Major US homes lender near bankruptcy

Times of London ^ | 03/07/08 | Tom Bawden

[shaft29]

I am economically challenged.

Can you explain something to me.

From what I have been reading, many homeowners are going into default because their interest rates are increasing on their adjustable mortgages.

What I do not understand, is if they were able to make their payment before the adjustment, why the lenders do not restructure the mortgage to an interest rate at which they can make the payment, rather than sitting there with a property that is non performing. Isn’t some profit better than none?

[dennisw]

Google “option ARM”

THose are really evil and many were made in 2003-2006

[jiggyboy]

At this point even those shills realize it's foolish to continue stating 'there is no housing bubble', 'no inflation', 'don't worry about oil prices' and the 'American banks are rock solid' ....lol

Nah they just change the subject. Now "gloom and doomers are talking the economy down".

[FReepaholic]

...Who here thinks property tax assessments will match the reduction of asset prices as quickly as they matched asset price inflation?...

Local gubmint leaders in my county are already whining about "lost revenue" and how they're going to have to cut personnel, yada yada yada. They're talking of raising sales taxes to compensate.

[dfwgator]

They ought to call them ‘ARM and a LEG’ loans.

[BJungNan]

Thanks

[Etoo]

[too many think they can take it with them and instant gratification is all that matters in life. Just look at Hollywierd.]

 

Yes, what people need to inspire (mesmerize) them is a flying rainbow piggybank./sarc

 

26-JUL-2007

Natural Born Predators

[Etoo]

[How about 'EC'?:

That would stand for Economic Correctness?

That is being EC means all business and financial dealing are based upon sound proven financial practices deeply rooted in and implemented with integrity completely void of that 'new' fuzzy math? Data is not skewed and omitted to influence a transaction and the MSM will be the main players in pushing the concept? Applies across the board: personally, in industry and in government.]

;-)

I like it.

[redgolum]

Phase bank failures.

You know, I read a book not long ago called “The Creature from Jekyll Island”. Giving to me by a friend who figured I would get a kick out of it.

What brings it to mind is that the last chapter in the book talks of just what is going on now.

[Centurion2000]

I wonder just how much of the world’s apparent wealth lies in these multiple-leveraged phantoms. I have had many discussions on the topic over the past year with a friend who argued that “on-paper” dollars were just as valid as cash-in-hand dollars.

So much money can simply disappear only if it never really existed in the first place.

Well, fiat monetary systems rely on faith. Ironic isn't it? Even atheists have to have faith in something.

[SeaHawkFan]

For all the grief ex-texamn got, he sure seems to have gotten this right. He predicted all this stuf quite a while before the crisis hit.