This sounds Familiar

It looks like top executives from some big banks and the Fed having been pulling all nighters trying to get a package together to try and solve the credit crisis and prevent some of the horribly managed banks and investment firms from failing.

Midnight meetings to bail out banks so the whole market doesn’t crash, where I have seen that story before? Oh yeah that’s right it sounds exactly like the prologe to this book:

I read this book last summer when the mortgage issues started to make their way into the headlines and it has been amazing how that mess in the early 90s and the current mess parallel each other. This book is a quick read and I would recommend taking the time to read it if you haven’t already.

 

In other housing realted news I went and looked at some foreclosed properties this weekend and that was a lot differnt experience then the new construction properties I had been looking at. Some of the homes had just been neglected for a couple of months and it showed. 

There was more then a few that you could see someone intentionally damaged the house. They had thing like a hole taken out of the bathroom sink, door frames broken, a hole punched in the wall, and other things like that. I think it is ridiculous that people are doing that and they need to be held accountable when that happens. You should have know what you were getting into and it’s not the banks fault you couldn’t make you payments.

I found one that really liked in Ashburn, it’s in a great neighborhood and a great price compared to the houses around it, they are ~$400K but I have concerns that there may be some water damage.

Also the bank is trying to get everyone to rush into making offers, the listing went out on Friday and they want all of offers but the end of the day Monday.  Almost all foreclosures area “as is” and apparently with some the banks won’t let you do an inspection before making an offer. WTF is that about?

So I said no thanks to making an offer for Monday and if they don’t get offers they like and open it back up then I’ll take another look.

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One response to “This sounds Familiar

  1. Its like no one read the book or learned. They were using alot of the same reasons for leverage and the same models. As has been proven, those models work when the skies are blue, but when a storm comes, watch out! People need to look at the assumptions in the models!!

    Thats really weird that the Banks won’t even let you look at the house or get an independant inspection. I’d check with that county to see if that is legal, I thought many places had laws about inspections before sales.

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