Posted on 10/11/2008 9:09:30 AM PDT by TenthAmendmentChampion
Edited on 10/11/2008 9:14:17 AM PDT by Admin Moderator. [history]
I say, maintain the amount owed, re-negotiate the mortgage payments, and pray.
That has to be done at each bank’s discretion. Forced policy like that has been called “cramdown” and the banks are resisting (naturally) a policy that requires them to devalue their already-scarce assets.
I’m not all that sure the banks have the expertise.
I heard a plan where a house would have its additional equity removed from the loan calculation but would still be due at sale.
So a $400K house with high $3500 payments might be revalued at $300K for loan purposes, with payments at say $2500 instead. But the loan principle would still be $400K and when the house was sold the borrower would owe the bank the full $400K. I don’t know if this would work... it might.
It doesn’t solve the problem of people walking away from no-down sub-prime loans because they have no stake in the property.
You are no doubt right. The banks have billions of dollars of loans on their books that have no knowable value.
I was referencing the manpower involved. The loans have also been bundled and sold and leveraged...it’s a hideously complicated issue.
...If the federal government would get out of business and politics, and leave us alone, we, the people can figure this out...
GOVERNMENT OUT OF POLITICS NOW!
...Politics out of government, Politicians out of government, fire them, now!!! They say, we gotta tighten our belts, and get through this...I’d love to tighten my belt around their scrawny, little, chicken necks... Ahhhooyea, I feel better...
That’s actually not a bad idea. I do believe most people would take this plan and stay in the house.
But what is to be done with the vacant properties that have already be foreclosed on? If the government bought one for today’s value they’d have to sell it for today’s value so that’s a loss for the government.
McCain says with his plan the borrower has to have been qualified at the time of purchase. The question is “qualified under what guidelines?” Because most of those in foreclosure or facing foreclosure didn’t qualify and that’s why they got a subprime loan. Sometimes I wonder about McCain.
Offer immediate American citizenship to hardworking immigrants who want to live here and be real Americans. I am talking about the cream of the crop from India, Bulgaria, Poland, Czech Republic, etc. who hate communism.
Bankers out of finance now!
...Yer zeal is admirable. I’m for individuals taking responsibility for their actions...Government bailing out irresponsible bankers, businessmen, let them go on the road to perdition...
Let me be very clear on where I stand — and I could be wrong: I believe the geopolitical deck is being re-shuffled via this crisis. Whether America comes out on top or not is far from clear and depends on our response.
Arson works.
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