So, where are all the foreclosures?

[donaldduckmoore]

[quote=dd123]Here is one forclosure prevented by Bank/Govt:

One of my colleague bought a house for half a million 4 years back and his monthly payment was $4K. With the recent divorce, he was unable to make mortgage payments and for the last 6/7 months he was not making payments hoping to do short sale.
He is a very nice/easy going simple guy but financially irresponsible who likes to drive $40k car with toy like $8K in his driveway.
Last week he told me that, bank did some deal with him taking advantage of bailout, now he is able to keep his house paying just $2k/month for next 30 years which is what he can afford.
I am very happy for my colleague since I like him personally though I know that we all are footing the bill for this bailout.
At the same time, I think I have missed an opportunity to get bail out from govt.
Sometimes, I think I should have bought a million dollar house in 2006 though I cant afford it but anyway I would have been bailed out by bank/govt.
Being over analytical/financial responsible kind of kicked me back.[/quote]

DD, that is a big difference in payment. Did the bank reduce his principle amt. I thought they do not like the idea of reducing priciple.

[PadreBrian]

I have a co-worker that’s the same way, he had a reduced apr but he never missed a payment. The bank uses that 33% rule to figure out your new mortgage.

I would recommend anyone here that is a home “occupier”, to call their bank and get a new rate. There’s no liar loans anymore, so you still have to qualify for the new loan…pre-2003 style.

[PadreBrian]

I have a co-worker that’s the same way, he had a reduced apr but he never missed a payment. The bank uses that 33% rule to figure out your new mortgage.

I would recommend anyone here that is a home “occupier”, to call their bank and get a new rate. There’s no liar loans anymore, so you still have to qualify for the new loan…pre-2003 style.

[PadreBrian]

I have a co-worker that’s the same way, he had a reduced apr but he never missed a payment. The bank uses that 33% rule to figure out your new mortgage.

I would recommend anyone here that is a home “occupier”, to call their bank and get a new rate. There’s no liar loans anymore, so you still have to qualify for the new loan…pre-2003 style.

[PadreBrian]

I have a co-worker that’s the same way, he had a reduced apr but he never missed a payment. The bank uses that 33% rule to figure out your new mortgage.

I would recommend anyone here that is a home “occupier”, to call their bank and get a new rate. There’s no liar loans anymore, so you still have to qualify for the new loan…pre-2003 style.

[PadreBrian]

I have a co-worker that’s the same way, he had a reduced apr but he never missed a payment. The bank uses that 33% rule to figure out your new mortgage.

I would recommend anyone here that is a home “occupier”, to call their bank and get a new rate. There’s no liar loans anymore, so you still have to qualify for the new loan…pre-2003 style.

[denverite]

The banks are the government, the government are the banks. This is a truly scary, but a realistic possibility/probability. Suppose that the government adopts a long-term stategy of bank bailouts as policy. This is becoming more real/likely by the day. The banks LOVE high RE prices. They make TONS of money. They are used to it. The government is used to banks making obscene profits. Why change anything?

The government may continue to give bailouts for 5-7 years, or until the banks are happy with their situation. This may continue until 1) foreign creditors decide they have had enough and/or 2) inflation catches up with the bad bets the banks made. Either way we seem to be hosed.

I hope Mr. Mortgage is correct in his assessment!

[denverite]

The banks are the government, the government are the banks. This is a truly scary, but a realistic possibility/probability. Suppose that the government adopts a long-term stategy of bank bailouts as policy. This is becoming more real/likely by the day. The banks LOVE high RE prices. They make TONS of money. They are used to it. The government is used to banks making obscene profits. Why change anything?

The government may continue to give bailouts for 5-7 years, or until the banks are happy with their situation. This may continue until 1) foreign creditors decide they have had enough and/or 2) inflation catches up with the bad bets the banks made. Either way we seem to be hosed.

I hope Mr. Mortgage is correct in his assessment!

[denverite]

The banks are the government, the government are the banks. This is a truly scary, but a realistic possibility/probability. Suppose that the government adopts a long-term stategy of bank bailouts as policy. This is becoming more real/likely by the day. The banks LOVE high RE prices. They make TONS of money. They are used to it. The government is used to banks making obscene profits. Why change anything?

The government may continue to give bailouts for 5-7 years, or until the banks are happy with their situation. This may continue until 1) foreign creditors decide they have had enough and/or 2) inflation catches up with the bad bets the banks made. Either way we seem to be hosed.

I hope Mr. Mortgage is correct in his assessment!

[denverite]

The banks are the government, the government are the banks. This is a truly scary, but a realistic possibility/probability. Suppose that the government adopts a long-term stategy of bank bailouts as policy. This is becoming more real/likely by the day. The banks LOVE high RE prices. They make TONS of money. They are used to it. The government is used to banks making obscene profits. Why change anything?

The government may continue to give bailouts for 5-7 years, or until the banks are happy with their situation. This may continue until 1) foreign creditors decide they have had enough and/or 2) inflation catches up with the bad bets the banks made. Either way we seem to be hosed.

I hope Mr. Mortgage is correct in his assessment!

[denverite]

The banks are the government, the government are the banks. This is a truly scary, but a realistic possibility/probability. Suppose that the government adopts a long-term stategy of bank bailouts as policy. This is becoming more real/likely by the day. The banks LOVE high RE prices. They make TONS of money. They are used to it. The government is used to banks making obscene profits. Why change anything?

The government may continue to give bailouts for 5-7 years, or until the banks are happy with their situation. This may continue until 1) foreign creditors decide they have had enough and/or 2) inflation catches up with the bad bets the banks made. Either way we seem to be hosed.

I hope Mr. Mortgage is correct in his assessment!

[blahblahblah]

In the new system, mortgages aren’t supposed to be paid off. “Homebuyers” are supposed to die after making decades of payments with a still substantial balance remaining, leaving the property to the bank to then sell to the next sucker, er umm. “Homeowner”. This is the reason for home equity loans, no-money-down, etc… And now with government bailouts, the banks just can’t lose. Think of it like buying in England and getting a 99-year leasehold from the Queen who actually owns everything. Here we don’t have a Queen, we just have the banks who actually own everything.

[blahblahblah]

In the new system, mortgages aren’t supposed to be paid off. “Homebuyers” are supposed to die after making decades of payments with a still substantial balance remaining, leaving the property to the bank to then sell to the next sucker, er umm. “Homeowner”. This is the reason for home equity loans, no-money-down, etc… And now with government bailouts, the banks just can’t lose. Think of it like buying in England and getting a 99-year leasehold from the Queen who actually owns everything. Here we don’t have a Queen, we just have the banks who actually own everything.

[blahblahblah]

In the new system, mortgages aren’t supposed to be paid off. “Homebuyers” are supposed to die after making decades of payments with a still substantial balance remaining, leaving the property to the bank to then sell to the next sucker, er umm. “Homeowner”. This is the reason for home equity loans, no-money-down, etc… And now with government bailouts, the banks just can’t lose. Think of it like buying in England and getting a 99-year leasehold from the Queen who actually owns everything. Here we don’t have a Queen, we just have the banks who actually own everything.

[blahblahblah]

In the new system, mortgages aren’t supposed to be paid off. “Homebuyers” are supposed to die after making decades of payments with a still substantial balance remaining, leaving the property to the bank to then sell to the next sucker, er umm. “Homeowner”. This is the reason for home equity loans, no-money-down, etc… And now with government bailouts, the banks just can’t lose. Think of it like buying in England and getting a 99-year leasehold from the Queen who actually owns everything. Here we don’t have a Queen, we just have the banks who actually own everything.

[Author]

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