You cannot have it both ways

[an]

All of these morality talk and honoring of mortgage contracts got me giggle for a second. American should be one of the last people to talk about honoring of contract when time gets tough or when things are not favorable. The reason I say this is because at least 1/2 of us don’t honor the contract most of us signed or will sign, which is, the marriage license. When things gets tough or when things don’t go our way, we get divorced. How is that any different than walking from a mortgage loan?

[NotCranky]

My contract says “until death do us part unless there is someone to blame for my marital problems”.

[NotCranky]

My contract says “until death do us part unless there is someone to blame for my marital problems”.

[NotCranky]

My contract says “until death do us part unless there is someone to blame for my marital problems”.

[NotCranky]

My contract says “until death do us part unless there is someone to blame for my marital problems”.

[NotCranky]

My contract says “until death do us part unless there is someone to blame for my marital problems”.

[HereWeGo]

You are all missing the point; even if you kept your nose clean and only made loans to people with 800 credit scores with 20% down, the underlying value of the assets that you lent on have been severely affected by your competitors.

As a bank, you may think that the $400,000 that you lent on a $500,000 home is still safe until Countrywide forforecloses (because they lent 125% of the appraised value) on the house next door and puts it back on the market for $350,000.

That’s true at this point. So as more REOs come to market, that will give more and more debtors reasons to walk, even “prime” debtors … yikes.

[HereWeGo]

You are all missing the point; even if you kept your nose clean and only made loans to people with 800 credit scores with 20% down, the underlying value of the assets that you lent on have been severely affected by your competitors.

As a bank, you may think that the $400,000 that you lent on a $500,000 home is still safe until Countrywide forforecloses (because they lent 125% of the appraised value) on the house next door and puts it back on the market for $350,000.

That’s true at this point. So as more REOs come to market, that will give more and more debtors reasons to walk, even “prime” debtors … yikes.

[HereWeGo]

You are all missing the point; even if you kept your nose clean and only made loans to people with 800 credit scores with 20% down, the underlying value of the assets that you lent on have been severely affected by your competitors.

As a bank, you may think that the $400,000 that you lent on a $500,000 home is still safe until Countrywide forforecloses (because they lent 125% of the appraised value) on the house next door and puts it back on the market for $350,000.

That’s true at this point. So as more REOs come to market, that will give more and more debtors reasons to walk, even “prime” debtors … yikes.

[HereWeGo]

You are all missing the point; even if you kept your nose clean and only made loans to people with 800 credit scores with 20% down, the underlying value of the assets that you lent on have been severely affected by your competitors.

As a bank, you may think that the $400,000 that you lent on a $500,000 home is still safe until Countrywide forforecloses (because they lent 125% of the appraised value) on the house next door and puts it back on the market for $350,000.

That’s true at this point. So as more REOs come to market, that will give more and more debtors reasons to walk, even “prime” debtors … yikes.

[HereWeGo]

You are all missing the point; even if you kept your nose clean and only made loans to people with 800 credit scores with 20% down, the underlying value of the assets that you lent on have been severely affected by your competitors.

As a bank, you may think that the $400,000 that you lent on a $500,000 home is still safe until Countrywide forforecloses (because they lent 125% of the appraised value) on the house next door and puts it back on the market for $350,000.

That’s true at this point. So as more REOs come to market, that will give more and more debtors reasons to walk, even “prime” debtors … yikes.

[utcsox]

“As a bank, you may think that the $400,000 that you lent on a $500,000 home is still safe until Countrywide forforecloses (because they lent 125% of the appraised value) on the house next door and puts it back on the market for $350,000”.

Not if you require to put another 20 percent down to purchase the same type of home. How many buyers will have another $70K sitting so they can take advantage of this situation. Probably not many. That’s why even though there is a world wide real estate bubble, most of the countries will NOT suffer as bad as in California.

[utcsox]

“As a bank, you may think that the $400,000 that you lent on a $500,000 home is still safe until Countrywide forforecloses (because they lent 125% of the appraised value) on the house next door and puts it back on the market for $350,000”.

Not if you require to put another 20 percent down to purchase the same type of home. How many buyers will have another $70K sitting so they can take advantage of this situation. Probably not many. That’s why even though there is a world wide real estate bubble, most of the countries will NOT suffer as bad as in California.

[utcsox]

“As a bank, you may think that the $400,000 that you lent on a $500,000 home is still safe until Countrywide forforecloses (because they lent 125% of the appraised value) on the house next door and puts it back on the market for $350,000”.

Not if you require to put another 20 percent down to purchase the same type of home. How many buyers will have another $70K sitting so they can take advantage of this situation. Probably not many. That’s why even though there is a world wide real estate bubble, most of the countries will NOT suffer as bad as in California.

[utcsox]

“As a bank, you may think that the $400,000 that you lent on a $500,000 home is still safe until Countrywide forforecloses (because they lent 125% of the appraised value) on the house next door and puts it back on the market for $350,000”.

Not if you require to put another 20 percent down to purchase the same type of home. How many buyers will have another $70K sitting so they can take advantage of this situation. Probably not many. That’s why even though there is a world wide real estate bubble, most of the countries will NOT suffer as bad as in California.

[Author]

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