Hedge funds are attacking banks for helping those who are facing foreclosure on their homes. The hedge funds say the banks might be acting like sleazy weasels, doing underhanded things, but hey, it takes one to know one. The hedge funds also say, apparently with a straight face, that they aren’t trying to force people out of their homes. Goodness no, why would forcing banks to foreclose be construed as forcing people out of their homes?
It might almost be amusing to watch this den of thieves attack each other were not it for the human and financial wreckage in their wake.
Here is a ground zero factoid for the argument. I am a So CA Real Estate Broker specializing in short/sale forclosure type homes. I have been dealing with 6 specific transactions with companies like countrywide,wells fargo, litton loan. These transactions have been under contract for more than 3 months at current market value offers. Buyers waiting to cash out delinquent loans. The banks are “reviewing” the files and extending the forclosure dates month after month. My speculation is banks are pushing back these forclosures and loss sales in an effort to “cook the books” and push the losses furthur into the future as to avoid investor pullout and ratings downgrades. What happens at the end of the line as these assets further decline in value while the bank waits to approve a sale. Right now 8 out of 10 transactions cancel while waiting for short sale approval because the good price of 60 days ago is no longer attractive to the buyer.