Hamp Thomas does it again. Brilliant. ‘We tried to work with them…”

Here’s an in depth overview of what is going on and why the rug is getting pulled (and was always going to get pulled):

https://www.strongtowns.org/journal/2020/8/28/the-growth-ponzi-scheme-a-crash-course

And related “PROPERTY TAX: Death of Homeownership & Small Business”:

That’s the mechanism which causes markets to rise. Cash contribution. The next person is willing to pay more for the same thing, they outbid, and set a new valuation benchmark, via their price offering.

The problem begins with the surplus of artificial fiat money. There are a lot more dollars floating around, but not as much value in them. When the availability of surplus excess money turns down, then price and value are supposed to adjust in unison downward via price discovery. Due to the artificial mechanisms set in place to install a central control of the markets, price and value may no longer be well aligned through the adjustment process. That is referred to as an artificial pricing prop of the markets. Overvalued markets with consistently high prices.

One could also consider that some measure of market rise is attributed purely to inflationary policy. Which is why it’s confusing to people, they know there must be some permanent rise due to ongoing federal reserve policy of prosperity through debt and target currency devaluation, they can not understand why the effects are so severe, constantly outpacing their actual affordability index, cost of living wage increases.

In the context of this article, the gse’s loose policies causes an even stronger acceleration, one which is unsustainable. We’re left with a situation where people continue to move into the market at artificially high levels,. Then high level of defaults which although managed to some degree with ‘reperforming loan’ type restructuring accommodations, affordability is never in proper alignment with general economic conditions. It just appears there is fair alignment for a short time when the rates dip, people jump back in, qualify and buy, then get immediately outpaced by inflation, with no way out when the rates come back up. In other words, an artificially propped market with excess risk, causing more losses in the future. Why doesn’t the market price structure respond to the losses? Investors zip up the defaults upstream, regular financed buyers and small scale individual investors simply can not compete. That or the lenders hold them in debt traps with loan modifications.

Taxes is but one aspect of this activity, often much easier for most to recognize as it’s straight forward and less complex. There it is, a higher tax fee, hundreds if not thousands a year in higher bills. Such ticks away at peoples affordability. What we’re seeing in some markets now is that no measure of loan restructuring will hold as many people in the system. Unless there is a principal write down, people are walking. When they bought these properties they never expected to to tick out many extra hundreds every month for additional taxes and insurance. The failure of the central control automated approach is they can’t continue to prop markets if nobody is willing to buy, an increasing quantity of people want or need out. There is always a certain portion of persons whom are simply not good money managers, they predictably go into debt. When they’re into mortgage loans, that’s exactly where those whom exploit financial hardship want them to be.

On the back end investors are getting exactly what they want, ready first purchasing access to defaulted property holdings. They’re at the auction block buying up almost everything, except the most recent very high ltv properties. But if the units are ready to go without much needed effort, even the speculators will pay over market for them to hold as long term investments. There is a new game of systematically placing corporate level money, into residential level housing. The centralized automated systems using check and balance exceptions and exemptions make this possible.

Otherwise there would be valid price discovery, markets would deflate much more than they are now, discounted purchase opportunities would be available to citizens through traditional reo asset management listings. Investors would not be drawn to put this much into residential housing because long term collaterization is not there, the risky practices would leave residential as too volatile of a market. If not for the gse’s centralized systems which feed them first purchase opportunities, updated operating policies which hinder fair price discovery.

The money is safe, for investors. The citizens, debt traps for life or walk away and rent instead, because these corporations are not selling very often. They sell to balance their portfolios only when necessary and do not operate in residential housing under similar constraints or market conditions as a regular citizen single family person would. They do not mind renters whom trash properties then are sacked with incredible debt, that’s a beneficial write off set against their primary corporate business interests. They do not care if there is affordability issues, or more defaults, that just means more residential housing opportunity for them. Incrementally, one property at a time to corporate investors, that’s where the available purchase opportunities went, where the ‘generational wealth’ now flows, why there is a building affordability and availability of housing crisis, excessive rent structures, loss of property interest mobility for regular people.

Brought to you by; GSE’s appraisal modernization and lending modernization programs! Now with guaranteed taxpayer backing despite pending privatization! (seeing how this works yet?)

What metro coastal market?

You must be a tax appraiser.

When you have appraisers who coach/sell systems and say they can do 4 to 9 appraisals a day, its no wonder that “data cancer” is a real thing.

Seek the truth.

https://appraisersblogs.com/uncovering-flaws-in-fha-appraisal-n-loan-review-process/