[Tatze]

I bought at the height of the market in 2006. Fully qualified for my mortgage. Still employed, with raises and bonuses. Still making payments on my mortgage. In fact, paying extra on my mortgage to bring down the principal faster. But I’m still underwater because of the housing collapse due more to Government than banks, and through no fault of my own.

I’d have my in-laws screaming at me again if I turned down something like this, which I am still highly inclined to turn down. They already gave me some grief for not taking advantage of the mortgage re-fi programs Obama instituted.

I guess it depends on how its done if I have a choice or not. I’d much prefer for the housing market to recover to raise the house value rather than lowering the mortgage principal.

[longtermmemmory]

wall street called them mortgage default swaps for a reason.

They were sold WITH THE ASSUMPTIOIN OF DEFAULT and that the value of the asset exceeded the loan. So WHEN a default happened the apprasal indicated fully secured investments.

The key is to inflate the apprasal.

THAT is where the crime happened.

(remember they were sold with the assumption that default would happen)

[laxcoach]

"I’d have my in-laws screaming at me again if I turned down something like this, which I am still highly inclined to turn down. They already gave me some grief for not taking advantage of the mortgage re-fi programs Obama instituted."

Slightly off subject, but my wife's entire family is aghast at my refusal to buy or lease a GM car. I explained that the gov't/unions screwed bond holders and I won't prop up a fascist corporate/gov't partnership. Gotta love the absolute ignorance and denial: "that's not true".