Banks Outbidding Private Equity Funds at Foreclosures, Believing They Can Beat Them at the Pump and Dump Game


Banks Outbidding Private Equity Funds at Foreclosures, Believing They Can Beat Them at the Pump and Dump Game

It’s conventional to deem local journalism to be dead, but Josh Salman at the Sarasota Herald-Tribune has written well-researched investigative story on bank bidding at foreclosures in his neck of the woods, Big lenders bidding to keep homes, that has national implications.

Here’s the overview:

Banking giants from Wells Fargo to Fannie Mae are routinely paying top dollar on the auction steps to hold onto their own distressed properties, outbidding cash offers and paying well above assessed value, according to a review of thousands of Southwest Florida auction purchases.

They are speculating that the properties will appreciate even more in the next couple of years.

The article does not indicate whether the “banking giants” like Wells Fargo are only bidding on properties where the bank owns the loan or serviced loan for private label (non-Fannie and Freddie investors). We’ll assume only the former. It’s ugly enough that way; if the banks are doubling down by deciding to buy homes that they were formerly only servicing (as in simply acting as an agent), this practice goes from typical bank lemming-like behavior to affirmatively deranged.

Rest here…


4 Responses to “Banks Outbidding Private Equity Funds at Foreclosures, Believing They Can Beat Them at the Pump and Dump Game”
  1. Mark says:

    It’s a sad excuse to use as a Judge to say that by ruling in favor of a homeowner he’s going to create havoc on the bankers financials; so his hands are tied and therefore must side with the bank.

  2. marilyn lane says:

    After Hillary’s unsuccessful bid for president the Clintons stayed at Thomas Lees house in the Hamptons. Thomas Lee of Equity partners funded William Foley of Fidelity’s buy back of lps Docx. interesting.

  3. Yode says:

    Nice Article which misses the point. The banksters are attempting (and succeeding) in fudging reality through manipulating the market in order to increase the (paper) value of the assets they hold.(The homes they have stolen) The Fed gives them all the help they need to do with this by providing the banksters with free money, and your government “regulators” allow this rigging to go unabated (not that the “Ho” would allow them to be prosecuted anyway). If you have been paying attention, there are mounting pressures for these criminal enterprises to reduce their bloated leverage by increasing reserves, even in the pretty much neutered Dodd-Frank Legislation. What better way to do this than by simply making what you have more valuable? (or at least making it seem so) All this crap would end if Glass-Stegall were to be reinstated, these criminal empires would be forced into admitting to the reality of their insolvency, derivitaves would be exposed for the empty, equity sucking creations they are and these criminal bastages who created them would be on the run. Demand your Congress and Senate people support the return of Glass-Stegall! It worked for 66 years until slick Willie repealed it.

    • J. Alonzo says:

      your words are true, But I hate to say it. We are loosing the battle everyday more and more. Here in Florida the bank loving politicians passed a speedy foreclosure bill. The only thing on our side is that they are lazy and pass laws that in the end comes back to bite them. Governor Scott signed the speedy bill into law. Now its just going to get worse
      for the banks. At least at the beginning. Soon after al the tweeks are done. The law actually strips the homeowner of their due process rights. You know the rights we have been loosing slowly as sheeple. From TSA to unwarranted searches. Our rights are slowly being taken away. From all of us. The banks own us. We have already lost. Democrats and Republicans. Same thing!

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