" . . . "
Posted on 08/16/2007 11:10:23 AM PDT by Hydroshock
" . . . "
Timely Payment Rewards. Been around for at least several years. I see nothing wrong with this. Give them a shot at a higher rate. If they perform and do well, reward them with a lower interest rate.
In the state of Washington, a person can simply walk away from an upside down situation. Lender cannot come after them for a deficiency.
Get with the panic program. Sheesh. Rewarding timely performance is a risky scheme!
Alot of states do not, but I expect to see many walk next year.
Excerpt:
The mood in financial markets edged towards panic as investors continued to dump risky assets such as equities and high-yielding currencies in favour of the relative safety of government bonds on Thursday.Source: Financial Times.comThe Morgan Stanley Capital International World share index saw its decline from July's record high extend to 11 per cent - marking an official correction in global equities.
The high-yielding Australian and New Zealand dollars suffered their biggest one-day falls against the Japanese yen for two decades, while short-dated US government bond yields hit their lowest levels since October 2005.
"What we are witnessing is a rapid unwinding of risk on a global scale,"
"Even traditional havens such as gold are deemed too risky in this climate," said Martin Slaney at GFT Global Markets. * * *
In other words, the PPT rushed in and dumped hundreds of millions or even billions today trying to keep the stock markets afloat. A day of reckoning is coming soon, or, 'sooner rather than later.' We all witnessed financial folly on a rather epic scale today. But wait until tomorrow. No big deal anyway. But what do I know, anyway Whatever will be will be.
Ouch!
PHLX Gold Silver Index XAU 8/16/2007
4:05:48 PM 125.64 -6.81 -5.14%
Gold has been hammered even worse this past few weeks and this week.
Then they are silly. If they have no equity and they get upside with a rising payment, then walking away makes sense.
And I might do that, except that I haven’t gotten a single offer... :( Sigh...
In fact the risks were so low that anybody that could fog a mirror was given one of them.
The housing market ballooned in 2005.
You bought in 2004. Now, that adjustable rate on that 2nd trust is ballooning or adjusting and while you were planning on a simple refinance into a single product fixed 30 year loan, you're unable to even refinance with a similar product because the product no longer exists, or your house dropping market value has you 'upside down'...owing more on the property than you could sell it for.
The government will have to step in and guarantee these loans in exchange for the mortgagor re-structuring the existing mortgage.
I don't see any other way other than letting the sh*t hit the fan.
And as a free marketer, maybe that's what needs to happen.
My advice is to get liquid and be ready to jump in when the bell sounds.
I agree, let the market work. It will shake this out faster and easier on all then if we interfer.
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"The government will have to step in..."
The hopelessly liberal's solution to everything.
Hang on to your hats people. The mortgage bubble was manufactured intentionally. 'Nuff said by me. Over and out. Later, Alligators. I'm going fishing.
Thanks for the informative post Ex-Texan.
And I wanted to note, that Ex-Texan has predicted all of these, for several years, on this forum, perfectly accurately. Many people appreciated the tip - but some gave nothing but abuse and complaints toward Ex-Texan, who was telling them common-sense that they didn’t want to hear.
I hope they are wiser now.
In the scramble for liquidity everything gets sold, including gold. Cash is king in a credit crunch.
> Greed and stupdity are my guesses.
On the parts of both banker and buyer, indeed.
Cutting rates won’t cure this. Big lenders that funded the Countrywides are refusing to buy more American mortgage paper. They believe they were misled by the rating agencies concerning the degree of risk in this debt.
Like this analysis is even needed.
Any time the housing market is reduced to having financial deer drives through apartment complexes and trailer parks to keep momentum going, the bubble has arrived, and it will pop shortly thereafter. It has happened time and time and time again, yet everyone acts shocked, SHOCKED! that history had the gall to repeat itself.
It will only postpone the inevitable.
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