Dumping your home
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Moderator Alumnus
Joined: May 2001
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From: Ronkonkoma, NY
Dumping your home
http://money.cnn.com/2008/02/06/real...away/index.htm
I find this horribly disturbing......
It's actually healthier credit-wise/finance wise to stop making payments on your
home and just let it get reposessed? That's messed up.
- Frank
I find this horribly disturbing......
It's actually healthier credit-wise/finance wise to stop making payments on your
home and just let it get reposessed? That's messed up.
- Frank
dɐɹɔ ǝɥʇ ʇɐɥʍ
Joined: Jan 2004
Posts: 7,522
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From: Lexington, KY
OMG 
I wish I could say I didn't see this coming but people were making terrible decisions and banks were not only allowing it, but encouraging it. The fed lowering rates is only a temporary fix, if the slump doesn't rebound quickly, as peoples ARMs come due, they are in for a world of shit - both the lenders and the borrowers. A potential fix is for a bank to take some chances, re-fi these loans at higher then prime rates(greater risk) despite the poor value to loan ratio and extend the term a bit to prevent people from going belly up, as the markets recover they can re-fi again into more conventional terms. This way no one takes a full screwing, both guilty parties work together to correct this mess.
I wish I could say I didn't see this coming but people were making terrible decisions and banks were not only allowing it, but encouraging it. The fed lowering rates is only a temporary fix, if the slump doesn't rebound quickly, as peoples ARMs come due, they are in for a world of shit - both the lenders and the borrowers. A potential fix is for a bank to take some chances, re-fi these loans at higher then prime rates(greater risk) despite the poor value to loan ratio and extend the term a bit to prevent people from going belly up, as the markets recover they can re-fi again into more conventional terms. This way no one takes a full screwing, both guilty parties work together to correct this mess.
Joined: May 2000
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From: where the weather suits my clothes
iTimmy, I agree. Why aren't the banks looking at it as I'd rather lose a little by putting the homeowner into a payment structure they can afford than to have to deal with managing an inventory of repo'd homes.
is learning to moonwalk i
Joined: Feb 2004
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From: SoCal
Originally Posted by NSXNEXT
iTimmy, I agree. Why aren't the banks looking at it as I'd rather lose a little by putting the homeowner into a payment structure they can afford than to have to deal with managing an inventory of repo'd homes.
You'd think the banks would say "Okay, we know your rates are about to adjust, but we'll keep them reasonably low (5% +/-) for another 3 years so you can continue to afford the payments." That way their losses will be a couple of points a year rather than a 20% hit all at once.
Safety Car
Joined: Jul 2007
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Sometimes it sucks so bad to be financially responsible. For some reason, I remember feeling the same way about 15 years ago when declaring bankruptcy was considered the cool way to lose your debt and keep your stuff.
Last edited by Anachostic; Feb 8, 2008 at 03:51 PM. Reason: I'm older than I think I am.
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has Gloryhole Girls in
Joined: Mar 2001
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From: Ballston Lake, NY
Whats the most fucked up about this situation is that the fed is actually contemplating giving billions in taxpayer dollars to bail out these lenders. They made billions and billions of dollars in the last few years and now they are losing money and yet its the taxpayer that has to take it on the chin. Now the lenders are pointing their finger at the mortgage broker for getting people into these loans when the banks were the ones to create and offer the products to consumers. It is fucking hypocrisy at its finest and these banks need to cut there losses move on and take it like a man!
Big White Chocolate
Joined: Apr 2007
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From: San Francisco, CA
Originally Posted by ChodTheWacko
It's actually healthier credit-wise/finance wise to stop making payments on your
home and just let it get reposessed? That's messed up.
home and just let it get reposessed? That's messed up.
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Joined: Aug 2002
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From: Swansea, MA
Fed chief: Mortgage crisis to continue
Full story: http://www.boston.com/business/artic...ntinue?mode=PF
Full story: http://www.boston.com/business/artic...ntinue?mode=PF
-Federal Reserve Chairman Ben Bernanke called Tuesday for additional action to prevent more distressed homeowners from falling into foreclosure.
"This situation calls for a vigorous response," Bernanke said in a speech to a banking group in Florida.
Even with some relief efforts under way by industry and government, foreclosures and late payments on home mortgages are likely to rise "for a while longer," Bernanke warned.
Rising foreclosures threaten to worsen the problems in the housing market and for the national economy, which many fear is on the verge of a recession or in one already.
"Reducing the rate of preventable foreclosures would promote economic stability for households, neighborhoods and the nation as a whole," Bernanke said. "Although lenders and servicers have scaled up their efforts and adopted a wider variety of loss-mitigation techniques, more can, and should be, done," the Fed chief said.
"This situation calls for a vigorous response," Bernanke said in a speech to a banking group in Florida.
Even with some relief efforts under way by industry and government, foreclosures and late payments on home mortgages are likely to rise "for a while longer," Bernanke warned.
Rising foreclosures threaten to worsen the problems in the housing market and for the national economy, which many fear is on the verge of a recession or in one already.
"Reducing the rate of preventable foreclosures would promote economic stability for households, neighborhoods and the nation as a whole," Bernanke said. "Although lenders and servicers have scaled up their efforts and adopted a wider variety of loss-mitigation techniques, more can, and should be, done," the Fed chief said.
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