Occupy Atlanta shifts aim toward home foreclosures

Now that it doesn’t have to worry where it will spend the night, Occupy Atlanta apparently has decided that it’s time to focus.

The group attempted to shout down Fulton County’s courthouse-step auctions of seized property today. From Channel 2 Action News:

- By Jim Galloway, Political Insider

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31 comments Add your comment

findog

November 1st, 2011
2:29 pm

Court step sales are a joke
Either you come up and pay your note or the bank takes it

Centrist

November 1st, 2011
2:38 pm

Did they stop anyone from bidding on foreclosed properties or tax sales?

SAWB

November 1st, 2011
2:44 pm

So, my understanding is that the recent increase in foreclosures was the result of people financing more house than they could afford. Yes, the banks and the Federal government encourage this behavior, but no one made them sign the loan documents. In a way it sounds like many of these “victims” were not victimized by banks, but by their own personal greed.

DD

November 1st, 2011
3:10 pm

Court-house sales of real property NEVER get fair market value. The only individuals allowed to bid are people that can bring the price of the bid in cash or cashier’s checks to the foreclosure sale–this eliminates 99% of the buyers right off the bat. In Florida, foreclosures are listed online and bidding is allowed to occur over at least a month. That also allows prospective purchasers to obtain financing.

This process needs real reform.

Eli

November 1st, 2011
3:10 pm

SAWB,

So your approach and attitude about the housing market bubble and its crash is that we should let the confidence men off the hook because their scam was just that good.

Southern Comfort

November 1st, 2011
3:12 pm

So, my understanding is that the recent increase in foreclosures was the result of people financing more house than they could afford.

A cursory google search of the term cause of recent foreclosures returned a vast array of articles that touched on that subject, but I didn’t read any from the first page that came to that conclusion.

For example, from the Wall Street Journal:

What is really behind the mushrooming rate of mortgage foreclosures since 2007? The evidence from a huge national database containing millions of individual loans strongly suggests that the single most important factor is whether the homeowner has negative equity in a house — that is, the balance of the mortgage is greater than the value of the house. This means that most government policies being discussed to remedy woes in the housing market are misdirected.

Many policy makers and ordinary people blame the rise of foreclosures squarely on subprime mortgage lenders who presumably misled borrowers into taking out complex loans at low initial interest rates. Those hapless individuals were then supposedly unable to make the higher monthly payments when their mortgage rates reset upwards.

But the focus on subprimes ignores the widely available industry facts (reported by the Mortgage Bankers Association) that 51% of all foreclosed homes had prime loans, not subprime, and that the foreclosure rate for prime loans grew by 488% compared to a growth rate of 200% for subprime foreclosures. (These percentages are based on the period since the steep ascent in foreclosures began — the third quarter of 2006 — during which more than 4.3 million homes went into foreclosure.)

Sharing the blame in the popular imagination are other loans where lenders were largely at fault — such as “liar loans,” where lenders never attempted to validate a borrower’s income or assets.

This common narrative also appears to be wrong, a conclusion that is based on my analysis of loan-level data from McDash Analytics, a component of Lender Processing Services Inc. It is the largest loan-level data source available, covering more than 30 million mortgages.

Don’t get me wrong, I know there were many who bought more than they could afford to pay for. However, when looking at the totality of the circumstances, I think their numbers pale in comparison with the number of people who’s foreclosures were caused by loss of employment, bankruptcy due to overwhelming bills, and those who just walked away when their mortgages went underwater. There’s an article put out by the New York Times that showed that a large percentage of foreclosures, at one point, were actually million dollar homes where the owner just walked away.

SAWB

November 1st, 2011
3:35 pm

As I said I believe the Government and the banks conspired to come up with a plan to put as many people as possible in homes. While the initial idea may have been good the reality of the situation was that to do this they had to come up with some “creative” financial tools.

However, the point I was making is that individuals are responsible for making sure they can afford the house. Just because you can barely make the monthly note does not me you can afford the house. Eventually you will need a roof, furnace, water heater, etc. and what happens then? Also, everyone should have enough money set aside to cover expenses in case of a job loss. I have purchased one home and I had an attorney and an accountant review all the documents with me so I thoroughly understood the terms.

I am not unsympathetic to folks who have lost a home, but feel that in many cases they must take some of the responsibility. Also, some of these programs that resulted in these sub-prime loans, whether instituted by the banks or the Federal Government, were part of the problem. We need to learn our lesson and let the market determine who can and cannot afford to buy a home. When we try to “game” the system regardless of our motives we end up in trouble.

girl six

November 1st, 2011
3:38 pm

preach SAWB!

girl six

November 1st, 2011
3:39 pm

and now back to the subject at hand: am totally over the occupy crowd.

Centrist

November 1st, 2011
3:39 pm

Good news for the Atlanta high schoolers/families that their public schools don’t lose their accreditation. Not sure if this was deserved, a gift, or political solution. At least some of the more egregious failings have been exposed and might be addressed. Let’s hope so.

Don't Tread

November 1st, 2011
3:43 pm

Occupy Atlanta needs to “occupy” a swamp somewhere.

Isn’t there a homeless shelter being foreclosed on somewhere that they can protest? Oh, wait, it’s the same one many of THEM are staying in. I guess picketing in front of “where they be staying” doesn’t have the same effect.

DannyX

November 1st, 2011
3:45 pm

Just remember folks…

Countrywide is on your side

Southern Comfort

November 1st, 2011
3:50 pm

Also, some of these programs that resulted in these sub-prime loans, whether instituted by the banks or the Federal Government, were part of the problem.

Chalk it up to the unintended consequences of decisions made by people who thought they were doing good. Situations where you cut regulations leads to people gaming the system, whether it’s the business or the customer. That’s why regulation is needed in this country, not over-regulation, not under-regulation, but sensible regulation. There’s probably 99.5% of the people who will do right without the need for regulation, but all it takes sometimes is that .5% to completely screw the system up for everybody else.

I’m no champion of regulating the crap out of any and everything, but knowing that some people will always try to get away with anything they can, I’d rather be somewhat protected than just left to fend for myself with nobody else looking out for my interests at all.

Jack

November 1st, 2011
3:53 pm

SAWB has it right. Greed is culprit. Most of the failed mortgages were caused by buyers who had no intention of paying the notes.

td

November 1st, 2011
3:57 pm

When I went to the bank about 10 years ago to get pre approved for a house loan, I was told I could afford and would be approved for a house loan at twice the money I thought I could afford. I stood by the rule that you never pay more than 25% of your net pay in a house payment each month. My house is currently upside down but I am not walking away from it like a great deal of these people are. The market will come back one day once the current surplus inventory and the foreclosures are reduced. Right now is a great time to buy for young people wanting a foreclosure.

People should take the responsibility for their actions. The only people I feel sorry for are the ones that bought the houses they could afford, did everything right, lost their jobs and now can not afford the house. That may be 20 to 30% and if we can do something for them then it is good but for the rest they need to take responsibility for their own actions.

girl six

November 1st, 2011
4:08 pm

is that jaime fox??? and why? and no, i am not watching that dang video clip

John

November 1st, 2011
4:10 pm

SAWB @2:44, Do you take that same position with all scam artist who prey on other, especially the vulnerable such as the elderly. No one made them give away their money, for example to pay the taxes up front on their lottery winnings. In a way it sounds like many of these “victims” were not victimized by the scam artist, but by their own personal greed.

findog

November 1st, 2011
4:24 pm

td, same here
Half the homes in my modest neighborhood had cycled through foreclosure
Then when you get “business channel hosts” advising people in our predicament to walk away from their homes it just mushrooms
I was raised to pay what I owe, where these people learned to walk away from their obligations I will never understand

joan

November 1st, 2011
4:24 pm

Folks, remember a couple things:

– By securitizing bundles of mortgages, selling them quickly and getting them rated higher than they should have been, lenders created a SYSTEM that gave mortgage originators huge incentives to push mortgages on anyone, regardless of whether they could repay – since the consequences of default would be borne by the investors (deceived by misleading ratings), not the originator. Without this system, there’s no way the banking industry could/would have made so many bad loans.

– The incorrectly rated mortgage-backed securities were then used as collateral for various wacky sorts of derivatives, many of which amount to no more than gambling (or, worse, buying fire insurance on someone else’s house). It was THIS excess leverage that caused the near-collapse of the banking system and necessitated bailouts.

So, the mortgage/banking industry created a sleazy con game, both borrowers and secondary mortgage investors fell for it, then said investors gambled with their share of the money and nearly brought down our banking system when the original con game was revealed.

Yell at the borrowers all you want – they played a relatively small, uninformed role – the SYSTEM that made all of this possible still exists. Nothing has been done to address deceptive securities ratings or to put a stop to the toxic risk-spreading gambling-like derivatives that made the banks so weak. Why not? Why would we not immediately move to prevent deceptive and risky behavior that made the whole thing possible?

Skip

November 1st, 2011
4:29 pm

I’m sure 15 million losing their jobs had nothing to do with forclosures.

Jase

November 1st, 2011
4:44 pm

Joan wins the prize.

double

November 1st, 2011
4:49 pm

Happy my trailer is paid for.For the ones flipping I have no sympathy.Legitimate I hope something is worked out so they can pay.

Centrist

November 1st, 2011
4:49 pm

Here are some interesting facts from today’s New York Times:

“The economists Jon Bakija, Adam Cole and Bradley Heim have done the most authoritative research on who these top 1 percenters are.

Roughly 31 percent started or manage nonfinancial businesses. About 16 percent are doctors, 14 percent are in finance, 8 percent are lawyers, 5 percent are engineers and about 2 percent are in sports, entertainment or the media.”

Putting this in perspective it is these top 1% who pay 38% of all income taxes collected while earning 19% of all income (over $380K). This is a greater share of the burden than the bottom 90 percent combined earning under $100,000.

It is the The top .02% of incomes (300,000 Americans) who make more than a million a year, and the top .01% who make over $2 million a year and are often referred to as the “mega-rich”.

Those “Occupy” folks are legitimately protesting about a very small segment of society which contributes lots of money to both political parties. But the class warfare Democrats have reached down to include small business owners and professionals – because that is class envy populism and where there are a lot more tax dollars.

Jake

November 1st, 2011
4:55 pm

I’m with Jack and SWAB. Ten years ago my bank pre-approved me for a home loan that I knew would come back to bite me . . .did the same for a few of my friends. I knew what I could afford and I didn’t fall for the hype. I still have my home and they don’t. I saw this coming . . .

Jackie

November 1st, 2011
5:00 pm

The housing crisis was caused by people who should have never bought a home coming into the market, driving up up prices, fostering a bubble. When the bubble of home prices burst ( starting with subprime mortages) the result was falling home prices. Obama’s lackluster recovery has greatly complicated the problem with stubbornly high unemployment which feeds foreclosures.

Lots of people have been foreclosed on but almost none of them had any equity in the home they lost. This has not been a case of people losing their equity because they can’t keep up the payments.

Banks certainly relaxed lending standards too much. They were pressured to do so by the government and by extortion/pressure groups like PUSH. Of course they make money securitizing and selling loans.

Hard for me to make the Bank the primary villan in the story.

Georgia Donkey

November 1st, 2011
5:12 pm

How about if youre in the foreclosure business & you lose your job? The banks have no clue what theyre doing!

td

November 1st, 2011
5:29 pm

Jackie

November 1st, 2011
5:00 pm

The banks relaxed the standards due to the “Community reinvestment act” passed by Congress. Once this act was passed then “community groups” started going to banks and telling them they had to make these loans to their constituents or else. Both parties are to blame but in 2006 the Bush administration came before congress and said there were problems and the Congress needed to pass stricter laws and they were laughed out of Congress by Barney Frank and Chris Dodd.

Taquila

November 1st, 2011
5:49 pm

I have no debt at all, no mortgage or credit card debt, nothing. Don’t owe a cent to anyone. That makes sleeping @ night much easier.

People who are in foreclosure usually don’t pay their other bills either – they’re just chronic delinquents. I love listening to them whine about how tough life is but they always manage to find $ for cigarettes, beer, SuperSize meals @ McDonalds and vacations to DisneyWorld. If you pay your bills on time consider yourself among the elite, you can enjoy looking down your nose with total disdain at the deadbeats.

Alabama Communist

November 1st, 2011
6:10 pm

More Breaking News On Occupy Atlanta shuting down Fulton County Foreclosure Sales On CourtHouse Steps………….A Atlanta Occupy source said today “they were not going to stop the Foreclosure Sale by Wall Street on Herman Cain Brain..It’s empty, cheap and a eyesore to the Greedy Porn Wall Street sites selling his legal sexual abuse papers to the public.”

Frederick Douglass

November 2nd, 2011
10:43 am

Taquila @ 5:49

Right on to your comments, but you should’ve included the cell phones replete with all the bells and whistles.