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DaCounselor
Participant“Mish says rate freeze will fail
http://globaleconomicanalysis.blogspot.com/2007/11/freezing-mortgage-rat…”
___________________________Is it really black and white, succeed or fail? If failure means that a freeze will not stop home values from dropping a penny more, then I agree that this measure will fail. I would disagree with anyone who thinks that freeze’s, modifications and the like will have no impact on housing values if they are accomplished in significant numbers.
Where I get confused with Mish on this one is that he advocates a “free market” scenario and implies that the Governator’s “plan” is decidedly not free market. Correct me if I misunderstand, but this freeze is not a mandate. The lenders merely agreed to freeze, and upon their own terms. The insinuation is that anything other than abiding by the original terms of the loan and a fast-track to foreclosure is not “free market”. I couldn’t disagree more. If, at the end of the day, the lenders are permitted to foreclose, short sell, modify, freeze, etc etc., then it’s free market as far as I’m concerned. And I think that’s where we still are today.
Participant“Mish says rate freeze will fail
http://globaleconomicanalysis.blogspot.com/2007/11/freezing-mortgage-rat…”
___________________________Is it really black and white, succeed or fail? If failure means that a freeze will not stop home values from dropping a penny more, then I agree that this measure will fail. I would disagree with anyone who thinks that freeze’s, modifications and the like will have no impact on housing values if they are accomplished in significant numbers.
Where I get confused with Mish on this one is that he advocates a “free market” scenario and implies that the Governator’s “plan” is decidedly not free market. Correct me if I misunderstand, but this freeze is not a mandate. The lenders merely agreed to freeze, and upon their own terms. The insinuation is that anything other than abiding by the original terms of the loan and a fast-track to foreclosure is not “free market”. I couldn’t disagree more. If, at the end of the day, the lenders are permitted to foreclose, short sell, modify, freeze, etc etc., then it’s free market as far as I’m concerned. And I think that’s where we still are today.
Participant“Mish says rate freeze will fail
http://globaleconomicanalysis.blogspot.com/2007/11/freezing-mortgage-rat…”
___________________________Is it really black and white, succeed or fail? If failure means that a freeze will not stop home values from dropping a penny more, then I agree that this measure will fail. I would disagree with anyone who thinks that freeze’s, modifications and the like will have no impact on housing values if they are accomplished in significant numbers.
Where I get confused with Mish on this one is that he advocates a “free market” scenario and implies that the Governator’s “plan” is decidedly not free market. Correct me if I misunderstand, but this freeze is not a mandate. The lenders merely agreed to freeze, and upon their own terms. The insinuation is that anything other than abiding by the original terms of the loan and a fast-track to foreclosure is not “free market”. I couldn’t disagree more. If, at the end of the day, the lenders are permitted to foreclose, short sell, modify, freeze, etc etc., then it’s free market as far as I’m concerned. And I think that’s where we still are today.
Participant“Mish says rate freeze will fail
http://globaleconomicanalysis.blogspot.com/2007/11/freezing-mortgage-rat…”
___________________________Is it really black and white, succeed or fail? If failure means that a freeze will not stop home values from dropping a penny more, then I agree that this measure will fail. I would disagree with anyone who thinks that freeze’s, modifications and the like will have no impact on housing values if they are accomplished in significant numbers.
Where I get confused with Mish on this one is that he advocates a “free market” scenario and implies that the Governator’s “plan” is decidedly not free market. Correct me if I misunderstand, but this freeze is not a mandate. The lenders merely agreed to freeze, and upon their own terms. The insinuation is that anything other than abiding by the original terms of the loan and a fast-track to foreclosure is not “free market”. I couldn’t disagree more. If, at the end of the day, the lenders are permitted to foreclose, short sell, modify, freeze, etc etc., then it’s free market as far as I’m concerned. And I think that’s where we still are today.
ParticipantRefi’s are typically recourse loans, but of course you have to look at the language in the loan docs to determine the terms. Purchase money loans are non-recourse despite any language in the loan docs that may suggest recourse is permitted. The Civil Code doesn’t allow recourse on purchase money loans, including a HELOC taken out as the 20% of an 80/20 deal.
ParticipantRefi’s are typically recourse loans, but of course you have to look at the language in the loan docs to determine the terms. Purchase money loans are non-recourse despite any language in the loan docs that may suggest recourse is permitted. The Civil Code doesn’t allow recourse on purchase money loans, including a HELOC taken out as the 20% of an 80/20 deal.
ParticipantRefi’s are typically recourse loans, but of course you have to look at the language in the loan docs to determine the terms. Purchase money loans are non-recourse despite any language in the loan docs that may suggest recourse is permitted. The Civil Code doesn’t allow recourse on purchase money loans, including a HELOC taken out as the 20% of an 80/20 deal.
ParticipantRefi’s are typically recourse loans, but of course you have to look at the language in the loan docs to determine the terms. Purchase money loans are non-recourse despite any language in the loan docs that may suggest recourse is permitted. The Civil Code doesn’t allow recourse on purchase money loans, including a HELOC taken out as the 20% of an 80/20 deal.
Participant“Thanks for posting that, it’s very interesting. All the questions on the bank’s form are basic questions you should have asked yourself before getting into this loan… ”
__________________________________Absolutely. And of course on the flip side, many of these detailed questions regarding finances should have been asked by the lender prior to approving the loan…
I applaud you for trying to work it out with your lender. I don’t know enough about the specifics of your situation, but if you cut an 80/20 deal to get into this property and still have the original loans, the lenders are probably facing a loss, maybe a significant loss, with no recourse against you.
You’re doing the right thing for now. If they won’t work it out with you, I would think about a sale or short sale, depending on your equity position.
And for God’s sake, don’t you cash out your 401K.
Keep us posted, if you would please. Thanks for sharing.
Participant“Thanks for posting that, it’s very interesting. All the questions on the bank’s form are basic questions you should have asked yourself before getting into this loan… ”
__________________________________Absolutely. And of course on the flip side, many of these detailed questions regarding finances should have been asked by the lender prior to approving the loan…
I applaud you for trying to work it out with your lender. I don’t know enough about the specifics of your situation, but if you cut an 80/20 deal to get into this property and still have the original loans, the lenders are probably facing a loss, maybe a significant loss, with no recourse against you.
You’re doing the right thing for now. If they won’t work it out with you, I would think about a sale or short sale, depending on your equity position.
And for God’s sake, don’t you cash out your 401K.
Keep us posted, if you would please. Thanks for sharing.
Participant“Thanks for posting that, it’s very interesting. All the questions on the bank’s form are basic questions you should have asked yourself before getting into this loan… ”
__________________________________Absolutely. And of course on the flip side, many of these detailed questions regarding finances should have been asked by the lender prior to approving the loan…
I applaud you for trying to work it out with your lender. I don’t know enough about the specifics of your situation, but if you cut an 80/20 deal to get into this property and still have the original loans, the lenders are probably facing a loss, maybe a significant loss, with no recourse against you.
You’re doing the right thing for now. If they won’t work it out with you, I would think about a sale or short sale, depending on your equity position.
And for God’s sake, don’t you cash out your 401K.
Keep us posted, if you would please. Thanks for sharing.
Participant“Thanks for posting that, it’s very interesting. All the questions on the bank’s form are basic questions you should have asked yourself before getting into this loan… ”
__________________________________Absolutely. And of course on the flip side, many of these detailed questions regarding finances should have been asked by the lender prior to approving the loan…
I applaud you for trying to work it out with your lender. I don’t know enough about the specifics of your situation, but if you cut an 80/20 deal to get into this property and still have the original loans, the lenders are probably facing a loss, maybe a significant loss, with no recourse against you.
You’re doing the right thing for now. If they won’t work it out with you, I would think about a sale or short sale, depending on your equity position.
And for God’s sake, don’t you cash out your 401K.
Keep us posted, if you would please. Thanks for sharing.
ParticipantI’m not sure what Pirrong is trying to say. At the end of the day, the global market sets the price. If investors move the market, they have a hand in setting the price. Bidding up futures contracts will have that effect, regardless of how truly sound or unsound market underpinnings are at the time.
ParticipantI’m not sure what Pirrong is trying to say. At the end of the day, the global market sets the price. If investors move the market, they have a hand in setting the price. Bidding up futures contracts will have that effect, regardless of how truly sound or unsound market underpinnings are at the time.
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