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View Full Version : August Surprise????


carguym14
August 06, 2010, 20:38
Took this from the Dow thread:

http://blogs.reuters.com/james-pethokoukis/2010/08/05/an-august-surprise-from-obama/



They can't be seriously considering this??

I know I will be royally pissed if they do this.I have busted my ass and paid my way and bought a house that was reasonably priced with a mortgage through a local bank.I put 20% down when I bought the place (6 yrs ago).My mortgage payment is less than most peoples rent.

I don't see how they could possibly get away with this without pissing off a lot of people.

MtnWulf
August 06, 2010, 21:55
I've been seeing rumors of this for a while.

I don't see how they could get away with it, as Freddie and Fannie are now being subsidized by the Tax Payers, and it would have to be added to the debt.

Not to mention pissing off everyone who is paying for their homes and having to pay for theirs too.

The fact that so many people think that it's possible speaks volumes.

Hootsmon
August 06, 2010, 21:58
Originally posted by carguym14


I don't see how they could possibly get away with this without pissing off a lot of people.

+1.

The Tea Party would become bigger than Ben-Hur. I don't go out and march, ever.
But I would march if that happened.

wileycsg
August 06, 2010, 22:11
The author's accusation doesn't seem to be supported by the facts he gives.

also,

http://sandiegohomeblog.com/2010/08/06/treasury-department-puts-kibosh-to-fanniefreddie-mortgage-debt-forgiveness-rumors/

nwobhm
August 06, 2010, 22:20
As a teenager I asked my father what would happen if everyone stopped paying their mortgage. His response was laughter... followed by it'll never happen... followed by I don't have a clue how the world worked. My response was that if everyone stopped paying there would be nothing "they" could do. His attitude deteriorated rapidly from there... :rofl:

Dad, hate to say I told you so, looks like you were wrong. :wink:

TheOtherChris
August 06, 2010, 23:14
Originally posted by nwobhm
As a teenager I asked my father what would happen if everyone stopped paying their mortgage. His response was laughter... followed by it'll never happen... followed by I don't have a clue how the world worked. My response was that if everyone stopped paying there would be nothing "they" could do. His attitude deteriorated rapidly from there... :rofl:

Dad, hate to say I told you so, looks like you were wrong. :wink:

Oh, there is plenty "they" could do.
If EVERYONE stopped paying their mortgage, the lenders would foreclose the half that are not underwater first and resell those properties to investors.
Then they would foreclose the properties where the Borrower has substantial assets and file for deficiency judgments against those assets. (That is already happening)
These actions will quickly convince many that tactical default is an expensive idea and it is better to make their payments.
Lastly, the Lenders would go back to worrying about the underwater folk.

V guy
August 07, 2010, 09:05
The whole insane tragedy of it all is that this idiotic proposal will not work.

Of all the homes in forclosure or facing forclosure, most do not have the income to support even ANY mortage at all. Unemployment and "Alt A" mortgage fallout are the reason for the forclosures.

Currently most households in trouble do not qualify for ANY of the existing deals and cannot afford a home 90% cheaper. That is why the borrowers walk away.
Those homes that have been through forclosure lie vacant.
The facts support this conclusion.

Forgiving loans entirely for the squatters in Chicago is what the Mau Mau wants to do.
He is in essence going to allow a land rush to get free homes with no possibility of eviction.

What about the other 80% of homeowners like me? Where is the $250,000 bonus for the white people of Keokuk Iowa or LaCrosse Wis?
Ill gotten gains and outright theft run contrary to the American Way. Not the Mau mau way of course.

Don't worry these free homes will end up like the projects in 15 years and all value will be gone but the lot.
The reason is that public outrage at free homes and free mortgages--- on these McMansions-- will cause the capital gains law to be rewritten to cover such homes---- so we gain back 90% of the ill gotten gains that are sure to come-- That will ensure no maintenance for years on the structures. That will screw this idiotic attempt at redistribution of wealth.


When you have a black hole, you do not throw more down it.
The homes were built on speculation, never sold on a sound basis. The current economy cannot support their use at their current financial burdens.

It is these homes that will not provide housing on any sort of normal basis and they should be forclosed upon, either kept in inventory, or burned to jack up the market-- due to supply and demand. At some point in the burn cycle you run out of homes and demand will start the remainder selling.
Homes will in the future, likely be built only upon pre selling contracts.

J308
August 07, 2010, 23:32
More reparations without calling it that.

MtnWulf
August 08, 2010, 09:31
If EVERYONE stopped paying their mortgage, the lenders would foreclose the half that are not underwater first and resell those properties to investors. Then they would foreclose the properties where the Borrower has substantial assets and file for deficiency judgments against those assets. (That is already happening)

Selling those properties would be impossible in such huge numbers. Where are the buyers going to come from? With massive foreclosures realestate would not be an investment, it would be suicide.

Also filing foreclosures and deficiency judgments costs money when they don't have any coming in from the homeowners. Maintaining those properties until the sell would be very expensive, and it would be impossible for them to get insurance on the foreclosures in such quantities.

I think Obama is more likely to have Fannie and Freddie foreclose on those properties, give them to the "underprivileged" or freshly naturalized illegal immigrants under gov't subsidized loan programs that WE would pay for.

gates
August 08, 2010, 14:36
its either something like that or the Fed announces another round of QE - QEII

I am somewhat amazed that these jerkoffs have been able to kick the can this far down the road - bailouts for the states and pension funds are on deck - count on it.

cpd109
August 08, 2010, 14:38
Originally posted by MtnWulf
If EVERYONE stopped paying their mortgage, the lenders would foreclose the half that are not underwater first and resell those properties to investors. Then they would foreclose the properties where the Borrower has substantial assets and file for deficiency judgments against those assets. (That is already happening)

Selling those properties would be impossible in such huge numbers. Where are the buyers going to come from? With massive foreclosures realestate would not be an investment, it would be suicide.

Also filing foreclosures and deficiency judgments costs money when they don't have any coming in from the homeowners. Maintaining those properties until the sell would be very expensive, and it would be impossible for them to get insurance on the foreclosures in such quantities.



+1
Except for
I think Obama is more likely to have Fannie and Freddie foreclose on those properties, give them to the "underprivileged" or freshly naturalized illegal immigrants under gov't subsidized loan programs that WE would pay for.

I don't think he would foreclose on them. But at this point, I have little idea what the feral gubmint would/could do.

TheOtherChris
August 08, 2010, 22:51
Originally posted by MtnWulf
Selling those properties would be impossible in such huge numbers. Where are the buyers going to come from? With massive foreclosures realestate would not be an investment, it would be suicide.

Not all mortgaged properties are under water. Many have equity in the 40-70% range.
If "everyone" quit paying their mortgage, such properties would be a bargain and would likely sell at the foreclosure auction and not have to wait for the resale. Price ranges would be easily within range of renters.

Also filing foreclosures and deficiency judgments costs money when they don't have any coming in from the homeowners. Maintaining those properties until the sell would be very expensive, and it would be impossible for them to get insurance on the foreclosures in such quantities.

It doesn't cost as much as you might think. Besides, in my above example, the expense would be recouped quickly.
In the case of a defaulting borrower with substantial assets, the deficiency judgment could be quickly foreclosed with assets seized and the legal fees are included in the judgment.

Remember Don Quixote, the original premise was that "everyone would stop paying their mortgage."
So, ignoring the fact that you can't get everyone to agree to do anything, the lenders counter move in such a case would be swift and profitable.
Also, individual pain tolerance varies greatly. You might have a lot of people willing to join the noble cause, until it is their house that goes down and is then bought by a fat cat.
It isn't like such a "plan" would bring the lenders to their knees.

Remember that "they" don't have to foreclose everyone that stops making their payments; only enough profitable ones that the rest of the able will get back in line.

82ndRecon
August 09, 2010, 11:28
Originally posted by gates


I am somewhat amazed that these jerkoffs have been able to kick the can this far down the road - bailouts for the states and pension funds are on deck - count on it.

Check it out:

http://politics.blogs.foxnews.com/2010/08/08/lawmakers-called-back-washington