Profit from banks Big Killing Real Estate Values

Profit from banks Big Killing Real Estate Values Everyone is now aware of the slow housing and the fact that many people lose their homes. However, this is another segment of the housing market, rarely spoke, but it is also the current situation. And the banks - all"is " - and "greatly benefited" the creation of "down" - are still eligible GREAT! First, let's on the owners. In 1990's, a gold mine of banks in custody ... loans from the capital. Launched a marketing program to encourage people with their money (savings) from their homes and spending. It is recommended that the owners' money for anything you want - vacations, home improvements, college enrollment, the new car, that'. Banks, then the evaluation at home on the home's, the actual value of the loan up to 125% Origin ' s value. This meant that people no longer, the savings in their countries of origin - they are full value of the house at that time. Who didn't take the money to spend and it is considered stupid - on credit cards or payment of interest on something else, if the money in their country of origin, which might emerge. People from their homes as an ATM. At any time, you have bills too high, you can refinance and money, or borrowed from a loan. While most of them with interest and costs? Banks. Who has more money from these funds? Yes, banks. Homeowners and not't worry about the fees payable to banks or closing costs. The only thing I saw, Big Fat Money, which could turn and go - as if the lottery. That large benefits? Banks. There have been good and home values continued to grow, another segment of the housing market developed. In times of prosperity, people of normal investors to buy homes and provide rental housing. This is a clever way to save taxes and for those who can not buy his own house, a nice place to live for a monthly rent. Another advantage is, of course, is the recognition on the ground and helping someone else, you pay the mortgage on the loan. The problem was that a lot of money to invest, he came home equity loan, so their main goal of their homes. Banks simplified "second mortgage", with high prices, of course, and added advance disproportionate costs and penalties to ensure that a high gain, regardless of the length of the loan and second mortgage, you can buy 2nd or 3 or 4 house or apartment with very little after. But if the stock market fell and recovery has never lost money for the man he rents and leads to losing their homes because the home equity loan, we are talking about before. The only guaranteed not to make money? banks. Now that people have exhausted all their savings in their homes, and they need more than the house was sold for many owners, the location of the house back to the bank ... Subdivision. Foreclosure as far as l'a small percentage of the total market. Because this is a low, banks may be"dump " to the homes of half of what the actual value. This reduced the market price for other houses for sale. It's Peanut banks, but on the other house, which sell for whatever reason - it ' s devastating. Worse yet, if the crisis were taken, the government argues that the programs save? Banks!