[Deal Hunter]

I wouldn’t worry too much about falling stock market value/volume due to people tapping into 401K’s to pay bills. That’s not something that will translate immediately into stock prices because people are really only borrowing on the value of the stocks in their retirement accounts rather than actually selling the stocks in them.

I’d start worrying when these savers turn 70 1/2 and are forced by law to start withdrawing income. THEN they will HAVE to sell stocks to get their annuized incomes. That’s when stock values will start to go down. There will be more people withdrawing from stocks than will be buying into them (due to the larger retired vs. working population).

Nothing to worry about this year. In 9 years, however….

[Deal Hunter]

Of course Fannie and Freddie can’t prop up housing. The FHA modernizations and increased loan limits for Fannie and Freddie were meant to “steer SENTIMENT” in the market. It was meant to
a)get buyers off the fence and
b)lenders to start originating loans again
c)cause financial stocks to rally back

So the only thing that happened was “c” and even then it was feeble.

Remember in the 80’s when HUD had those huge lists of homes on auction? Well, those lists will be back – unless they pass tax reform first.

[Deal Hunter]

Of course Fannie and Freddie can’t prop up housing. The FHA modernizations and increased loan limits for Fannie and Freddie were meant to “steer SENTIMENT” in the market. It was meant to
a)get buyers off the fence and
b)lenders to start originating loans again
c)cause financial stocks to rally back

So the only thing that happened was “c” and even then it was feeble.

Remember in the 80’s when HUD had those huge lists of homes on auction? Well, those lists will be back – unless they pass tax reform first.

[Deal Hunter]

Of course Fannie and Freddie can’t prop up housing. The FHA modernizations and increased loan limits for Fannie and Freddie were meant to “steer SENTIMENT” in the market. It was meant to
a)get buyers off the fence and
b)lenders to start originating loans again
c)cause financial stocks to rally back

So the only thing that happened was “c” and even then it was feeble.

Remember in the 80’s when HUD had those huge lists of homes on auction? Well, those lists will be back – unless they pass tax reform first.

[Deal Hunter]

Of course Fannie and Freddie can’t prop up housing. The FHA modernizations and increased loan limits for Fannie and Freddie were meant to “steer SENTIMENT” in the market. It was meant to
a)get buyers off the fence and
b)lenders to start originating loans again
c)cause financial stocks to rally back

So the only thing that happened was “c” and even then it was feeble.

Remember in the 80’s when HUD had those huge lists of homes on auction? Well, those lists will be back – unless they pass tax reform first.

[Deal Hunter]

Of course Fannie and Freddie can’t prop up housing. The FHA modernizations and increased loan limits for Fannie and Freddie were meant to “steer SENTIMENT” in the market. It was meant to
a)get buyers off the fence and
b)lenders to start originating loans again
c)cause financial stocks to rally back

So the only thing that happened was “c” and even then it was feeble.

Remember in the 80’s when HUD had those huge lists of homes on auction? Well, those lists will be back – unless they pass tax reform first.

[Deal Hunter]

I should add that there are significant consequences to borrower’s credit with this type of unsecured note as compared to a lien or 2nd, 3rd mortgage on the property. Technically this loan is like a credit card debt.

With a secured type loan, if the borrower eventually defaults, the loan is extinguised by the foreclosure or acknowledged as paid in full in a short sale. Being an unsecured debt, the default is recorded on their credit as a collection and may keep popping up again for years. Some states statue of limitations on unsecured debt can be as long as 25 years.

If you know anyone considering this, they should be duly warned.

[Deal Hunter]

I should add that there are significant consequences to borrower’s credit with this type of unsecured note as compared to a lien or 2nd, 3rd mortgage on the property. Technically this loan is like a credit card debt.

With a secured type loan, if the borrower eventually defaults, the loan is extinguised by the foreclosure or acknowledged as paid in full in a short sale. Being an unsecured debt, the default is recorded on their credit as a collection and may keep popping up again for years. Some states statue of limitations on unsecured debt can be as long as 25 years.

If you know anyone considering this, they should be duly warned.

[Deal Hunter]

I should add that there are significant consequences to borrower’s credit with this type of unsecured note as compared to a lien or 2nd, 3rd mortgage on the property. Technically this loan is like a credit card debt.

With a secured type loan, if the borrower eventually defaults, the loan is extinguised by the foreclosure or acknowledged as paid in full in a short sale. Being an unsecured debt, the default is recorded on their credit as a collection and may keep popping up again for years. Some states statue of limitations on unsecured debt can be as long as 25 years.

If you know anyone considering this, they should be duly warned.

[Deal Hunter]

I should add that there are significant consequences to borrower’s credit with this type of unsecured note as compared to a lien or 2nd, 3rd mortgage on the property. Technically this loan is like a credit card debt.

With a secured type loan, if the borrower eventually defaults, the loan is extinguised by the foreclosure or acknowledged as paid in full in a short sale. Being an unsecured debt, the default is recorded on their credit as a collection and may keep popping up again for years. Some states statue of limitations on unsecured debt can be as long as 25 years.

If you know anyone considering this, they should be duly warned.

[Deal Hunter]

I should add that there are significant consequences to borrower’s credit with this type of unsecured note as compared to a lien or 2nd, 3rd mortgage on the property. Technically this loan is like a credit card debt.

With a secured type loan, if the borrower eventually defaults, the loan is extinguised by the foreclosure or acknowledged as paid in full in a short sale. Being an unsecured debt, the default is recorded on their credit as a collection and may keep popping up again for years. Some states statue of limitations on unsecured debt can be as long as 25 years.

If you know anyone considering this, they should be duly warned.

[Deal Hunter]

Yes, this is akin to the FHA partial claim. This used to be unallowed for loan modifications, but that has changed in the “modernization” of FHA. The FHA originated loan is supposed to be interest-free, but I thought it was a separate lien (secured) on the property.

Of course, conventional lenders have been offering the unsecured loan on the arrears as part of their loan “modifications” under the HOPE Now and Project Lifeline operations. It’s not far fetched to see FNMA partaking.

There should be some uproar from consumer advocacy groups pretty soon about these horrible loans. It’s just plain preying on the desperate.

[Deal Hunter]

Yes, this is akin to the FHA partial claim. This used to be unallowed for loan modifications, but that has changed in the “modernization” of FHA. The FHA originated loan is supposed to be interest-free, but I thought it was a separate lien (secured) on the property.

Of course, conventional lenders have been offering the unsecured loan on the arrears as part of their loan “modifications” under the HOPE Now and Project Lifeline operations. It’s not far fetched to see FNMA partaking.

There should be some uproar from consumer advocacy groups pretty soon about these horrible loans. It’s just plain preying on the desperate.

[Deal Hunter]

Yes, this is akin to the FHA partial claim. This used to be unallowed for loan modifications, but that has changed in the “modernization” of FHA. The FHA originated loan is supposed to be interest-free, but I thought it was a separate lien (secured) on the property.

Of course, conventional lenders have been offering the unsecured loan on the arrears as part of their loan “modifications” under the HOPE Now and Project Lifeline operations. It’s not far fetched to see FNMA partaking.

There should be some uproar from consumer advocacy groups pretty soon about these horrible loans. It’s just plain preying on the desperate.

[Deal Hunter]

Yes, this is akin to the FHA partial claim. This used to be unallowed for loan modifications, but that has changed in the “modernization” of FHA. The FHA originated loan is supposed to be interest-free, but I thought it was a separate lien (secured) on the property.

Of course, conventional lenders have been offering the unsecured loan on the arrears as part of their loan “modifications” under the HOPE Now and Project Lifeline operations. It’s not far fetched to see FNMA partaking.

There should be some uproar from consumer advocacy groups pretty soon about these horrible loans. It’s just plain preying on the desperate.

[Author]

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