So now the Feds are gonna clear out the Banks REO’s????

[murf2222]

Did I hear correctly today that the reason for the 400+ point day on Wall St. is that the government is going to absorb a lot of the banks foreclosure debt?

If this is true then how is this going to affect the REO inventories?

Murf2222

[David J]

[quote=murf2222]Did I hear correctly today that the reason for the 400+ point day on Wall St. is that the government is going to absorb a lot of the banks foreclosure debt?

If this is true then how is this going to affect the REO inventories?

Murf2222[/quote]

I figure that they will do what I would feel to be the most unjust to responsible people.

First, they will buy all of the securities from institutions such as Washington Mutual. Then, when people say they can’t afford the mortgage, instead of foreclosing, because the government could never do that, they will write down the principal owed to whatever the borrower can afford.

[David J]

[quote=murf2222]Did I hear correctly today that the reason for the 400+ point day on Wall St. is that the government is going to absorb a lot of the banks foreclosure debt?

If this is true then how is this going to affect the REO inventories?

Murf2222[/quote]

I figure that they will do what I would feel to be the most unjust to responsible people.

First, they will buy all of the securities from institutions such as Washington Mutual. Then, when people say they can’t afford the mortgage, instead of foreclosing, because the government could never do that, they will write down the principal owed to whatever the borrower can afford.

[David J]

[quote=murf2222]Did I hear correctly today that the reason for the 400+ point day on Wall St. is that the government is going to absorb a lot of the banks foreclosure debt?

If this is true then how is this going to affect the REO inventories?

Murf2222[/quote]

I figure that they will do what I would feel to be the most unjust to responsible people.

First, they will buy all of the securities from institutions such as Washington Mutual. Then, when people say they can’t afford the mortgage, instead of foreclosing, because the government could never do that, they will write down the principal owed to whatever the borrower can afford.

[David J]

[quote=murf2222]Did I hear correctly today that the reason for the 400+ point day on Wall St. is that the government is going to absorb a lot of the banks foreclosure debt?

If this is true then how is this going to affect the REO inventories?

Murf2222[/quote]

I figure that they will do what I would feel to be the most unjust to responsible people.

First, they will buy all of the securities from institutions such as Washington Mutual. Then, when people say they can’t afford the mortgage, instead of foreclosing, because the government could never do that, they will write down the principal owed to whatever the borrower can afford.

[David J]

[quote=murf2222]Did I hear correctly today that the reason for the 400+ point day on Wall St. is that the government is going to absorb a lot of the banks foreclosure debt?

If this is true then how is this going to affect the REO inventories?

Murf2222[/quote]

I figure that they will do what I would feel to be the most unjust to responsible people.

First, they will buy all of the securities from institutions such as Washington Mutual. Then, when people say they can’t afford the mortgage, instead of foreclosing, because the government could never do that, they will write down the principal owed to whatever the borrower can afford.

[kev374]

it’s not that simple… if they just write down the principle to whatever the borrower can afford guess what would happen, it would trigger huge moral hazard, people in unprecedented numbers will start asking for handouts…why should I pay my full mortgage when my neighbor is getting for half price eh?

It would just cause complete and utter chaos..but unfortunately I think these brainless monkeys are just making a bad situation much much worse!

[kev374]

it’s not that simple… if they just write down the principle to whatever the borrower can afford guess what would happen, it would trigger huge moral hazard, people in unprecedented numbers will start asking for handouts…why should I pay my full mortgage when my neighbor is getting for half price eh?

It would just cause complete and utter chaos..but unfortunately I think these brainless monkeys are just making a bad situation much much worse!

[kev374]

it’s not that simple… if they just write down the principle to whatever the borrower can afford guess what would happen, it would trigger huge moral hazard, people in unprecedented numbers will start asking for handouts…why should I pay my full mortgage when my neighbor is getting for half price eh?

It would just cause complete and utter chaos..but unfortunately I think these brainless monkeys are just making a bad situation much much worse!

[kev374]

it’s not that simple… if they just write down the principle to whatever the borrower can afford guess what would happen, it would trigger huge moral hazard, people in unprecedented numbers will start asking for handouts…why should I pay my full mortgage when my neighbor is getting for half price eh?

It would just cause complete and utter chaos..but unfortunately I think these brainless monkeys are just making a bad situation much much worse!

[kev374]

it’s not that simple… if they just write down the principle to whatever the borrower can afford guess what would happen, it would trigger huge moral hazard, people in unprecedented numbers will start asking for handouts…why should I pay my full mortgage when my neighbor is getting for half price eh?

It would just cause complete and utter chaos..but unfortunately I think these brainless monkeys are just making a bad situation much much worse!

[David J]

I fully understand the issues with doing something along those lines, I just feel that would be the most populist of plans and also the one that would make me the most upset and thus the one that they will actually enact.

[David J]

I fully understand the issues with doing something along those lines, I just feel that would be the most populist of plans and also the one that would make me the most upset and thus the one that they will actually enact.

[David J]

I fully understand the issues with doing something along those lines, I just feel that would be the most populist of plans and also the one that would make me the most upset and thus the one that they will actually enact.

[David J]

I fully understand the issues with doing something along those lines, I just feel that would be the most populist of plans and also the one that would make me the most upset and thus the one that they will actually enact.

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