Obama to pay down 20K of your principal.

dtan1e · Jan 25, 2012

way i see just an election gimmick

volente_00 · Jan 25, 2012

Quote from nutmeg:

What I don't understand is why the banks won't refi existing loans to longer terms to get the payment down.

Take any loan and extend it out 40- to 50 years. They could do an ARM at 10 years - then 20 years or something like that.

If the arguement is somehow the banks can't unwind the previous MBS, well it's done everyday to existing mortgages that pass underwriting, so what's the big deal?

Can't we build a new house of cards, start another ponzi, the last one worked till it didn't...

Because the homeowner in san diego owes 400k on a house with a 200k market value. There is very little incentive to stay in the house regardless of loan term.

volente_00 · Jan 25, 2012

Quote from nutmeg:

I wonder how they arrived at that number 20k?

What's this going to save you, 200 a month? Chump change even if you have a job.

Imo, this deal smells like a back door effort to save the banks ass.

Probably a bank foreclosure procceeding is much more than 20k, banks have to cover state and local taxes, maintenance cripes legal fees are probably 20k per foreclusre and they are still lanlords of a vacant building.

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I agree, if you are already 3 months behind on your mortgage a $200 a month break is not going to let you get current.

MKTrader · Jan 25, 2012

Quote from Arnie:

One reason the TARP worked out is that it gave players time to adjust to conditions. I think something like what I describe could so the same for housing.

TARP was a bad idea, and it will take a number of years to see how things really work out. It did nothing to restore lending from banks, and proved the gov't was there to rescue irresponsible
"TBTF" firms:

http://www.cepr.net/index.php/blogs...ampaign=Feed:+beat_the_press+(Beat+the+Press)

http://mises.org/daily/4762

It's interesting that no one is even using the term "moral hazard" any more. That word left the lexicon sometime in 2008. Nonetheless, giving a break to "distressed" homeowners is a slap in the face to those who pay off their mortgages--even when they can barely afford to.

nutmeg · Jan 25, 2012

Quote from volente_00:

Because the homeowner in san diego owes 400k on a house with a 200k market value. There is very little incentive to stay in the house regardless of loan term.

I have a hard time buying that arguement. Everyone is underwater on a new car loan, people keep their cars with upside ltv.

On the flip side, if you have a home with a 400 mortgage and a 200k apparaisal suppose when the person sells, the Fed lets you write off the loss?

Bob111 · Jan 25, 2012

Quote from nutmeg:

I have a hard time buying that arguement. Everyone is underwater on a new car loan, people keep their cars with upside ltv.

On the flip side, if you have a home with a 400 mortgage and a 200k apparaisal suppose when the person sells, the Fed lets you write off the loss?

you can't write off the loss on your primary residence

http://homebuying.about.com/od/taxes/qt/082807_HomeLoss.htm

TimtheEnchanter · Jan 25, 2012

most ET'ers are pathetic, wanna be rich, GOP shills - I had that figured out a long time ago....they have fallen for the promise the GOP loves to dangle in-front of the redneck losers, "you, sonny too can be rich, just get your GOP card and pay us money". They all vote republican while the rich fuck them in their ass repeatedly...

Quote from achilles28:

The whole system has gone to shit. Banks and homeowners should have taken the loss. Most here advocate the Wallstreet bailout (with taxpayer money), but not the homeowner bailout (with taxpayer money). Two wrongs don't make a right, but the irony is glaring - use the peoples money to bailout the wealthy, but not the people.

Random.Capital · Jan 25, 2012

Quote from nutmeg:

Take any loan and extend it out 40- to 50 years

That is insane.

Nobody will lend out that far without a gov't (ie taxpayer) backstop.

What you are asking for is fundamentally the same as knocking $ off the owed-amount.

MKTrader · Jan 25, 2012

Quote from HomelyWizzard:

most ET'ers are pathetic, wanna be rich, GOP shills - I had that figured out a long time ago....they have fallen for the promise the GOP loves to dangle in-front of the redneck losers, "you, sonny too can be rich, just get your GOP card and pay us money". They all vote republican while the rich fuck them in their ass repeatedly...

I'm far from the GOP mainstream, but I'll take them over class warfare loving, gov't dole-taking, sub-60 IQers like yourself.

And with 41 posts and a 4-month registration here, how "long" ago did you figure this out? Most likely a reincarnation of an Obama-drone who got embarrassed and left.

TimtheEnchanter · Jan 25, 2012

Bad day at the market? I am not a demorcat and Obama apologist but you teabaggers and ET gop cocksuckers just amuse me. I had been active on the site long before you albeit with different aliases. (I guess you could not figure this one out...)

Quote from MKTrader:

I'm far from the GOP mainstream, but I'll take them over class warfare loving, gov't dole-taking, sub-60 IQers like yourself.

And with 41 posts and a 4-month registration here, how "long" ago did you figure this out? Most likely a reincarnation of an Obama-drone who got embarrassed and left.