a way of keeping their properties maintained for free. Knowing full well those homeowners are maintaining a house they will never actually own.

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Yep. I bet that kinda thing is going on everywhere. Houses sitting empty all over the place.

I have an awful feeling the Banks are going to create their own "bank made 'shortage of supply'" to prop up the prices.

We need a Uk version of this lot then as it's such severe market manipulation :unsure:

http://www.housepricecrash.co.uk/forum/ind...howtopic=118861

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lets see the rule on empty homes come into force

Wish I could find an old post I made on this subject. Bottom line-my own company has been living rent free in Florida for twelve months. LL went bust-bank repo'd and said we could live there providing we didn't trash it and mowed the loan, kept the utilities on etc. Savings to date-$14,400. They have offered us for $120,000 (sold for $280,000 originally). We can't be tied to one area but the price is"just" OK. We might be tempted otherwise. BTW its a four bedder, 3 bathroom, near Disney with a pool, air con the lot. This is one crazy world but there are some good stories out there.

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Wish I could find an old post I made on this subject. Bottom line-my own company has been living rent free in Florida for twelve months. LL went bust-bank repo'd and said we could live there providing we didn't trash it and mowed the loan, kept the utilities on etc. Savings to date-$14,400. They have offered us for $120,000 (sold for $280,000 originally). We can't be tied to one area but the price is"just" OK. We might be tempted otherwise. BTW its a four bedder, 3 bathroom, near Disney with a pool, air con the lot. This is one crazy world but there are some good stories out there.

Like it!

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lets see the rule on empty homes come into force

Yep its annoying but in the mean time these properties belong to the bank.

We are all entitled to keep things we own if we want to, last time I looked....

Restricting supply can be very profitable. Ask De Beers.

Not sure about houses possessed by the banks now in public ownership though. I s'pose they should do whatever gives the taxpayer the best return....

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Wish I could find an old post I made on this subject. Bottom line-my own company has been living rent free in Florida for twelve months. LL went bust-bank repo'd and said we could live there providing we didn't trash it and mowed the loan, kept the utilities on etc. Savings to date-$14,400. They have offered us for $120,000 (sold for $280,000 originally). We can't be tied to one area but the price is"just" OK. We might be tempted otherwise. BTW its a four bedder, 3 bathroom, near Disney with a pool, air con the lot. This is one crazy world but there are some good stories out there.

If we hadn't bailed out the banks both here in the UK, and the US. They simply couldn't do all this.

Good luck to you, you're one of the few thats winning out of all this.

But its really the collapse of all sanity in the markets of the world. Epic times we live in.

Edited by Khayl

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Yep its annoying but in the mean time these properties belong to the bank.

We are all entitled to keep things we own if we want to, last time I looked....

Restricting supply can be very profitable. Ask De Beers.

Not sure about houses possessed by the banks now in public ownership though. I s'pose they should do whatever gives the taxpayer the best return....

:lol::lol::lol::lol:

Banks or governments acting in taxpayers interests. When did that last happen?

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I met a chap today who manages repossessed properties for the banks.

He mentioned that recently the number of BTL repossessions was announced by and industry organisation for that month, and that in the very same month he had had more than that passed to him to manage alone...

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Yep its annoying but in the mean time these properties belong to the bank.

We are all entitled to keep things we own if we want to, last time I looked....

I'm not sure that's true.

In the UK, the borrower is responsible for paying the loan, so the bank is (technically) not taking the loss, the re-possessed person is. Obviously most people would benefit from just going bankrupt, so banks would lose out. But the bank has an obligation to get the best possible price it can for the property.

If they're holding onto loads of property during a period of falling prices, allowing them to fall into disrepair and become vandalised or squatted, they're very clearly not doing that.

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