Posted on 10/15/2010 7:07:26 AM PDT by WebFocus
The sad part of this is, many of us (many here, myself included) won’t be able to take advantage of the bargain-basement prices on these houses, due to having another home, that is now 100 grand upside down that they can’t sell.
Sure. Not disputing that, but it doesn’t help the situation, now, does it?
The best way for the banks to help is unravel all this paper right now.
Banks don’t want you to fail. They can’t run your business and they don’t want to be stuck with your assets...They want the loans to be paid so they can make loans in the future. That’s what banks do. They make their money lending money.
God help us all if there is a government conspiracy to take the land and these assets. Nothing would more surely cause a revolution in this country than the wholesale seizure of land, assets and other real property.
No, but your statement was factually incorrect. The first round of foreclosures was due to arm resets and speculators who were floating the money based on rapid increase in value.
Those happening now were people who were strong enough financially to make it this far but through unemployment or reduced income have not been able to sustain their payments. They most likely qualified in a fairly normal manner for their mortgage based on being employed.
The govt already owns all these houses. Around 90% of all mortgages are controlled by Fannie Mae and Freddie Mac.
People are currently losing homes due to unemployment.
Makes me think of this line from The Matrix:
“What do you need?”
“Guns. Lots of guns.”
You say that like it’s a bad thing...
;^P
If at the end of a mortgage, by pay off or foreclosure, the original note is not returned, the property has a clouded, or toxic title. Subsequent buyers cannot get title insurance, and will walk away from buying your property.
Anyone glossing over this little 'detail' is likely ashamed to admit that they are paying premium 'real money' toward their home investment that has the possibility of a steep discount in value from a clouded title that they are unaware of. This would be a good time to ask your loan servicer for a true copy of the original note to your property.
“Happily, the election is very near and if Republicans really do win big, particularly if Christine O’Donnell wins in Delaware...”
Oh man, this would be a nail in the coffin, but - sadly - I don’t see it happening. There are too many voters who vote SOLELY like it’s a popularity contest.
That’s what it would come to...
And everyone with an Obama sticker...Well...Just saying...Lines would be drawn.
I was lumping a lot of different loan packages into my statement of ARMs. Many people had drastically reduced interest rates or no interest for the first few years of the loan. Once the loan resets to a normal structure they cannot afford the payment.
But I agree that unemployment is the problem today. If you aint working you cannot afford anything.
You left out the will to use them.
Bank of America Downgraded by Bond Market on Foreclosures: Credit Markets
http://www.nytimes.com/2010/10/15/business/15bank.html?_r=2&src=twt&twt=nytimesbusiness
Yeah - I’m not happy with the loss of equity in my home either. Luckily I did two things during my last move: bought way below my means and put a boatload of cash down. I saw this mess coming.
I feel bad for everyone who gets the shaft in this deal. It’s going to be a lot of people. BUT...
Failure to properly address this problem could easily lead to a bigger breakdown in the banking system. That would be the real tragedy. There would be a lot more at stake then.
I agree. Securitization, however, is not a crime. If they lose the paperwork, whatever, that house should rightfully belong to the owner, IMHO.
Now, after the securitization, the lying about the value of those various tranches...The intentionally misleading guidance is something that has merit.
Demanding the title paperwork, demanding the original loan paperwork and the entire chain of custody is exactly what is needed to unravel this mess.
Instead of throwing up their hands or demanding that the government ‘do something’ there’s no reason why banks, home-owners, private groups can’t band together to form a process to make this happen, and later use what they have learned to reset the ground rules.
One example of this kind of thing - similar but different - is the American Society of Mechanical Engineers. They are not government but they set the standards. You want to violate the standards and no one wants to do business with you, or you have to get the client to agree to waive these specifications specifically in any contract.
Fixing the blame never fixes the problem. Fixing the problem, fixes the problem.
“Good article. It states the true nature of the problem, and not the bogus sideshow that innocent up-to-date mortgage payers are are being thrown out of their houses enmasse. Or that homebuyers are somehow paying the wrong people, and might lose their homes.”
Whew - lately I’ve been thinking I’m the only person here who thinks that!
We are in the market to buy and I am finding this to be a blessing. Banks now have significant motivation to get rid of their REO holdings. The faster they do the less likely they will have a problem with the property. Investors also are looking hard at bank holdings and seeing them as even greater liabilities to the banks than ever before. So, banks have every incentive to dump these properties before even more problems arise.
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