California lenders agree to freeze rates

[bobby]

the bank will either hurt now or hurt later. no difference.
freezing the rate will not do anything to the housing price free fall.
due to credit crunch, people still can’t get loans unless have good fico & down payment. people wont rush head first into buying.
the transaction price will reflect what they can realistically pay/borrow.

[bsrsharma]

What do you folks think of this super-simple mother-of-all universal workouts?

Treasury can help a homeowner in mortgage distress by entering as an intermediary between the borrower and lender without much taxpayer impact.

1. The borrower stops making loan payments; the mortgage is in effect destroyed.

2. A new tripartite relationship is setup between borrower, the treasury (actually IRS, as the operating entity) and the lender.

3. The IRS, as a part of mortgage enforcement, garnishes 30% of gross income. This is very trivial as IRS already takes 7.7% payroll taxes for Social Security & Medicare. Adding an extra line to deduct 30% off the top line has near zero costs.

4. The IRS, pays out the 30% to the lender.

5. The above occurs for 30 years after which period the garnishment is stopped.

This system is similar to wage garnishment for Alimony/childcare enforcement.

I think the lender will come out better off than through mass foreclosure.

[bsrsharma]

What do you folks think of this super-simple mother-of-all universal workouts?

Treasury can help a homeowner in mortgage distress by entering as an intermediary between the borrower and lender without much taxpayer impact.

1. The borrower stops making loan payments; the mortgage is in effect destroyed.

2. A new tripartite relationship is setup between borrower, the treasury (actually IRS, as the operating entity) and the lender.

3. The IRS, as a part of mortgage enforcement, garnishes 30% of gross income. This is very trivial as IRS already takes 7.7% payroll taxes for Social Security & Medicare. Adding an extra line to deduct 30% off the top line has near zero costs.

4. The IRS, pays out the 30% to the lender.

5. The above occurs for 30 years after which period the garnishment is stopped.

This system is similar to wage garnishment for Alimony/childcare enforcement.

I think the lender will come out better off than through mass foreclosure.

[bsrsharma]

What do you folks think of this super-simple mother-of-all universal workouts?

Treasury can help a homeowner in mortgage distress by entering as an intermediary between the borrower and lender without much taxpayer impact.

1. The borrower stops making loan payments; the mortgage is in effect destroyed.

2. A new tripartite relationship is setup between borrower, the treasury (actually IRS, as the operating entity) and the lender.

3. The IRS, as a part of mortgage enforcement, garnishes 30% of gross income. This is very trivial as IRS already takes 7.7% payroll taxes for Social Security & Medicare. Adding an extra line to deduct 30% off the top line has near zero costs.

4. The IRS, pays out the 30% to the lender.

5. The above occurs for 30 years after which period the garnishment is stopped.

This system is similar to wage garnishment for Alimony/childcare enforcement.

I think the lender will come out better off than through mass foreclosure.

[bsrsharma]

What do you folks think of this super-simple mother-of-all universal workouts?

Treasury can help a homeowner in mortgage distress by entering as an intermediary between the borrower and lender without much taxpayer impact.

1. The borrower stops making loan payments; the mortgage is in effect destroyed.

2. A new tripartite relationship is setup between borrower, the treasury (actually IRS, as the operating entity) and the lender.

3. The IRS, as a part of mortgage enforcement, garnishes 30% of gross income. This is very trivial as IRS already takes 7.7% payroll taxes for Social Security & Medicare. Adding an extra line to deduct 30% off the top line has near zero costs.

4. The IRS, pays out the 30% to the lender.

5. The above occurs for 30 years after which period the garnishment is stopped.

This system is similar to wage garnishment for Alimony/childcare enforcement.

I think the lender will come out better off than through mass foreclosure.

[bsrsharma]

What do you folks think of this super-simple mother-of-all universal workouts?

Treasury can help a homeowner in mortgage distress by entering as an intermediary between the borrower and lender without much taxpayer impact.

1. The borrower stops making loan payments; the mortgage is in effect destroyed.

2. A new tripartite relationship is setup between borrower, the treasury (actually IRS, as the operating entity) and the lender.

3. The IRS, as a part of mortgage enforcement, garnishes 30% of gross income. This is very trivial as IRS already takes 7.7% payroll taxes for Social Security & Medicare. Adding an extra line to deduct 30% off the top line has near zero costs.

4. The IRS, pays out the 30% to the lender.

5. The above occurs for 30 years after which period the garnishment is stopped.

This system is similar to wage garnishment for Alimony/childcare enforcement.

I think the lender will come out better off than through mass foreclosure.

[Raybyrnes]

bsrsharma

TRhis sytem is already in place for Federal Student Loans. They call it an income sensitive repayment program so I can see where they could extrapolate this out to Home loans.

[Raybyrnes]

bsrsharma

TRhis sytem is already in place for Federal Student Loans. They call it an income sensitive repayment program so I can see where they could extrapolate this out to Home loans.

[Raybyrnes]

bsrsharma

TRhis sytem is already in place for Federal Student Loans. They call it an income sensitive repayment program so I can see where they could extrapolate this out to Home loans.

[Raybyrnes]

bsrsharma

TRhis sytem is already in place for Federal Student Loans. They call it an income sensitive repayment program so I can see where they could extrapolate this out to Home loans.

[Raybyrnes]

bsrsharma

TRhis sytem is already in place for Federal Student Loans. They call it an income sensitive repayment program so I can see where they could extrapolate this out to Home loans.

[drunkle]

i honestly think this is just a show. “good faith” if you want, but a show; countrywide for instance. by showing “good faith” and confidence in their ability to rewrite loan terms, they present a confidence in their business solvency.

countrywide and gmac if not the others are facing tough times, possible bankruptcy. they lose nothing by agreeing to this, they gain confidence in their operations, good will. depositors will think twice about closing their accounts, they might gain favorable treatment by government loans/bailout, same for private loans/bailout.

arnold gains favor for being sympathetic to the people, for accomplishing a compromise with business, for not using tax dollars for aid and for not terminating anyone in the process. if the plan fails, he tried, it’s not his fault, it was too big of a problem to solve. but he tried.

[drunkle]

i honestly think this is just a show. “good faith” if you want, but a show; countrywide for instance. by showing “good faith” and confidence in their ability to rewrite loan terms, they present a confidence in their business solvency.

countrywide and gmac if not the others are facing tough times, possible bankruptcy. they lose nothing by agreeing to this, they gain confidence in their operations, good will. depositors will think twice about closing their accounts, they might gain favorable treatment by government loans/bailout, same for private loans/bailout.

arnold gains favor for being sympathetic to the people, for accomplishing a compromise with business, for not using tax dollars for aid and for not terminating anyone in the process. if the plan fails, he tried, it’s not his fault, it was too big of a problem to solve. but he tried.

[drunkle]

i honestly think this is just a show. “good faith” if you want, but a show; countrywide for instance. by showing “good faith” and confidence in their ability to rewrite loan terms, they present a confidence in their business solvency.

countrywide and gmac if not the others are facing tough times, possible bankruptcy. they lose nothing by agreeing to this, they gain confidence in their operations, good will. depositors will think twice about closing their accounts, they might gain favorable treatment by government loans/bailout, same for private loans/bailout.

arnold gains favor for being sympathetic to the people, for accomplishing a compromise with business, for not using tax dollars for aid and for not terminating anyone in the process. if the plan fails, he tried, it’s not his fault, it was too big of a problem to solve. but he tried.

[drunkle]

i honestly think this is just a show. “good faith” if you want, but a show; countrywide for instance. by showing “good faith” and confidence in their ability to rewrite loan terms, they present a confidence in their business solvency.

countrywide and gmac if not the others are facing tough times, possible bankruptcy. they lose nothing by agreeing to this, they gain confidence in their operations, good will. depositors will think twice about closing their accounts, they might gain favorable treatment by government loans/bailout, same for private loans/bailout.

arnold gains favor for being sympathetic to the people, for accomplishing a compromise with business, for not using tax dollars for aid and for not terminating anyone in the process. if the plan fails, he tried, it’s not his fault, it was too big of a problem to solve. but he tried.

[Author]

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