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.
I suggest all the non paying loans be foreclosed and the housed dumped on the open market an sold for what they will bring. This way everybody loses in the bust not just the previous owners and the taxpayers. The speculators betting on the mortgage based securities also get shafted.
That is the way a speculative boom is supposed to bust.
It would also provide a LOT of cheap housing for anyone capable of putting down 20% of a McMansion devalued 60% to 80% or so.
A 40 year mortgage won't work if the house is not worth the mortgage on it. Remember housing values have fallen, after being highly inflated before the bubble burst.
errrmmmm, didn't John MCain propose this in 2008???
What does the value of an asset have to do with anything ? If you enter into a contract today to pay for something..... then find a way to fulfill it ! Reorganizing a loan whould suffice nicely instead of just forgiving it at tax payers expense.....
Do you want the electronic industry to refund or forgive your payment on that nice new tv or computer you purchased today next week when it's value decreases ?
Some people will be homeless though, especially if they don't have a job to support themselves.
If they can't pay the mortgage now because they're unemployed, they won't be able to pay it even at a reduced rate. The forgiveness of a percent of the debt won't help them at all and they'll eventually be homeless. If they can pay for housing at a rate lower that their current mortgage, they can also afford to pay rent on an equal or less expensive property. Letting homes go into foreclosure won't raise the rate of homelessness. It will however lower the value of homes in general.
Some people will alter their lifestyle with a bottle or a rope. That is not acceptable in a civilized society. The big boys started the boom and they should suffer in the bust.
I think the houses should be resold to the occupants at current value and the mortages rewritten to cover the new value. The difference is a cost of speculation.
Incidentally I have thought car dealers should take a car back at what the buyer's paid for it less a small rental charge in order to eliminate the "depreacition" loss suffered by the buyer when the car rolls off the lot.
Some people will alter their lifestyle with a bottle or a rope. That is not acceptable in a civilized society. The big boys started the boom and they should suffer in the bust.
I think the houses should be resold to the occupants at current value and the mortages rewritten to cover the new value. The difference is a cost of speculation.
Seriously?!? Exactly who do you think was speculating here? Just the banks that made the loans or wait, could it also be that the folks that bought the house were also speculating that the value would rise and they could sell at a profit in a few years? If you want to place blame on the "speculators", you have to include ALL of them not just the ones with the deeper pockets.
I think the houses should be resold to the occupants at current value and the mortages rewritten to cover the new value. The difference is a cost of speculation.
If the occupants qualify that is. If they don't I will shed no tears for them.
Gov't to unveil plan to shrink some home loans - Yahoo! Finance (http://finance.yahoo.com/news/Govt-to-unveil-plan-to-shrink-apf-1951043207.html?x=0&sec=topStories&pos=5&asset=&cc ode= - broken link)
There are very few homeowners who are in any distress (even with the decrease in home prices nationwide) who put real downpayments and paid into the principal. The majority of homeowner in distress put zero down/no interest, negative amortization loans or did cash out refinance to pay down other credit card debt or just spend it wastefully on vacation or big ticket items like cars.
Prove it.
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.
