[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]

That’s exactly the problem here. The Dems are insisting this package have some sort of homeowner foreclosure protection, keeping them in their homes by use of some sort of loan amount decrease.

This is a HUGE mistake. Anyone, even those that are in positive equity positions will consider stopping their payments and fraudulently “working” the system to get loan modifications.

This will have massive valuation consequences down the road. The govt. think they are helping the RE markets by curtailing foreclosures, but all this will accomplish is expedient mark to market revaluation.

The biggest impact is on all of those people that live on the same block with older mortgages. Their houses will now be worth 100’s of thousands of dollars less.

[Huckleberry]

That’s exactly the problem here. The Dems are insisting this package have some sort of homeowner foreclosure protection, keeping them in their homes by use of some sort of loan amount decrease.

This is a HUGE mistake. Anyone, even those that are in positive equity positions will consider stopping their payments and fraudulently “working” the system to get loan modifications.

This will have massive valuation consequences down the road. The govt. think they are helping the RE markets by curtailing foreclosures, but all this will accomplish is expedient mark to market revaluation.

The biggest impact is on all of those people that live on the same block with older mortgages. Their houses will now be worth 100’s of thousands of dollars less.

[Huckleberry]

That’s exactly the problem here. The Dems are insisting this package have some sort of homeowner foreclosure protection, keeping them in their homes by use of some sort of loan amount decrease.

This is a HUGE mistake. Anyone, even those that are in positive equity positions will consider stopping their payments and fraudulently “working” the system to get loan modifications.

This will have massive valuation consequences down the road. The govt. think they are helping the RE markets by curtailing foreclosures, but all this will accomplish is expedient mark to market revaluation.

The biggest impact is on all of those people that live on the same block with older mortgages. Their houses will now be worth 100’s of thousands of dollars less.

[Huckleberry]

That’s exactly the problem here. The Dems are insisting this package have some sort of homeowner foreclosure protection, keeping them in their homes by use of some sort of loan amount decrease.

This is a HUGE mistake. Anyone, even those that are in positive equity positions will consider stopping their payments and fraudulently “working” the system to get loan modifications.

This will have massive valuation consequences down the road. The govt. think they are helping the RE markets by curtailing foreclosures, but all this will accomplish is expedient mark to market revaluation.

The biggest impact is on all of those people that live on the same block with older mortgages. Their houses will now be worth 100’s of thousands of dollars less.

[Huckleberry]

That’s exactly the problem here. The Dems are insisting this package have some sort of homeowner foreclosure protection, keeping them in their homes by use of some sort of loan amount decrease.

This is a HUGE mistake. Anyone, even those that are in positive equity positions will consider stopping their payments and fraudulently “working” the system to get loan modifications.

This will have massive valuation consequences down the road. The govt. think they are helping the RE markets by curtailing foreclosures, but all this will accomplish is expedient mark to market revaluation.

The biggest impact is on all of those people that live on the same block with older mortgages. Their houses will now be worth 100’s of thousands of dollars less.

[Huckleberry]

Unfortunately, Senator Schumer and other Dems are strongly advocating that part of this bailout should include a plan to put a floor under falling home prices.

I just can’t believe these people don’t understand free markets yet…

From what I am understanding of his ideas, they want to hand out 10’s of thousands of dollars to every ailing homeowner , plus decrease their loans to get the homeowner to equilibrium.

Please tell me I am hearing this incorrectly!

[Huckleberry]

Unfortunately, Senator Schumer and other Dems are strongly advocating that part of this bailout should include a plan to put a floor under falling home prices.

I just can’t believe these people don’t understand free markets yet…

From what I am understanding of his ideas, they want to hand out 10’s of thousands of dollars to every ailing homeowner , plus decrease their loans to get the homeowner to equilibrium.

Please tell me I am hearing this incorrectly!

[Huckleberry]

Unfortunately, Senator Schumer and other Dems are strongly advocating that part of this bailout should include a plan to put a floor under falling home prices.

I just can’t believe these people don’t understand free markets yet…

From what I am understanding of his ideas, they want to hand out 10’s of thousands of dollars to every ailing homeowner , plus decrease their loans to get the homeowner to equilibrium.

Please tell me I am hearing this incorrectly!

[Huckleberry]

Unfortunately, Senator Schumer and other Dems are strongly advocating that part of this bailout should include a plan to put a floor under falling home prices.

I just can’t believe these people don’t understand free markets yet…

From what I am understanding of his ideas, they want to hand out 10’s of thousands of dollars to every ailing homeowner , plus decrease their loans to get the homeowner to equilibrium.

Please tell me I am hearing this incorrectly!

[Huckleberry]

Unfortunately, Senator Schumer and other Dems are strongly advocating that part of this bailout should include a plan to put a floor under falling home prices.

I just can’t believe these people don’t understand free markets yet…

From what I am understanding of his ideas, they want to hand out 10’s of thousands of dollars to every ailing homeowner , plus decrease their loans to get the homeowner to equilibrium.

Please tell me I am hearing this incorrectly!

[Huckleberry]

I heard yesterday that, the last time the RTC was used was the S&L crisis. The govt took on something like 20 billion in bad debt and was able to sell off all but 3 billion, which the taxpayer had to swallow.

The RTC was supposed to be used for two years then dissolve, it had to be extended two times and ended up having an seven year lifespan because they could not sell the debt as fast as anticipated.

Just speculation but, I think this situation will be the same. The gov. will take on the bad debt, try to sell it, when markets won’t bear the risk they will resort to work w/ homeowners, then eventually foreclose and pass losses on to the taxpayer.

I guess my next two questions are:

1. At what point does the govt decide it’s prudent to lower the loan amount (or will they?), and what is the upper threshold of % write down before just foreclosing?

2. What does the govt do with a bunch of foreclosed/empty houses? Send them to REDC, HUD, or…?

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