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Deckard

U.s. Banks Are Aggressively Getting Rid Of Properties On Their Books

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Home Prices Drop in Three-Fourths of U.S. Metropolitan Areas

May 10 (Bloomberg) -- Home prices fell in more than three- fourths of U.S. cities in the first quarter as foreclosures that sell at cut-rate prices devalued real estate.

The median price of a single-family home dropped in 118 metropolitan areas out of 153 cities measured, the National Association of Realtors said in a report today. The biggest decline was in Biloxi, Mississippi, followed by Akron, Ohio.

Real estate values are slumping as mounting foreclosures undermine prices. The share of homes sold in March that were distressed properties, meaning foreclosures or short sales, rose to 40 percent from 39 percent in February, the Realtors group said last month. There were 2.2 million homes in foreclosure in March, up 1.4 percent from a month earlier, according to Lender Processing Services Inc. in Jacksonville, Florida.

“There are a lot of foreclosures being dumped on the market at fire-sale prices, and there are a lot of foreclosures still in the pipeline,” said Patrick Newport, an economist with IHS Global Insight in Lexington, Massachusetts. “The banks don’t want to hold homes on their books, so they will sell for whatever they can get.

Exactly the opposite of what is happening in UK, Spain, Portugal et al, where houses are still marked to fantasy/hope on bank balance sheets.

Who do you think is going to come out of the woods sooner and in better conditions?

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The US banks/mortgage providers sold a lot of the mortgage backed securities to foreign markets so they dont really care what happens to house prices

You are missing the point. We are talking about houses that banks repossessed and now have on their books.

They want to be shot of them.

unlike Europe who bought alot of them.

Another reason why European banks are on the slipper slope.

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One massive problem the US banks have that the Europeans don't is that their securitisation process is a sham. Plain and simple. The europeans could ultimately shove it back down their throats.

But I don't think this is a US v Europe battle - the banks and governments are on the same side, fighting for survival against the people.

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The US banks/mortgage providers sold a lot of the mortgage backed securities to foreign markets so they dont really care what happens to house prices unlike Europe who bought alot of them.

There are a load of very rich and powerful 'pissed-off' (with Financial Londoners) Asians and Middle Easterners out there cos the City bankers passed a lot of it on to them as a sound AAA investment :o

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  • 312 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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