Cyphire, I agree that the new system doesn’t cause banks to have more stake in the borrower, it makes them care less than they might have in the last cycle. But it still makes business sense (and stock price sense) to have a lower number of foreclosures from your loans as an institution. If they can roll a client into another loan, make some transaction fees and postpone or prevent some forclosures it makes sense. The key is that they said they would call him, not guarantee a loan and the true terms of the loan aren’t here and this is hearsay. It’s just like how firemen look at houses in big fire, put your effort into the ones that look like you can save, don’t even bother with the gonners.

Rustico, how did you get cash positive in 1991? You are smarter than me, I bought a house in early 1992 and was upside down till 1998, but I was young and dumb, guess you were just young.

Good to see you two couldn’t stay away from the boards, I enjoy your posts.