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  • September 8, 2008 at 12:39 PM #13773
    kev374
    Participant

    Now that the US Government owns all these mortgages what is to stop them from starting to modify en masse, without question, all loans that are in default or have a potential to default?

    The modifications can be a drastic reduction of principle or interest rates or a combination of both essentially giving away homes. The irresponsible people who bought homes they could not afford could have a huge windfall at the expense of taxpayers. This could also virtually halt any price declines.

    Since the FDIC has already done something similar with IndyMac mortgages, the above scenario may not be outside the realm of possibilities once the Alt-A fiasco hits later this year.

    September 8, 2008 at 12:53 PM #267771
    cr
    Participant

    I don’t see them making it so easy on the homeowners. Everything our “leaders” have done has been to help out Wall Street. To have your loan reduced the banks have to agree. Given the alternative of having a loan default some banks will rework loans, but I think right now most are taking the REO and sitting on it hoping 2009 will turn around.

    Those that do get a loan reduction will have to share profits with the Government when they sell, and prove they not only make enough to afford a fixed 30 year, but that they didn’t lie on their loan in the first place.

    That right there will drastically limit how many homeowners are helped.

    These foolish acts by are designed to help the banks stay in business more than they are for homeowners to stay in their overpriced stucco boxes.

    September 8, 2008 at 12:53 PM #268082
    cr
    Participant

    I don’t see them making it so easy on the homeowners. Everything our “leaders” have done has been to help out Wall Street. To have your loan reduced the banks have to agree. Given the alternative of having a loan default some banks will rework loans, but I think right now most are taking the REO and sitting on it hoping 2009 will turn around.

    Those that do get a loan reduction will have to share profits with the Government when they sell, and prove they not only make enough to afford a fixed 30 year, but that they didn’t lie on their loan in the first place.

    That right there will drastically limit how many homeowners are helped.

    These foolish acts by are designed to help the banks stay in business more than they are for homeowners to stay in their overpriced stucco boxes.

    September 8, 2008 at 12:53 PM #268052
    cr
    Participant

    I don’t see them making it so easy on the homeowners. Everything our “leaders” have done has been to help out Wall Street. To have your loan reduced the banks have to agree. Given the alternative of having a loan default some banks will rework loans, but I think right now most are taking the REO and sitting on it hoping 2009 will turn around.

    Those that do get a loan reduction will have to share profits with the Government when they sell, and prove they not only make enough to afford a fixed 30 year, but that they didn’t lie on their loan in the first place.

    That right there will drastically limit how many homeowners are helped.

    These foolish acts by are designed to help the banks stay in business more than they are for homeowners to stay in their overpriced stucco boxes.

    September 8, 2008 at 12:53 PM #268008
    cr
    Participant

    I don’t see them making it so easy on the homeowners. Everything our “leaders” have done has been to help out Wall Street. To have your loan reduced the banks have to agree. Given the alternative of having a loan default some banks will rework loans, but I think right now most are taking the REO and sitting on it hoping 2009 will turn around.

    Those that do get a loan reduction will have to share profits with the Government when they sell, and prove they not only make enough to afford a fixed 30 year, but that they didn’t lie on their loan in the first place.

    That right there will drastically limit how many homeowners are helped.

    These foolish acts by are designed to help the banks stay in business more than they are for homeowners to stay in their overpriced stucco boxes.

    September 8, 2008 at 12:53 PM #267990
    cr
    Participant

    I don’t see them making it so easy on the homeowners. Everything our “leaders” have done has been to help out Wall Street. To have your loan reduced the banks have to agree. Given the alternative of having a loan default some banks will rework loans, but I think right now most are taking the REO and sitting on it hoping 2009 will turn around.

    Those that do get a loan reduction will have to share profits with the Government when they sell, and prove they not only make enough to afford a fixed 30 year, but that they didn’t lie on their loan in the first place.

    That right there will drastically limit how many homeowners are helped.

    These foolish acts by are designed to help the banks stay in business more than they are for homeowners to stay in their overpriced stucco boxes.

    September 8, 2008 at 1:07 PM #267996
    (former)FormerSanDiegan
    Participant

    To have your loan reduced the banks have to agree.

    I think the original poster was making the point that the Government is now effectively “the bank” since Freddi and Fannie hold one or two trillion dollars in mortgages.

    September 8, 2008 at 1:07 PM #268013
    (former)FormerSanDiegan
    Participant

    To have your loan reduced the banks have to agree.

    I think the original poster was making the point that the Government is now effectively “the bank” since Freddi and Fannie hold one or two trillion dollars in mortgages.

    September 8, 2008 at 1:07 PM #268057
    (former)FormerSanDiegan
    Participant

    To have your loan reduced the banks have to agree.

    I think the original poster was making the point that the Government is now effectively “the bank” since Freddi and Fannie hold one or two trillion dollars in mortgages.

    September 8, 2008 at 1:07 PM #267776
    (former)FormerSanDiegan
    Participant

    To have your loan reduced the banks have to agree.

    I think the original poster was making the point that the Government is now effectively “the bank” since Freddi and Fannie hold one or two trillion dollars in mortgages.

    September 8, 2008 at 1:07 PM #268086
    (former)FormerSanDiegan
    Participant

    To have your loan reduced the banks have to agree.

    I think the original poster was making the point that the Government is now effectively “the bank” since Freddi and Fannie hold one or two trillion dollars in mortgages.

    September 8, 2008 at 7:19 PM #268286
    equalizer
    Participant

    Related topic, how will the bailout affect mortgage rates? Gross and Wall Street are predicting 0.5 to 1% drop in rates. Today’s rate is around 6 from 6.25 last week.

    Can a broker post today’s rates for common Pigg, i.e., 400K and 600K loan with 20% down, 750FICO+.

    Is there a good site to track average low rate?
    Thanks, in advance.

    September 8, 2008 at 7:19 PM #268258
    equalizer
    Participant

    Related topic, how will the bailout affect mortgage rates? Gross and Wall Street are predicting 0.5 to 1% drop in rates. Today’s rate is around 6 from 6.25 last week.

    Can a broker post today’s rates for common Pigg, i.e., 400K and 600K loan with 20% down, 750FICO+.

    Is there a good site to track average low rate?
    Thanks, in advance.

    September 8, 2008 at 7:19 PM #268211
    equalizer
    Participant

    Related topic, how will the bailout affect mortgage rates? Gross and Wall Street are predicting 0.5 to 1% drop in rates. Today’s rate is around 6 from 6.25 last week.

    Can a broker post today’s rates for common Pigg, i.e., 400K and 600K loan with 20% down, 750FICO+.

    Is there a good site to track average low rate?
    Thanks, in advance.

    September 8, 2008 at 7:19 PM #268195
    equalizer
    Participant

    Related topic, how will the bailout affect mortgage rates? Gross and Wall Street are predicting 0.5 to 1% drop in rates. Today’s rate is around 6 from 6.25 last week.

    Can a broker post today’s rates for common Pigg, i.e., 400K and 600K loan with 20% down, 750FICO+.

    Is there a good site to track average low rate?
    Thanks, in advance.

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