Do you hardasses really want to keep people in 84 month auto loans? Or 30 year mtgs @ anywhere from 8-13%? If so, are you prepared for the risk of walk away? This is what Bernanke is looking at.
be honest gnome, if a Democrat had suggested this (before what happened happened), wouldn't you be screaming about them be liberals and excessive regulators screwing everything up?
this CONTRACT law that Benny wants to change on the fly.. this will jam up the courts for decades if the US goes down the path of pinko banking. the Democrats want some quick action on this so they can hang the whole thing on GW imagine the chaos if banks start forgiving 20 % of a loan and those that are current on their mortgage quit making payments and run the bank begging for money... anarchy will ensue
Free? The RE market was rigged by crooked appraisers often working with the listing agents; I've seen this first-hand. How the hell is that "free"? IMO, the banks used the bad appraisals to price mortgages and inflate the worth of the asset(the house). Fuck them and let them take the hit for their greed and amoral behavior. I've even seen underwriters(title companies) list a title is clear when the contractors put liens against the house because they weren't paid - all to keep the $$$ moving. Assholes. I've got your CDOs right here. Regards,
I guess those crooked appraisers held a gun to the house buyer to get him to sign on the line? Nobody forced anyone into buying a house that had been bought and sold 4 times since 2001 and had "appreciated" 125% in that time. There were two types of real estate buyers during and after 2005.... 1) Greedy 2) Stupid
I agree with you to a point - there is only so-much a RE buyer has the ability to do with regards to due-diligence: there's a reason you don't need a real estate license to purchase a house. Did you read every line of the ream of paper that was your RE paperwork? Even if you did, 99% don't. They shouldn't have to, that's what you pay an agent for, to distill all the complexities out and give you the important information. There are many people out there that were told this was just a normal market and that it's ok to do an option-only ARM - in fact they were encouraged to by their agent. I know this because I saw it first-hand. I have no sympathy for the flippers or specs. However, I often saw appraisals on new-builds approach what I would consider obscene, and I wasn't even an agent. Regards,
Great post, LH. At the end of the day it was the greedy/stupid buyers out there signing the paperwork. Both parties are equally greedy, but the lenders wouldn't have made these loans if no one was taking them. Like saying a drug dealer is bad. Yeah they're scum, but the junkies are giving him business cause they want the dope. It has to stop on both ends.
It's bullshit that they are only talking about doing it for those idiots that got in over their heads. It shouldn't be done at all, but my point is that they are considering it, but only to help these greedy morons have equity so they can once again use their house as an ATM. No rewards for those responsible buyers in sight. I think the government should stay out of this, but I was only commenting on the premise of giving principal reductions to losers and screwing the ones that are doing what they are supposed to be doing. Just another extension of the tax situation. The same group of people finance this country, so that the losers can have "The American Dream".