Posted on 10/24/2011 8:17:51 AM PDT by ColdOne
Let’s just make MORE bad loans!!!
It worked so well the first time.
And the Constitutional authority for this is... where?
INSANE
who will pay for the losses the banks and mortgage companies incur?
Of course the Takers will love it and that buys 0dumbo votes
Maybe i should quit paying my mortgage too
RESIGN, bastard.
Few thar be who learn in time to keep deys $*!*hooks to demselves!
Actually he said he was revamping HAARP.
an “executive branch rescue”
more legislating from the offices of Jarret Plouffe Axelrod Inc
This fix is illusory. In all fairness, someone who is current on their mortgage, and has been that way historically, is unable to refinance at the now low rates because the appraisal will show they are underwater (debt more than value of home). While this allows them to refinance at lower rates, it doesn’t address the real problem. As long as these people will stay in the house for many years, their debt will ultimately be less than the value via amortization.
The real problem is those that don’t pay. I know, the big bad banks made them sign those notes and take all that money, but they are dumb and didn’t know what they were doing. In the meantime, they are living rent / mortgage free and the courts, state governments and the feds are protecting them. As a lender, you simply can’t foreclose in any reasonable time frame.
The answer; give the holdover $2,500 (you pick a number) to vacate and have money to put down a deposit on a rental. Sell the now empty house to a qualified buyer at market prices and move on. The lender is taking the hit anyways; the quicker the better. Sure, this isn’t fair to the people who pay; but it is the only way to get the housing industry bottomed out and moving again.
Filed with BO’s birth certificate and selective service registration
Repeating the same failed socialist BS will lead to the same results, it is the definition of insanity but socialism is insanity.
Ron, we need you!!!! On second thought, you are in a much better place right now. God bless you for being with us when you did. ES
In your plan you say give the holder $2500 dollars to vacate , then sell the house at market Prices.
That idea doesn’t make sense to me.
Why not just write off the present mortgage, have the house appraised and let the present occupant buy it again at market price, if he can make the payments?
Sooner or later, everybody decides they can run the show.
I agree - and hell, the $2500 payout would be a lot cheaper than what they’ve been doing.
Well, if you’re presuming that the people who qualify aren’t paying, the occupant won’t qualify for a new loan.
What you’re referring to would be a plan to simply reduce the balance to current market value. Which, again, could probably work better than what they have been doing, except that it would invalidate an existing contract if forced by the government. However, designing some sort of tax or write-off benefit for the lenders in question (and the true investors and securitized owners behind the loan, that’s the harder part of the equation) would make it a bit easier of a sell.
Albert Einstein
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