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Could this be the reason why mortgages aren't being paid?
none | 11-11-07 | Roland Tignor

Posted on 11/10/2007 10:06:31 PM PST by RolandTignor

Under pressure from the Office of the Comptroller of the Currency (which regulates national banks), the Federal Reserve, the Federal Deposit Insurance Corporation, and the Office of Thrift Supervision, some national banks will soon be increasing minimum monthly credit card payments so they are closer to 4% rather than the current average of around 2%. Some major banks have already increased the minimum payments and others are about to follow suit.


TOPICS:
KEYWORDS: debt; double; heynicelink; mortgages; payment

1 posted on 11/10/2007 10:06:32 PM PST by RolandTignor
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To: RolandTignor

I know this is old but maybe it’s catching up to us.
The Fed’s are up to their stuff again.


2 posted on 11/10/2007 10:09:04 PM PST by RolandTignor
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To: RolandTignor

Anybody who would pay their credit cards before their home mortgage would have to be terminally stupid!


3 posted on 11/10/2007 10:09:48 PM PST by BnBlFlag (Deo Vindice/Semper Fidelis "Ya gotta saddle up your boys; Ya gotta draw a hard line")
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To: RolandTignor
After October, 1987 the joke went like this: How do you call your stockbroker? Hey, Waiter!

Now, people are still getting over the idea that they can't buy too much house and bank on appreciation to allow for an equity loan to cover the first mortgage. Bad business decisions will always end up badly. It's just a matter of time.

4 posted on 11/10/2007 10:13:24 PM PST by Bernard ("Rare, Safe and Legal" - what an ideal Immigration Policy should look like.)
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To: BnBlFlag

Assuming they’re making their mortgage payments each month they would be smart to pay down their credit card debt first.


5 posted on 11/10/2007 10:17:02 PM PST by saganite
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To: BnBlFlag
Anybody who would pay their credit cards before their home mortgage would have to be terminally stupid!

Agreed.
6 posted on 11/10/2007 10:18:41 PM PST by lmr (The answers to life don't involve complex solutions.)
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To: RolandTignor

How about the fact these “greater fools” paid twice what these properties were worth and didn’t know finance from their tailpipes? Real estate; especially in California has been grossly overpriced. I can buy a home in a desirable part of Texas for 1/4 the price that a comparable home in California was being sold for. That’s craziness. The the idiots who fell into this trap got there for one reason. They are greedy and they are stupid. Let the market sort this stuff out and we should simply ignore it. It’s not our problem.


7 posted on 11/10/2007 10:19:21 PM PST by RichardW
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To: saganite

I was referring to the monthly payments.


8 posted on 11/10/2007 10:34:41 PM PST by BnBlFlag (Deo Vindice/Semper Fidelis "Ya gotta saddle up your boys; Ya gotta draw a hard line")
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To: RolandTignor
There was thread the other day saying how the banks pushed to tighten up the bankruptcy rules, so they could collect more from credit card borrowers. Now that it is harder to file bankruptcy, foreclosures are up. People keep paying their credit card bills, and letting their houses go back to the banks. The banks are losing even more money now. Unintended consequences at work.
9 posted on 11/10/2007 10:38:14 PM PST by nralife
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To: RolandTignor

I think we’ll see many people that have good jobs, good credit, decide to not pay their mortgages. They will find a way to trhow the keys at the banks, walk away. Many people will feel they were “tricked” into ARM loans. A banker told me that this is possible, that it is cheaper to take the home from the person, than to run it through foreclosure. The only knock on the person will be a bad credit mark, but it will not be bankruptcy.

My take on ARMS is that both the customer and the originator of the loan are equally to blame.


10 posted on 11/10/2007 10:40:57 PM PST by Professional
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To: BnBlFlag
Not necessarily.

They may have decided the house is lost, beyond saving. The credit card needs to be kept intact for later.

11 posted on 11/10/2007 10:41:51 PM PST by Professional
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To: BnBlFlag

“Anybody who would pay their credit cards before their home mortgage would have to be terminally stupid!”

.

.. they are also the same people who would get a subprime loan


12 posted on 11/11/2007 1:50:37 AM PST by sure_fine (• " not one to over kill the thought process " •)
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To: BnBlFlag

Post #9 and #11 is more probably the reason for the defaults. Bankruptcy laws have been modified so that it is more difficult to escape CC debt and with house prices collapsing, the “easy” choice is to salvage what one can to be able to transition back into the house market later.


13 posted on 11/11/2007 2:25:22 AM PST by BipolarBob (Yes I backed over the vampire, but I swear I didn't see it in my rear view mirror.)
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To: RolandTignor
Could this be the reason why mortgages aren't being paid?

Nope.

14 posted on 11/11/2007 3:37:09 AM PST by MNJohnnie ("Hillary is polarizing, deceitful, and liberal. And those are are her good points!" Beaversmom)
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To: BnBlFlag
Anybody who would pay their credit cards before their home mortgage would have to be terminally stupid!

Unless they had a 100% financed and their property value has dropped 20%, then it makes perfect sense.

15 posted on 11/11/2007 6:53:05 AM PST by Always Right
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