I want to start this article with an old story that seems to reflect on the “Bank Owned Market” and what is happening in the real estate market today.

In 1896 three old cowboys where sitting around a salon table each having a drink, when the first one looked up and said “I want to make a prediction… some day in the near future men will ride horseless carriages and only young girls will ride horses”.  The other two cowboys started to howl with laughter.  A little put off, the first cowboy said, “I’m not done…there will also come the time when men will not where guns”.  That did it… the other two cowboys fell out of their chairs laughing.

Well... I don’t need a drink to make my prediction.  I think that in the near future if you want to buy a house you will have to go to the bank that owns it or their appointed asset manager, you will have to buy it on their terms with no negotiating, you will have to use their lender, their escrow and title company and accept their appraisal and property inspection by companies of their choosing and you will have to sign a contract that gives you no recourse if the house falls apart the day you move in (they never lived in the house, how could you expect them to know anything about it).  In short the banks will remove the free market system we have today and replace it with a system of our way or no way.

What’s happening in the real estate market today is on the verge of a change that is of equal magnitude to the story above.  Banks like Citi-Mortgage, Bank of America and others that have taken multi billions in tax payer bailout money and are using it to horde inventory and withhold it from the market for sale.  They are using tax payer dollars to feather their future goals.  Bank have for years been trying to get the federal government to let them into the real estate business because they want to control the real estate and lending aspect of a multi-billion dollar business.  Now that they control vast amounts of real estate and choose who sells it and when they will attempt to pressure the government to give them more control of these assets.  To date they have been unsuccessful, mainly because some in the government have concerns over the ultimate control it would give them over the market.  Well if you cannot get in the front door try the back door.

Push new legislation to eliminate lending competition
Horde inventory (at tax payer expense) to increase price
Oppose legislation that would lessen Banking Controls on Transactions

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