{"id":35437,"date":"2010-05-19T01:01:01","date_gmt":"2011-05-19T01:00:23","guid":{"rendered":""},"modified":"2011-05-19T01:00:23","modified_gmt":"2011-05-19T01:00:23","slug":"the_redistribution_of_housing","status":"publish","type":"post","link":"https:\/\/admin.rushlimbaugh.com\/daily\/2010\/05\/19\/the_redistribution_of_housing\/","title":{"rendered":"The Redistribution of Housing?"},"content":{"rendered":"
\n

RUSH: Orange County, California. Hi, Bob. Great to have on you program, sir.<\/p>\n

CALLER: How you doing, Rush? Thanks for taking my call.<\/p>\n

RUSH: Yes, sir.<\/p>\n

CALLER: Hey, listen, you\u2019ve been talking about the market. I\u2019m in real estate, and I\u2019ve been doing market evaluations for about 32 different banks over the last 14 years, and, you know, we\u2019ve just gone through the first phase of these foreclosures, which I call the ‘heartbeat loans.\u2019 You know, if you had a heartbeat you could get a loan. Those have been pretty much absorbed now by the investors coming back in and buying them up but we have a whole second phase of foreclosures coming in that the banks aren\u2019t really talking about, and these are the-million-dollar homes, and there\u2019s a lot of them out there.<\/p>\n

RUSH: Million dollar homes?<\/p>\n

CALLER: Yeah, million dollar homes. These are people that have lost their job that are struggling to try and stay ahead of the game but what\u2019s going to end up happening is, you know, they just passed this law now where a lot of people who aren\u2019t going to sell their homes are trying to get out from underneath them because of the tax ramifications, because whatever they would have lost they woulda got back as a 1099. And so what\u2019s happening now is they\u2019ve waived that, and they\u2019re now doing what\u2019s called a ‘deed in lieu of foreclosure.\u2019 So now they don\u2019t even have to sell their homes; they can just walk in and say, ‘I\u2019m outta here.\u2019 So the banks are going to get back a tremendous amount of these properties that they\u2019re not talking about right now. And we\u2019re talking about where they lost maybe a couple hundred thousand dollars before, they\u2019re gonna lose a lot more; maybe three times or five times greater than what we just went through. That\u2019s the next phase that we\u2019re going to come into, and I think Obama\u2019s going to end up owning these banks eventually because they\u2019re not going to be able recover from this one, I don\u2019t think.<\/p>\n

RUSH: Oh, please, no! God, say that\u2019s not so. Jeez. See, that\u2019s why all of this… (stammering) <\/p>\n

CALLER: That\u2019s why Fannie Mae and Freddie Mac are asking for the trillion dollars.<\/p>\n

RUSH: It can\u2019t be coincidental. It has to be on purpose.<\/p>\n

CALLER: Oh, yeah. It is.<\/p>\n

RUSH: So you\u2019re predicting a second bubble in the housing market?<\/p>\n

CALLER: Oh, yeah, absolutely. These are the white-collar workers, Rush. You\u2019re not going to hear too much about them because they\u2019re more sophisticated. These are the kinds of people that pick themselves up, dust themselves off and start all over again. But it\u2019s coming. I do several hundred evaluations a month for 32 different banks, and I\u2019m telling you, I see a lot of this. They try to do the loan modifications and stuff but they\u2019re not going to pay interest on equity that doesn\u2019t exist anymore and they would just as soon buy the short sale down the street than try to pay interest on equity that doesn\u2019t exist anymore. But the banks are going to get these back no matter what they do. Even if they negotiate, they\u2019re still going to get them back. The best thing they can do is do the deed in lieu of foreclosure, take the property back, get it back before it gets damaged or vandalized. But they\u2019re going to have to drop down to market evaluation. And that\u2019s why they\u2019re calling us right now.<\/line> <\/line> RUSH: Yeah, but then what do they do? What are they going to do with all these houses that they get back? <\/line> <\/line> CALLER: Well, probably what they\u2019re doing in Detroit. They\u2019re bulldozing 10,000 of them right now. So, I mean, that\u2019s a possibility.<\/line> <\/line> RUSH: Well, now, wait a minute. I know they\u2019re bulldozing houses, 10,000, but those are not all foreclosed, are they?<\/line> <\/line> CALLER: No, no, no. What they\u2019re gonna do is they\u2019re gonna have to come down to market value. They\u2019re going to have to come down.<\/line> <\/line> RUSH: They\u2019re below market value is the problem.<\/line> <\/line> CALLER: Well, I did a house the other day. It was $8.2 million what the guy paid for it. It\u2019s worth about two-six. [$2.6 million] Who\u2019s going to eat that $6 million? The bank is. ‘Cause that guy is just going to walk away from his house and say, ‘Yeah, I can\u2019t afford it. The value is two-six, I paid eight. I\u2019m outta here.\u2019<\/line> <\/line> RUSH: Well, you know, in the old days when you walked out on something, you paid a consequence for it, but today —<\/line> <\/line> CALLER: That\u2019s right.<\/line> <\/line> RUSH: — you can find stories in the State-Controlled Media instructing you how to walk out on a mortgage or walk out on a loan commitment as a virtuous thing to do.<\/line> <\/line> CALLER: Well, they\u2019re waiving it now. The IRS is waiving the difference between what you would get in the difference in a 1099. They\u2019ve been waiving those now so that people don\u2019t… That\u2019s what stopped this big market from happening right away is that people are going, ‘Look, if I got a $400,000 difference so I\u2019m going to eat that as a 1099, I don\u2019t want to sell my house right now because you can\u2019t afford to pay taxes on 400 grand,\u2019 but if they waive these things what they\u2019re talking about, waive this discrepancy, that\u2019s going to happen and there\u2019s no ramifications now. They just walk away. The bank gets all these properties back and you\u2019re getting them back by the zillions.<\/line> <\/line> RUSH: All right. I\u2019m going to make you a prediction. This is an ‘if.\u2019 This is a contingency prediction based on what you\u2019ve said. If what you said happens and there literally are thousands and thousands of homes repossessed by banks that they don\u2019t want and they can\u2019t afford to carry, then, yeah: Either the government is gonna buy the homes and put poor people in them, or they\u2019re gonna buy the banks. <\/line> <\/line> CALLER: Exactly.<\/line> <\/line> RUSH: Remember, now, everybody is entitled to a home. We\u2019re gonna return the nation\u2019s wealth to its rightful owners. Don\u2019t doubt me, folks. It\u2019s a big ‘if,\u2019 but it\u2019s possible.<\/line><\/p>\n

BREAK TRANSCRIPT<\/p>\n

RUSH: I checked the e-mail during the break. A lot of people didn\u2019t understand what this last call was about. The guy was talking fast, talking about 1099s and where it comes into play. Now, let me see if I can explain, \u2019cause we\u2019re up against it on time, going into the break there. It is truly an agenda item of ACORN to put poor people in foreclosed homes. In fact, it\u2019s called ‘deed in lieu of foreclosure.\u2019 Have you heard of that, Snerdley? (interruption) You\u2019ve heard of this. You just give \u2019em the deed. You don\u2019t foreclose on the property at all. You just give them the deed. Now, here\u2019s how it works. Best as I can tell, it looks like the only requirement to get a deed in lieu of foreclosure is that the outstanding amount owed is equal to the value of the house on the market. <\/p>\n

In other words, you couldn\u2019t give a deed in lieu of foreclosure if what\u2019s owed is far more than what the value of the house is. And that\u2019s going to be the case in a lot of instances because a lot of homeowners and houses are underwater. But if that circumstance is met, then the banks, theoretically, can do it. But it\u2019s a voluntary thing on both sides. There\u2019s no federal law requiring it. It\u2019s just an idea that\u2019s been put forth by ACORN and other community organizer groups oriented around the notion that it\u2019s just not fair that some people have million-dollar (or more expensive) houses and other people don\u2019t, and the way to take care of this is when these rich people walk out on their houses because they can\u2019t afford them anymore it\u2019s only fair to give them to poor people, give them a deed in lieu of foreclosure. <\/p>\n

Certain specifics have to be met, but it is voluntary. I think now — I think — the 1099 comes into play because the borrower has to pay taxes on the remaining debt on the mortgage and the government has to get their cut, and a 1099 is a tax form. It\u2019s like a W-2 where nothing\u2019s been deducted. It\u2019s just a report of income and you have to pay the tax on it. The 1099 gets sent to the IRS and it\u2019s sent to you. The actual title of the form is ‘Acquisition or Abandonment of Secured Property.\u2019 The bank gets the deed in lieu of foreclosure but then they can throw somebody in there if they want. The important thing to remember about this is that there is an agenda item on the part of the radical left for this to happen. You shoulda seen Snerdley\u2019s face when I was talking to the guy on the phone and I said, ‘Well, no, no, no. They\u2019re just going to give the houses to the poor.\u2019 <\/p>\n

Snerdley rolled his eyes. ‘Yeah, you\u2019re just going again. You\u2019re exaggerating again.\u2019 No, no, no. When it comes to this administration and the radical left, it\u2019s really hard to exaggerate who they are. It\u2019s really hard to exaggerate what they believe, unless you know what a liberal and a leftist really is today. If you understand the anger that motivates them, if you understand the frustration and the genuine range that animates these people — and the rage and the anger is at capitalism, at America as founded, and at the people in this country who have achieved in the capitalist system because the leftist believes that the game is rigged and that the achievers are part of a club, that they protect each other and take care of each other and they keep everybody else out.<\/p>\n

And ‘the people they keep out\u2019 are minorities and people of color and certain sexual orientations and genders and so forth. They genuinely believe this, and they have told their people as they\u2019ve been born and raised, ‘If you\u2019re female, if you\u2019re a minority, if you\u2019re a person of color, if you\u2019re gay, that club over there is not going to let you in, and look at what they have! They have Wall Street and they have the corporate jets and look at the houses they have. They got four or five houses. You\u2019re never going to get in there,\u2019 and then they\u2019ve got their race-baiters to come along with the Reverend Jackson and Reverend Sharpton tell \u2019em this and reinforce it. You\u2019ve got La Raza that says the same thing, and you have ACORN, which tells its charges the same thing. <\/p>\n

So the objective becomes to get even, to get even with this outrage called capitalism. These people are not taught that the game is open to anybody and all that\u2019s required is industriousness. You know, the usual things that accompany achievement and success: Passion, devotion, knowing what you want, knowing what you love, and working hard for it. These people are told, ‘None of that\u2019s going to get you anywhere. That\u2019s all a lie. Even if you do all of that they\u2019re not going to pay you as they pay each other. Even if you do every bit of work and you work as hard as them, the only people are going to let in are going to be Uncle Toms. The only people are going to let in are people just to make it look like they\u2019re diverse.\u2019 <\/p>\n

This is what they really think, folks. It\u2019s what they truly believe, and they follow that by saying, ‘The only way to make everything equal in terms of outcome here is to give these people in the capitalist club a kick in the teeth and a taste of their own medicine.\u2019 So, hello, crumbling economy. As far as the left is concerned, it\u2019s already bad for everybody but the rich. It\u2019s already bad for the middle class. It\u2019s already bad. In America as it normally is, it\u2019s bad for everybody who\u2019s not in the capitalist club. It just isn\u2019t fair! So all of this economic damage being done now, it\u2019s not any worse than what the downtrodden feel every day, in their view. What they\u2019re doing now is trying to bring the misery and the suffering that they think exists throughout this country to the precious few who have gamed the system. That\u2019s why Goldman Sachs, Wall Street, AIG are the enemy. <\/p>\n

That\u2019s why conservatives are the enemy. That\u2019s why people who are oriented toward the founding of the country and freedom and liberty are the enemy, because they stand in the way of this balancing that the radical left thinks must happen. Now, you\u2019re saying to yourself, ‘But, Rush, can\u2019t they look around the world and see this has never worked?\u2019 Yeah, they can. They do. What they tell themselves is, ‘The right people have never been in charge of it with the right amount of money.\u2019 But now the right guy\u2019s in charge finally! ‘We\u2019re the ones we\u2019ve been waiting for.\u2019 Obama and his crew finally now! This is the way. This is the way the world has been waiting for! This is the moment the world\u2019s been waiting for.<\/p>\n

This is the guy who is going to show the world how socialism and communism can be made to work, how there will be happiness and unity and joy. ‘But, Rush, everybody\u2019s miserable. There\u2019s no happiness at all, there\u2019s more. Look at Arizona. It\u2019s threatening to cut off Los Angeles power supply, because Los Angeles is boycotting Arizona.\u2019 Yeah, that\u2019s part of the plan, too. Because, remember, the purpose is to bring misery to the achievers. In the view of the leftist, there is misery everywhere but, say, ten to 20% of the population. Eighty percent in capitalism is oppressed, downtrodden, poor, denied rights, opportunity, and so forth. So can\u2019t get any worse for them. But it\u2019s gotta get worse in order to make ‘the rich,\u2019 quote, unquote, suffer and be in pain. And that\u2019s what\u2019s going on. So Obama can go into Ohio yesterday where there\u2019s 15% unemployment and tell the people there they don\u2019t know how good they\u2019ve got it with him in charge. <\/p>\n

He can sit here with double-digit unemployment nationwide with no effort — an oil spill — and what does Obama do? He convenes a bunch of meetings while other people are trying to stanch the flow of oil. Everything\u2019s in a crisis opportunity for these people. I guarantee you, and I\u2019m not making it up. I may make it sound funny when I talk about it. This tar ball business in the Keys is a great illustration. These people were so happy! I\u2019m telling you the media last night, it was orgasmic. They didn\u2019t need any edible underwear to get their jollies last night. There were tar balls in the Keys. That meant that this oil spill was finally spreading in the ocean currents exactly like they had said. They\u2019re going to have a real disaster now! Remember yesterday told you that a Democrat in Louisiana doesn\u2019t want Bobby Jindal to take action to fix this or to protect the shoreline because they don\u2019t want Jindal to get the credit for doing anything. <\/p>\n

Because Jindal believes in limited government. So they\u2019re trying to say, ‘Well, you don\u2019t have any right to be doing this! You believe in limited government. Limited government would not do something like this.\u2019 So the disaster must happen, and it must be bad. Katrina was a godsend. Katrina, for the leftist, was a godsend. Look at what it allowed them to do! Blame every enemy they\u2019ve got, blame capitalism, blame a government not run by them. The pain and suffering? The pictures of people on their rooftops desperately asking to be rescued? Perfect! Perfect picture. They think that you see them in anxiety and sorrow over these people. No, no, no. They don\u2019t have compassion. Everybody is a prop to the leftist. Everybody\u2019s a prop. Even a second grader at a grade school in Maryland. ‘Mrs. Obama, my mom says that your husband, Barack Obama wants to kick people out that don\u2019t have papers.\u2019 They\u2019ll use anybody, even their own kids. <\/p>\n","protected":false},"excerpt":{"rendered":"

RUSH: Orange County, California. Hi, Bob. Great to have on you program, sir. CALLER: How you doing, Rush? Thanks for taking my call. RUSH: Yes, sir. CALLER: Hey, listen, you\u2019ve been talking about the market. 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