Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
The administration knew that such programs would not be effective but any administration, in this situation, had to throw out a few life lines and go through the motions.
It was and remains all about keeping as many banks open as possible cause FDIC is already dancing as fast as they can.
I just can't see 'forgiving' part of the principle owed, as our president stated would be one option for the banks. Besides rewarding underwater owners, it's just bad economics.
A co-worker relayed his situation how he pleaded with the bank for a year for some assistance and they blew him off until he couldn't make his mortgage payments. The threatened him with foreclosure and then mercifully restructured his loan to 'interest only' payments.
He'll get to stay in his house, but will most likely never own it. I wondered if this wasn't a best case scenario for the banks?
The issue with the Banks is because they are still valuing these toxic mortgage assets at 100% of face value when they are really 50-80% of face value.
Until the feds give favorable accountable gimmicks to the banks, they will drag out the foreclosure proceedings as long as possible to spread their losses over time.
It's all about the reporting of profits/losses to these buisnesses.
The issue with the Banks is because they are still valuing these toxic mortgage assets at 100% of face value when they are really 50-80% of face value.
Until the feds give favorable accountable gimmicks to the banks, they will drag out the foreclosure proceedings as long as possible to spread their losses over time.
It's all about the reporting of profits/losses to these buisnesses.
15-25% in many cases.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
