the next big step down is coming to mid/high-end areas near you

[Coronita]

Also, from that article….

“Only loans where the cost of the foreclosure would be higher than the cost of modification would qualify. Also, Treasury will not provide subsidies to reduce rates to levels below 2%.”

That pretty much sums up almost all underwater homes in CA doesn’t it?

Maybe the reason why banks haven’t massively started foreclosing yet, is they are waiting for this bailout plan. After all, if they foreclose, they know that’s a lot of money lost. With these government bailout plan, at the least the government is going to partially subsidize the modification.

“The modification plan calls for the servicer to reduce interest rates so that the monthly obligation is no more than 38% of a borrower’s pre-tax income, and then the government would kick in money to bring payments down to 31% of income. Servicers can also reduce the loan balance to achieve these affordability levels. The government will share in the cost, up to the amount the servicer would have received if it had reduced the interest rates.”

Oh boy…

[jpinpb]

The only thing I can think of is just California alone, if banks are going to redo all the loans, they just would burn through the money they got from the gov. I mean, some of that money is for CDS and making them whole there. Where the heck are they going to get the money to redo all those loans. I mean, it boggles the mind.

[jpinpb]

The only thing I can think of is just California alone, if banks are going to redo all the loans, they just would burn through the money they got from the gov. I mean, some of that money is for CDS and making them whole there. Where the heck are they going to get the money to redo all those loans. I mean, it boggles the mind.

[jpinpb]

The only thing I can think of is just California alone, if banks are going to redo all the loans, they just would burn through the money they got from the gov. I mean, some of that money is for CDS and making them whole there. Where the heck are they going to get the money to redo all those loans. I mean, it boggles the mind.

[jpinpb]

The only thing I can think of is just California alone, if banks are going to redo all the loans, they just would burn through the money they got from the gov. I mean, some of that money is for CDS and making them whole there. Where the heck are they going to get the money to redo all those loans. I mean, it boggles the mind.

[jpinpb]

The only thing I can think of is just California alone, if banks are going to redo all the loans, they just would burn through the money they got from the gov. I mean, some of that money is for CDS and making them whole there. Where the heck are they going to get the money to redo all those loans. I mean, it boggles the mind.

[Coronita]

[quote=jpinpb]The only thing I can think of is just California alone, if banks are going to redo all the loans, they just would burn through the money they got from the gov. I mean, some of that money is for CDS and making them whole there. Where the heck are they going to get the money to redo all those loans. I mean, it boggles the mind. [/quote]

I don’t think they are going to redo every loan all at once. They’ll probably do some mix and match, enough to make their earnings “look” decent.

Redo x%, let y% foreclose, let some others squat till next year until Fed authorizes Loan Mod 2.0,etc….In essence take their candy ass time dragging out taking any loss so long as the government keeps giving these subsidies.
The net effect, me thinks is a trickle of foreclosures, a very slow price decline, and some squatters that get to stay in their home longer….
And heck, with the new mark to market accounting rules (or lack thereof), what’s to stop them from playing these games for awhile? It’s a perfect storm for these games? The question I have is whether this was all planned out (which I have to say if it were, it’s pretty crafty on our Fed part)…Or was it accidental from throwing shit on the wall and seeing what stuck… And heck, the states (CA specifically) are going to support this. How else is it going to get all that money from property taxes?

Gee, I feel left out 🙁 No wait, I’m indirectly paying for this shit.

Enough depressing thoughts. Time for some serious booze before I file my tax extensions.

-Night.

[Coronita]

[quote=jpinpb]The only thing I can think of is just California alone, if banks are going to redo all the loans, they just would burn through the money they got from the gov. I mean, some of that money is for CDS and making them whole there. Where the heck are they going to get the money to redo all those loans. I mean, it boggles the mind. [/quote]

I don’t think they are going to redo every loan all at once. They’ll probably do some mix and match, enough to make their earnings “look” decent.

Redo x%, let y% foreclose, let some others squat till next year until Fed authorizes Loan Mod 2.0,etc….In essence take their candy ass time dragging out taking any loss so long as the government keeps giving these subsidies.
The net effect, me thinks is a trickle of foreclosures, a very slow price decline, and some squatters that get to stay in their home longer….
And heck, with the new mark to market accounting rules (or lack thereof), what’s to stop them from playing these games for awhile? It’s a perfect storm for these games? The question I have is whether this was all planned out (which I have to say if it were, it’s pretty crafty on our Fed part)…Or was it accidental from throwing shit on the wall and seeing what stuck… And heck, the states (CA specifically) are going to support this. How else is it going to get all that money from property taxes?

Gee, I feel left out 🙁 No wait, I’m indirectly paying for this shit.

Enough depressing thoughts. Time for some serious booze before I file my tax extensions.

-Night.

[Coronita]

[quote=jpinpb]The only thing I can think of is just California alone, if banks are going to redo all the loans, they just would burn through the money they got from the gov. I mean, some of that money is for CDS and making them whole there. Where the heck are they going to get the money to redo all those loans. I mean, it boggles the mind. [/quote]

I don’t think they are going to redo every loan all at once. They’ll probably do some mix and match, enough to make their earnings “look” decent.

Redo x%, let y% foreclose, let some others squat till next year until Fed authorizes Loan Mod 2.0,etc….In essence take their candy ass time dragging out taking any loss so long as the government keeps giving these subsidies.
The net effect, me thinks is a trickle of foreclosures, a very slow price decline, and some squatters that get to stay in their home longer….
And heck, with the new mark to market accounting rules (or lack thereof), what’s to stop them from playing these games for awhile? It’s a perfect storm for these games? The question I have is whether this was all planned out (which I have to say if it were, it’s pretty crafty on our Fed part)…Or was it accidental from throwing shit on the wall and seeing what stuck… And heck, the states (CA specifically) are going to support this. How else is it going to get all that money from property taxes?

Gee, I feel left out 🙁 No wait, I’m indirectly paying for this shit.

Enough depressing thoughts. Time for some serious booze before I file my tax extensions.

-Night.

[Coronita]

[quote=jpinpb]The only thing I can think of is just California alone, if banks are going to redo all the loans, they just would burn through the money they got from the gov. I mean, some of that money is for CDS and making them whole there. Where the heck are they going to get the money to redo all those loans. I mean, it boggles the mind. [/quote]

I don’t think they are going to redo every loan all at once. They’ll probably do some mix and match, enough to make their earnings “look” decent.

Redo x%, let y% foreclose, let some others squat till next year until Fed authorizes Loan Mod 2.0,etc….In essence take their candy ass time dragging out taking any loss so long as the government keeps giving these subsidies.
The net effect, me thinks is a trickle of foreclosures, a very slow price decline, and some squatters that get to stay in their home longer….
And heck, with the new mark to market accounting rules (or lack thereof), what’s to stop them from playing these games for awhile? It’s a perfect storm for these games? The question I have is whether this was all planned out (which I have to say if it were, it’s pretty crafty on our Fed part)…Or was it accidental from throwing shit on the wall and seeing what stuck… And heck, the states (CA specifically) are going to support this. How else is it going to get all that money from property taxes?

Gee, I feel left out 🙁 No wait, I’m indirectly paying for this shit.

Enough depressing thoughts. Time for some serious booze before I file my tax extensions.

-Night.

[Coronita]

[quote=jpinpb]The only thing I can think of is just California alone, if banks are going to redo all the loans, they just would burn through the money they got from the gov. I mean, some of that money is for CDS and making them whole there. Where the heck are they going to get the money to redo all those loans. I mean, it boggles the mind. [/quote]

I don’t think they are going to redo every loan all at once. They’ll probably do some mix and match, enough to make their earnings “look” decent.

Redo x%, let y% foreclose, let some others squat till next year until Fed authorizes Loan Mod 2.0,etc….In essence take their candy ass time dragging out taking any loss so long as the government keeps giving these subsidies.
The net effect, me thinks is a trickle of foreclosures, a very slow price decline, and some squatters that get to stay in their home longer….
And heck, with the new mark to market accounting rules (or lack thereof), what’s to stop them from playing these games for awhile? It’s a perfect storm for these games? The question I have is whether this was all planned out (which I have to say if it were, it’s pretty crafty on our Fed part)…Or was it accidental from throwing shit on the wall and seeing what stuck… And heck, the states (CA specifically) are going to support this. How else is it going to get all that money from property taxes?

Gee, I feel left out 🙁 No wait, I’m indirectly paying for this shit.

Enough depressing thoughts. Time for some serious booze before I file my tax extensions.

-Night.

[jpinpb]

I’m going to start drinking too.

Banks get 9 billion to do loan mods

[jpinpb]

I’m going to start drinking too.

Banks get 9 billion to do loan mods

[jpinpb]

I’m going to start drinking too.

Banks get 9 billion to do loan mods

[jpinpb]

I’m going to start drinking too.

Banks get 9 billion to do loan mods

[Author]

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