Because all liberal trolls are expert bankers

By Sam Foster

I don't normally do this; make a post out of a thoughtless liberal troll, but this is a point that I've been meaning to make known to the blogiverse for two years now and I've never had the impetus.

Earlier today, I broke the news that ACORN was back to shaking down the banks. It's well worth the read, but some troll who apparently thinks themselves an expert banker decided to make the following foolish statement:


If I was a mayor of a municipalities that is being affected by the lending practices of the banking industry, especially in light of the fact that local municipalities depend upon property taxes for their income, I would have no problem "rewarding" the banks that did the most to ensure that foreclosures did not negatively impact the revenue stream of my municipality.

I sure wouldn't need ACORN or anyone else to educate me on standard business practices...I believe in capitalism its called "taking care of the people that take care of you...."

I didn't realize that this was racketeering or communism. How many folks who read this blog have their checking accounts with the same banks that they have their home mortgage with?

I usually have a lot of patience for trolls, but I've read so much stupidity with regards to banks and foreclosures, I couldn't resist. It is a perfect example of ignorance for the mortgage and banking process.

Since a home is bought with the bank's money, the bank is the only party left hanging out to dry if property taxes are unpaid and go into tax sale. Just because a homeowner stops paying the mortgage, liberal idiots, like the commenter above seem to think that taxes just go unpaid. They don't. Because if they did the property would go into tax foreclosure.

Banks pay the property taxes and they will continue paying the homeowner's property taxes while the very long foreclosure process commences. They continue paying the property taxes until the house is resold.

So the idea that foreclosures endanger property taxes is scurrilous. In fact, banks are more timely with paying property taxes than homeowners. Many banks hire companies that specialize in nothing but paying property taxes. Banks often pay electronically and all in one big payment, which usually is all automated, saving municipalities lots of time, money and resources.

Furthermore, it is capricious for local municipalities, in particular, to be complaining about banks because if it wasn't for the banks and their interest in the property, local tax revenue would reach to such low levels during this last recession, they'd be begging for a budget that mirrors Greece's.

Now I wonder, does Tao the troll really need me to go into how this organizing effort by ACORN mirrors Karl Marx call for a proletariat uprising?

3 comments:

  1. Actually, most banks sell their mortgages to Freddie Mac/Fannie Mae and or they bundled them and sold them as deriatives.

    If "ownership" as you claim was so easy to prove then the issue of the foreclosure paperwork would not be a multi trillion dollar fiasco would it?

    Let me know when the first bank goes bankrupt because it is carrying all of these foreclosed properties on their books and paying all the property taxes.

    If maybe you were a businessman rather than some political hack you would realize that all businesses deal with excess inventory...and sometimes you gotta dump it for a loss, a big loss. But most of us who own businesses don't have the opportunity of participating in a government sponsored program of loan modifications that would limit us to only a slim loss....when I have to dump merchandise because the original customer did not take delivery I end up losing 80 to 90%....

    I will gladly inform my local municipality that you claim that banks pay taxes timely on foreclosed property because what they are finding is that banks are selling the tax bills/liens to third parties....

    I think all municipalities should put their money in local and or regional banks because they didn't get any benefit from TARP and THEY are getting hung with commerical real estate debt which is why we are experiencing another record setting year of small bank closures....

    JP Morgan is not going to get hurt by moving 12.5 million in deposits....

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  2. Tao,

    I'm not sure you really wanted to double down on all of this. Yes, you have a T-Shirt business. I'm sure you've needed to apply to get lines of credit a million times.

    but...

    "Actually, most banks sell their mortgages to Freddie Mac/Fannie Mae and or they bundled them and sold them as deriatives."

    Some truth to this, but if it were true, why be made at Chase and threaten to move your funds? They wouldn't be holding the mortgages


    I am not anywhere near as ignorant as you wish. In fact, I have five years of experience in the mortgage industry specializing in...wait for it...property taxes. So no, you have no idea what you are talking about and yes, I've successfully ran a business before.

    "If "ownership" as you claim was so easy to prove then the issue of the foreclosure paperwork would not be a multi trillion dollar fiasco would it?"

    Did you read my post? This makes no sense in relation to what I wrote.

    "Let me know when the first bank goes bankrupt because it is carrying all of these foreclosed properties on their books and paying all the property taxes."

    Ummm...the whole banking crisis was about liquidity, aka banks having no operating funding. People stopped paying their mortgages, so money coming in was low, but they also had money going out the door in paying the property taxes. Double whammy.

    "I will gladly inform my local municipality that you claim that banks pay taxes timely on foreclosed property because what they are finding is that banks are selling the tax bills/liens to third parties...."

    Again here, you are displaying that you really don't know what you are talking about, just hoping something you heard second hand. Tax bills/tax liens are no where near the same thing.

    A tax liens is placed on a property that hasn't paid their bills, usually after several years. You are either referring to the fact that some banks outsource paying of tax bills, or referring to the fact that buying up tax liens is often and investment, because it's relatively safe since there is usually a bank out there trying to secure their interest thus willing to pay a very past due tax bill for the homeowner.

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  3. What a bunch of Psycho-babel... waste of 10 mins.

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