[Huckleberry]

Yep, I read them and these are the statements that make me highly doubtful:

“It’s unclear if the program has yielded results thus far, although most industry insiders that spoke with HW remain skeptical; investors are also watching closely, to determine what the modification effort will mean for their investments.”

“If the FDIC follows its stated plan, which is to maximize loan value or recovery value, a good chunk of these mods won’t go through anyway, despite the press given to it,” one senior banking official told HW last month, when the plan was announced. “The FDIC will find out what every other servicer already knows: for one thing, the majority of borrowers will simply ignore the offer. For another, those that do step up will give credible proof that they cannot afford their homes unless the FDIC were to undercut home value by 40 or 50 percent from current levels.”

Read here and you will clearly see more of my point:
http://mrmortgage.ml-implode.com/2008/10/23/40-billion-foreclosure-assistance-not-even-close/

They can keep throwing money and new policies at this problem and it still will not abate…

[Huckleberry]

Yep, I read them and these are the statements that make me highly doubtful:

“It’s unclear if the program has yielded results thus far, although most industry insiders that spoke with HW remain skeptical; investors are also watching closely, to determine what the modification effort will mean for their investments.”

“If the FDIC follows its stated plan, which is to maximize loan value or recovery value, a good chunk of these mods won’t go through anyway, despite the press given to it,” one senior banking official told HW last month, when the plan was announced. “The FDIC will find out what every other servicer already knows: for one thing, the majority of borrowers will simply ignore the offer. For another, those that do step up will give credible proof that they cannot afford their homes unless the FDIC were to undercut home value by 40 or 50 percent from current levels.”

Read here and you will clearly see more of my point:
http://mrmortgage.ml-implode.com/2008/10/23/40-billion-foreclosure-assistance-not-even-close/

They can keep throwing money and new policies at this problem and it still will not abate…

[Huckleberry]

Yep, I read them and these are the statements that make me highly doubtful:

“It’s unclear if the program has yielded results thus far, although most industry insiders that spoke with HW remain skeptical; investors are also watching closely, to determine what the modification effort will mean for their investments.”

“If the FDIC follows its stated plan, which is to maximize loan value or recovery value, a good chunk of these mods won’t go through anyway, despite the press given to it,” one senior banking official told HW last month, when the plan was announced. “The FDIC will find out what every other servicer already knows: for one thing, the majority of borrowers will simply ignore the offer. For another, those that do step up will give credible proof that they cannot afford their homes unless the FDIC were to undercut home value by 40 or 50 percent from current levels.”

Read here and you will clearly see more of my point:
http://mrmortgage.ml-implode.com/2008/10/23/40-billion-foreclosure-assistance-not-even-close/

They can keep throwing money and new policies at this problem and it still will not abate…

[Huckleberry]

Yep, I read them and these are the statements that make me highly doubtful:

“It’s unclear if the program has yielded results thus far, although most industry insiders that spoke with HW remain skeptical; investors are also watching closely, to determine what the modification effort will mean for their investments.”

“If the FDIC follows its stated plan, which is to maximize loan value or recovery value, a good chunk of these mods won’t go through anyway, despite the press given to it,” one senior banking official told HW last month, when the plan was announced. “The FDIC will find out what every other servicer already knows: for one thing, the majority of borrowers will simply ignore the offer. For another, those that do step up will give credible proof that they cannot afford their homes unless the FDIC were to undercut home value by 40 or 50 percent from current levels.”

Read here and you will clearly see more of my point:
http://mrmortgage.ml-implode.com/2008/10/23/40-billion-foreclosure-assistance-not-even-close/

They can keep throwing money and new policies at this problem and it still will not abate…

[Huckleberry]

[quote=DaCounselor]”I also don’t see govt wiping the slate clean on principal owed by just writing down the loan amount and giving the mortgagee a “freebee”.”
___________________________

But this is exactly what is going to happen. Whether the govt. buys the loans and writes down the balance or subsidizes privately held loan write-downs, the result is the same. And this is where we are going to end up.

Without principal write-downs there are going to be a landslide of foreclosures/walk-aways – ability to pay or not – on top of the foreclosures we already have. There are plenty of influential players who know this to be true. They are just not going to sit back and let this happen.

In fact, I don’t know that I have seen a single piece of legitimate evidence that suggests that we are not moving, and quickly, toward this type of individual homeowner bailout.

[/quote]

So, basically what you are saying is the govt is going to do a “workout” with the maid that makes 30K a year but stated she made 130K. Through these programs, she is going to get a principal write down and stay in the house she bought…???

So, what kind of backlash do you think there is going to be when the average citizen looks down the street and sees that his neighbors, whom make 100K less than him own a house just as nice as his, and he is helping pay for it through a write down?

[Huckleberry]

[quote=DaCounselor]”I also don’t see govt wiping the slate clean on principal owed by just writing down the loan amount and giving the mortgagee a “freebee”.”
___________________________

But this is exactly what is going to happen. Whether the govt. buys the loans and writes down the balance or subsidizes privately held loan write-downs, the result is the same. And this is where we are going to end up.

Without principal write-downs there are going to be a landslide of foreclosures/walk-aways – ability to pay or not – on top of the foreclosures we already have. There are plenty of influential players who know this to be true. They are just not going to sit back and let this happen.

In fact, I don’t know that I have seen a single piece of legitimate evidence that suggests that we are not moving, and quickly, toward this type of individual homeowner bailout.

[/quote]

So, basically what you are saying is the govt is going to do a “workout” with the maid that makes 30K a year but stated she made 130K. Through these programs, she is going to get a principal write down and stay in the house she bought…???

So, what kind of backlash do you think there is going to be when the average citizen looks down the street and sees that his neighbors, whom make 100K less than him own a house just as nice as his, and he is helping pay for it through a write down?

[Huckleberry]

[quote=DaCounselor]”I also don’t see govt wiping the slate clean on principal owed by just writing down the loan amount and giving the mortgagee a “freebee”.”
___________________________

But this is exactly what is going to happen. Whether the govt. buys the loans and writes down the balance or subsidizes privately held loan write-downs, the result is the same. And this is where we are going to end up.

Without principal write-downs there are going to be a landslide of foreclosures/walk-aways – ability to pay or not – on top of the foreclosures we already have. There are plenty of influential players who know this to be true. They are just not going to sit back and let this happen.

In fact, I don’t know that I have seen a single piece of legitimate evidence that suggests that we are not moving, and quickly, toward this type of individual homeowner bailout.

[/quote]

So, basically what you are saying is the govt is going to do a “workout” with the maid that makes 30K a year but stated she made 130K. Through these programs, she is going to get a principal write down and stay in the house she bought…???

So, what kind of backlash do you think there is going to be when the average citizen looks down the street and sees that his neighbors, whom make 100K less than him own a house just as nice as his, and he is helping pay for it through a write down?

[Huckleberry]

[quote=DaCounselor]”I also don’t see govt wiping the slate clean on principal owed by just writing down the loan amount and giving the mortgagee a “freebee”.”
___________________________

But this is exactly what is going to happen. Whether the govt. buys the loans and writes down the balance or subsidizes privately held loan write-downs, the result is the same. And this is where we are going to end up.

Without principal write-downs there are going to be a landslide of foreclosures/walk-aways – ability to pay or not – on top of the foreclosures we already have. There are plenty of influential players who know this to be true. They are just not going to sit back and let this happen.

In fact, I don’t know that I have seen a single piece of legitimate evidence that suggests that we are not moving, and quickly, toward this type of individual homeowner bailout.

[/quote]

So, basically what you are saying is the govt is going to do a “workout” with the maid that makes 30K a year but stated she made 130K. Through these programs, she is going to get a principal write down and stay in the house she bought…???

So, what kind of backlash do you think there is going to be when the average citizen looks down the street and sees that his neighbors, whom make 100K less than him own a house just as nice as his, and he is helping pay for it through a write down?

[Huckleberry]

[quote=DaCounselor]”I also don’t see govt wiping the slate clean on principal owed by just writing down the loan amount and giving the mortgagee a “freebee”.”
___________________________

But this is exactly what is going to happen. Whether the govt. buys the loans and writes down the balance or subsidizes privately held loan write-downs, the result is the same. And this is where we are going to end up.

Without principal write-downs there are going to be a landslide of foreclosures/walk-aways – ability to pay or not – on top of the foreclosures we already have. There are plenty of influential players who know this to be true. They are just not going to sit back and let this happen.

In fact, I don’t know that I have seen a single piece of legitimate evidence that suggests that we are not moving, and quickly, toward this type of individual homeowner bailout.

[/quote]

So, basically what you are saying is the govt is going to do a “workout” with the maid that makes 30K a year but stated she made 130K. Through these programs, she is going to get a principal write down and stay in the house she bought…???

So, what kind of backlash do you think there is going to be when the average citizen looks down the street and sees that his neighbors, whom make 100K less than him own a house just as nice as his, and he is helping pay for it through a write down?

[Huckleberry]

I’m not buying it…

Let’s not forget, unemployment is on the rise. Even Greenspan noted this morning in congressional hearings that it will rise substantially no matter what intervention the govt tries.

This single variable alone is going to torpedo the foreclosure “relief” activities. I may save some percent of “troubled” borrowers, but a whole new group of troubled borrowers are going to emerge. Is the govt going to save them too?

I also don’t see govt wiping the slate clean on principal owed by just writing down the loan amount and giving the mortgagee a “freebee”.

Lastly, on CNBC this morning it was noted that there was similar foreclosure law passed (I beleive in Oregon?) where all foreclosures have a 90 day moratorium, so during the summer months NOD’s decreased substantially, but this month they spiked 460%.

I’m not convinced the new CA law is going to stem any foreclosures in the long run…

[Huckleberry]

I’m not buying it…

Let’s not forget, unemployment is on the rise. Even Greenspan noted this morning in congressional hearings that it will rise substantially no matter what intervention the govt tries.

This single variable alone is going to torpedo the foreclosure “relief” activities. I may save some percent of “troubled” borrowers, but a whole new group of troubled borrowers are going to emerge. Is the govt going to save them too?

I also don’t see govt wiping the slate clean on principal owed by just writing down the loan amount and giving the mortgagee a “freebee”.

Lastly, on CNBC this morning it was noted that there was similar foreclosure law passed (I beleive in Oregon?) where all foreclosures have a 90 day moratorium, so during the summer months NOD’s decreased substantially, but this month they spiked 460%.

I’m not convinced the new CA law is going to stem any foreclosures in the long run…

[Huckleberry]

I’m not buying it…

Let’s not forget, unemployment is on the rise. Even Greenspan noted this morning in congressional hearings that it will rise substantially no matter what intervention the govt tries.

This single variable alone is going to torpedo the foreclosure “relief” activities. I may save some percent of “troubled” borrowers, but a whole new group of troubled borrowers are going to emerge. Is the govt going to save them too?

I also don’t see govt wiping the slate clean on principal owed by just writing down the loan amount and giving the mortgagee a “freebee”.

Lastly, on CNBC this morning it was noted that there was similar foreclosure law passed (I beleive in Oregon?) where all foreclosures have a 90 day moratorium, so during the summer months NOD’s decreased substantially, but this month they spiked 460%.

I’m not convinced the new CA law is going to stem any foreclosures in the long run…

[Huckleberry]

I’m not buying it…

Let’s not forget, unemployment is on the rise. Even Greenspan noted this morning in congressional hearings that it will rise substantially no matter what intervention the govt tries.

This single variable alone is going to torpedo the foreclosure “relief” activities. I may save some percent of “troubled” borrowers, but a whole new group of troubled borrowers are going to emerge. Is the govt going to save them too?

I also don’t see govt wiping the slate clean on principal owed by just writing down the loan amount and giving the mortgagee a “freebee”.

Lastly, on CNBC this morning it was noted that there was similar foreclosure law passed (I beleive in Oregon?) where all foreclosures have a 90 day moratorium, so during the summer months NOD’s decreased substantially, but this month they spiked 460%.

I’m not convinced the new CA law is going to stem any foreclosures in the long run…

[Huckleberry]

I’m not buying it…

Let’s not forget, unemployment is on the rise. Even Greenspan noted this morning in congressional hearings that it will rise substantially no matter what intervention the govt tries.

This single variable alone is going to torpedo the foreclosure “relief” activities. I may save some percent of “troubled” borrowers, but a whole new group of troubled borrowers are going to emerge. Is the govt going to save them too?

I also don’t see govt wiping the slate clean on principal owed by just writing down the loan amount and giving the mortgagee a “freebee”.

Lastly, on CNBC this morning it was noted that there was similar foreclosure law passed (I beleive in Oregon?) where all foreclosures have a 90 day moratorium, so during the summer months NOD’s decreased substantially, but this month they spiked 460%.

I’m not convinced the new CA law is going to stem any foreclosures in the long run…

[Huckleberry]

According to this article over at Dr. Housing Bubble, the bailout is going to directly help the borrower (in all loan types) in a significant way, at the taxpayers expense.

http://feedproxy.google.com/~r/DrHousingBubble-HowILearnedToLoveSocal/~3/gpcfVdr7noU/

Agreed, there are stipulations to the arrangement, but it sure sounds to me like the imprudent home buyers are going to get one hell of a deal.

Read in the comments below the article by a poster named Compass Rose. She outlines the underlying reasons the govt and bankers are so motivated to keep home prices artificially high.

[Author]

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