OT: I made bad choices, everyone pitty me.

[NotCranky]

[quote=Allan from Fallbrook]Russ: Now, that’s some diabolical shit there! Yeah, who needs more oversight and regulation, right? We did away with all those nefarious schemes in the ’08 crash.

Damn. This shit just never stops, does it?[/quote]

We all know the banks and the Gov. are corrupt together. Maybe,it is a primitive sense of competition maybe it is idealism but I prefer my relative equal, the FB, does not get head of the line priveleges for the nations resources in a corrupt deal that hurts tax payers and inflates real estate.

The competition part may be simple jealousy. I busted my butt and sacrificed on fun and games to have a relatively tiny mortgage and a rental that will cash flow. I hate to see some FB-hyper- consumers get a huge get out of jail free card passed to them.(even though I might like these neighbors otherwise).I do know some people are just so nice you want them to get all the breaks, but many were just blowhard hyper-consumers.

On the idealism front, I like the people against the gov. and the banks ,rather than the people against the gov. , banks and some of people. We will have been even further divided and conquered, by various consequences of debt when a large percentage of the population is rewarded in a big way for screwing it up. This is especially bothersome when contrasted with the actual suffering of sick lame and crazies, or much more responsible people who have problems but won’t fall under any “rescue” package and may have to liquidate real assets at substantial losses to get through this “crisis”, while the FB’s and crooks get breaks and eat up the nations capacity for charity or other safety nets, like employment and a relatively stable economy.

Anyway as far as financial advise to FB’S go, just hang in there for another few months. Keep kicking and screaming at anyone you can and you will probably get a load taken off.Congratulations in advance.

[SellingMyHome]

What is “FB”?

[SellingMyHome]

What is “FB”?

[SellingMyHome]

What is “FB”?

[SellingMyHome]

What is “FB”?

[SellingMyHome]

What is “FB”?

[NotCranky]

It refers to someone who borrowed too much money. I don’t remember which of several words that have been used goes with the F is best, but the second is borrower.

[NotCranky]

It refers to someone who borrowed too much money. I don’t remember which of several words that have been used goes with the F is best, but the second is borrower.

[NotCranky]

It refers to someone who borrowed too much money. I don’t remember which of several words that have been used goes with the F is best, but the second is borrower.

[NotCranky]

It refers to someone who borrowed too much money. I don’t remember which of several words that have been used goes with the F is best, but the second is borrower.

[NotCranky]

It refers to someone who borrowed too much money. I don’t remember which of several words that have been used goes with the F is best, but the second is borrower.

[CA renter]

[quote=Russell][quote=SellingMyHome][quote=Russell]

Arraya, I guess you didn’t read the whole thread. Lots of people think they should get government sponsored mark downs and keep the house and in many cases,all the goodies and good life memories they bought with the equity. Again, I think you can’t blame them for trying but it is offensive to think about the mechanisms and repercussions involved. I agree with meandale, I would rather see this level of corruption between the government and the banks than the government and individuals or the government, banks and individuals.[/quote]

I still wonder if there wasn’t some way to forgive principal for owners by giving it to their lenders. I’ve heard Jon Stewart discuss it before, between jokes, and it certainly sounded good to me. He is actually fairly intelligent, is neither liberal or conservative.

I’d like to hear arguments for and against that idea.[/quote]

Vulture Funds Raising Profits By Reducing Principal Balances On Mortgages
By twist
When a lousy economy gave them lemons, “vulture” investment firms have found a way to make government backed lemonade:

Investment funds are buying billions of dollars’ worth of home loans, discounted from the loans’ original value. Then, in what might seem an act of charity, the funds are helping homeowners by reducing the size of the loans.

But as part of these deals, the mortgages are being refinanced through lenders that work with government agencies like the Federal Housing Administration. This enables the funds to pocket sizable profits by reselling new, government-insured loans to other federal agencies, which then bundle the mortgages into securities for sale to investors.

While homeowners save money, the arrangement shifts nearly all the risk for the loans to the federal government — and, ultimately, taxpayers — at a time when Americans are falling behind on their mortgage payments in record numbers.

So how does this work? Here’s one example:

Last December, the couple got a letter saying that a firm had purchased the mortgage on their home in Pico Rivera, Calif., from Chase Home Finance for less than its original value. “We want to share this discount with you,” the letter said.

“I couldn’t believe it,” said Mr. Alva, a 62-year-old janitor and father of three. “I kept thinking to myself, ‘Something is wrong, something is wrong. This sounds too good.’ ”

But it was true. The balance on the Alvas’ mortgage was ultimately reduced to $314,000 from $440,000.

The firm behind the reduction remains a mystery. The Alvas’ new loan, backed by the F.H.A., was made by Primary Residential Mortgage, a lender based in Utah. But the letter came from a company called MCM Capital Partners.

In the letter, MCM said the couple’s loan was owned by something called MCMCap Homeowners’ Advantage Trust III. But MCM’s co-founders said in an interview that MCM does not own any mortgages. They would not reveal the investor that owned the Alvas’ loan because they had agreed to keep that client’s identity confidential.

MCMCap is based out of Bethesda, MD. At MCMCap’s website, they describe their operations like this:
MCMCAP Partners LLC and MCMCAP Homeowners Advantage Trusts (together, ‘MCM’) is an independent, private investment trust that invests in residential mortgages. Specifically, we purchase mortgages from some of the largest banks and Wall Street firms and service the loans through our partner, Ocwen Financial Corporation (’Ocwen’). Ocwen is responsible for billing, collection, and reporting borrower payments and loan balances. The credit crisis has allowed MCM to buy loans at a discount which in turn allows us to provide our customers with a unique opportunity: to forgive a portion of the loan balance when a qualified borrower refinances or pays off the loan for any reason. There is no fine print and there are no strings attached! MCM has to date provided principal reductions to thousands of mortgage customers across the country.

We offer debt reduction on every loan in our portfolio as long as borrowers remain current on their payments. For those borrowers who qualify for refinancing, we insist that the new loan offers tangible benefits, including lower interest rates, more stable loan programs, and limited or no closing costs. This unique program for our customers reduces mortgage payment burdens, protects credit histories, and helps stabilize property values; all of which are essential factors in the recovery of the U.S. economy.

There doesn’t seem to be a big question as to whether this is good for the borrower or the investors. What is the question is how much risk these loans have for the government, and ultimately the U.S. taxpayer.[/quote]

And the most important part of this is that the new mortgage isn’t recorded as a sale.

Some of us have been harping on this for a long time. If an FB gets a principal reduction, the house should be re-valued to the “new” price — and it should be mandated that homes with new principal reductions be used as comps for new sales. After all, the revised loan amount is what the borrower could really afford — the new loan amount is the real sales price. The lender is effectively re-selling the house to the previous buyer at a reduced price. Must be nice!

[CA renter]

[quote=Russell][quote=SellingMyHome][quote=Russell]

Arraya, I guess you didn’t read the whole thread. Lots of people think they should get government sponsored mark downs and keep the house and in many cases,all the goodies and good life memories they bought with the equity. Again, I think you can’t blame them for trying but it is offensive to think about the mechanisms and repercussions involved. I agree with meandale, I would rather see this level of corruption between the government and the banks than the government and individuals or the government, banks and individuals.[/quote]

I still wonder if there wasn’t some way to forgive principal for owners by giving it to their lenders. I’ve heard Jon Stewart discuss it before, between jokes, and it certainly sounded good to me. He is actually fairly intelligent, is neither liberal or conservative.

I’d like to hear arguments for and against that idea.[/quote]

Vulture Funds Raising Profits By Reducing Principal Balances On Mortgages
By twist
When a lousy economy gave them lemons, “vulture” investment firms have found a way to make government backed lemonade:

Investment funds are buying billions of dollars’ worth of home loans, discounted from the loans’ original value. Then, in what might seem an act of charity, the funds are helping homeowners by reducing the size of the loans.

But as part of these deals, the mortgages are being refinanced through lenders that work with government agencies like the Federal Housing Administration. This enables the funds to pocket sizable profits by reselling new, government-insured loans to other federal agencies, which then bundle the mortgages into securities for sale to investors.

While homeowners save money, the arrangement shifts nearly all the risk for the loans to the federal government — and, ultimately, taxpayers — at a time when Americans are falling behind on their mortgage payments in record numbers.

So how does this work? Here’s one example:

Last December, the couple got a letter saying that a firm had purchased the mortgage on their home in Pico Rivera, Calif., from Chase Home Finance for less than its original value. “We want to share this discount with you,” the letter said.

“I couldn’t believe it,” said Mr. Alva, a 62-year-old janitor and father of three. “I kept thinking to myself, ‘Something is wrong, something is wrong. This sounds too good.’ ”

But it was true. The balance on the Alvas’ mortgage was ultimately reduced to $314,000 from $440,000.

The firm behind the reduction remains a mystery. The Alvas’ new loan, backed by the F.H.A., was made by Primary Residential Mortgage, a lender based in Utah. But the letter came from a company called MCM Capital Partners.

In the letter, MCM said the couple’s loan was owned by something called MCMCap Homeowners’ Advantage Trust III. But MCM’s co-founders said in an interview that MCM does not own any mortgages. They would not reveal the investor that owned the Alvas’ loan because they had agreed to keep that client’s identity confidential.

MCMCap is based out of Bethesda, MD. At MCMCap’s website, they describe their operations like this:
MCMCAP Partners LLC and MCMCAP Homeowners Advantage Trusts (together, ‘MCM’) is an independent, private investment trust that invests in residential mortgages. Specifically, we purchase mortgages from some of the largest banks and Wall Street firms and service the loans through our partner, Ocwen Financial Corporation (’Ocwen’). Ocwen is responsible for billing, collection, and reporting borrower payments and loan balances. The credit crisis has allowed MCM to buy loans at a discount which in turn allows us to provide our customers with a unique opportunity: to forgive a portion of the loan balance when a qualified borrower refinances or pays off the loan for any reason. There is no fine print and there are no strings attached! MCM has to date provided principal reductions to thousands of mortgage customers across the country.

We offer debt reduction on every loan in our portfolio as long as borrowers remain current on their payments. For those borrowers who qualify for refinancing, we insist that the new loan offers tangible benefits, including lower interest rates, more stable loan programs, and limited or no closing costs. This unique program for our customers reduces mortgage payment burdens, protects credit histories, and helps stabilize property values; all of which are essential factors in the recovery of the U.S. economy.

There doesn’t seem to be a big question as to whether this is good for the borrower or the investors. What is the question is how much risk these loans have for the government, and ultimately the U.S. taxpayer.[/quote]

And the most important part of this is that the new mortgage isn’t recorded as a sale.

Some of us have been harping on this for a long time. If an FB gets a principal reduction, the house should be re-valued to the “new” price — and it should be mandated that homes with new principal reductions be used as comps for new sales. After all, the revised loan amount is what the borrower could really afford — the new loan amount is the real sales price. The lender is effectively re-selling the house to the previous buyer at a reduced price. Must be nice!

[CA renter]

[quote=Russell][quote=SellingMyHome][quote=Russell]

Arraya, I guess you didn’t read the whole thread. Lots of people think they should get government sponsored mark downs and keep the house and in many cases,all the goodies and good life memories they bought with the equity. Again, I think you can’t blame them for trying but it is offensive to think about the mechanisms and repercussions involved. I agree with meandale, I would rather see this level of corruption between the government and the banks than the government and individuals or the government, banks and individuals.[/quote]

I still wonder if there wasn’t some way to forgive principal for owners by giving it to their lenders. I’ve heard Jon Stewart discuss it before, between jokes, and it certainly sounded good to me. He is actually fairly intelligent, is neither liberal or conservative.

I’d like to hear arguments for and against that idea.[/quote]

Vulture Funds Raising Profits By Reducing Principal Balances On Mortgages
By twist
When a lousy economy gave them lemons, “vulture” investment firms have found a way to make government backed lemonade:

Investment funds are buying billions of dollars’ worth of home loans, discounted from the loans’ original value. Then, in what might seem an act of charity, the funds are helping homeowners by reducing the size of the loans.

But as part of these deals, the mortgages are being refinanced through lenders that work with government agencies like the Federal Housing Administration. This enables the funds to pocket sizable profits by reselling new, government-insured loans to other federal agencies, which then bundle the mortgages into securities for sale to investors.

While homeowners save money, the arrangement shifts nearly all the risk for the loans to the federal government — and, ultimately, taxpayers — at a time when Americans are falling behind on their mortgage payments in record numbers.

So how does this work? Here’s one example:

Last December, the couple got a letter saying that a firm had purchased the mortgage on their home in Pico Rivera, Calif., from Chase Home Finance for less than its original value. “We want to share this discount with you,” the letter said.

“I couldn’t believe it,” said Mr. Alva, a 62-year-old janitor and father of three. “I kept thinking to myself, ‘Something is wrong, something is wrong. This sounds too good.’ ”

But it was true. The balance on the Alvas’ mortgage was ultimately reduced to $314,000 from $440,000.

The firm behind the reduction remains a mystery. The Alvas’ new loan, backed by the F.H.A., was made by Primary Residential Mortgage, a lender based in Utah. But the letter came from a company called MCM Capital Partners.

In the letter, MCM said the couple’s loan was owned by something called MCMCap Homeowners’ Advantage Trust III. But MCM’s co-founders said in an interview that MCM does not own any mortgages. They would not reveal the investor that owned the Alvas’ loan because they had agreed to keep that client’s identity confidential.

MCMCap is based out of Bethesda, MD. At MCMCap’s website, they describe their operations like this:
MCMCAP Partners LLC and MCMCAP Homeowners Advantage Trusts (together, ‘MCM’) is an independent, private investment trust that invests in residential mortgages. Specifically, we purchase mortgages from some of the largest banks and Wall Street firms and service the loans through our partner, Ocwen Financial Corporation (’Ocwen’). Ocwen is responsible for billing, collection, and reporting borrower payments and loan balances. The credit crisis has allowed MCM to buy loans at a discount which in turn allows us to provide our customers with a unique opportunity: to forgive a portion of the loan balance when a qualified borrower refinances or pays off the loan for any reason. There is no fine print and there are no strings attached! MCM has to date provided principal reductions to thousands of mortgage customers across the country.

We offer debt reduction on every loan in our portfolio as long as borrowers remain current on their payments. For those borrowers who qualify for refinancing, we insist that the new loan offers tangible benefits, including lower interest rates, more stable loan programs, and limited or no closing costs. This unique program for our customers reduces mortgage payment burdens, protects credit histories, and helps stabilize property values; all of which are essential factors in the recovery of the U.S. economy.

There doesn’t seem to be a big question as to whether this is good for the borrower or the investors. What is the question is how much risk these loans have for the government, and ultimately the U.S. taxpayer.[/quote]

And the most important part of this is that the new mortgage isn’t recorded as a sale.

Some of us have been harping on this for a long time. If an FB gets a principal reduction, the house should be re-valued to the “new” price — and it should be mandated that homes with new principal reductions be used as comps for new sales. After all, the revised loan amount is what the borrower could really afford — the new loan amount is the real sales price. The lender is effectively re-selling the house to the previous buyer at a reduced price. Must be nice!

[CA renter]

[quote=Russell][quote=SellingMyHome][quote=Russell]

Arraya, I guess you didn’t read the whole thread. Lots of people think they should get government sponsored mark downs and keep the house and in many cases,all the goodies and good life memories they bought with the equity. Again, I think you can’t blame them for trying but it is offensive to think about the mechanisms and repercussions involved. I agree with meandale, I would rather see this level of corruption between the government and the banks than the government and individuals or the government, banks and individuals.[/quote]

I still wonder if there wasn’t some way to forgive principal for owners by giving it to their lenders. I’ve heard Jon Stewart discuss it before, between jokes, and it certainly sounded good to me. He is actually fairly intelligent, is neither liberal or conservative.

I’d like to hear arguments for and against that idea.[/quote]

Vulture Funds Raising Profits By Reducing Principal Balances On Mortgages
By twist
When a lousy economy gave them lemons, “vulture” investment firms have found a way to make government backed lemonade:

Investment funds are buying billions of dollars’ worth of home loans, discounted from the loans’ original value. Then, in what might seem an act of charity, the funds are helping homeowners by reducing the size of the loans.

But as part of these deals, the mortgages are being refinanced through lenders that work with government agencies like the Federal Housing Administration. This enables the funds to pocket sizable profits by reselling new, government-insured loans to other federal agencies, which then bundle the mortgages into securities for sale to investors.

While homeowners save money, the arrangement shifts nearly all the risk for the loans to the federal government — and, ultimately, taxpayers — at a time when Americans are falling behind on their mortgage payments in record numbers.

So how does this work? Here’s one example:

Last December, the couple got a letter saying that a firm had purchased the mortgage on their home in Pico Rivera, Calif., from Chase Home Finance for less than its original value. “We want to share this discount with you,” the letter said.

“I couldn’t believe it,” said Mr. Alva, a 62-year-old janitor and father of three. “I kept thinking to myself, ‘Something is wrong, something is wrong. This sounds too good.’ ”

But it was true. The balance on the Alvas’ mortgage was ultimately reduced to $314,000 from $440,000.

The firm behind the reduction remains a mystery. The Alvas’ new loan, backed by the F.H.A., was made by Primary Residential Mortgage, a lender based in Utah. But the letter came from a company called MCM Capital Partners.

In the letter, MCM said the couple’s loan was owned by something called MCMCap Homeowners’ Advantage Trust III. But MCM’s co-founders said in an interview that MCM does not own any mortgages. They would not reveal the investor that owned the Alvas’ loan because they had agreed to keep that client’s identity confidential.

MCMCap is based out of Bethesda, MD. At MCMCap’s website, they describe their operations like this:
MCMCAP Partners LLC and MCMCAP Homeowners Advantage Trusts (together, ‘MCM’) is an independent, private investment trust that invests in residential mortgages. Specifically, we purchase mortgages from some of the largest banks and Wall Street firms and service the loans through our partner, Ocwen Financial Corporation (’Ocwen’). Ocwen is responsible for billing, collection, and reporting borrower payments and loan balances. The credit crisis has allowed MCM to buy loans at a discount which in turn allows us to provide our customers with a unique opportunity: to forgive a portion of the loan balance when a qualified borrower refinances or pays off the loan for any reason. There is no fine print and there are no strings attached! MCM has to date provided principal reductions to thousands of mortgage customers across the country.

We offer debt reduction on every loan in our portfolio as long as borrowers remain current on their payments. For those borrowers who qualify for refinancing, we insist that the new loan offers tangible benefits, including lower interest rates, more stable loan programs, and limited or no closing costs. This unique program for our customers reduces mortgage payment burdens, protects credit histories, and helps stabilize property values; all of which are essential factors in the recovery of the U.S. economy.

There doesn’t seem to be a big question as to whether this is good for the borrower or the investors. What is the question is how much risk these loans have for the government, and ultimately the U.S. taxpayer.[/quote]

And the most important part of this is that the new mortgage isn’t recorded as a sale.

Some of us have been harping on this for a long time. If an FB gets a principal reduction, the house should be re-valued to the “new” price — and it should be mandated that homes with new principal reductions be used as comps for new sales. After all, the revised loan amount is what the borrower could really afford — the new loan amount is the real sales price. The lender is effectively re-selling the house to the previous buyer at a reduced price. Must be nice!

[Author]

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