Paulson: Subprime help on the way

[JerseyGrl]

Toots
essentially, a very thin slice of bitter debtors are eligible………probably so

From http://globaleconomicanalysis.blogspot.com/2007/12/paulsons-plan-is-nothing-but-lip.html

“The homeowner bailout sounds a lot better in the headlines than it does when you dig deeper. For instance, HomEq reports that for every 5,000 resets that come in every month, only 1,000 meet standards to even begin loan modification, and of those only 10% of borrowers actually begin the process. That’s 2% of all borrowers undergoing resets.

One of the problems is that in many cases, a W2 is required, and many of these homeowners are reluctant to provide one since they presumably lied about their income to qualify for a mortgage. Still others are in trouble not because of the reset, but because they can’t even afford their teaser rate. Many in foreclosure won’t pick up the phone when contacts are attempted from lenders.”

[patientrenter]

nostradamus, if I am a homeowner and this bailout allows me to borrow at a lower rate, then I am definitely getting something of value. Furthermore, lowering borrowing rates for many homeowners can only help to support prices in general, and all homeowners will feel some benefit from that.

I disagree totally with bailouts, but this one definitely isn’t all about helping lenders. It will benefit many homeowners (= voters) too.

Patient renter in OC

[patientrenter]

nostradamus, if I am a homeowner and this bailout allows me to borrow at a lower rate, then I am definitely getting something of value. Furthermore, lowering borrowing rates for many homeowners can only help to support prices in general, and all homeowners will feel some benefit from that.

I disagree totally with bailouts, but this one definitely isn’t all about helping lenders. It will benefit many homeowners (= voters) too.

Patient renter in OC

[patientrenter]

nostradamus, if I am a homeowner and this bailout allows me to borrow at a lower rate, then I am definitely getting something of value. Furthermore, lowering borrowing rates for many homeowners can only help to support prices in general, and all homeowners will feel some benefit from that.

I disagree totally with bailouts, but this one definitely isn’t all about helping lenders. It will benefit many homeowners (= voters) too.

Patient renter in OC

[patientrenter]

nostradamus, if I am a homeowner and this bailout allows me to borrow at a lower rate, then I am definitely getting something of value. Furthermore, lowering borrowing rates for many homeowners can only help to support prices in general, and all homeowners will feel some benefit from that.

I disagree totally with bailouts, but this one definitely isn’t all about helping lenders. It will benefit many homeowners (= voters) too.

Patient renter in OC

[patientrenter]

nostradamus, if I am a homeowner and this bailout allows me to borrow at a lower rate, then I am definitely getting something of value. Furthermore, lowering borrowing rates for many homeowners can only help to support prices in general, and all homeowners will feel some benefit from that.

I disagree totally with bailouts, but this one definitely isn’t all about helping lenders. It will benefit many homeowners (= voters) too.

Patient renter in OC

[hipmatt]

Don’t panic piggs.. like many of the wise ones here have stated, this plan is merely a political stunt. It is to appear that the gov. is TRYING to do something about the correcting of the housing bubble.

Very few will benefit from this plan in reality. There is no way it can stop even 1/4 of the foreclosures, and it will affect socal even less. Here in socal, we have had bigger losses on values than most of the country. This means that FBs have zero or negative equity. They would rather pay a ridiculous mortgage with the hopes of making big equity, than pay a reduced mortgage and owe more than the home is worth. FBs will likely throw in the keys anyways, even if they do qualify (very unlikely since most loans were bases off of stated incomes), and the lender agrees to help them out.

This might prevent a few foreclosures in socal, but really, there will still be many more homes to hit the MLS in the next 12 months. Inventories are currently at record highs and climbing. Buyers will not benefit at all from this plan. If anything, the money used to help the few FBs will not be available to new 1st time buyers. Lending standards have returned, and the economy is slowing. Unemployment is rising slowly and will likely pick up pace in the next few years. Even thought home prices are falling, many other costs are rising. We are still in a huge bear market for RE. Don’t worry, prices will come down, but that still doesn’t make it right. We need to keep voicing our opinions, and telling our case for why government should stay out of the free markets.

I would still rather be a renter (with cash invested)than an FB with negative equity, (still)overpaying for a reduced mortgage payment.

[hipmatt]

Don’t panic piggs.. like many of the wise ones here have stated, this plan is merely a political stunt. It is to appear that the gov. is TRYING to do something about the correcting of the housing bubble.

Very few will benefit from this plan in reality. There is no way it can stop even 1/4 of the foreclosures, and it will affect socal even less. Here in socal, we have had bigger losses on values than most of the country. This means that FBs have zero or negative equity. They would rather pay a ridiculous mortgage with the hopes of making big equity, than pay a reduced mortgage and owe more than the home is worth. FBs will likely throw in the keys anyways, even if they do qualify (very unlikely since most loans were bases off of stated incomes), and the lender agrees to help them out.

This might prevent a few foreclosures in socal, but really, there will still be many more homes to hit the MLS in the next 12 months. Inventories are currently at record highs and climbing. Buyers will not benefit at all from this plan. If anything, the money used to help the few FBs will not be available to new 1st time buyers. Lending standards have returned, and the economy is slowing. Unemployment is rising slowly and will likely pick up pace in the next few years. Even thought home prices are falling, many other costs are rising. We are still in a huge bear market for RE. Don’t worry, prices will come down, but that still doesn’t make it right. We need to keep voicing our opinions, and telling our case for why government should stay out of the free markets.

I would still rather be a renter (with cash invested)than an FB with negative equity, (still)overpaying for a reduced mortgage payment.

[hipmatt]

Don’t panic piggs.. like many of the wise ones here have stated, this plan is merely a political stunt. It is to appear that the gov. is TRYING to do something about the correcting of the housing bubble.

Very few will benefit from this plan in reality. There is no way it can stop even 1/4 of the foreclosures, and it will affect socal even less. Here in socal, we have had bigger losses on values than most of the country. This means that FBs have zero or negative equity. They would rather pay a ridiculous mortgage with the hopes of making big equity, than pay a reduced mortgage and owe more than the home is worth. FBs will likely throw in the keys anyways, even if they do qualify (very unlikely since most loans were bases off of stated incomes), and the lender agrees to help them out.

This might prevent a few foreclosures in socal, but really, there will still be many more homes to hit the MLS in the next 12 months. Inventories are currently at record highs and climbing. Buyers will not benefit at all from this plan. If anything, the money used to help the few FBs will not be available to new 1st time buyers. Lending standards have returned, and the economy is slowing. Unemployment is rising slowly and will likely pick up pace in the next few years. Even thought home prices are falling, many other costs are rising. We are still in a huge bear market for RE. Don’t worry, prices will come down, but that still doesn’t make it right. We need to keep voicing our opinions, and telling our case for why government should stay out of the free markets.

I would still rather be a renter (with cash invested)than an FB with negative equity, (still)overpaying for a reduced mortgage payment.

[hipmatt]

Don’t panic piggs.. like many of the wise ones here have stated, this plan is merely a political stunt. It is to appear that the gov. is TRYING to do something about the correcting of the housing bubble.

Very few will benefit from this plan in reality. There is no way it can stop even 1/4 of the foreclosures, and it will affect socal even less. Here in socal, we have had bigger losses on values than most of the country. This means that FBs have zero or negative equity. They would rather pay a ridiculous mortgage with the hopes of making big equity, than pay a reduced mortgage and owe more than the home is worth. FBs will likely throw in the keys anyways, even if they do qualify (very unlikely since most loans were bases off of stated incomes), and the lender agrees to help them out.

This might prevent a few foreclosures in socal, but really, there will still be many more homes to hit the MLS in the next 12 months. Inventories are currently at record highs and climbing. Buyers will not benefit at all from this plan. If anything, the money used to help the few FBs will not be available to new 1st time buyers. Lending standards have returned, and the economy is slowing. Unemployment is rising slowly and will likely pick up pace in the next few years. Even thought home prices are falling, many other costs are rising. We are still in a huge bear market for RE. Don’t worry, prices will come down, but that still doesn’t make it right. We need to keep voicing our opinions, and telling our case for why government should stay out of the free markets.

I would still rather be a renter (with cash invested)than an FB with negative equity, (still)overpaying for a reduced mortgage payment.

[hipmatt]

Don’t panic piggs.. like many of the wise ones here have stated, this plan is merely a political stunt. It is to appear that the gov. is TRYING to do something about the correcting of the housing bubble.

Very few will benefit from this plan in reality. There is no way it can stop even 1/4 of the foreclosures, and it will affect socal even less. Here in socal, we have had bigger losses on values than most of the country. This means that FBs have zero or negative equity. They would rather pay a ridiculous mortgage with the hopes of making big equity, than pay a reduced mortgage and owe more than the home is worth. FBs will likely throw in the keys anyways, even if they do qualify (very unlikely since most loans were bases off of stated incomes), and the lender agrees to help them out.

This might prevent a few foreclosures in socal, but really, there will still be many more homes to hit the MLS in the next 12 months. Inventories are currently at record highs and climbing. Buyers will not benefit at all from this plan. If anything, the money used to help the few FBs will not be available to new 1st time buyers. Lending standards have returned, and the economy is slowing. Unemployment is rising slowly and will likely pick up pace in the next few years. Even thought home prices are falling, many other costs are rising. We are still in a huge bear market for RE. Don’t worry, prices will come down, but that still doesn’t make it right. We need to keep voicing our opinions, and telling our case for why government should stay out of the free markets.

I would still rather be a renter (with cash invested)than an FB with negative equity, (still)overpaying for a reduced mortgage payment.

[Jumby]

Well said hipmatt….

[Jumby]

Well said hipmatt….

[Jumby]

Well said hipmatt….

[Jumby]

Well said hipmatt….

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