Posted on 01/26/2010 8:16:22 AM PST by TheThinker
I'm reading this thread, thinking, "These are conservatives?"
“... I am 100% against anyone, who can afford the payment, to walk away from their mortgage.”
Agreed. If one promises to pay, one should pay.
Sorry about the pooch. We are very attached to the boxer-great dane who with two more IQ points would engage in conversation, and the buck-fifty mastif who is now a retired country gentleman (and noisy protector).
You're right. I just want our race-pimping, freedom-killing, sadistic Marxist Mafia overlords to gain more control by weakening Americas so they can control even more of the globe. /s
Bingo, particularly considering the sheer number of defaults.
“What a SURPRISE that the LibTards would run with this, LOL!”
They want everything free because “the man” holds them down. They don’t even realize that they are “the man.”
Those darnded furry critters sure find a home in our hearts. It is joyous to experience such sadness....
“I am going to get flamed, but I would tend to agree with this. We need a MAJOR correction in real estate prices NOW. We may have to start from ground zero. The present prices can NOT be sustained and very few seem to be appropriately negotiable.”
Or as Rahm said; never let a crisis go to waste? In case you are not aware; a major correction has already happened in some markets.
We need to get the Marxists, socialists, and left wing activists out of the discussion.
How do these idiots think they will get financing to buy these lower priced homes, if all the scum are allowed to default on the loans they signed up for.
I just get so sick of people wanting to blame their poor decision making on someone else.
They all get the same paydown.
If it pays off the house then it pays off the house.
better the money have gone to pay down mortgages than to DC insiders.
non-recourse loans mean you only can get the asset.
The problems arrose when the valuations became artificially inflated.
what needs to happen is home prices need to return to reality but that will only happen when the shadow inventory of the banks is released to naturally go to fair market.
Well, the Democrats have done it for yeas while I've worked as slave labor with little or no return. Works for them....
they live in the same house.
the banks have too many forclosures and there is a massive shadow UNREPORTED inventory.
forclosures are UP but forclosure SALES are at a standstill because banks do not want to do the credit bit to take posession of yet another property.
Careful, this has the makings of how Big government is going to try to pay off the debt. Just get everybody to walk away from their obligations, seize the material assets, then liquidate to other promises.
(At some point in time, a promise won’t have any more value.)
My understanding is that some bank are no longer required to do that. It would be impossible for you to prove differently.
If this behavior catches on nationwide, whole swatches of the US will mirror Detroit in the near future.
LOL! It’s impossible for you to prove your assertion as well.
Are you familiar with the Allowance for Loan Losses that all banks must carry on their books? Whether they write individual loans down or not, they must still recognize expense on mortgage pools in this account. The Allowance is not only reviewed by regulators, but also external CPA auditors. You’ll be hard pressed to find either auditors or examiners going soft on banks right now. In fact, in many ways they are going very far in the other direction.
Actually, I’m a life long banker - CFO so I know what goes on and what’s going on in the banking world.
Banks are not generally writing down 90 day past due RE loans to market as they have done in the past, period. If they did, lots more would go under - it’s a house of cards.
The Allowance for Loan and Lease Losses is only charged when a write down takes place. Auditors and examiners, especially examiners work in a very political environment - politics enters into the ALLL equation a lot more than it should. Outside Auditor are paid by banks, they are a huge joke - just look at Enron, etc.
Also, mortgage pools - held as securities are not written down to the ALLL - when they are adjusted to market - it’s a direct hit to capital and doesn’t go through the ALLL - because, they are not loans or leases.
This is your banking lesson for today.
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