Morgage bailout bill explained

[garysears]

Raybyrnes, it seems like the same thing to me. It would be difficult to distinguish the difference between real financial problems and “buyer’s remorse”.

I didn’t read the text of the bill, but where is the bank’s incentive to write down the debt? Why not just foreclose and attempt to get full market value rather than writing down lower so the borrower is no longer underwater?

[Eugene]

I didn’t read the text of the bill, but where is the bank’s incentive to write down the debt? Why not just foreclose and attempt to get full market value rather than writing down lower so the borrower is no longer underwater?

Foreclosing involves significant expenses (legal and otherwise), loss of income during 7+ months between the day the homedebtor stops paying and the day you can try to sell the house at a trustee sale, and the risk that the homedebtor trashes the property on the way out. It is not feasible to recover full market value through foreclosure. Getting 85% of FMV in cold hard cash today may be a better option.

[Eugene]

I didn’t read the text of the bill, but where is the bank’s incentive to write down the debt? Why not just foreclose and attempt to get full market value rather than writing down lower so the borrower is no longer underwater?

Foreclosing involves significant expenses (legal and otherwise), loss of income during 7+ months between the day the homedebtor stops paying and the day you can try to sell the house at a trustee sale, and the risk that the homedebtor trashes the property on the way out. It is not feasible to recover full market value through foreclosure. Getting 85% of FMV in cold hard cash today may be a better option.

[Eugene]

I didn’t read the text of the bill, but where is the bank’s incentive to write down the debt? Why not just foreclose and attempt to get full market value rather than writing down lower so the borrower is no longer underwater?

Foreclosing involves significant expenses (legal and otherwise), loss of income during 7+ months between the day the homedebtor stops paying and the day you can try to sell the house at a trustee sale, and the risk that the homedebtor trashes the property on the way out. It is not feasible to recover full market value through foreclosure. Getting 85% of FMV in cold hard cash today may be a better option.

[Eugene]

I didn’t read the text of the bill, but where is the bank’s incentive to write down the debt? Why not just foreclose and attempt to get full market value rather than writing down lower so the borrower is no longer underwater?

Foreclosing involves significant expenses (legal and otherwise), loss of income during 7+ months between the day the homedebtor stops paying and the day you can try to sell the house at a trustee sale, and the risk that the homedebtor trashes the property on the way out. It is not feasible to recover full market value through foreclosure. Getting 85% of FMV in cold hard cash today may be a better option.

[Eugene]

I didn’t read the text of the bill, but where is the bank’s incentive to write down the debt? Why not just foreclose and attempt to get full market value rather than writing down lower so the borrower is no longer underwater?

Foreclosing involves significant expenses (legal and otherwise), loss of income during 7+ months between the day the homedebtor stops paying and the day you can try to sell the house at a trustee sale, and the risk that the homedebtor trashes the property on the way out. It is not feasible to recover full market value through foreclosure. Getting 85% of FMV in cold hard cash today may be a better option.

[Huckleberry]

Does anyone know specifically what the bill mentioned below is named?

“House lawmakers also passed a bill that would send $15 billion to states to buy and fix foreclosed homes.”

From this article:
http://news.yahoo.com/s/ap/20080514/ap_on_bi_ge/foreclosure_rates_12

Thanks.

[Huckleberry]

Does anyone know specifically what the bill mentioned below is named?

“House lawmakers also passed a bill that would send $15 billion to states to buy and fix foreclosed homes.”

From this article:
http://news.yahoo.com/s/ap/20080514/ap_on_bi_ge/foreclosure_rates_12

Thanks.

[Huckleberry]

Does anyone know specifically what the bill mentioned below is named?

“House lawmakers also passed a bill that would send $15 billion to states to buy and fix foreclosed homes.”

From this article:
http://news.yahoo.com/s/ap/20080514/ap_on_bi_ge/foreclosure_rates_12

Thanks.

[Huckleberry]

Does anyone know specifically what the bill mentioned below is named?

“House lawmakers also passed a bill that would send $15 billion to states to buy and fix foreclosed homes.”

From this article:
http://news.yahoo.com/s/ap/20080514/ap_on_bi_ge/foreclosure_rates_12

Thanks.

[Huckleberry]

Does anyone know specifically what the bill mentioned below is named?

“House lawmakers also passed a bill that would send $15 billion to states to buy and fix foreclosed homes.”

From this article:
http://news.yahoo.com/s/ap/20080514/ap_on_bi_ge/foreclosure_rates_12

Thanks.

[Author]

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