As mentioned earlier, Ollick confirms that according to rumors, the government is going to impose “some kind of 90 day foreclosure moratorium on the banks which would melt down the housing market.” – Zero Hedge
If you are a frequent reader of this blog or our Twitter stream, then you know my clear and unequivocal stance on the US real estate recovery – there isn’t one and, in fact, US real estate is headed for a crash of epic proportions. Forget the charts, data and expert analysis. At times like this, you simply need to rely on your Grandfather’s logic. Specifically:
- The people are out of money
- The people are underwater
- The sub-prime scam jig is up
- The banks are not lending money
- “Prime” neighborhoods are strewn with abandoned homes, squatters or perpetually delinquent owners
- Despite the propaganda, we all know that real estate shadow inventory dwarfs current inventory
- Despite the propaganda, Americans have no faith or hope of any “recovery”
… And now, perhaps the biggest bombshell of all …
- Title Undefined Mortgages. Translation? Nobody knows who truly holds the mortgages on millions of US homes.
- As a result, title insurers are refusing to insure mortgages in foreclosure or otherwise, uncertain as to who actually owns the title. Problem? Lenders won’t write mortgages without title insurance.
- Further problem? Investors that have been buying homes in hopes of catching the bottom are going to dry up overnight for fear of buying a foreclosed home whose title is undefined.
For a little further insight into the matter Watch The Full Video Below.
It’s terrible that real estate may come to this – but it was inevitable given the farcical game that Wall Street and the government have been playing with real estate. Most notably, by not forcing banks to mark-to-market the true value of their residential mortgages, the government artificially maintained a real estate market that was truly in need of playing the only card it had left – catharsis.
Well, we are about to learn that markets can only be artificially maintained for so long. Eventually, they break free and revert to their true pricing levels. US Real estate is about to go through a mean dose of reversion, while simultaneously providing gold with additional fuel for $2,200.