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Coronita.
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July 15, 2009 at 9:53 AM #431001July 15, 2009 at 11:54 AM #431365
Anonymous
GuestI turn to think the underline reason of the seemingly stupid decisions is the result of the recent accounting rule change, which allows banks to use non-realistic valuation for the assets they hold. Banks pushed congress for the change and achieved their intended consequences, i.e. they can now hold bad assets as they were good assets. As such, they would rather hold onto those assets, so their books look better than they are actually are. Short sale will realize the loss and their books will look worse. Same for the pace of foreclosures, they have no urgency to get the loans off the books, instead they like them to stay in, so they do not have to look for new capitals.
July 15, 2009 at 11:54 AM #431204Anonymous
GuestI turn to think the underline reason of the seemingly stupid decisions is the result of the recent accounting rule change, which allows banks to use non-realistic valuation for the assets they hold. Banks pushed congress for the change and achieved their intended consequences, i.e. they can now hold bad assets as they were good assets. As such, they would rather hold onto those assets, so their books look better than they are actually are. Short sale will realize the loss and their books will look worse. Same for the pace of foreclosures, they have no urgency to get the loans off the books, instead they like them to stay in, so they do not have to look for new capitals.
July 15, 2009 at 11:54 AM #431134Anonymous
GuestI turn to think the underline reason of the seemingly stupid decisions is the result of the recent accounting rule change, which allows banks to use non-realistic valuation for the assets they hold. Banks pushed congress for the change and achieved their intended consequences, i.e. they can now hold bad assets as they were good assets. As such, they would rather hold onto those assets, so their books look better than they are actually are. Short sale will realize the loss and their books will look worse. Same for the pace of foreclosures, they have no urgency to get the loans off the books, instead they like them to stay in, so they do not have to look for new capitals.
July 15, 2009 at 11:54 AM #430624Anonymous
GuestI turn to think the underline reason of the seemingly stupid decisions is the result of the recent accounting rule change, which allows banks to use non-realistic valuation for the assets they hold. Banks pushed congress for the change and achieved their intended consequences, i.e. they can now hold bad assets as they were good assets. As such, they would rather hold onto those assets, so their books look better than they are actually are. Short sale will realize the loss and their books will look worse. Same for the pace of foreclosures, they have no urgency to get the loans off the books, instead they like them to stay in, so they do not have to look for new capitals.
July 15, 2009 at 11:54 AM #430841Anonymous
GuestI turn to think the underline reason of the seemingly stupid decisions is the result of the recent accounting rule change, which allows banks to use non-realistic valuation for the assets they hold. Banks pushed congress for the change and achieved their intended consequences, i.e. they can now hold bad assets as they were good assets. As such, they would rather hold onto those assets, so their books look better than they are actually are. Short sale will realize the loss and their books will look worse. Same for the pace of foreclosures, they have no urgency to get the loans off the books, instead they like them to stay in, so they do not have to look for new capitals.
July 15, 2009 at 12:10 PM #431149UCGal
ParticipantIt doesn’t surprise me that banks aren’t acting in their own best interest… they didn’t on the way up, either.
May I ask an impertinant question? If the home had kept its value would you be staying in the home? Are you going through foreclosure because the home lost value, even though you still have the means to pay the mortgage you obtained?
I have friends who are pursueing a short sale – but in their case they lost one of the two household jobs. They are going back to renting a smaller place to live within their downsized budget. It sounds, from your tale, that they may stand a better chance of getting the short sale approved since they have a documented “distress” with the job loss.
July 15, 2009 at 12:10 PM #430639UCGal
ParticipantIt doesn’t surprise me that banks aren’t acting in their own best interest… they didn’t on the way up, either.
May I ask an impertinant question? If the home had kept its value would you be staying in the home? Are you going through foreclosure because the home lost value, even though you still have the means to pay the mortgage you obtained?
I have friends who are pursueing a short sale – but in their case they lost one of the two household jobs. They are going back to renting a smaller place to live within their downsized budget. It sounds, from your tale, that they may stand a better chance of getting the short sale approved since they have a documented “distress” with the job loss.
July 15, 2009 at 12:10 PM #430855UCGal
ParticipantIt doesn’t surprise me that banks aren’t acting in their own best interest… they didn’t on the way up, either.
May I ask an impertinant question? If the home had kept its value would you be staying in the home? Are you going through foreclosure because the home lost value, even though you still have the means to pay the mortgage you obtained?
I have friends who are pursueing a short sale – but in their case they lost one of the two household jobs. They are going back to renting a smaller place to live within their downsized budget. It sounds, from your tale, that they may stand a better chance of getting the short sale approved since they have a documented “distress” with the job loss.
July 15, 2009 at 12:10 PM #431219UCGal
ParticipantIt doesn’t surprise me that banks aren’t acting in their own best interest… they didn’t on the way up, either.
May I ask an impertinant question? If the home had kept its value would you be staying in the home? Are you going through foreclosure because the home lost value, even though you still have the means to pay the mortgage you obtained?
I have friends who are pursueing a short sale – but in their case they lost one of the two household jobs. They are going back to renting a smaller place to live within their downsized budget. It sounds, from your tale, that they may stand a better chance of getting the short sale approved since they have a documented “distress” with the job loss.
July 15, 2009 at 12:10 PM #431380UCGal
ParticipantIt doesn’t surprise me that banks aren’t acting in their own best interest… they didn’t on the way up, either.
May I ask an impertinant question? If the home had kept its value would you be staying in the home? Are you going through foreclosure because the home lost value, even though you still have the means to pay the mortgage you obtained?
I have friends who are pursueing a short sale – but in their case they lost one of the two household jobs. They are going back to renting a smaller place to live within their downsized budget. It sounds, from your tale, that they may stand a better chance of getting the short sale approved since they have a documented “distress” with the job loss.
July 15, 2009 at 12:34 PM #430895Reality
ParticipantBe a man and pay your obligations.
July 15, 2009 at 12:34 PM #431189Reality
ParticipantBe a man and pay your obligations.
July 15, 2009 at 12:34 PM #431259Reality
ParticipantBe a man and pay your obligations.
July 15, 2009 at 12:34 PM #431418Reality
ParticipantBe a man and pay your obligations.
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