Posted on 03/26/2010 7:27:10 AM PDT by outpostinmass2
Obama AND THE BANKS are desperate to prop up values.
The shadow inventory is being sold for 25-40% of original sale price.
KEEP IN MIND THE DC AREA’S HOME PRICES HAVE NOT BEEN AFFECTED BY THE RECESSION. The place where politicians have second homes have not been hurt so they do not see American.
all modifications, all such “resets” have a clause where you waive any defenses or damage claims. It also makes you accept the bank’s indemnification for THEIR SCREWUP in losing the promisory note (remember a mortgage just records the security, the note is the obligation.)
I'm just suggesting that this country may well be in a damned-if-we-do and damned-if-we-don't scenario here.
That’s an interesting point. I wasn’t aware of that, and it sure explains an awful lot about just how fouled-up things had gotten with the creation of all those CDOs over the years.
Like when we bailed out the banks? How did that work out?
From another thread [at # 22], but worth repeating:
As much as those who hate that these people are getting away scot free hate it, the truth is, if you yourself lost your job and got into that bind who’s to say you wouldn’t do the same. And it is a smart strategy. The courts are overloaded. Because they combined mortages into securities it is actually very questionable who holds title. I actually know of several commercial real estate enterprises avoiding foreclosure using the exact same tactics.
All you have said is very cogent. In my view, the way forward lies in accepting this type of analysis and moving away from the exclusive focus on "helping" those who, to be brutally honest, at this point cannot be "helped" *by the government* into true financial viability. Only a quickening of the entire economy can lift those who are truly out of money up.
As I see it, these people are already getting a lot of "help." Not only are so many government programs focused on "saving homes," "stopping foreclosures," etc., the real facts are just what this article (and your analysis) demonstrates: the system is already (and quite literally) supporting these people through a personally untenable situation --- not out of largess, but out of economic necessity. Allowing someone to live in their home for "free" for SEVEN YEARS and counting --- as the system, combined, is doing here --- is a HUGE "help," to them and, it must be said, to the process of washing out this horrendous debt.
The reality is: a crashed housing market + bankruptcy and lender-stalled foreclosures = free (to them) housing for millions of people. FREE housing? In their "own" homes? For SEVEN years and counting? Good grief, that's got to be the Cadillac of Cadillac "save your home" plans. Even the guvmint couldn't come up with a "save your home" program that worked that well. /s
Okay. So now isn't it time to STOP focusing on "stopping foreclosures" (which are not happening anyway) and "saving people's homes" (which the market will not allow to be taken from them anyway) and START focusing on those people who still have enough financial viability left to restart the real economy (Main Street)?
That's why I am on a tear to get a discussion going on ideas such as increasing the home mortgage interest deduction for homeowners current on their mortgage for the tax year. Ideas drawn from this article.
Why doesn’t the federal govt just buy the houses outright for these people and hand them over to them? That would be cheaper and more effective.
The redefault is horrendous. Plus, most people are NOT being foreclosed on. The horrible housing market itself is forcing lenders into forebearance. Many people are living “free” in their own homes for years after defaulting.
Why would the POTUS continue to focus more of our tax money on these people? I’m still paying my mortgage and he is forcing lenders to forebear against people who are literally living for “free” in their own homes after having defaulted several years ago and the lender, because of market conditions, being unable to foreclose because of an inability to sell the home anyway.
Ping to #26.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.