Oh BOY!!

[cyphire]

PatientRenter – do you really think that there will be any significant relief for the homeowners? The profits were taken out by the mortgage brokers, the Realtors, etc. The banks are somewhat holding the bag (except isn’t most of the exposure in the hedge funds?).

I’m no expert but it seems that with the new paradigm (and I use the word paradigm incorrectly, but its a cool word) of making the sale, selling the loan, then repackaging the loan into a financial product, then resell it in the secondary and tertiary markets – that the owner of the mortgage doesn’t have any recourse other than forgiveness.

I’m pretty sure that with a softening economy (for everyone who actually does the work) that these folks wouldn’t keep the houses even if the rates went up to non-subprime numbers.

What entity will bail out the homeowners who took loans that they couldn’t and shouldn’t of taken in the first place? Don’t get me wrong – I am very pained at their plight. Even in a non-bait and switch situation (the norm, not the rarity) these are not financially sophisticated people.

So who gets screwed at the end?

[cyphire]

PatientRenter – do you really think that there will be any significant relief for the homeowners? The profits were taken out by the mortgage brokers, the Realtors, etc. The banks are somewhat holding the bag (except isn’t most of the exposure in the hedge funds?).

I’m no expert but it seems that with the new paradigm (and I use the word paradigm incorrectly, but its a cool word) of making the sale, selling the loan, then repackaging the loan into a financial product, then resell it in the secondary and tertiary markets – that the owner of the mortgage doesn’t have any recourse other than forgiveness.

I’m pretty sure that with a softening economy (for everyone who actually does the work) that these folks wouldn’t keep the houses even if the rates went up to non-subprime numbers.

What entity will bail out the homeowners who took loans that they couldn’t and shouldn’t of taken in the first place? Don’t get me wrong – I am very pained at their plight. Even in a non-bait and switch situation (the norm, not the rarity) these are not financially sophisticated people.

So who gets screwed at the end?

[temeculaguy]

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.

[temeculaguy]

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.

[drunkle]

if i were a bank and i just woke up surrounded by zombies and bad loans, i would…

kill the zombies. aim for the head.
roll the bad loans into other bad loans. 10 year interest only, 50 year terms.
“persuade” the govnt to increase immigration quotas, keep devaluing the dollar to increase exports, push stiffer bankruptcy/default laws, essentially establishing debtor’s prisons.

i’d want to keep borrowers locked in to their inflated mortgages at all costs. by also encouraging exports and immigration, i help the situation by increasing local demand for homes and increasing local wealth. debtors prison is the final “encouragement” to keep people from walking from their homes.

should things collapse anyway, i pack up all the debtors onto the space shuttle mayflower, to have them colonize and mine the moon.

[drunkle]

if i were a bank and i just woke up surrounded by zombies and bad loans, i would…

kill the zombies. aim for the head.
roll the bad loans into other bad loans. 10 year interest only, 50 year terms.
“persuade” the govnt to increase immigration quotas, keep devaluing the dollar to increase exports, push stiffer bankruptcy/default laws, essentially establishing debtor’s prisons.

i’d want to keep borrowers locked in to their inflated mortgages at all costs. by also encouraging exports and immigration, i help the situation by increasing local demand for homes and increasing local wealth. debtors prison is the final “encouragement” to keep people from walking from their homes.

should things collapse anyway, i pack up all the debtors onto the space shuttle mayflower, to have them colonize and mine the moon.

[lostkitty]

should things collapse anyway, i pack up all the debtors onto the space shuttle mayflower, to have them colonize and mine the moon.

drunkle-

You've got it right. The tulip came to the Netherlands in 1593 and the craze began in the 1600’s in earnest.  The Dutch were leaving and colonizing the Hudson Valley by 1609.

Bubbles can cause massive change to societies – mass migration is a frequent result.

[lostkitty]

should things collapse anyway, i pack up all the debtors onto the space shuttle mayflower, to have them colonize and mine the moon.

drunkle-

You've got it right. The tulip came to the Netherlands in 1593 and the craze began in the 1600’s in earnest.  The Dutch were leaving and colonizing the Hudson Valley by 1609.

Bubbles can cause massive change to societies – mass migration is a frequent result.

[cyphire]

Sure…. The Moonies could be sent up to the Moon which could be like a prison. We could call the entity “The Authority”. They could mine ice – and then use hydroponics to create food which they could catapult back to earth the feed the masses (the people that didn’t default on their loans!).

[cyphire]

Sure…. The Moonies could be sent up to the Moon which could be like a prison. We could call the entity “The Authority”. They could mine ice – and then use hydroponics to create food which they could catapult back to earth the feed the masses (the people that didn’t default on their loans!).

[cr]

YOU ARE ALL WRONG!!!

AND HERE IS WHY-
1. HOUSING IS AS STRONG AS EVER!
2. NOW IS A GREAT TIME TO BUY OR SELL (or foreclose)
3. SALES ARE UP (in one small neighborhood in AL outside the new Toyota plant)
4. INVETORIES ARE DOWN (in the same small town)
5. RATES ARE LOW! (but going up)
6. I’M TYPING IN CAPS WHICH MEANS I’M YELLING, THEREFORE I’M RIGHT

Just kidding guys, (except for the parts in parantheses) I just wanted to see what it felt like to live in bliss ignorance of what is happening in housing, with my head in the sand, but thinking people will jump back in because I say so.

I feel dirty.

[cr]

YOU ARE ALL WRONG!!!

AND HERE IS WHY-
1. HOUSING IS AS STRONG AS EVER!
2. NOW IS A GREAT TIME TO BUY OR SELL (or foreclose)
3. SALES ARE UP (in one small neighborhood in AL outside the new Toyota plant)
4. INVETORIES ARE DOWN (in the same small town)
5. RATES ARE LOW! (but going up)
6. I’M TYPING IN CAPS WHICH MEANS I’M YELLING, THEREFORE I’M RIGHT

Just kidding guys, (except for the parts in parantheses) I just wanted to see what it felt like to live in bliss ignorance of what is happening in housing, with my head in the sand, but thinking people will jump back in because I say so.

I feel dirty.

[drunkle]

actually, they’d be mining h3. apparently, hummers are the best known fuel for fusion and the moon is chock full of them.

on a related note, dow (i think) bought the patent for cold fusion, possibly to grow h3’s rather than have to mine them. hummers for everyone!!11!

[drunkle]

actually, they’d be mining h3. apparently, hummers are the best known fuel for fusion and the moon is chock full of them.

on a related note, dow (i think) bought the patent for cold fusion, possibly to grow h3’s rather than have to mine them. hummers for everyone!!11!

[what_a_disasta]

http://www.fuh2.com/

[Author]

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