Forum Replies Created
-
AuthorPosts
-
patientrenter
ParticipantAccording to people in the trenches, banks virtually never collect deficiencies on home loans directly from the borrowers. So assets beyond the house are nearly irrelevant. If these folks are really prepared to put those other assets at risk in order to support the new loan, then they can simply pay down some of the loan.
If they do that, and still have a problem refinancing, then I’ll be curious.
ParticipantAccording to people in the trenches, banks virtually never collect deficiencies on home loans directly from the borrowers. So assets beyond the house are nearly irrelevant. If these folks are really prepared to put those other assets at risk in order to support the new loan, then they can simply pay down some of the loan.
If they do that, and still have a problem refinancing, then I’ll be curious.
ParticipantAccording to people in the trenches, banks virtually never collect deficiencies on home loans directly from the borrowers. So assets beyond the house are nearly irrelevant. If these folks are really prepared to put those other assets at risk in order to support the new loan, then they can simply pay down some of the loan.
If they do that, and still have a problem refinancing, then I’ll be curious.
ParticipantPrices are going up because of govt intervention on a scale that is massive and extraordinary. If you think that will continue forever, then buy now. Otherwise, wait.
ParticipantPrices are going up because of govt intervention on a scale that is massive and extraordinary. If you think that will continue forever, then buy now. Otherwise, wait.
ParticipantPrices are going up because of govt intervention on a scale that is massive and extraordinary. If you think that will continue forever, then buy now. Otherwise, wait.
ParticipantPrices are going up because of govt intervention on a scale that is massive and extraordinary. If you think that will continue forever, then buy now. Otherwise, wait.
ParticipantPrices are going up because of govt intervention on a scale that is massive and extraordinary. If you think that will continue forever, then buy now. Otherwise, wait.
October 1, 2009 at 6:39 PM in reply to: The plot thickens….Confirmed.. Fed Reserve Strongarmed BofA … #462703Participant[quote=ucodegen]….remember that BofA paid the like of $0.02 for $1.00 worth of SFR mortgages.. so guess how low the foreclosure price of the property could go before BofA really loses money? A discount of 50% on the price of the property will not bother BofA that much, since their price that they paid was an 80% discount…..[/quote]
Well, I own BoA shares, and I know that the C’wide and Merrill purchases destroyed value. I was aghast when I first heard the announcement that BoA was buying C’wide.
Where did you get the $0.02 per $1 figure from? Is that for serviced mtges? If so, the revenue is just the servicing fees, not the amount of the loan plus interest, less loan losses. The problem with C’wide is the loans they own, not the servicing portfolio. Loan losses will be huge, and will wipe out the net capital BoA got when they bought them. (Yes, BoA actually paid for C’wide.)
October 1, 2009 at 6:39 PM in reply to: The plot thickens….Confirmed.. Fed Reserve Strongarmed BofA … #462897Participant[quote=ucodegen]….remember that BofA paid the like of $0.02 for $1.00 worth of SFR mortgages.. so guess how low the foreclosure price of the property could go before BofA really loses money? A discount of 50% on the price of the property will not bother BofA that much, since their price that they paid was an 80% discount…..[/quote]
Well, I own BoA shares, and I know that the C’wide and Merrill purchases destroyed value. I was aghast when I first heard the announcement that BoA was buying C’wide.
Where did you get the $0.02 per $1 figure from? Is that for serviced mtges? If so, the revenue is just the servicing fees, not the amount of the loan plus interest, less loan losses. The problem with C’wide is the loans they own, not the servicing portfolio. Loan losses will be huge, and will wipe out the net capital BoA got when they bought them. (Yes, BoA actually paid for C’wide.)
October 1, 2009 at 6:39 PM in reply to: The plot thickens….Confirmed.. Fed Reserve Strongarmed BofA … #463241Participant[quote=ucodegen]….remember that BofA paid the like of $0.02 for $1.00 worth of SFR mortgages.. so guess how low the foreclosure price of the property could go before BofA really loses money? A discount of 50% on the price of the property will not bother BofA that much, since their price that they paid was an 80% discount…..[/quote]
Well, I own BoA shares, and I know that the C’wide and Merrill purchases destroyed value. I was aghast when I first heard the announcement that BoA was buying C’wide.
Where did you get the $0.02 per $1 figure from? Is that for serviced mtges? If so, the revenue is just the servicing fees, not the amount of the loan plus interest, less loan losses. The problem with C’wide is the loans they own, not the servicing portfolio. Loan losses will be huge, and will wipe out the net capital BoA got when they bought them. (Yes, BoA actually paid for C’wide.)
October 1, 2009 at 6:39 PM in reply to: The plot thickens….Confirmed.. Fed Reserve Strongarmed BofA … #463313Participant[quote=ucodegen]….remember that BofA paid the like of $0.02 for $1.00 worth of SFR mortgages.. so guess how low the foreclosure price of the property could go before BofA really loses money? A discount of 50% on the price of the property will not bother BofA that much, since their price that they paid was an 80% discount…..[/quote]
Well, I own BoA shares, and I know that the C’wide and Merrill purchases destroyed value. I was aghast when I first heard the announcement that BoA was buying C’wide.
Where did you get the $0.02 per $1 figure from? Is that for serviced mtges? If so, the revenue is just the servicing fees, not the amount of the loan plus interest, less loan losses. The problem with C’wide is the loans they own, not the servicing portfolio. Loan losses will be huge, and will wipe out the net capital BoA got when they bought them. (Yes, BoA actually paid for C’wide.)
October 1, 2009 at 6:39 PM in reply to: The plot thickens….Confirmed.. Fed Reserve Strongarmed BofA … #463519Participant[quote=ucodegen]….remember that BofA paid the like of $0.02 for $1.00 worth of SFR mortgages.. so guess how low the foreclosure price of the property could go before BofA really loses money? A discount of 50% on the price of the property will not bother BofA that much, since their price that they paid was an 80% discount…..[/quote]
Well, I own BoA shares, and I know that the C’wide and Merrill purchases destroyed value. I was aghast when I first heard the announcement that BoA was buying C’wide.
Where did you get the $0.02 per $1 figure from? Is that for serviced mtges? If so, the revenue is just the servicing fees, not the amount of the loan plus interest, less loan losses. The problem with C’wide is the loans they own, not the servicing portfolio. Loan losses will be huge, and will wipe out the net capital BoA got when they bought them. (Yes, BoA actually paid for C’wide.)
September 27, 2009 at 9:33 AM in reply to: Homeowners who ‘strategically default’ on loans a growing problem #461714Participant[quote=trex]If everyone were this rational, the banks would behave more responsibly as well , requiring down payments and real income….[/quote]
Getting the banks to be more responsible about home loans requires more than rational behavior by borrowers. It also requires a removal of govt and private mortgage insurance schemes. The presence of these schemes completely undermines incentives for responsible loan underwriting.
When we have responsible home loans (no FHA or PMI or other nonsense) then we will have a sensible market for homes. Will this ever happen? Probably not in my lifetime.
-
AuthorPosts
