High Probability of Re-Default in Obama's $75 Billion Stop Foreclosure Program »
Posted By altnrg 8 months, 1 week ago in NewsThe possibilities of re-default are great under President Obama’s $75-billion program to stop foreclosures because it does not clearly screen out borrowers who will restructure just to extend their rent-free stay in the properties.
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canadianrancher578 months, 1 week ago
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I don't think that Wolfie is being anything but honest with his comment, and I don't think that he wants to see a whole lot of people lose their houses but the reality of the situation is that things are tough and are likely going to get worse. Some of the people are losing their homes because of poor money management and some are losing them because of situations that are beyond their control. Those who are in trouble because of poor money skills will take some time to change and learn about money and those who are in trouble because of the economic situation will not get back on their feet until the economy rights itself , so any short term solution is bound to fail, or that's how I see it .
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SpareChange8 months, 1 week ago
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So negative. just sounds like bitterness.
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If people are bitter because working families get a reduction on loans that doubled after 2 years, then just think about what YOU get out of it - stable home values, stable local government so you can have cops, firemen and other services.
It's chump change compared to the 1 trillion that wall street squandered with these bad deals.-
libsRfunnyComment removed: Hard Banned3 Replies
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normallysilent8 months, 1 week ago
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Sorry but I have trouble feeling sorry for anyone signing a variable rate mortgage. When you do it means you aren't planning on having the loan long. If you were looking on turning a quick buck putting it right back on the market than you deserve the same amount of help as any other investor in a business venture would receive.
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I am not for helping banks either by the way. They knew they were pushing high risk loans and deserve to loose their butts with the rest. -
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mesodude8 months, 1 week ago
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One day, a scorpion looked around at the mountain where he lived and decided that he wanted a change. So he set out on a journey through the forests and hills. He climbed over rocks and under vines and kept going until he reached a river.
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The river was wide and swift, and the scorpion stopped to reconsider the situation. He couldn't see any way across. So he ran upriver and then checked downriver, all the while thinking that he might have to turn back.
Suddenly, he saw a frog sitting in the rushes by the bank of the stream on the other side of the river. He decided to ask the frog for help getting across the stream.
"Hellooo Mr. Frog!" called the scorpion across the water, "Would you be so kind as to give me a ride on your back across the river?"
"Well now, Mr. Scorpion! How do I know that if I try to help you, you wont try to kill me?" asked the frog hesitantly.
"Because," the scorpion replied, "If I try to kill you, then I would die too, for you see I cannot swim!"
Now this seemed to make sense to the frog. But he asked. "What about when I get close to the bank? You could still try to kill me and get back to the shore!"
"This is true," agreed the scorpion, "But then I wouldn't be able to get to the other side of the river!"
"Alright then...how do I know you wont just wait till we get to the other side and THEN kill me?" said the frog.
"Ahh...," crooned the scorpion, "Because you see, once you've taken me to the other side of this river, I will be so grateful for your help, that it would hardly be fair to reward you with death, now would it?!"
So the frog agreed to take the scorpion across the river. He swam over to the bank and settled himself near the mud to pick up his passenger. The scorpion crawled onto the frog's back, his sharp claws prickling into the frog's soft hide, and the frog slid into the river. The muddy water swirled around them, but the frog stayed near the surface so the scorpion would not drown. He kicked strongly through the first half of the stream, his flippers paddling wildly against the current.
Halfway across the river, the frog suddenly felt a sharp sting in his back and, out of the corner of his eye, saw the scorpion remove his stinger from the frog's back. A deadening numbness began to creep into his limbs.
"You fool!" croaked the frog, "Now we shall both die! Why on earth did you do that?"
The scorpion shrugged, and did a little jig on the drownings frog's back.
"I could not help myself. It is my nature."
Then they both sank into the muddy waters of the swiftly flowing river.
--http://allaboutfrogs.org/stories/scorpion.html -
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Klarissa8 months, 1 week ago
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Spare change - did you apply for a mortgage with false papers?
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Did the company giving the loan verify your ability pay the mortgage?
For those that filed false papers and their income was not enough to make the mortgage payments then, they will not have enough money to make the payments for the next five years.
Tell you what, walk around your town and find people who aren't making their mortgage payments and offer to help them make their payments. -
sonofreasonComment removed: Hard Banned
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kr1121578 months, 1 week ago
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Perhaps the government could institute a screening process to determine if borrowers in trouble could truly afford to keep the home they are in with restructuring or, if not, then determine the price of home they could afford. For those in the second category, they could be offered a swap to a home in their area that is already empty due to a foreclosure that they could afford. They would get a new affordable mortgage and no stigma of foreclosure. This would ensure that these people have homes and the bank continues to receive payments.
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nostalgia8 months, 1 week ago
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There is a year of data to look at if anyone in the Federal govt bothers
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Dec 2008
6 Reasons Modified Loans Are Going Bad Again
According to Comptroller of the Currency John Dugan--a top bank regulator--more than half of the mortgages that were modified in the first three months of this year went delinquent again within six months. “After three months, nearly 36 percent of the borrowers had re-defaulted by being more than 30 days past due. After six months, the rate was nearly 53 percent, and after eight months, 58 percent,” Dugan said
http://www.usnews.com/blogs/the-home-front/2008/12...
The 6 reasons are explained in the article
Think anyone in the Federal govt will bother to look and at least try to avoid the same pitfalls - I doubt it! -
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jsimeon18 months, 1 week ago
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Yeah B_tthead, let's just all go to hell in a handbasket. It's not bad enough that billions of our retirement, etc. money has disappeared and left innocent people struggling and homeless, let's do nothing and watch everybody squirm. You must be a drugged out Limbaugh freak too. He never impressed me with his addict vomit. What is YOUR idea of the American dream??
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normallysilent8 months, 1 week ago
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"What is YOUR idea of the American dream"
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bet I can guess yours:
Why it's having a house so big ya get lost in it and have no chance of ever paying for it. It's having 3 cars ( real Big ones) and of course a truck to pull the ski boat which sets in the drive since I'm afraid of water anyway ( it sure looks good in the drive though and I pull it out front on Sunday so the neighbors can see.)
It's going to the store and buy . buy , buy and not having to worry because they will just send me another credit card to start all over with next month.
Am I getting warm?
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nostalgia8 months, 1 week ago
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I've posted this on other stories but it's just as relevant here
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Nothing is going to change until the housing bubble is totally deflated
Trying to prop up the bubble with bailouts is doomed to fail
NYT: A History of Home Values
Yale economist Robert Shiller created an index pf American home values going back to 1890
Prices are adjusted for inflation
Take a look at the graph - gives you a good idea why the latest boom was not sustainable and the bubble would inevitably burst
http://www.nytimes.com/imagepages/2006/08/26/weeki...
Home prices are stable at $100,000 Once they approach and go over $120,000 the bubbles burst and the prices are driven back down
The current bubble has exceeded anything we have ever seen in this country and was doomed to explode
The downturn during the Depression was predictable
All of the bubbles eventually burst
We have far exceeded that stable price and have a ways to go before stability is attained again
According to an article on Bloomberg.com Feb 25:
The median price dropped 15 percent from a year ago to a six-year low of $170,300 -
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tchef8 months, 1 week ago
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I just love how the usual suspects always come on and nay say anything that is done by this administration. How about doing something constructive? Why is it always a problem when we spend money on this country? Non of you where complaining while the last President wasted billions of dollars destroying and then trying (and failing) rebuild a country that was not threat to us.
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PatrioticAmerican8 months, 1 week ago
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why is it that all of you who nay sayed Bush at every turn think we dont have the same right to "nay say" obama ???? he is spending faster then Bush and he is creating an even Bigger government then Bush did. So we are doing something constructive by stating what we think is going on in this country just like you on the left did while Bush was in office. whats the matter you dish it out but cant take it ???? do the math for yourself when it comes to spending every year Bush spent 1 to 2 trillion dollars Obama has spent 2+ trillion in 30+ DAYS took Bush 8 years to build the "biggest" government ever Obamas spending bill will create 4000 new government jobs in 2 years and that is not road work and crap like that that is just people to over see all these new funds and organizations he wants to start. if you want to help the economy then stop ALL welfare and stop Stupid malpractice suits against doctors so the doctors wont have to pay so much malpractice insurance and then the can drop there prices and then insurance companies wont have to charge so much and then 95 % of the people that claim they cant afford medical insurance would be able to afford it and then the medical system will be better, People who cant pay their mortgages now because they bought a house they cant afford should lose their houses and then get 1 that they can actually afford, banks that gave Bad loans should fail and credit card companies should only be allowed to offer credit up to 2000 dollars a card and people should be denied more if they already have 3. simple fixes to a big problem
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willottica8 months, 1 week ago
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Tax credits for people who buy foreclosed properties are a bad idea. They'll encourage banks to foreclose more readily, by driving up demand for foreclosed properties, and thus the price of those properties. With banks losing less on a foreclosure, there's less reason for them to help the troubled home-owner, be their chances of recovery good or bad.
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willottica8 months, 1 week ago
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I'm in favor of helping those struggling with payments on reasonable-sized homes... but I don't know how to do it. I really think the banks should do it themselves, because they stand to lose the most if those home-owners walk away.
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I also think that the government should not be bailing out those same banks. It seems it's time they re-learned a hard lesson: Do not overextend credit to people without the means or desire to pay it back.-
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canadianrancher578 months, 1 week ago
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willottica- I consider your comment a excellent one, all the bailout is likely going to do is reward the banks and leave the homeowner still facing foreclosure, I know that one should not buy something that one cannot afford but there were many banking changes to encourage people to buy so the blame should be shared by both, and not placed on the backs of the tax payer
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rshiro8 months, 1 week ago
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As a unofficial source I am putting in place The committment of Americas potential suicide.
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1. Near collapse of the economy due to deficit spending.
2. Deterioration of sound principles for the management and the administration of government -
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rshiro8 months, 1 week ago
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3. strangulation of business with red tape and regulations.
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4.Cancerous tax demands on the public to support a welfare state and wasteful government programs.
5.Total deafness to the voice of the majority.
6.Poor vision while attempting to look after the public interest.
7.Overextension of the arm of federal into the affairs of the state and local government.
8.Malignant growth and excessive swelling of inflation and bureaucracy.
The future is still incomplete, you just wait and see if you do not want to complain to our employees the congress.
uncle bob -
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smokythebr8 months, 1 week ago
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A glass of water for the forest fire that is coming. The relief would have worked if they did not change the original plan. The banks will not have enough money to be liquid when all the defaults come in from the fixed loan failures to come. Valuations fell so much and the banks are the only ones getting help for the valuation drops because they hold the deeds. The deal the mortgage holder receives is to participate in the mortgage plan that only covers a small amount already lost. The payment are still too high for the mortgage holders who try make do with the little given is just like a fish on the hook they took the bait. All those mortgage holders that have lost their jobs or had their salaries chopped in half cannot hold on. All of these are expected to pay the government loans for the banks that have already received money. Here comes the forest fire.
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jordan118 months, 1 week ago
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I haven't researched his plan, so am speaking of what I read in the article. Irony of ironies is the question of whether of not the lenders will screen the applicants well enough, and their hesitancy about making bad loans. Hell, where was their concern that got us in this mess in the first place? And why would Obama give them $1000.00 "incentives" to redo the loans of which many shouldn't have been written in the first place?
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But as I said, first I have to research his plan. -
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wesxauto8 months, 1 week ago
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The housing and the bank and lender problems should have been the firs thing that our goverment addresed instead of all the overblown spending frenzy that has only hurt the market and prolonged loses of the working people.Starting next year rich poor and people in the middle are going to see all the sneeky ways they are going to tax us without anyone knowing until you wake up and say where did all my money go.
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ffbrodey8 months, 1 week ago
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CRA is not the reason for failure. the act stopped banks from RED LINING certain(ethnic) areas. They took the communities money thru ck and saving accounts, and invested elsewhere. The denied these areas loans. After passage the loans are historically strong. They required a 10-20% downpayment, full docs and 31% debt to income ratio. That is a good loan The sub prime came later and was helped with the repeal of glass-seagull in 1999 lead by Gramm. And agin in 2000, Gramm wrote the commodity future modernization act. These 2 acts repealed safe leverage and oversight in financial sector, and allowed the banks to bundle bad debt with good and sell it at a higher rating.
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sbelfie8 months, 1 week ago
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I think it would help if the banks refinanced and if the appraised value is lower than it was when the loan was made, they should allow the homeowner to refinance with the same percentage of equity that they had when the loan was made.
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