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Old 09-30-2008, 04:58 PM
 
Location: Victoria TX
42,663 posts, read 74,640,107 times
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Quote:
Originally Posted by paperhouse View Post
Do you have a source for that?
I know that the number of mortgages in default has been described as 3-million, but that is a fluid number because more are being defaulted every day, and others are dropping off the list as either foreclosd or satisfied. That would fit the statistics presented.

Assuming that the threteened mortgages average around $1,000 a month (wild guess), three million of them can be maintained at a cost of $35 billion a year. Most home-buyers would be able to meet the payments if they got just a couple of hundred a month in relief to assist them in making the due dates. So maybe ten billion a year would be enough to rescue every home-buyer who is facing foreclosure. Which is between one and two percent of the estimated bailout. It remains to explained what the other 98 or 99% is needed for.


I have a hard time generating sympathy for a home-buyer whose mortgage payments have ballooned up over three thousand a month. He can take his lumps and move a little further from the country club.

Last edited by jtur88; 09-30-2008 at 05:35 PM..
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Old 09-30-2008, 05:03 PM
 
Location: State of Being
35,885 posts, read 67,428,262 times
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Quote:
Originally Posted by paperhouse View Post
Do you have a source for that?
Saw it on CNBC, I believe, yesterday evening, as the market was tanking.

I will see if I can find a reference.
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Old 09-30-2008, 05:14 PM
 
Location: Albemarle, NC
7,730 posts, read 12,752,078 times
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Quote:
Originally Posted by jtur88 View Post
I know that the number of mortgages in default has been described as 3-million, but that is a fluid number because mre are being defaulted every day, and others are dropping off the list as either foreclosd or satisfied. That would fit the statistics presented.
Which is what I was wondering. Did that take that into consideration or was it a snapshot of a single moment in time. Cause California is about to be rolling big time.

Golden West created a loan called the payment option ARM. You get the loan, decide when you can pay, how much you want to pay, and let the rest build up. It's why Wachovia has $122bn in "distressed" assets. Problem is, they aren't sure how many will default or when. And now with property values, they can't be refi'd.
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Old 09-30-2008, 05:19 PM
 
Location: State of Being
35,885 posts, read 67,428,262 times
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This is an OLD article (from 2007) but note what I have bolded - 5% of US loans are subprime and at the time of this article, about 20% were at risk of going into default.

US: mortgage default rate stabilizing - USATODAY.com

from article:

"Subprime mortgages democratize credit, and so we don't want to throw that option away," she said. "Not all of these loans result in foreclosures."

About 5 percent of all U.S. mortgages are subprime, and only a fifth of those subprime mortgages are in risk of default, she noted.
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Old 09-30-2008, 05:46 PM
 
Location: Sacramento
13,785 posts, read 23,887,890 times
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Quote:
Originally Posted by mbmouse View Post
Bush pushed to pass the HOPE program several months ago. Banks and lenders didn't pick up the program because it means they would have to write off some of the principle to make the loans correct with the TRUE value of a property, not the false inflated one. And or re amortize the mortgage at a 30 or 40 year fixed. Because of the "relief from mortgage regulations" passed in 2006 by Dem's they did not have to offer the HOPE program.
This was pushed to be fixed months ago, everyone ignored it.
I don't care for the Hope for Homeowners Program, from what I have read so far. It appears that we have created a double gift for those homeowners who got in over their heads. We give them a tax-free "gift" in lowering their outstanding balance to a max of 95% of current value, and a second "gift" in lower monthly payments due to the new lower loan balance.

And if they sell the home 10 years later and recoup the entire original purchase price, gets who gets to keep all of the profits?
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Old 09-30-2008, 05:59 PM
 
Location: Albemarle, NC
7,730 posts, read 12,752,078 times
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Quote:
Originally Posted by NewToCA View Post
I don't care for the Hope for Homeowners Program, from what I have read so far. It appears that we have created a double gift for those homeowners who got in over their heads. We give them a tax-free "gift" in lowering their outstanding balance to a max of 95% of current value, and a second "gift" in lower monthly payments due to the new lower loan balance.

And if they sell the home 10 years later and recoup the entire original purchase price, gets who gets to keep all of the profits?
Yep. Any profits above the principal paid in should be returned to the government.
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Old 09-30-2008, 06:00 PM
 
Location: Victoria TX
42,663 posts, read 74,640,107 times
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Quote:
Originally Posted by NewToCA View Post
I

And if they sell the home 10 years later and recoup the entire original purchase price, gets who gets to keep all of the profits?

That's a good point. Every homeowner who gets assistance out of this ought be obliged to repay that amount out of any gain realized on the future sale of his home, if sold within some reasonable time period.
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Old 09-30-2008, 06:02 PM
 
Location: Sacramento
13,785 posts, read 23,887,890 times
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Quote:
Originally Posted by paperhouse View Post
Yep. Any profits above the principal paid in should be returned to the government.
Absolutely, and if I have mistakenly read the "Hope" paper, I'd be glad to be shown where the money is eventually expected to be returned to taxpayers.

If my interpretation is accurate, this is a disgrace, and I could never support it.
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Old 09-30-2008, 06:02 PM
 
Location: Sacramento
13,785 posts, read 23,887,890 times
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Quote:
Originally Posted by jtur88 View Post
That's a good point. Every homeowner who gets assistance out of this ought be obliged to repay that amount out of any gain realized on the future sale of his home, if sold within some reasonable time period.
When sold, period.
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Old 09-30-2008, 06:07 PM
 
Location: Victoria TX
42,663 posts, read 74,640,107 times
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Quote:
Originally Posted by NewToCA View Post
When sold, period.
I'm not sure I'd want to penalize a family who bought a life-long family home, and then at retirement age needed to move for obvious reasons. They are clearly not selling thier home with profit motive, but merely to secure a home that meets with changing life circumstances. By making pay back the assistance when they become pensioners would simply place the same old burden back onto them when they can least afford it. I think it would be reasonable to excuse the obligation five years after the mortgage is fully paid, or at age 65, whichever comes first.
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