Posted on 03/08/2009 5:54:14 PM PDT by Born Conservative
He's probably doing this to a) get more votes and b) suck up to Queen Pelosi, since he's #3 on her Feces List
Ping
Who gets to keep the profits on any such properties once sold?
35 counties.
THIRTY-FIVE COUNTIES.
All in blue states.
That’s where these foreclosures are concentrated.
That’s what the marxist/communist democrat party are going to renegotiate on our dime.
I come to you, an investor, and ask for a loan of $200,000 to buy a home. You know that a year from now I can file bankruptcy and only owe you $150,000. Would you loan me the money?
This is going to cause rates and fees to go through the roof. It’s only a matter of time before 20% is once again required to buy a home. There will be no more mortgage insurance.
Proof positive that I’m just a putz for paying my farm mortgage each month for the past 15 years; good times and bad. :(
Lawyers are makin a mint off this.
How is this not a “Taking”. Taking the money of the lender without compensation is unconstitutional.
“I come to you, an investor, and ask for a loan of $200,000 to buy a home. You know that a year from now I can file bankruptcy and only owe you $150,000.”
Uhh thats the way its always been. Bankruptcy is bankruptcy. Until of course a couple years ago when the unsecured loans became harder to discharge.
“How is this not a “Taking”. Taking the money of the lender without compensation is unconstitutional.”
Unconstitutional? Theft is theft.
However I have no concern for the banks or investors. They knew what they were doing and decided greed was a positive attribute.
It may be just an 'insurance policy' for mortgage servicers who were never going to be sued anyway, and the whole thing may just be another liberal 'feel-good' law!
So it's OK to steal from people you don't like?
Kanjorski is such a crook that you know he or his family is getting something out of this.
RUSH: Barney Frank invoked my name on the floor of the House. It was last night on the House floor, and Barney Frank talking about foreclosures and me.
FRANK: There is, for instance, a noted commentator on public affairs, Mr. Limbaugh, who has a certain number of fans on that side, and if they aren't fans, they're afraid to say so. He has asked that the president fail. Well, the effect of this amendment would give Mr. Limbaugh his wish, because if you cripple the effort to reduce mortgage foreclosure, you cripple the effort to get out of the economic slump we are in. So I understand what some people would like to see happen, they do not want President Obama and a Democratic Congress to get any credit for helping to reduce our economic situation. They're taking a lot of innocent people hostage.
RUSH: Well, that's the most convoluted way of looking at this that I can imagine. Now, he's talking about the amendment that would allow people who cheated on their initial documents to still be able to get a crammed down reduction on their interest rate. So this amendment will allow people who cheated and who lied on their loan application to still get a cramdown, meaning a judge could reduce the cost of their mortgage payment. This is what Barney was going for and of course he brings me up as the enemy of all this. There's a great post here by a Yale economic professor about all of this. It was tough sledding for me, the way this is written, to understand it. It involves the concept that they're really not helping anybody by reducing their interest payments, that the only way to really help people here that are underwater is to reduce the principal, but the principal is not being touched, which means that at some point responsible people are going to default anyway because all they're doing is renting. They're going to have no equity even if their payment lowers. I'll get to that in just a moment. Here again, Barney Frank advocating an amendment to allow people who cheated on their initial application for a mortgage to still get a cramdown.
Just as they always have: http://nokanjo.blogspot.com/2008/05/family-affair-aka-nepotism-at-its.html
“So it’s OK to steal from people you don’t like?”
Are you talking what bankers have done to their customers or what their customers are now doing to the banks?
“I’m talking about condoning theft from ANYONE just because you don’t like them.”
Bankruptcy is not theft.
If the bank modifies the loan the borrower is not stealing. The borrower’s commitment is to the bank. The bank is voluntarily changing the contract in order to minimize their loss.
The only possible theft is what the bank is doing to the investors. Sad to say this is probably in the investors best interest as well. Most homes in foreclosure will sell for significantly less than the money owed.
I wonder if a class action suit is possible if someone (like me) was charged a fee (I payed a point) to lock in a lower fixed mortgage rate (5%) and now others are going to get theirs reduced as low as 2% for free (in fact, my tax dollars will be used to pay for it)...
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