The end of the housing bubble.
Posted on 06/24/2010 9:48:59 PM PDT by Libloather
Link only - Government Backed Lender Will Impose 7 Year Loan Sanctions on Those Who Strategically Default
Americans are always put first - right?
It would make me happier if Fannie and Freddie just stopped making any loans..period. The USG isn’t a good judge of credit worthiness and the taxpayers end up paying for their mistatkes. Get the Gov out of the mortgage business..
Fannie Mae will likely be a footnote in the history books in five years, much less the dreaded seven year “punishment” for walking away from a mortgage when October arrives.
STARTING in October... or later & in some markets.
Defaulters that move cross country won’t be hassled.
STARTING in October... or later & in some markets.
Defaulters that move cross country won’t be hassled.
With all the lawyers going after stockbrokers and CEOs when an investment goes sour, when will the sharks turn on Fannie and Freddie for writing the loan on an overvalued property in the first place?
Now is a helluva time for F&F to start worrying about the taxpayer; that should have been done before pen went to paper on the loan. While they're at it, how about putting a seven year cap on Gorelick and Raines? Let's claw back some taxpayer money there.
Just wait until the foreclosures turn into unoccupied properties that bring down banks. Can’t sell ‘em, and the banks won’t want to be landlords.
The Grand Poo Bah will simply order from on high that banks must act as landlords.
Then what - BUY, BUY, BUY?
Apartments will briefly increase, until they get too high themselves. More and more folks will move in together to try and survive.
Several neighborhoods will become unoccupied territory. It’s already happening. In time, some of those will be bulldozed, most likely.
The boom will fold in on itself and few other home real estate won’t be affected by the overall property value decline.
Cities will likely raise home tax rates to try to make up for the lost revenue.
Some unused commercial properties might become lofts or undergo transformation, if possible, to apartment / condos.
[...]
"It should be insulting to the middle class that Fannie Mae, who has been given $145 billion dollars from our government to keep it afloat, would turn around and threaten middle class America," said Parker.
You can buy a house in Detroit for $1.00 US. That's the market value of a house in a neighborhood where there are no jobs and high crime rates.
As the jobs continue to disappear, and crime continues to increase, the values of houses in other neighborhoods will also approach $1.00 US, and those other neighborhoods will look more and more like Detroit.
Welcome to the new Dark Age, the hidden cost of free and cheap labor, wherein, once again, life will be brutal and short.
Galt’s Gulch?
http://www.LivingInThePhilippines.com
Translation: gov’t lender says only THEY get to cheat.
The end of the housing bubble.
It will become the housing crater....
As long as the major companies that do this are also held to the same rules, not a problem.
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