Usually when you do not understand something it is for 1 of three reasons.
1 You cannot comprehend what is going on.
2 The situation makes no sense
3 You are missing part of the information.
In the case of the "bail out" I have been turning over things that I do not understand. Today listening to this all while I work I have come up with number 3, the missing piece.
What I didn't understand, and this is something that has been blogged about is, Why is it taking so long to get short sale approvals and foreclosure offers approved ? I have one where we are going in on a short sale at 85 percent of asking. I have seen some at 95 even 100 percent of asking that have taken a while to approve. Or in some cases not approve. I have seen foreclosure deals where the buyer was willing to do the mortgage with the lender and would have, in these types of cases, made the lenders money. But many of these deals were not accepted.
Now I ask myself, if I am drowning and somebody is throwing me a life preserver do I not take it and tell them I am waiting for a boat? No ! Not unless I see the boat on the horizon. The boat is the bail out.
Listen to the talk. ALREADY THEY ARE DEBATING AT WHAT PRICE THESE SECURITIES ARE GOING TO BE BOUGHT AT. Bernacke even said depending on the regulations some institutions might choose not to participate!!!! What you are drowning and don't take the raft. This is being fleshed out today and yesterday. No wonder the BIG guys tried to rush this through.
So now I understand. The big boys are waiting for Uncle Sam to save them. The fact that a first time buyer could get into the market doesn't mean anything . They want more!!! I sincerely hope Congress sees through this for what it is. I hope we get some type of package with very very strict oversight and something that causes the makers of the pain as much pain as they have caused.
