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Old 12-05-2007, 03:42 PM
 
663 posts, read 2,394,357 times
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Where's the regulation in the subprime housing market? If lenders don't require eligibility, then they should be liable. If lenders cumulatively can threaten the economy so greatly, then they should be regulated. And insured.
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Old 12-06-2007, 03:18 PM
 
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Quote:
Originally Posted by lchoro View Post
They're estimating that only 2 percent will be able to get their loans modified under the rescue plan. The loan modification process requires the borrowers provide documentation of their income. That's why so few problem homeowners have been coming forward to get help from their lenders. They don't want to provide W2's, bank accounts, etc. that showed that they intentionally lied to get a loan.
Unfortunately, this isn't the case. All kinds of people are having their rates frozen or allowed to refi into lower rate loans without any documentation at all. The banks are so desparate to avoid foreclosures, they're being even more foolish than they were the first time around. Then they're turning around and charging full doc borrowers higher rates and points to make some money. Sticking it to the honest while enabling the dishonest-- this is the problem that most responsible people have with this bailout scenario. It's rewarding the wrong people for doing the wrong things!
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Old 12-07-2007, 09:00 AM
 
781 posts, read 3,494,079 times
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Originally Posted by texanborn View Post
How do you lie about your income when buying a home ? My daughter bought a home last Jan. and she had to have proof of her income. (I went with her because this was her first purchase)

There are loan programs that allow borrowers to "state" their income w/o providing proof. Usually these loans require a large down payment, at least 25% of the purchase price, and require very good credit.
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Old 12-07-2007, 10:41 AM
 
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Unfortunately, it's like something I believe Donald Trump said, to the effect of, "You can't allow me to go bankrupt, I owe you too much money."
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Old 12-07-2007, 12:56 PM
 
Location: Londonderry, NH
41,505 posts, read 49,813,579 times
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It is just a way of postponing the collapse until the initial investors can get the remains of their money out. Then foreclosures will head for infinity and house prices for zero. I am waiting patiently for this to happen so I will be able to snag a retirement home for a dime on the dollar.
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Old 12-07-2007, 01:17 PM
 
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Well, I for one, DO want to pay for subprime mortgages.
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Old 12-07-2007, 09:32 PM
 
7,089 posts, read 6,714,169 times
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Quote:
Originally Posted by goodbyehollywood View Post
Unfortunately, this isn't the case. All kinds of people are having their rates frozen or allowed to refi into lower rate loans without any documentation at all. The banks are so desparate to avoid foreclosures, they're being even more foolish than they were the first time around. Then they're turning around and charging full doc borrowers higher rates and points to make some money. Sticking it to the honest while enabling the dishonest-- this is the problem that most responsible people have with this bailout scenario. It's rewarding the wrong people for doing the wrong things!
I've read that the number having their loans modified by Hope Now so far has been about 125K. With the streamlined processing plan announced by Bush, the total may go up to 250-260K. That's still roughly less than 10 percent of the subprime loans originated during the period the plan covers.

According to this newer article, the loans eligible for modification amount to an even smaller percentage of the total number of subprime loans.

SNL Interactive: Article
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Old 12-08-2007, 10:48 AM
 
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But a lot of the banks are freezing and lowering rates on their own. They don't want any more foreclosures on their books, so they're doing whatever it takes to keep people in their homes and making some kind of payment. Individual bailouts are being done all over the country on a case-by-case basis and many of these will never be aggregated into any kind of statistic. The problem is more widespread than anybody thought and so are the steps being taken to contain it.
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Old 12-08-2007, 11:30 AM
 
5,090 posts, read 9,637,428 times
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Quote:
Originally Posted by GregW View Post
It is just a way of postponing the collapse until the initial investors can get the remains of their money out. Then foreclosures will head for infinity and house prices for zero. I am waiting patiently for this to happen so I will be able to snag a retirement home for a dime on the dollar.
Probably will want to be holding your dimes in something other than US Dollars, or there is a good chance the value of your money will drop along with the house prices -- making it look like the house prices are not dropping so much.

For example, while the cited price drops already of around 5% would be around 15% if you factored in the drop in the value of the money the accounting is being done in.

A path around the mess is to hold international currency assets, let both the housing and the US Dollar drop, and then swoop back in to buy with the international currency that has not devalued like both the housing and the US Dollar.
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Old 12-08-2007, 05:22 PM
 
7,089 posts, read 6,714,169 times
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Quote:
Originally Posted by goodbyehollywood View Post
But a lot of the banks are freezing and lowering rates on their own. They don't want any more foreclosures on their books, so they're doing whatever it takes to keep people in their homes and making some kind of payment. Individual bailouts are being done all over the country on a case-by-case basis and many of these will never be aggregated into any kind of statistic. The problem is more widespread than anybody thought and so are the steps being taken to contain it.
The plan merely standardizes and streamlines the loan modifications they've been doing. The government is chipping in with funding for trainging and staffing a larger number of loan workout counselors to facilitate handling a larger volume of applicants.

At the same time, Bush made another plea for Congress to fund his program to fund closing costs and downpayments for section 8 tenants to buy their own homes.

On one hand, he's doing a little bit to help people in trouble while proposing more of the same programs that created this mess by continuing to have the federal government interfere in the market for homes.
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