Is it just me?

[Arraya]

[quote=patientrenter][quote=Arraya]…..I spoke to a lawyer that works at a firm that does loan mods. He said they do about 200-300 a month and 1/3 of them are principle reductions which essentially is a FHA refi were they will take somebody from like 120% LTV down to 97.5% LTV. The other re-works are with the existing lender based on “hardship” and ability to pay. A very common hardship is one spouse lost a job, but he said that the hardship “umbrella” is wide and they can get “creative”…..[/quote]

I wish I had been irresponsible. I feel stupid. But I do learn.[/quote]

I wish I had been a bk lawyer. That guy is cleaning up @ 3-5K per mod.

[patientrenter]

[quote=jpinpb]Well, that’s what I’m thinking. They’ll keep what makes sense, either rent or re-work some loans, but let the ones that don’t make sense just go to market for whatever, b/c no skin off them, really. Basically, just delaying again. Seems all they can do is continue to sweep under the rug. I don’t know how long they can procrastinate. I mean, forever. That’s a lot of houses to just twist in the wind forever. [/quote]

I think I see what you’re wondering about, jp. My assumption is that our leaders are aiming to generate inflation that will allow prices to return to levels in the ballpark of the peak. But it might take years to get that done. In the meanwhile, they have to limit market supply, and make lending easy, to prevent house prices going so low for so long that expectations are completely reset.

So the goal would be to mod enough existing loans (and keep short-term rates low enough that ARMs don’t have a sting) to slow down the foreclosure supply, and on the demand side allow high LTV FHA and FNMA/Freddie-backed loans to flow easily. They don’t have to keep it going at full tilt forever, just until inflation gets going. Maybe 1-2 years. The gradually ease up and focus on inflation.

[patientrenter]

[quote=jpinpb]Well, that’s what I’m thinking. They’ll keep what makes sense, either rent or re-work some loans, but let the ones that don’t make sense just go to market for whatever, b/c no skin off them, really. Basically, just delaying again. Seems all they can do is continue to sweep under the rug. I don’t know how long they can procrastinate. I mean, forever. That’s a lot of houses to just twist in the wind forever. [/quote]

I think I see what you’re wondering about, jp. My assumption is that our leaders are aiming to generate inflation that will allow prices to return to levels in the ballpark of the peak. But it might take years to get that done. In the meanwhile, they have to limit market supply, and make lending easy, to prevent house prices going so low for so long that expectations are completely reset.

So the goal would be to mod enough existing loans (and keep short-term rates low enough that ARMs don’t have a sting) to slow down the foreclosure supply, and on the demand side allow high LTV FHA and FNMA/Freddie-backed loans to flow easily. They don’t have to keep it going at full tilt forever, just until inflation gets going. Maybe 1-2 years. The gradually ease up and focus on inflation.

[patientrenter]

[quote=jpinpb]Well, that’s what I’m thinking. They’ll keep what makes sense, either rent or re-work some loans, but let the ones that don’t make sense just go to market for whatever, b/c no skin off them, really. Basically, just delaying again. Seems all they can do is continue to sweep under the rug. I don’t know how long they can procrastinate. I mean, forever. That’s a lot of houses to just twist in the wind forever. [/quote]

I think I see what you’re wondering about, jp. My assumption is that our leaders are aiming to generate inflation that will allow prices to return to levels in the ballpark of the peak. But it might take years to get that done. In the meanwhile, they have to limit market supply, and make lending easy, to prevent house prices going so low for so long that expectations are completely reset.

So the goal would be to mod enough existing loans (and keep short-term rates low enough that ARMs don’t have a sting) to slow down the foreclosure supply, and on the demand side allow high LTV FHA and FNMA/Freddie-backed loans to flow easily. They don’t have to keep it going at full tilt forever, just until inflation gets going. Maybe 1-2 years. The gradually ease up and focus on inflation.

[patientrenter]

[quote=jpinpb]Well, that’s what I’m thinking. They’ll keep what makes sense, either rent or re-work some loans, but let the ones that don’t make sense just go to market for whatever, b/c no skin off them, really. Basically, just delaying again. Seems all they can do is continue to sweep under the rug. I don’t know how long they can procrastinate. I mean, forever. That’s a lot of houses to just twist in the wind forever. [/quote]

I think I see what you’re wondering about, jp. My assumption is that our leaders are aiming to generate inflation that will allow prices to return to levels in the ballpark of the peak. But it might take years to get that done. In the meanwhile, they have to limit market supply, and make lending easy, to prevent house prices going so low for so long that expectations are completely reset.

So the goal would be to mod enough existing loans (and keep short-term rates low enough that ARMs don’t have a sting) to slow down the foreclosure supply, and on the demand side allow high LTV FHA and FNMA/Freddie-backed loans to flow easily. They don’t have to keep it going at full tilt forever, just until inflation gets going. Maybe 1-2 years. The gradually ease up and focus on inflation.

[patientrenter]

[quote=jpinpb]Well, that’s what I’m thinking. They’ll keep what makes sense, either rent or re-work some loans, but let the ones that don’t make sense just go to market for whatever, b/c no skin off them, really. Basically, just delaying again. Seems all they can do is continue to sweep under the rug. I don’t know how long they can procrastinate. I mean, forever. That’s a lot of houses to just twist in the wind forever. [/quote]

I think I see what you’re wondering about, jp. My assumption is that our leaders are aiming to generate inflation that will allow prices to return to levels in the ballpark of the peak. But it might take years to get that done. In the meanwhile, they have to limit market supply, and make lending easy, to prevent house prices going so low for so long that expectations are completely reset.

So the goal would be to mod enough existing loans (and keep short-term rates low enough that ARMs don’t have a sting) to slow down the foreclosure supply, and on the demand side allow high LTV FHA and FNMA/Freddie-backed loans to flow easily. They don’t have to keep it going at full tilt forever, just until inflation gets going. Maybe 1-2 years. The gradually ease up and focus on inflation.

[jpinpb]

PR – if we go w/your theory of dragging it out for years and letting inflation take over to bring the prices back up, then do you anticipate incomes to increase? Wouldn’t we still need people to have the money to be able to afford the high prices and be able to buy them?

[jpinpb]

PR – if we go w/your theory of dragging it out for years and letting inflation take over to bring the prices back up, then do you anticipate incomes to increase? Wouldn’t we still need people to have the money to be able to afford the high prices and be able to buy them?

[jpinpb]

PR – if we go w/your theory of dragging it out for years and letting inflation take over to bring the prices back up, then do you anticipate incomes to increase? Wouldn’t we still need people to have the money to be able to afford the high prices and be able to buy them?

[jpinpb]

PR – if we go w/your theory of dragging it out for years and letting inflation take over to bring the prices back up, then do you anticipate incomes to increase? Wouldn’t we still need people to have the money to be able to afford the high prices and be able to buy them?

[jpinpb]

PR – if we go w/your theory of dragging it out for years and letting inflation take over to bring the prices back up, then do you anticipate incomes to increase? Wouldn’t we still need people to have the money to be able to afford the high prices and be able to buy them?

[patientrenter]

[quote=jpinpb]PR – if we go w/your theory of dragging it out for years and letting inflation take over to bring the prices back up, then do you anticipate incomes to increase? Wouldn’t we still need people to have the money to be able to afford the high prices and be able to buy them?[/quote]

Yes. Nominal incomes will increase. Whether real incomes increase or not is another matter. As you know, there are large segments of our population whose real wages have not increased for 35 years.

[patientrenter]

[quote=jpinpb]PR – if we go w/your theory of dragging it out for years and letting inflation take over to bring the prices back up, then do you anticipate incomes to increase? Wouldn’t we still need people to have the money to be able to afford the high prices and be able to buy them?[/quote]

Yes. Nominal incomes will increase. Whether real incomes increase or not is another matter. As you know, there are large segments of our population whose real wages have not increased for 35 years.

[patientrenter]

[quote=jpinpb]PR – if we go w/your theory of dragging it out for years and letting inflation take over to bring the prices back up, then do you anticipate incomes to increase? Wouldn’t we still need people to have the money to be able to afford the high prices and be able to buy them?[/quote]

Yes. Nominal incomes will increase. Whether real incomes increase or not is another matter. As you know, there are large segments of our population whose real wages have not increased for 35 years.

[patientrenter]

[quote=jpinpb]PR – if we go w/your theory of dragging it out for years and letting inflation take over to bring the prices back up, then do you anticipate incomes to increase? Wouldn’t we still need people to have the money to be able to afford the high prices and be able to buy them?[/quote]

Yes. Nominal incomes will increase. Whether real incomes increase or not is another matter. As you know, there are large segments of our population whose real wages have not increased for 35 years.

[Author]

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