From: Subject: How BankLords make more money on foreclosures at the 7 year mark of mortgages and more on fraudulent Private Lords' Banking Monetary System
Listen to this video before: http://www.brasschecktv.com/page/761.html Banks and Government were ready to handle the 300,000 plus mortgage defaults that started trickling in since 2005. They were all in it together. It's the new Corporate/Government partnership to fleece the taxpayers as explained in this video. They are re-inventing government, trance-formation into Feudal Lords and Serfs..road to tyranny...taking over control of public assets...http://blip.tv/play/gdJHgbHXAQI http://www.framingtheworld.com/news2009.html Keep in mind that private banks are the only entity (i.e. not Government) who are allowed to "create" currency money from nothing, i.e. from mere accounting entries and they pass the liability to the taxpayers while taking in all the profits, i.e. bankers have not assets of their own or that they possess to lend you, they merely turn your promise to pay into a socialized promise to pay called THE DOLLAR. Even the bailout money that the bankers received from the Treasury had to be created by the bankers, i.e. the Government issued bonds to the bankers who then created the money on which the Government is paying interest to the bankers and which the Government gave back to the bankers as bailout money. And when bankers foreclose on a property, they get to create new money again from nothing for the next mortgage holder. Remember that there is always a floating amount of money in circulation on which there is no claim against the bankers. THE ENTIRE SYSTEM IS A FRAUD IN FAVOR OF THE BANK OWNERS.. 1. Foreclosure <http://selfsufficientfamily.com/2007/12/01/foreclosure-profit-idea-to-pay-o ff-your-debts/> Profit Idea To Pay Off Your Debts? at Self Sufficient Family Says: December 1st, 2007 at 5:45 pm <http://thecottageeconomist.com/your-finances/how-banks-make-more-money-on-f oreclosures-than-on-good-borrowers/#comment-20#comment-20> [.] "They" are saying 2008 will make 2007 look like the good ol' days when it comes to foreclosures. Of course, now we hear about some kind of deal to freeze mortgage rates. Meaning, I'm sure, that the banks will be able to put off the day of reckoning in a way that will maximize their profits. (See How banks make more money on foreclosures than on good borrowers. [.] How <http://thecottageeconomist.com/your-finances/how-banks-make-more-money-on-f oreclosures-than-on-good-borrowers/> banks make more money on foreclosures than on good borrowers. by The Cottage Economist @ 8:18 pm. Filed under Your Finances <http://thecottageeconomist.com/category/your-finances/> , Commercial Economics <http://thecottageeconomist.com/category/commercial-economics/> Most people, when applying for a 30 year loan, believe that the bank weighs their creditworthiness on if they can carry the note to term. In reality, the bank wants you to either move or default on the loan at about the seven year mark. Why the seven year mark? Because that's the zone of maximum profit for the bank. Mortgages are specifically structured to yield the most interest to the mortgage company in the beginning of the loan. By keeping the payment level over the life of the loan, you are paying mostly interest at the start of the loan, and mostly principal by the end of the loan. The banks risk to return ratio on the money that they've loaned you is richest at the start of the loan. But how is it that a bank makes money on a foreclosure? Banks make money on foreclosures when the following three conditions apply: 1) The loan is old enough to have made a decent profit in interest: At 6%, the bank will have made back 40% of the loan value in interest payments by the seven year mark. Not bad for "lending" something you never possessed and which you created from nothing as an accounting entry! This does not count the fact that they still have controlling interest in the property, which leads me to the second condition. 2) The loan is young enough to keep the paid off principal on the house within a narrow band of profit that locks out the bidders who would otherwise buy the property when it went to the foreclosure auction. When a property in foreclosure is put on auction "on the courthouse steps". the primary mortgage holder is only allowed to bid up to the remaining principal value of the loan. This helps to ensure that the bank does not take a loss, but also keeps the bank from reaping extra profits if the remaining loan balance is very low. At 6% interest, a 30 year loan will have only paid off 10.5% of the loan at the seven year mark, which is well away from the target resale profits that real estate investors shoot for. 3) The general value of the house has appreciated somewhat by the seven year mark. Once there is no higher bidder than the bank at the courthouse steps, the primary loan holder is given full ownership of the property, and can sell it at whatever amount the market will bear. The seven year mark will usually (but not always) satisfy the above three conditions. So let's look at the seven year profit rate for a $200,000 house at 6% interest that has a foreclosure just after the seven year mark: Interest over seven years is: $80,003 Equity paid off: $20,722 Market Appreciation: $20,000 (I'm using 10% over seven years as an example here.) --- Total Potential Profit: $120,725 (60% profit over seven years, but since the bank created the money from nothing, the profit rate is actually much more) Even counting the 3% real estate broker's cost to the seller and 1-2% in administrative costs, this is an enormous profit over seven years. Plus, the bank can reloan the money and start the process over as soon as the property is resold. If the bank goes through two cycles in 15 years, then they make 120% on their money in that time. Now let's look at the return if the loan was simply paid on time for 15 years. On a 30 year mortgage with 6% interest, the bank only makes a 79% profit. So what would you rather have? A 120% profit, or a 79% profit? (but since the bank created the money from nothing, the profit rate is actually much more) So why the strict lending standards? because banks want to make sure you get to at least the five year level before defaulting on your mortgage. Anywhere before that, and they run an increasing risk of losing money. And what of the lender with the foreclosure on his record? The banks have a place for him as well, just at a MUCH higher interest rate. Your average loan officer probably hasn't put much thought into this. Bad loans make them look bad. But it does explain how a bank or mortgage company can write so many bad loans and still flourish. -The Cottage Economist [link <http://thecottageeconomist.com/your-finances/how-banks-make-more-money-on-f oreclosures-than-on-good-borrowers/> ] Notes on the Fraudulent Banking Monetary System In Canada the monetary reform people are located at www.comer.org <http://www.comer.org/> . Everybody has different theories of how to solve the 'debt crisis' etc. And many of the reformers such as what was presented on the "Money Masters" video or the Gold Standard folks are usually off the mark. Things desperately need to be simplified in this area. Here's some basic observations: -since Canada's beginning in 1867 till today, it has paid off its national debt by a factor of 16 or more. So obviously we or any country don't need to pay more. Any schemes to do so are flawed, the debts just need to be written off. Obviously assassinations would ensue if this were attempted. -one of the main problems with Money is that it has to be paid back, returned to the bank, and taken out of circulation. That is because almost all money is created as a loan from a bank. All money is an illusion then, it is temporary, in circulation with a shelf life of the time of the loan repayment. And government gives banks the legal right to create this 'temporary' money. An article at http://thecottageeconomist.com/your-finances/how-banks-make-more-money-on-fo reclosures-than-on-good-borrowers/ explains how banks really make their money, it's not on the returned principal, which they aren't allowed to keep. If our government wiped out it's debts and then created say $100,000 to give out to every citizen with the proviso that it didn't have to be paid back - that's an example of how the economy could get a solid money supply. Lincoln's greenbacks were a similar idea. All other monetary reform schemes that don't address the fact that money is created with a limited lifespan miss the point (debt should also have a corresponding limited lifespan as well). You either have Permanent money (created by the Treasury, or Gold/Silver - poor choices) or Temporary money (current system). But to have permanent debt in either system is just a complete (Satanic) joke. How many reformers have figured out this point? *** exposing the hidden truth for further educational research only *** CAVEAT LECTOR *** In accordance with Title 17 U.S.C. Section 107, this material is distributed without profit to those who have expressed a prior interest in receiving the included information for research and educational purposes. NOTE: Some links may require cut and paste into your Internet Browser. Please check for daily real news posts and support the truth! (sorry but don't have time to email all posts) at <http://tinyurl.com/33c9yr> http://tinyurl.com/33c9yr or <http://groups.google.com/group/total_truth_sciences/topics?gvc=2> http://groups.google.com/group/total_truth_sciences/topics?gvc=2 ; You can also subscribe to the multiple daily emails by sending an email to <mailto:[email protected]> [email protected] ; free book download: <http://www.lulu.com/content/165077> http://www.lulu.com/content/165077 *** Revealing the hidden Truth For Educational & Further Research Purposes only. *** NOTICE: Due to Presidential Executive Orders, the National Security Agency (NSA) may have read emails without warning, warrant, or notice. They may do this without any judicial or legislative oversight. You have no recourse, nor protection.......... IF anyone other than the addressee of this e-mail is reading it, you are in violation of the 1st & 4th Amendments to the Constitution of the United States. Patriot Act 5 & H.R. 1955 Disclaimer Notice: This post & all my past & future posts represent parody & satire & are all intended for entertainment and amusement only. To be removed from the weekly list, please reply with the subject line "REMOVE"
-- You received this message because you are subscribed to the Google Groups "total_truth_sciences" group. To unsubscribe from this group, send email to [email protected] For more options, visit this group at http://groups.google.com/group/total_truth_sciences
