I'm a genius and I just figured why the banks are so screwed! Ok, maybe not but I have a point.


So we all know the economy is in the crapper because there are about a billion articles saying so and plenty of talking heads on TV telling us how much our lives suck. Great. The banks screwed up and now they need money. They have tons of homes they own that need to sell but there are too many so it's a huge problem, and blah blah blah. Everyone on the same page? Good, because here comes my point (not in a very genius way, but oh well).

Everyone knows that many of the houses on the market are short sales or foreclosures. They're more of a pain to buy since normal people don't make the choice to accept an offer but the bank people do. The banks sit and wait for buyers to make offers on the houses, then they sit and stare at the hundreds of offers they have on their desks for the hundreds of houses they're trying to unload. They take weeks or months doing this. Then some random day they make a choice. Logic (mine anyway) says they would pick the one offering the most money (and as close to the "asking price" as possible). Agree?

Well guess what, THEY DON'T! Here's a serious news flash, banks will purposely take LESS money on a house they are already losing money on in the first place! I know this because it just literally happened to me on a house I had an offer in on. So, yeah I didn't pull this out of my ass.

This made no sense to me, my agent or other agents in their office. Shocked, I have literally asked almost everyone I know they're opinion and they surprisingly agree with my logic. Banks make stupid choices, is the general agreement.

I think I have just figured out why our banking system is so screwed up, or at least a part of it. They gave mortgages to people who probably shouldn't have qualified, and they did this A LOT. Then they sold all these "bad loans" to other companies until they were passed around more then our friend the hot potato. The loans defaulted for one reason or another and the bank loses money on each house everyday. THEN, when someone wants to buy one of the damn things they choose to take less money (even though someone else will give more), and put themselves in a position to lose more on a house they were already in the red on. After all this nonsense, the people making all these choices get a huge bonus. So we're rewarding them for screwing the bank and everyone involved over. Freaking fantastic isn't it? Cue the eye rolling!

Anyone else want to smack themselves in the head after thinking about all this? I DO!


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