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  • March 10, 2008 at 8:12 PM #12059
    evolusd
    Participant

    Fannie Mae is now offering unsecured loans to ‘qualified borrowers’ in an amount that will bring their past due mortgages current. They’re doing this so they can avoid required write-downs and buy-backs of delinquent mortgages. My question is…HOW CAN YOU BE A QUALIFIED BUYER IF YOU ARE PAST DUE ON YOUR MORTGAGE!!! Last time I checked (I’m a commercial banker), banks don’t like to lend UNSECURED to people that are already past due on their SECURED credit!!!

    ——-

    “We recently introduced a new HomeSaver Advance initiative, which is a loss mitigation tool that we began implementing in the first quarter of 2008. HomeSaver Advance provides qualified borrowers with an unsecured personal loan in an amount equal to all past due payments relating to their mortgage loan, allowing borrowers to cure their payment defaults under mortgage loans without requiring modification of their mortgage loans. By permitting qualified borrowers to cure their payment defaults without requiring that we purchase the loans from the MBS (mortgage-backed security) trusts in order to modify the loans, this loss mitigation tool may reduce the number of delinquent mortgage loans that we purchase from MBS trusts in the future and the fair value losses we record in connection with those purchases.”

    March 10, 2008 at 8:41 PM #167118
    evolusd
    Participant

    Correction – In my bolded rant above, I meant qualified BORROWER, not BUYER. Again, I can’t believe they are really considering this a solution.

    March 10, 2008 at 8:41 PM #167541
    evolusd
    Participant

    Correction – In my bolded rant above, I meant qualified BORROWER, not BUYER. Again, I can’t believe they are really considering this a solution.

    March 10, 2008 at 8:41 PM #167477
    evolusd
    Participant

    Correction – In my bolded rant above, I meant qualified BORROWER, not BUYER. Again, I can’t believe they are really considering this a solution.

    March 10, 2008 at 8:41 PM #167440
    evolusd
    Participant

    Correction – In my bolded rant above, I meant qualified BORROWER, not BUYER. Again, I can’t believe they are really considering this a solution.

    March 10, 2008 at 8:41 PM #167444
    evolusd
    Participant

    Correction – In my bolded rant above, I meant qualified BORROWER, not BUYER. Again, I can’t believe they are really considering this a solution.

    March 10, 2008 at 9:13 PM #167497
    stansd
    Participant

    I think someone mentioned that they are, in effect, converting non recourse assets to recourse assets. In exchange for losing the ability to walk away, the homeowner gets to keep his/her house.

    I’ll leave it to others to fully define/debate.

    Stan

    March 10, 2008 at 9:13 PM #167561
    stansd
    Participant

    I think someone mentioned that they are, in effect, converting non recourse assets to recourse assets. In exchange for losing the ability to walk away, the homeowner gets to keep his/her house.

    I’ll leave it to others to fully define/debate.

    Stan

    March 10, 2008 at 9:13 PM #167464
    stansd
    Participant

    I think someone mentioned that they are, in effect, converting non recourse assets to recourse assets. In exchange for losing the ability to walk away, the homeowner gets to keep his/her house.

    I’ll leave it to others to fully define/debate.

    Stan

    March 10, 2008 at 9:13 PM #167460
    stansd
    Participant

    I think someone mentioned that they are, in effect, converting non recourse assets to recourse assets. In exchange for losing the ability to walk away, the homeowner gets to keep his/her house.

    I’ll leave it to others to fully define/debate.

    Stan

    March 10, 2008 at 9:13 PM #167138
    stansd
    Participant

    I think someone mentioned that they are, in effect, converting non recourse assets to recourse assets. In exchange for losing the ability to walk away, the homeowner gets to keep his/her house.

    I’ll leave it to others to fully define/debate.

    Stan

    March 10, 2008 at 9:40 PM #167485
    Deal Hunter
    Participant

    CRAZYYYYY!

    It’s essentially getting people to add a revolving type credit debt to their already over leveraged lives – for what? To keep a house that’s underwater?

    When secured loans go bad and a short sale or foreclosure must take place, at least the obligations are wiped out with the disposition of the property. This is the best outcome for borrowers who have a legitimate hardship.

    With UNsecured loans, the obligation to pay that debt will follow you around for a very long time. In some states, the statute of limitations on debt collection for unsecured debt is 25 years!

    HORRIBLE HORRIBLE HORRIBLE!

    March 10, 2008 at 9:40 PM #167489
    Deal Hunter
    Participant

    CRAZYYYYY!

    It’s essentially getting people to add a revolving type credit debt to their already over leveraged lives – for what? To keep a house that’s underwater?

    When secured loans go bad and a short sale or foreclosure must take place, at least the obligations are wiped out with the disposition of the property. This is the best outcome for borrowers who have a legitimate hardship.

    With UNsecured loans, the obligation to pay that debt will follow you around for a very long time. In some states, the statute of limitations on debt collection for unsecured debt is 25 years!

    HORRIBLE HORRIBLE HORRIBLE!

    March 10, 2008 at 9:40 PM #167522
    Deal Hunter
    Participant

    CRAZYYYYY!

    It’s essentially getting people to add a revolving type credit debt to their already over leveraged lives – for what? To keep a house that’s underwater?

    When secured loans go bad and a short sale or foreclosure must take place, at least the obligations are wiped out with the disposition of the property. This is the best outcome for borrowers who have a legitimate hardship.

    With UNsecured loans, the obligation to pay that debt will follow you around for a very long time. In some states, the statute of limitations on debt collection for unsecured debt is 25 years!

    HORRIBLE HORRIBLE HORRIBLE!

    March 10, 2008 at 9:40 PM #167163
    Deal Hunter
    Participant

    CRAZYYYYY!

    It’s essentially getting people to add a revolving type credit debt to their already over leveraged lives – for what? To keep a house that’s underwater?

    When secured loans go bad and a short sale or foreclosure must take place, at least the obligations are wiped out with the disposition of the property. This is the best outcome for borrowers who have a legitimate hardship.

    With UNsecured loans, the obligation to pay that debt will follow you around for a very long time. In some states, the statute of limitations on debt collection for unsecured debt is 25 years!

    HORRIBLE HORRIBLE HORRIBLE!

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