More Federal Intervention to Prevent Foreclosures

[Huckleberry]

I’m not buying it…

Let’s not forget, unemployment is on the rise. Even Greenspan noted this morning in congressional hearings that it will rise substantially no matter what intervention the govt tries.

This single variable alone is going to torpedo the foreclosure “relief” activities. I may save some percent of “troubled” borrowers, but a whole new group of troubled borrowers are going to emerge. Is the govt going to save them too?

I also don’t see govt wiping the slate clean on principal owed by just writing down the loan amount and giving the mortgagee a “freebee”.

Lastly, on CNBC this morning it was noted that there was similar foreclosure law passed (I beleive in Oregon?) where all foreclosures have a 90 day moratorium, so during the summer months NOD’s decreased substantially, but this month they spiked 460%.

I’m not convinced the new CA law is going to stem any foreclosures in the long run…

[DaCounselor]

“I also don’t see govt wiping the slate clean on principal owed by just writing down the loan amount and giving the mortgagee a “freebee”.”
___________________________

But this is exactly what is going to happen. Whether the govt. buys the loans and writes down the balance or subsidizes privately held loan write-downs, the result is the same. And this is where we are going to end up.

Without principal write-downs there are going to be a landslide of foreclosures/walk-aways – ability to pay or not – on top of the foreclosures we already have. There are plenty of influential players who know this to be true. They are just not going to sit back and let this happen.

In fact, I don’t know that I have seen a single piece of legitimate evidence that suggests that we are not moving, and quickly, toward this type of individual homeowner bailout.

[DaCounselor]

“I also don’t see govt wiping the slate clean on principal owed by just writing down the loan amount and giving the mortgagee a “freebee”.”
___________________________

But this is exactly what is going to happen. Whether the govt. buys the loans and writes down the balance or subsidizes privately held loan write-downs, the result is the same. And this is where we are going to end up.

Without principal write-downs there are going to be a landslide of foreclosures/walk-aways – ability to pay or not – on top of the foreclosures we already have. There are plenty of influential players who know this to be true. They are just not going to sit back and let this happen.

In fact, I don’t know that I have seen a single piece of legitimate evidence that suggests that we are not moving, and quickly, toward this type of individual homeowner bailout.

[DaCounselor]

“I also don’t see govt wiping the slate clean on principal owed by just writing down the loan amount and giving the mortgagee a “freebee”.”
___________________________

But this is exactly what is going to happen. Whether the govt. buys the loans and writes down the balance or subsidizes privately held loan write-downs, the result is the same. And this is where we are going to end up.

Without principal write-downs there are going to be a landslide of foreclosures/walk-aways – ability to pay or not – on top of the foreclosures we already have. There are plenty of influential players who know this to be true. They are just not going to sit back and let this happen.

In fact, I don’t know that I have seen a single piece of legitimate evidence that suggests that we are not moving, and quickly, toward this type of individual homeowner bailout.

[DaCounselor]

“I also don’t see govt wiping the slate clean on principal owed by just writing down the loan amount and giving the mortgagee a “freebee”.”
___________________________

But this is exactly what is going to happen. Whether the govt. buys the loans and writes down the balance or subsidizes privately held loan write-downs, the result is the same. And this is where we are going to end up.

Without principal write-downs there are going to be a landslide of foreclosures/walk-aways – ability to pay or not – on top of the foreclosures we already have. There are plenty of influential players who know this to be true. They are just not going to sit back and let this happen.

In fact, I don’t know that I have seen a single piece of legitimate evidence that suggests that we are not moving, and quickly, toward this type of individual homeowner bailout.

[DaCounselor]

“I also don’t see govt wiping the slate clean on principal owed by just writing down the loan amount and giving the mortgagee a “freebee”.”
___________________________

But this is exactly what is going to happen. Whether the govt. buys the loans and writes down the balance or subsidizes privately held loan write-downs, the result is the same. And this is where we are going to end up.

Without principal write-downs there are going to be a landslide of foreclosures/walk-aways – ability to pay or not – on top of the foreclosures we already have. There are plenty of influential players who know this to be true. They are just not going to sit back and let this happen.

In fact, I don’t know that I have seen a single piece of legitimate evidence that suggests that we are not moving, and quickly, toward this type of individual homeowner bailout.

[Huckleberry]

[quote=DaCounselor]”I also don’t see govt wiping the slate clean on principal owed by just writing down the loan amount and giving the mortgagee a “freebee”.”
___________________________

But this is exactly what is going to happen. Whether the govt. buys the loans and writes down the balance or subsidizes privately held loan write-downs, the result is the same. And this is where we are going to end up.

Without principal write-downs there are going to be a landslide of foreclosures/walk-aways – ability to pay or not – on top of the foreclosures we already have. There are plenty of influential players who know this to be true. They are just not going to sit back and let this happen.

In fact, I don’t know that I have seen a single piece of legitimate evidence that suggests that we are not moving, and quickly, toward this type of individual homeowner bailout.

[/quote]

So, basically what you are saying is the govt is going to do a “workout” with the maid that makes 30K a year but stated she made 130K. Through these programs, she is going to get a principal write down and stay in the house she bought…???

So, what kind of backlash do you think there is going to be when the average citizen looks down the street and sees that his neighbors, whom make 100K less than him own a house just as nice as his, and he is helping pay for it through a write down?

[Huckleberry]

[quote=DaCounselor]”I also don’t see govt wiping the slate clean on principal owed by just writing down the loan amount and giving the mortgagee a “freebee”.”
___________________________

But this is exactly what is going to happen. Whether the govt. buys the loans and writes down the balance or subsidizes privately held loan write-downs, the result is the same. And this is where we are going to end up.

Without principal write-downs there are going to be a landslide of foreclosures/walk-aways – ability to pay or not – on top of the foreclosures we already have. There are plenty of influential players who know this to be true. They are just not going to sit back and let this happen.

In fact, I don’t know that I have seen a single piece of legitimate evidence that suggests that we are not moving, and quickly, toward this type of individual homeowner bailout.

[/quote]

So, basically what you are saying is the govt is going to do a “workout” with the maid that makes 30K a year but stated she made 130K. Through these programs, she is going to get a principal write down and stay in the house she bought…???

So, what kind of backlash do you think there is going to be when the average citizen looks down the street and sees that his neighbors, whom make 100K less than him own a house just as nice as his, and he is helping pay for it through a write down?

[Huckleberry]

[quote=DaCounselor]”I also don’t see govt wiping the slate clean on principal owed by just writing down the loan amount and giving the mortgagee a “freebee”.”
___________________________

But this is exactly what is going to happen. Whether the govt. buys the loans and writes down the balance or subsidizes privately held loan write-downs, the result is the same. And this is where we are going to end up.

Without principal write-downs there are going to be a landslide of foreclosures/walk-aways – ability to pay or not – on top of the foreclosures we already have. There are plenty of influential players who know this to be true. They are just not going to sit back and let this happen.

In fact, I don’t know that I have seen a single piece of legitimate evidence that suggests that we are not moving, and quickly, toward this type of individual homeowner bailout.

[/quote]

So, basically what you are saying is the govt is going to do a “workout” with the maid that makes 30K a year but stated she made 130K. Through these programs, she is going to get a principal write down and stay in the house she bought…???

So, what kind of backlash do you think there is going to be when the average citizen looks down the street and sees that his neighbors, whom make 100K less than him own a house just as nice as his, and he is helping pay for it through a write down?

[Huckleberry]

[quote=DaCounselor]”I also don’t see govt wiping the slate clean on principal owed by just writing down the loan amount and giving the mortgagee a “freebee”.”
___________________________

But this is exactly what is going to happen. Whether the govt. buys the loans and writes down the balance or subsidizes privately held loan write-downs, the result is the same. And this is where we are going to end up.

Without principal write-downs there are going to be a landslide of foreclosures/walk-aways – ability to pay or not – on top of the foreclosures we already have. There are plenty of influential players who know this to be true. They are just not going to sit back and let this happen.

In fact, I don’t know that I have seen a single piece of legitimate evidence that suggests that we are not moving, and quickly, toward this type of individual homeowner bailout.

[/quote]

So, basically what you are saying is the govt is going to do a “workout” with the maid that makes 30K a year but stated she made 130K. Through these programs, she is going to get a principal write down and stay in the house she bought…???

So, what kind of backlash do you think there is going to be when the average citizen looks down the street and sees that his neighbors, whom make 100K less than him own a house just as nice as his, and he is helping pay for it through a write down?

[Huckleberry]

[quote=DaCounselor]”I also don’t see govt wiping the slate clean on principal owed by just writing down the loan amount and giving the mortgagee a “freebee”.”
___________________________

But this is exactly what is going to happen. Whether the govt. buys the loans and writes down the balance or subsidizes privately held loan write-downs, the result is the same. And this is where we are going to end up.

Without principal write-downs there are going to be a landslide of foreclosures/walk-aways – ability to pay or not – on top of the foreclosures we already have. There are plenty of influential players who know this to be true. They are just not going to sit back and let this happen.

In fact, I don’t know that I have seen a single piece of legitimate evidence that suggests that we are not moving, and quickly, toward this type of individual homeowner bailout.

[/quote]

So, basically what you are saying is the govt is going to do a “workout” with the maid that makes 30K a year but stated she made 130K. Through these programs, she is going to get a principal write down and stay in the house she bought…???

So, what kind of backlash do you think there is going to be when the average citizen looks down the street and sees that his neighbors, whom make 100K less than him own a house just as nice as his, and he is helping pay for it through a write down?

[cr]

So, what kind of backlash do you think there is going to be when the average citizen looks down the street and sees that his neighbors, whom make 100K less than him own a house just as nice as his, and he is helping pay for it through a write down?

That’s exactly the question every politician or economist for preventing foreclsoures needs to be asked.

It’s a moral hazard. If it comes to this you may as well go out and buy the multi-million dollar dream mansion. And while you’re at it quit your current job, go to work at Starbucks making minimum wage plus tips, get your payment reduced to 38% of that income, then go back to your other job.

The most I hear these ridiculous ideas the more I truly believe it’s lip service for homeowners who don’t know better want prices to stay elevated, those facing foreclsoure who need help, and banks who are trying to sell these worthless assets.

The reality is lower housing costs are good for everyone. They either refuse to accept this, or are scared to admit it.

[cr]

So, what kind of backlash do you think there is going to be when the average citizen looks down the street and sees that his neighbors, whom make 100K less than him own a house just as nice as his, and he is helping pay for it through a write down?

That’s exactly the question every politician or economist for preventing foreclsoures needs to be asked.

It’s a moral hazard. If it comes to this you may as well go out and buy the multi-million dollar dream mansion. And while you’re at it quit your current job, go to work at Starbucks making minimum wage plus tips, get your payment reduced to 38% of that income, then go back to your other job.

The most I hear these ridiculous ideas the more I truly believe it’s lip service for homeowners who don’t know better want prices to stay elevated, those facing foreclsoure who need help, and banks who are trying to sell these worthless assets.

The reality is lower housing costs are good for everyone. They either refuse to accept this, or are scared to admit it.

[cr]

So, what kind of backlash do you think there is going to be when the average citizen looks down the street and sees that his neighbors, whom make 100K less than him own a house just as nice as his, and he is helping pay for it through a write down?

That’s exactly the question every politician or economist for preventing foreclsoures needs to be asked.

It’s a moral hazard. If it comes to this you may as well go out and buy the multi-million dollar dream mansion. And while you’re at it quit your current job, go to work at Starbucks making minimum wage plus tips, get your payment reduced to 38% of that income, then go back to your other job.

The most I hear these ridiculous ideas the more I truly believe it’s lip service for homeowners who don’t know better want prices to stay elevated, those facing foreclsoure who need help, and banks who are trying to sell these worthless assets.

The reality is lower housing costs are good for everyone. They either refuse to accept this, or are scared to admit it.

[cr]

So, what kind of backlash do you think there is going to be when the average citizen looks down the street and sees that his neighbors, whom make 100K less than him own a house just as nice as his, and he is helping pay for it through a write down?

That’s exactly the question every politician or economist for preventing foreclsoures needs to be asked.

It’s a moral hazard. If it comes to this you may as well go out and buy the multi-million dollar dream mansion. And while you’re at it quit your current job, go to work at Starbucks making minimum wage plus tips, get your payment reduced to 38% of that income, then go back to your other job.

The most I hear these ridiculous ideas the more I truly believe it’s lip service for homeowners who don’t know better want prices to stay elevated, those facing foreclsoure who need help, and banks who are trying to sell these worthless assets.

The reality is lower housing costs are good for everyone. They either refuse to accept this, or are scared to admit it.

[Author]

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