[DaCounselor]

“What’s truly changed is people’s attitude to debt. It’s no longer shameful

I wouldn’t say that.

I would say its the attitude of *defaulting* on debt that’s no longer shameful.”
__________________________

I would say it’s both.

I would also say that we are very likely to see a shift back toward an anti-debt sentiment.

[DaCounselor]

“What’s truly changed is people’s attitude to debt. It’s no longer shameful

I wouldn’t say that.

I would say its the attitude of *defaulting* on debt that’s no longer shameful.”
__________________________

I would say it’s both.

I would also say that we are very likely to see a shift back toward an anti-debt sentiment.

[DaCounselor]

“What’s truly changed is people’s attitude to debt. It’s no longer shameful

I wouldn’t say that.

I would say its the attitude of *defaulting* on debt that’s no longer shameful.”
__________________________

I would say it’s both.

I would also say that we are very likely to see a shift back toward an anti-debt sentiment.

[DaCounselor]

“What’s truly changed is people’s attitude to debt. It’s no longer shameful

I wouldn’t say that.

I would say its the attitude of *defaulting* on debt that’s no longer shameful.”
__________________________

I would say it’s both.

I would also say that we are very likely to see a shift back toward an anti-debt sentiment.

[DaCounselor]

I think you are going to see principle write-downs regardless of who takes office.

[DaCounselor]

I think you are going to see principle write-downs regardless of who takes office.

[DaCounselor]

I think you are going to see principle write-downs regardless of who takes office.

[DaCounselor]

I think you are going to see principle write-downs regardless of who takes office.

[DaCounselor]

I think you are going to see principle write-downs regardless of who takes office.

[DaCounselor]

How I feel about asset devaluation is irrelevant. Home values are going to drop until they are done dropping. The issue is how to minimize the collateral damage of loan defaults. These properties are going to get marked to market one way or another. The creditors can mark to market asap with the current borrower staying put and get a performing modified loan working, or the creditors can endure zero cash flow on a defaulting loan for 6-9 months, incur foreclosure expenses, and carry the property (mello-roos, taxes, etc) until they eventually dump it in an REO fire sale (probably for less than what they could have re-written the original loan for).

[DaCounselor]

How I feel about asset devaluation is irrelevant. Home values are going to drop until they are done dropping. The issue is how to minimize the collateral damage of loan defaults. These properties are going to get marked to market one way or another. The creditors can mark to market asap with the current borrower staying put and get a performing modified loan working, or the creditors can endure zero cash flow on a defaulting loan for 6-9 months, incur foreclosure expenses, and carry the property (mello-roos, taxes, etc) until they eventually dump it in an REO fire sale (probably for less than what they could have re-written the original loan for).

[DaCounselor]

How I feel about asset devaluation is irrelevant. Home values are going to drop until they are done dropping. The issue is how to minimize the collateral damage of loan defaults. These properties are going to get marked to market one way or another. The creditors can mark to market asap with the current borrower staying put and get a performing modified loan working, or the creditors can endure zero cash flow on a defaulting loan for 6-9 months, incur foreclosure expenses, and carry the property (mello-roos, taxes, etc) until they eventually dump it in an REO fire sale (probably for less than what they could have re-written the original loan for).

[DaCounselor]

How I feel about asset devaluation is irrelevant. Home values are going to drop until they are done dropping. The issue is how to minimize the collateral damage of loan defaults. These properties are going to get marked to market one way or another. The creditors can mark to market asap with the current borrower staying put and get a performing modified loan working, or the creditors can endure zero cash flow on a defaulting loan for 6-9 months, incur foreclosure expenses, and carry the property (mello-roos, taxes, etc) until they eventually dump it in an REO fire sale (probably for less than what they could have re-written the original loan for).

[DaCounselor]

How I feel about asset devaluation is irrelevant. Home values are going to drop until they are done dropping. The issue is how to minimize the collateral damage of loan defaults. These properties are going to get marked to market one way or another. The creditors can mark to market asap with the current borrower staying put and get a performing modified loan working, or the creditors can endure zero cash flow on a defaulting loan for 6-9 months, incur foreclosure expenses, and carry the property (mello-roos, taxes, etc) until they eventually dump it in an REO fire sale (probably for less than what they could have re-written the original loan for).

[DaCounselor]

“Banks would essentially be forced to write down every loan made between 2000 and now for it to be fair, and that still doesn’t address the fact that I knew I couldn’t afford a house, so I didn’t buy. What compensation should I get to make it fair? Should I get $100,000 check from the government?”
______________________________

I certainly don’t have the numbers at my fingertips but my best guess is that nowhere near every loan made since 2000 is upside down in relation to the home value. Not even close. So there’s that.

As for what is fair for you, trust me that is the furthest thing from anyone’s mind but your own. Addressing what is fair for you is not going to solve the problem. If you feel like it is unfair that other people are going to get bailed out and you are going to get a big fat 0 my advice is to get used to it because life is just not fair.

What we have here is a truly global economic crisis that has been triggered by defaulting loans. There is plenty of blame to go around but make no mistake, if the powers that be do not address the coming wave of future defaults then things are get to get much much worse. I continue to maintain the mindset that the best solution is to stop the defaults to the greatest extent possible via mods. What’s “fair” to everyone is really out the window at this point.

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