We'd all be in jail!
Uh oh. Better get those finances in order, Mrs. Fry. The White House will soon be calling you out as well.
That said...it’s beginning...
Anyone else having problems with the fox news website? I can’t get the pages to load.
Welcome to the new ghetto Michele Fry. So your house lost 1/2 it’s value? Its the sacrifice ZerO wants of you. Enjoy the change you can believe in!
Whut???????????
I saw the Administration talking how about bad it is to be under water (or on the verge) on a mortgage. For the majority of people, this is not any big deal. I am probably 25% below my mortgage, however, I still make my payments, that hasn’t changed. As long as people don’t have to move, shouldn’t they just continue to make payments. It’s funny how no one in the press asked why homeowners having their home values fall (when they don’t have to sell), is such a crisis.
He and his media flaks can blame Bush all they want but people will have no patience with vanishing retirement accounts and high unemployment.
see, say payday! see, say payday!
Only the profligate, venal and stupid are bailed out by the thrifty, honest and wise.
It's about 'Equality' dontchyaknow...But as in George Orwell's classic 'Animal Farm' there are various levels of equal.
People who overbought McMansions should be booted out, mortgage holders should boot them out and sell to someone else. If a person has a modest home and lost their job some temporary relief should be considered.
Damned straight!
The first mortgage forclosures are just the tip of the iceberg. What are the banks and mortgage companies who hold the second mortgages on these default properties going to do? Believe me, I am betting that over 50% of these properties have second mortgages or inflated lines of credit on them. You know the “home improvement” credit lines that were obtained for a vacation.
In the words of Dear Leader you are spreading the wealth around.
I believe this shows why the great experiment of “true democracy” always fails when the populace learns they can vote themselves a pay raise through the treasury.
JoMa
The bottleneck is these banks want to get the toxic loans off their books but DO NOT WANT TO ACCEPT THE LOSS ON THE BOOKS.
Assume a 300k house now only worth 150k. KEEP IN MIND the current holders of the mortage (assuming they can even prove it) are NOT THE ORIGINAL LENDERS. The note holders are subsequent speculators.
Forclosure: Bank has to bid their final judgment 300k amount and then hold the house trying to sell it for 300k, plus pay lawyers, plus pay court costs, plus pay upkeep. loss on the books indefinitly until sold for whatever amount. Bank loses much more but is penny wise and pound foolish
Short sale: Bank has to accept the lessor amount of 150k but still has the costs and a loss of 150k. Bank will not allow current occupant to keep house and be the short sale buyer. loss on books assuming it is ever sold. again bank is penny wise and pound foolish.
Bankruptcy: finality in the extreme. The court says this asset is worth 150k and that is it. Assuming the laws change to pre 2005, then it is lien stripped. The bank gets 1/2 loaf. The loss becomes a certainty and written off on the taxes. Finality and certainty. However the banks don’t want that because they think option one will give them the 300k sooner than later via bail out cash.
Everyone I know in the Washington DC suburbs who bought a home in the early 2000s did so to try and take advantage of the housing boom. They all upgraded homes with profits from the sale of their existing homes and used unusual financing schemes to afford homes near the 1 million dollar range. Although most of them are not at risk of foreclosure they are sitting on homes no longer worth anywhere near what they paid for them. They took a risk with their money and now they have to pay the price. It is an outrage that taxpayers who were more responsible with their money should now be asked to pay for the risks taken by people trying to make an easy buck.
“She now sees a national mortgage bailout plan that appears to reward people who bought more house than they could afford and can’t pay their bills.”
Seems that what is NOT being reported is that the bailout also includes renters in homes that are being foreclosed on AND any renter who is facing homelessness. That little tidbit is also tucked into the stimulus bill.