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My mortgage company offered a 3-month deferral. What they don't tell you is that they will report you late to the credit reporting bureaus for each month you don't pay until those 3 months are paid. Tens of Millions of people are about have their credit rating destroyed.
Frankly, there needs to be an executive order suspending the credit bureaus reporting for the next 3-6 months. Everyone's credit score and payment history should be frozen today.
Yes! To put it simple, you'll trash your FICO score! If you can pay it, don't put it off. Your FICO is already way more important than your bank account balance, especially with the rock bottom never-seen-before low interest rates we already have. But a bad FICO and you can just forget it.
I suspect that's what's going to happen: some kind of defined hiatus in major loan payments to give everyone some financial breathing room. Probably federally defined, enforced by heavy arm-twisting of the major mortgage, auto and student loan lenders.
Nearly all those entities are perfectly capable of absorbing a period of reduced revenue. Few households are.
And on the really bright side, the profiteers and bonepickers might find themselves marked for life.
I do not think much arm twisting is needed, mortgage companies will not want such a tidal wave of people unable to pay, thus foreclosures. This assuming fed assistance to the lenders in exchange.
My mortgage company offered a 3-month deferral. What they don't tell you is that they will report you late to the credit reporting bureaus for each month you don't pay until those 3 months are paid. Tens of Millions of people are about have their credit rating destroyed.
Frankly, there needs to be an executive order suspending the credit bureaus reporting for the next 3-6 months. Everyone's credit score and payment history should be frozen today.
I would be getting a different lender if that is how they roll.
I don’t need to. I didn’t say it’s just the flu, it’s a strong flu. It kills 0.67% of people infected - and I’d bet you $100 I know way more about it than you and have read way more. I’m sick and tired of morons acting like this is Ebola. ZERO point six seven percent. That’s it. Half of people show no symptoms at all, and anyone under 50 the rate of death is 0.16%. That’s a strong flu. If we let it rip through the populace it would kill a lot of people but they’d almost all be older than 75 and at the end of their lives anyway. It would be sad just as it’s sad when your grandpa dies. It’s sad when anyone dies. But it’s also reality. The overreaction to a virus with this low of a mortality rate is unbelievable to me. I don’t want to get it either, doesn’t sound like a fun time, but it’s not the end of the world either. You need to get a grip.
So you don’t watch it and spew even more ignorance? Ok, well then you are lost to reason.
You live in Vegas, right? A city full of some of the richest and smartest businesses on the planet. They study everything under the sun from the temperature of the building to the drinks. Everything a science. And it’s all shut down. Think about the NBA and NHL. Do you think groups of billionaires are reactionary? Do you think people like them like walking away from billions in revenue? You find it unbelievable only because you are unbelievably ignorant.
And you still think what you’re selling is accurate? You’re absolutely clueless on the topic. It’s actually insulting to read your words on the topic and then you proudly double down on it.
Last edited by Thatsright19; 04-04-2020 at 05:56 AM..
I do not think much arm twisting is needed, mortgage companies will not want such a tidal wave of people unable to pay, thus foreclosures. This assuming fed assistance to the lenders in exchange.
Are we defining the mortgage company as the servicer or the lender? The lenders often package mortgages and sell them as pools. They have no skin in the game for existing mortgages. The servicer follows investor guidelines.
My mortgage company offered a 3-month deferral. What they don't tell you is that they will report you late to the credit reporting bureaus for each month you don't pay until those 3 months are paid. Tens of Millions of people are about have their credit rating destroyed.
Frankly, there needs to be an executive order suspending the credit bureaus reporting for the next 3-6 months. Everyone's credit score and payment history should be frozen today.
And then who is bailing out all the lenders who won't receive any money for months?
I think it could easily be that high - maybe more.
Where I am, the problems have cascaded well beyond the leisure and hospitality sector. My ex works at a bank. She's laid off. The bank my mom worked at is also laying off. What's this going to do to car dealerships, real estate sales, etc.?
All those people are going to have trouble down the line.
Boston Herald fired their sports reporters! I didn't see that coming.......
Huge problems coming down the pipeline..........lost revenue that can't be replaced even if the virus is gone.
Pro Sports/gyms/golf/tennis clubs have all been shut down.............insane amount of people involved directly or indirectly (vendors/suppliers).
Restaurants/Bars and their vendors/suppliers/landlords
Car/boat/RV/motorcycle dealers all shut down, yet sitting on expensive inventory!
Realtors- who is moving when there might be a job issue? Prices will likely drop regardless of the interest rates.
You shouldn’t buy a house without six months reserves. If people are already planning on bailing on their mortgages, they likely shouldn’t have bought in the first place. Yes there needs to be a relief plan and planning for that needs to start now, but people who lose their job and two weeks later claim to not have the mortgage don’t get much sympathy from me. Renters I have more empathy for because everyone has to live somewhere, but not everyone can or should buy.
True, but remember, this is different than most downturns. This isn't bad fundamentals grinding us down, it's essentially a "sudden blackout". The real problem is like and actual "blackout" we have no idea how long it will be before "the lights go back on". The stimulus, etc. is designed to help take care of that.
But once we do "turn the lights on" almost everything comes back roaring as fast and almost as much as it was before. Note I say "almost" because the longer this goes on the more you will have some shuttered businesses that just couldn't wait it out long enough. But it won't be so many that we're at Great Depression levels once it's safe to come out again.
I disagree with your second paragraph.
What kept the economy churning was easy credit according to the big institutional money managers. All of that changed dramatically in the credit markets once the virus disrupted the markets.
I am in this industry. Our reps were quoting 3.75% in late February for a no tax return loan. Now that same rate is 5.75% - more details from HousingWire of how bad it is. One huge lender laid off 200 of its 275 employees. They were known as the biggest lender for these loans.
Even traditional loans(with tax returns) guidelines have tightened up with higher minimum credit scores and lower loan to values. These loans still have low rates. Jumbo loans have been suspended by many lenders. Thousands of loans scheduled t close have been cancelled in the last 4 weeks due to sudden shifts in risk. Don't believe some anonymous guy like me, just ask any mortgage broker. The credit unions however are unaffected (for now). This brought back many memories of 2009-2009 to the people who have worked in this industry for 20 years.
There is no light switch to turn credit back on quickly or ease up guidelines. Home sale prices are dropping even in L.A Orange County. (read this from OC Register:
It takes a good year (or more) for lenders and investors who buy pooled mortgage backed securities to feel the borrower and economy are in good shape. With more risk in the economy the interest rates go up and lending tightens. realtors won't be showing homes in person. Appraisers don;t want to inspect properties. This affects renters too.
We are in a recession technically but according to many large money managers of billions of dollars, it started 6 months ago because it was a false rally by corporations and stock buybacks.
Quote:
Originally Posted by Hammer Time
My mortgage company offered a 3-month deferral. What they don't tell you is that they will report you late to the credit reporting bureaus for each month you don't pay until those 3 months are paid. Tens of Millions of people are about have their credit rating destroyed.
Frankly, there needs to be an executive order suspending the credit bureaus reporting for the next 3-6 months. Everyone's credit score and payment history should be frozen today.
Most loan servicers will not comply with 3-month deferrals. They are difficult to deal with. There's so many complaints about them from numerous online reviews. Google any one of them. It will be the same frustration when people were trying to get TARP or loan modifications back in 2010-2012. You are dealing with DMV service skill levels if you get an actual person.
This shutdown is not a pause. It will hurt about 75-100+ million working adults. 50 million are baby boomers who won't want to leave home much after it's deemed safe, means less spending. The other 50 million are the ones laid off from financial services industry due to credit tightening or took lower paying jobs. The unaccounted for population, food and leisure service industry population will suffer as well.
What will a $1,200 check (or two) do for people who were making $4,000-6,000 a month and then they return to their job but now their normal income or hours worked per week is reduced?
Some schools cancelled class for the entire year. That really hurts the single parent who can't work from home and does not have family nearby to care for their kid. l
I'm all for saving lives, distancing and hope the credit markets return to how they were (very unlikely) but this forced stoppage has put people's live at risk, indirectly. suicides, drug overdoses, abuse at home, unrest. Not everyone is as civil as most of us.
No, I am not repub. or T supporter. Turning into a Newsom supporter. This is just my opinion from smart big investors and a very possible reality. I could be wrong as well since our modern & global economy has never exp'd this. However the Spanish flu had a round two which took out millions of lives.
I don’t need to. I didn’t say it’s just the flu, it’s a strong flu. It kills 0.67% of people infected - and I’d bet you $100 I know way more about it than you and have read way more. I’m sick and tired of morons acting like this is Ebola. ZERO point six seven percent. That’s it. Half of people show no symptoms at all, and anyone under 50 the rate of death is 0.16%. That’s a strong flu. If we let it rip through the populace it would kill a lot of people but they’d almost all be older than 75 and at the end of their lives anyway. It would be sad just as it’s sad when your grandpa dies. It’s sad when anyone dies. But it’s also reality. The overreaction to a virus with this low of a mortality rate is unbelievable to me. I don’t want to get it either, doesn’t sound like a fun time, but it’s not the end of the world either. You need to get a grip.
And you need to use accurate terms. It's not a flu at all. Influenza is a particular category of viruses. COVID-19 is not an influenza virus. At all. It is a coronavirus, a different category.
This sounds like that old guy in my town who used to refer to my aunt's cerebral palsy as "the rickets", a crippling diseases children get from poor nutrition. CP is not the rickets. Coronavirus is not the flu.
Of course, it is not possible that you don't know this already because you have a computer, so it seems that your insistence on the use of the term "flu" is just meant to raise controversy.
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