MISSION FROM GOD
When the housing crisis first started I never wanted to blame the banks. I thought it was outrageous that people making $40,000 a year were buying million dollar homes knowing they could not afford them. I still don't think it was the banks fault in most cases with this type of thing. However, this is where I am furious with the banks, and why I am announcing publicly what I intend to do about it. If a bank does not resell your loan, and keeps it in house, and rates decline by the amount they have, there is no reason why they should not refinance people with good credit and good pay histories. My current rate is 6% and I have never been late on a single mortgage payment my whole life, nada.
Think about the profit B of A has on my loan with what their cost of money is right now, it is astronomical. Since I am a good citizen and paying on time, they give me a valuation on my home that is so low, there is absolutely no way it can be refinanced. This is their way of sticking it to me because of how much money they are making keeping the servicing of this loan. They can claim they are being fair, and that since I am making my payments everything is fine. It is interesting how they tell me a 5,000 square foot house on almost 6 acres with an ocean view and full horse facilities for 5 horses, is only worth $500k. Are you frickin kidding me? Just do the math on the replacement cost of a custom home with that footage on no acreage at all. You could not build just the main house alone for anywhere near that price level. Obviously it is just a fuck you from B of A, so here is my fuck you back to them.
I am going to make 1 Million dollars shorting their stock, then I am going to send a copy of the balance in that account to the CEO telling him to fuck off, close all my accounts, and that I will never do business with them ever again. Further, once I have done that I will go on a mission from Gold #2 to get the story out. This is going to take some time, but I will update the progress periodically in here. I may damn well lose money trying it who knows. However, if I can pull it off, I think this story will make national news some day as how someone showed these assholes a thing or two.
I have always maintained like Patrick Swayze said to the bouncers in Road House, be nice until it is time not to be nice. I reached that point yesterday after getting off the phone with someone at B of A. It is now time not to be nice. The mission begins today if we break yesterdays low in the chart at the top. For those of you who may not like the language here, it is left in here to make a point. I am as mad as someone can be about this whole situation, and it is time to get nasty. If one more dead beat gets relief from the banks before a good citizen does, we should all cry bloody murder. The nice period has expired. Fortunately I have a little bit of a forum here, so hopefully this can help some people out there that need help, by bringing this to the attention of someone somewhere. All I have ever wanted to do is get a refi at a market rate. I don't want a principal reduction or anything special. I would turn down a principal reduction if it were offered. That is a burden that falls on someone else from a decision I made. I knew what I was doing when I bought this place, and I knew the value would decline since the housing bust was only about half over when I bought the place. That is not a problem at all. It is the bogus valuation they give it to use as an excuse not to help me that infuriates me. If they would tell me sorry dude you are just screwed and we don't want to help you, I would be far less angry. They get money for .25% or so and charge me 6% and tell me I am mas fina.
They gave me comps of houses of 2500 square feet and 10,000 square foot lots to justify the value. I have no false illusion about what my ranch may or may not be worth. However, does that sound like a comp to anyone reading this? Having the value be that far under just the cost to build it which would be at least $750,000 even if you valued the property and the horse barn at zero, is dishonest. This is a very nice custom home, even in this climate it would hard to find someone to build it that had any reputation, for $150 per foot. So the mission begins..... I can only hope that I might be the one who got the process started to take this monster down, alas that is way more than a long shot. However, it is time to get started. This is somewhat off topic, but it is a trade that I am doing solely for the reasons I have just detailed. Obviously the stock trades have to have some basis in technical analysis, you can't just trade out of anger.
You can see we reached the sell zone in my Kitchen Sink COT proxy indicator. I am just looking for a simple break of the up trend line to get in sync with the indicator. It may not happen, I don't expect it to today. I will spend time every single day trying to squeeze some money out of the short side of this, and will do no long side trades. It defeats the purpose of the mission. As long as I have sell signals I will take the all, none of the buys, and hope this company falls apart even though it does not appear that it will right now. I guess I am just an optimist!