ES Journal - 2019/2020
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When Morgan Davis, a furloughed clothing designer, called Wells Fargo to ask for help with her FHA loan about two weeks ago, she was offered to suspend three payments without penalty – three months of forbearance.
“But at the end of those three months, all my mortgage payments would be due at once,” Davis said. “I told [the bank representative] that didn’t sound very helpful. I explained I had only called to see if there was a way for me to hold onto more of my cash while I wasn’t getting paid."
https://www.forbes.com/sites/dimawilliams/2020/04/03/borrowers-seeking-mortgage-forbearance-hit-ambiguity-snafus/#3c85d3ecedc5
We're doomed. There is a bright side to all of this though. It takes a lot of fossil fuel to make all the PPE. Thank the maker that we never banned oil, as little-miss-sunshine wanted to do, else we'd all be DEAD.
Sounds pretty helpful to me. She gets to hold onto 3 months worth of mortgage cash on hand with no penalty or interest. The bank just gave her an interest free loan. That would never happen in a non-Coronavirus time. They didn't even do that in the last recession. The bill has to come due. It sounds like she was hoping the bank would forget about the 3 months altogether.
Altogether now
Going bankrupt now!
Altogether now
Getting repossessed.
1,2,3,4
can I ask for a little more?
5,6,7,8
the economy can't compensate.
9, 10 trillion dollars to go.
Missy "How dare you" is, dare I say, correct.
You have a choice between taking a "red pill" that reveals an unpleasant truth or taking a "blue pill" to remain in blissful ignorance...well, for the next 3 months. You can go bankrupt now, or you can go bankrupt in 3 months. What would you like, the red pill or the blue pill?
BTW I love that song.
We are good at kicking the can down the road. So push back the bankruptcy 3 months. Wait, what was the red pill? bankruptcy in 3 months. That sounds like where the Fed is heading. We should all break out our copy of "The Creature from Jekyll Island". The Fed didn't always exist. hmmYou have a choice between taking a "red pill" that reveals an unpleasant truth or taking a "blue pill" to remain in blissful ignorance...well, for the next 3 months. You can go bankrupt now, or you can go bankrupt in 3 months. What would you like, the red pill or the blue pill?
BTW I love that song.
A, B, C, D
all my bonds are Caa3
E, F, G, H
I'll spend into oblivion
bum buh bum
screw the masses
bum buh bum
bail out the airlines
bum buh bum
skip the regs
look at me
Everybody now!
Even commercial property guys are saying that there needs to be a 3 to 6 month pause. Government bails out renters which bails out landlords which bails out banks which bails out the credit markets. Mortgages should get 3 to 6 month forbearance with the term of the loan extended 3 to 6 months. No one has lose if they had the balls to do it and the government need not assume another 6 to 8 trillion in debt.
Unfortunately this requires politicians, regulators, and bureaucrats and so we are fvcked.
Extraordinary times call for extraordinary measures. There is nothing that will help a family living pay check to paycheck to simply forbear for three months with a ballon of four months payments due in 90 days. This need not be for everyone. But it should be for everyone who needs it. But she doesn't have income, likely has little to no savings, and this is the solution? Jeesh. But we'll bail out Boeing, an airplane manufacturer that doesn't know how to build planes that fly.
If the Fed can "find" four trillion for corporate socialism then it can find the $500 billion or less required to cover 3 months of rents.
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