[Huckleberry]

MM was interviewed on CNBC yesterday for about 10 min. specifically related to why this bailout is not going to stem the tide of defaults and foreclosures.

It may still be posted on the CNBC site.

[Huckleberry]

MM was interviewed on CNBC yesterday for about 10 min. specifically related to why this bailout is not going to stem the tide of defaults and foreclosures.

It may still be posted on the CNBC site.

[Huckleberry]

MM was interviewed on CNBC yesterday for about 10 min. specifically related to why this bailout is not going to stem the tide of defaults and foreclosures.

It may still be posted on the CNBC site.

[Huckleberry]

MM was interviewed on CNBC yesterday for about 10 min. specifically related to why this bailout is not going to stem the tide of defaults and foreclosures.

It may still be posted on the CNBC site.

[Huckleberry]

[quote=mike92104][quote=DaCounselor]I think the only way to stop the walk-aways is to modify the loans into very good fixed rates and write down the principal balances. I understand the moral hazard argument but at this point in time my response is “so what?” Even if a homeowner has the ability to pay the existing mortgage, it’s going to come down to WILL he pay, not CAN he pay. If he ruthlessly defaults, the end result is the same. Who cares at this point?

I cannot imagine that it will be more cost-effective to go through the foreclosure process just to end up selling the house as a discounted REO for the same price that you could have written down the balance to and kept the homeowner in the home. It’s a bad business decision to forego the mod. I understand the complications due to the securitization of these loans, but the govt’s purchase of this paper may resolve the issues. They do give a nod to this in Sections 109 & 110 of the new bill. We’ll see I guess.[/quote]

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? [/quote]

Agreed. All of us that were fiscally responsible should receive some average “model” amount based on what zip code we live in.

Then, for every single person that wants to stay in their house, at a minimum they should pay interest (12%) on the loan write down amount.

And, what about all those people that got loans fraudulently? Should we just let them stay in their homes on our tax dollars? Bad idea…

[Huckleberry]

[quote=mike92104][quote=DaCounselor]I think the only way to stop the walk-aways is to modify the loans into very good fixed rates and write down the principal balances. I understand the moral hazard argument but at this point in time my response is “so what?” Even if a homeowner has the ability to pay the existing mortgage, it’s going to come down to WILL he pay, not CAN he pay. If he ruthlessly defaults, the end result is the same. Who cares at this point?

I cannot imagine that it will be more cost-effective to go through the foreclosure process just to end up selling the house as a discounted REO for the same price that you could have written down the balance to and kept the homeowner in the home. It’s a bad business decision to forego the mod. I understand the complications due to the securitization of these loans, but the govt’s purchase of this paper may resolve the issues. They do give a nod to this in Sections 109 & 110 of the new bill. We’ll see I guess.[/quote]

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? [/quote]

Agreed. All of us that were fiscally responsible should receive some average “model” amount based on what zip code we live in.

Then, for every single person that wants to stay in their house, at a minimum they should pay interest (12%) on the loan write down amount.

And, what about all those people that got loans fraudulently? Should we just let them stay in their homes on our tax dollars? Bad idea…

[Huckleberry]

[quote=mike92104][quote=DaCounselor]I think the only way to stop the walk-aways is to modify the loans into very good fixed rates and write down the principal balances. I understand the moral hazard argument but at this point in time my response is “so what?” Even if a homeowner has the ability to pay the existing mortgage, it’s going to come down to WILL he pay, not CAN he pay. If he ruthlessly defaults, the end result is the same. Who cares at this point?

I cannot imagine that it will be more cost-effective to go through the foreclosure process just to end up selling the house as a discounted REO for the same price that you could have written down the balance to and kept the homeowner in the home. It’s a bad business decision to forego the mod. I understand the complications due to the securitization of these loans, but the govt’s purchase of this paper may resolve the issues. They do give a nod to this in Sections 109 & 110 of the new bill. We’ll see I guess.[/quote]

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? [/quote]

Agreed. All of us that were fiscally responsible should receive some average “model” amount based on what zip code we live in.

Then, for every single person that wants to stay in their house, at a minimum they should pay interest (12%) on the loan write down amount.

And, what about all those people that got loans fraudulently? Should we just let them stay in their homes on our tax dollars? Bad idea…

[Huckleberry]

[quote=mike92104][quote=DaCounselor]I think the only way to stop the walk-aways is to modify the loans into very good fixed rates and write down the principal balances. I understand the moral hazard argument but at this point in time my response is “so what?” Even if a homeowner has the ability to pay the existing mortgage, it’s going to come down to WILL he pay, not CAN he pay. If he ruthlessly defaults, the end result is the same. Who cares at this point?

I cannot imagine that it will be more cost-effective to go through the foreclosure process just to end up selling the house as a discounted REO for the same price that you could have written down the balance to and kept the homeowner in the home. It’s a bad business decision to forego the mod. I understand the complications due to the securitization of these loans, but the govt’s purchase of this paper may resolve the issues. They do give a nod to this in Sections 109 & 110 of the new bill. We’ll see I guess.[/quote]

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? [/quote]

Agreed. All of us that were fiscally responsible should receive some average “model” amount based on what zip code we live in.

Then, for every single person that wants to stay in their house, at a minimum they should pay interest (12%) on the loan write down amount.

And, what about all those people that got loans fraudulently? Should we just let them stay in their homes on our tax dollars? Bad idea…

[Huckleberry]

[quote=mike92104][quote=DaCounselor]I think the only way to stop the walk-aways is to modify the loans into very good fixed rates and write down the principal balances. I understand the moral hazard argument but at this point in time my response is “so what?” Even if a homeowner has the ability to pay the existing mortgage, it’s going to come down to WILL he pay, not CAN he pay. If he ruthlessly defaults, the end result is the same. Who cares at this point?

I cannot imagine that it will be more cost-effective to go through the foreclosure process just to end up selling the house as a discounted REO for the same price that you could have written down the balance to and kept the homeowner in the home. It’s a bad business decision to forego the mod. I understand the complications due to the securitization of these loans, but the govt’s purchase of this paper may resolve the issues. They do give a nod to this in Sections 109 & 110 of the new bill. We’ll see I guess.[/quote]

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? [/quote]

Agreed. All of us that were fiscally responsible should receive some average “model” amount based on what zip code we live in.

Then, for every single person that wants to stay in their house, at a minimum they should pay interest (12%) on the loan write down amount.

And, what about all those people that got loans fraudulently? Should we just let them stay in their homes on our tax dollars? Bad idea…

[Huckleberry]

So, now that we have heard another couple of days of Congressional hearings with Bernanke and Paulson. What is everyone’s opinion/read on what the new bailout will look like?

Are we going to bail out individuals mortgages through foreclosure forbearance, (through “bankruptcy cramdown” by judges), student and car loans, and all the other debt as I have been hearing about?

Are housing prices destined to be supported by our own tax dollars, disallowing those of us waiting to buy from affording a home?

[Huckleberry]

So, now that we have heard another couple of days of Congressional hearings with Bernanke and Paulson. What is everyone’s opinion/read on what the new bailout will look like?

Are we going to bail out individuals mortgages through foreclosure forbearance, (through “bankruptcy cramdown” by judges), student and car loans, and all the other debt as I have been hearing about?

Are housing prices destined to be supported by our own tax dollars, disallowing those of us waiting to buy from affording a home?

[Huckleberry]

So, now that we have heard another couple of days of Congressional hearings with Bernanke and Paulson. What is everyone’s opinion/read on what the new bailout will look like?

Are we going to bail out individuals mortgages through foreclosure forbearance, (through “bankruptcy cramdown” by judges), student and car loans, and all the other debt as I have been hearing about?

Are housing prices destined to be supported by our own tax dollars, disallowing those of us waiting to buy from affording a home?

[Huckleberry]

So, now that we have heard another couple of days of Congressional hearings with Bernanke and Paulson. What is everyone’s opinion/read on what the new bailout will look like?

Are we going to bail out individuals mortgages through foreclosure forbearance, (through “bankruptcy cramdown” by judges), student and car loans, and all the other debt as I have been hearing about?

Are housing prices destined to be supported by our own tax dollars, disallowing those of us waiting to buy from affording a home?

[Huckleberry]

So, now that we have heard another couple of days of Congressional hearings with Bernanke and Paulson. What is everyone’s opinion/read on what the new bailout will look like?

Are we going to bail out individuals mortgages through foreclosure forbearance, (through “bankruptcy cramdown” by judges), student and car loans, and all the other debt as I have been hearing about?

Are housing prices destined to be supported by our own tax dollars, disallowing those of us waiting to buy from affording a home?

[Huckleberry]

So, now that we have heard another couple of days of Congressional hearings with Bernanke and Paulson. What is everyone’s opinion/read on what the new bailout will look like?

Are we going to bail out individuals mortgages through foreclosure forbearance, (through “bankruptcy cramdown” by judges), student and car loans, and all the other debt as I have been hearing about?

Are housing prices destined to be supported by our own tax dollars, disallowing those of us waiting to buy from affording a home?

[Author]

Posts