Most of you have probably seen this video regarding the “deal” that appears to have been struck by OneWest and the FDIC when OneWest purchased the assets of IndyMac last year.
Once you view the video, read the comments and the FDIC rebuttal you have to wonder what is the Federal Government thinking when it injects itself so heavily into what should be a FREE market system.
I don’t need to rehash the number of foreclosures that have occurred in the past two years or the number of projected foreclosures in the next couple of years. It has and looks like it will continue to be ugly.
In addition, almost every article written about the Government mortgage loan “modification” program suggests that it has been a dismal failure with very few homeowners actually having benefited from the program.
So, what does our Government do? Incentivize – read that as reward – at least one lender (OneWest)? If there is one, you know there are more. Should we spend time and money on a program that is helping too few and that has failed so many others? And, if that doesn’t work out once the overall losses pass a certain point, in OneWest’s case $2.5 Billion… the Government will then step in and make the bank not only ”whole” but help to ensure it profits as part of the bargain.
The consequences of all of this Government ”help” end up rewarding lenders for foreclosing and then reselling at a loss. How convenient!
What does this new found information mean to you as a real estate investor?
I wish I could read the tea leaves a little better… yet I will take a stab at a response.
Assuming that there is even an element of truth to the story in the above mentioned video, what this means to you and I is that the number of foreclosures is not going to stop, and yes we already knew that. But, now it appears that there is a true profit motive for lenders to continue the rate of foreclosures, regardless of what we hear in from the Government. And that means the supply of well priced properties, just what we as investors are looking for, will continue unabated.
Your job is to locate these great deals, take them down, execute your exit strategy and claim your profits!
Jump in and share your thoughts or further insight into the story this video tells.
Photo: kevincole
Related posts:
- BREAKING: IndyMac Bank is Shut Down and Taken Over by Feds
- IndyMac Bought for $13.9 Billion – A Fishy Deal If You Ask Me!
- TARP, PIPP, TALF, FRB, FDIC, EESA – An Expensive Alphabet
Article Author: Peter GiardiniPeter has written 81 articles for us.
Visit Peter's Website: http://www.theclubmastermind.com
Peter is an active and successful real estate investor in the Baltimore Maryland region for the past 8 years and is one of the founders of The Club Mastermind a real estate investing coaching program focused on local coaches helping investors to perfect their game.
Joshua Dorkin
{ 5 comments… read them below or add one }
My name is Bob Hertzog, and the video described in this story was taken from a blog I wrote in September/2009 titled “Is The FDIC Killing OneWest IndyMac Short Sales” on Active Rain. While I had no knowledge of the video being made, nor did I have anything to do with it’s production, I will say that the numbers portrayed in the video were actual numbers from a real transaction that took place with one of my clients and OneWest. There is much more to the story than what the video portrays in the original blog. To view the original, feel free to click on the following link: http://activerain.com/blogsview/1243528/is-the-fdic-killing-indymac-onewest-bank-short-sales-
Actually, there are 93 more lenders with loss share agreements currently in place with the FDIC. Click on the link below to learn more:
http://activerain.com/blogsview/1500915/having-trouble-getting-a-loan-modification-or-short-sale-approved-you-may-want-to-check-this-out
Bob…. let me first say that it would have been nice if the TBWS people credited their story to your blog… as it is clear that you ‘broke” the story over 5 months ago.
With that being said, I applaud your response… which demonstrates that you truly care about putting a stop to all of the crap the citizens of this country are being subjected to.
Keep up the good work!
Pete
This thing has not been exposed enough. The people of this country had better get their act together and start holding the greedy Bastards of this country responsible for their actions.
I will do my part on getting this information to as many people as possible
Great Job
Rich
This Just In…
LA Times just wrote an article on OneWest profit report, just released today… I just wrote a blog on it, as it dovetails nicely into what I’ve written before…
http://activerain.com/blogsview/1503768/onewest-bank-releases-their-first-year-profit-statement-1-6-billion-you-won-t-believe-this-one-
Enjoy!
Bob