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barnaby33ParticipantSarcasm Off…you know who you are…..
Actually sometimes I don’t, please help.
Josh
barnaby33ParticipantSarcasm Off…you know who you are…..
Actually sometimes I don’t, please help.
Josh
barnaby33ParticipantActually Deal Hunter, banks make money charging fees. Savings and Loans make money by lending. At least that used to be the distinction.
Josh
barnaby33ParticipantActually Deal Hunter, banks make money charging fees. Savings and Loans make money by lending. At least that used to be the distinction.
Josh
barnaby33ParticipantActually Deal Hunter, banks make money charging fees. Savings and Loans make money by lending. At least that used to be the distinction.
Josh
barnaby33ParticipantActually Deal Hunter, banks make money charging fees. Savings and Loans make money by lending. At least that used to be the distinction.
Josh
barnaby33ParticipantActually Deal Hunter, banks make money charging fees. Savings and Loans make money by lending. At least that used to be the distinction.
Josh
February 29, 2008 at 9:37 AM in reply to: “Renegotiate” Your Loan – banks giving in to buyers in distress #162561
barnaby33ParticipantOn the whole re-write issue, wouldn’t the old contract or mortgage need to be set-aside and a new mortgage recorded? I don’t know the mechanics of the process intimately but it seems like thats more of a story than a reality. The bank just lops off money you owe them? It may be practical, but it seems like there would be a huge paper trail. A paper trail that would have county recorded tie-ins.
As a second issue I don’t think it matters that much. All the bank is doing is recognizing market value such as it is today and adjusting what you owe accordingly. They wouldn’t be doing this is they thought that by selling the property after a foreclosure they would get more or even the same on the open market. It sounds distasteful, because it rewards the risky behavior we on this site abhor, but its still a form of market price discovery.
Is there any way to get more information on this practice?
Josh
February 29, 2008 at 9:37 AM in reply to: “Renegotiate” Your Loan – banks giving in to buyers in distress #162858
barnaby33ParticipantOn the whole re-write issue, wouldn’t the old contract or mortgage need to be set-aside and a new mortgage recorded? I don’t know the mechanics of the process intimately but it seems like thats more of a story than a reality. The bank just lops off money you owe them? It may be practical, but it seems like there would be a huge paper trail. A paper trail that would have county recorded tie-ins.
As a second issue I don’t think it matters that much. All the bank is doing is recognizing market value such as it is today and adjusting what you owe accordingly. They wouldn’t be doing this is they thought that by selling the property after a foreclosure they would get more or even the same on the open market. It sounds distasteful, because it rewards the risky behavior we on this site abhor, but its still a form of market price discovery.
Is there any way to get more information on this practice?
Josh
February 29, 2008 at 9:37 AM in reply to: “Renegotiate” Your Loan – banks giving in to buyers in distress #162873
barnaby33ParticipantOn the whole re-write issue, wouldn’t the old contract or mortgage need to be set-aside and a new mortgage recorded? I don’t know the mechanics of the process intimately but it seems like thats more of a story than a reality. The bank just lops off money you owe them? It may be practical, but it seems like there would be a huge paper trail. A paper trail that would have county recorded tie-ins.
As a second issue I don’t think it matters that much. All the bank is doing is recognizing market value such as it is today and adjusting what you owe accordingly. They wouldn’t be doing this is they thought that by selling the property after a foreclosure they would get more or even the same on the open market. It sounds distasteful, because it rewards the risky behavior we on this site abhor, but its still a form of market price discovery.
Is there any way to get more information on this practice?
Josh
February 29, 2008 at 9:37 AM in reply to: “Renegotiate” Your Loan – banks giving in to buyers in distress #162889
barnaby33ParticipantOn the whole re-write issue, wouldn’t the old contract or mortgage need to be set-aside and a new mortgage recorded? I don’t know the mechanics of the process intimately but it seems like thats more of a story than a reality. The bank just lops off money you owe them? It may be practical, but it seems like there would be a huge paper trail. A paper trail that would have county recorded tie-ins.
As a second issue I don’t think it matters that much. All the bank is doing is recognizing market value such as it is today and adjusting what you owe accordingly. They wouldn’t be doing this is they thought that by selling the property after a foreclosure they would get more or even the same on the open market. It sounds distasteful, because it rewards the risky behavior we on this site abhor, but its still a form of market price discovery.
Is there any way to get more information on this practice?
Josh
February 29, 2008 at 9:37 AM in reply to: “Renegotiate” Your Loan – banks giving in to buyers in distress #162962
barnaby33ParticipantOn the whole re-write issue, wouldn’t the old contract or mortgage need to be set-aside and a new mortgage recorded? I don’t know the mechanics of the process intimately but it seems like thats more of a story than a reality. The bank just lops off money you owe them? It may be practical, but it seems like there would be a huge paper trail. A paper trail that would have county recorded tie-ins.
As a second issue I don’t think it matters that much. All the bank is doing is recognizing market value such as it is today and adjusting what you owe accordingly. They wouldn’t be doing this is they thought that by selling the property after a foreclosure they would get more or even the same on the open market. It sounds distasteful, because it rewards the risky behavior we on this site abhor, but its still a form of market price discovery.
Is there any way to get more information on this practice?
Josh
barnaby33Participantcooprider14, I’ve tried telling you this several times with subtlety, it doesn’t seem to work. THE FED DOES NOT PRINT MONEY. THE FED CREATES CREDIT, AGAINST COLLATERAL. Printing money is the purview of the treasury. There are a couple of big reasons why that is important.
1)The FED cannot print us out of this mess. The credit has already been created and spent, the inflation has already occurred. If the treasury does authorize printing the bond market will take immediate notice. 160B “stimulus” plan, hmm we’ll just demand higher interest rates for TBills.
2)If under the normal course of events someone pays the fed back the loan, the credit created is destroyed. That in itself isn’t deflationary, but the interest paid on the debt can be.
3)As debtors default the credit is destroyed and that is deflationary. It is so for two reasons, one the bank that made the loan has to take a hit on its books meaning it has to raise capital to cover the loss and two it is less willing to loan out money to others, thus slowing velocity.
4)The FED didn’t really create the problem, lots of non-bank entities did (New Century for example). What the FED did fail to do, was stop the banks from buying the bad debts, which is a regulatory failure, not a monetary one.
5)If you want to blame the FED, fine blame Greenspan, he was at the helm during the historic lowering of interest rates that led to all the crap loans in the first place.
Josh
barnaby33Participantcooprider14, I’ve tried telling you this several times with subtlety, it doesn’t seem to work. THE FED DOES NOT PRINT MONEY. THE FED CREATES CREDIT, AGAINST COLLATERAL. Printing money is the purview of the treasury. There are a couple of big reasons why that is important.
1)The FED cannot print us out of this mess. The credit has already been created and spent, the inflation has already occurred. If the treasury does authorize printing the bond market will take immediate notice. 160B “stimulus” plan, hmm we’ll just demand higher interest rates for TBills.
2)If under the normal course of events someone pays the fed back the loan, the credit created is destroyed. That in itself isn’t deflationary, but the interest paid on the debt can be.
3)As debtors default the credit is destroyed and that is deflationary. It is so for two reasons, one the bank that made the loan has to take a hit on its books meaning it has to raise capital to cover the loss and two it is less willing to loan out money to others, thus slowing velocity.
4)The FED didn’t really create the problem, lots of non-bank entities did (New Century for example). What the FED did fail to do, was stop the banks from buying the bad debts, which is a regulatory failure, not a monetary one.
5)If you want to blame the FED, fine blame Greenspan, he was at the helm during the historic lowering of interest rates that led to all the crap loans in the first place.
Josh
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