Comments on: 4-23 March Final Loan Default Wrap-up http://www.fieldcheckgroup.com/2009/04/23/231/ Stay ahead of the housing & mortgage market Thu, 11 Mar 2010 06:17:20 -0700 http://wordpress.org/?v=2.8.1 hourly 1 By: ME2000 http://www.fieldcheckgroup.com/2009/04/23/231/comment-page-4/#comment-410 ME2000 Tue, 12 May 2009 19:32:51 +0000 http://www.fieldcheckgroup.com/?p=231#comment-410 -- sorry, update 2 typo -- I see some people talking about moral, and some say better for family; some even blame the bank or people obviouse cannot afford. PEOPLE, it is the fault in the system. If AIG is not “almost dead”, all this foreclosure would not be a problem to anybody. Yes, not a problem to underwater homeowner, bank nor bailout taxpayer or government. When the Fed lend 10K to a bank at 2%. Bank use 10x leverage to lend 100K to homeowner at 5%. Bank pay AIG 0.5% for credit default protection (hence bank don’t care if the homeowner cannot pay their rent; that 0.5% is in lieu of their due-deligent and make their marketing cheaper). Bank pay 1% for their marketing effort. Now the bank makes 3.3% (5 - 2/10 - 0.5 -1) profit. If AIG is “healthy”, I beg the credit is still plentiful and housing price is firm and nobody is underwater. Nobody will walkaway as asset is appreciated and we are not in this discussion of moral or greed. The main problem is the systematic fault of factional reserve. Bank & Wall Street will find way to explore their legal leverage ratio to maximize profit. As government allow such fault in the system, any less oversight on it will sure cause crisis - like this one. Anything can be de-regulated, financial oversignt cannot be de-regulated under capitalism. Conclusion: blame de-regulation under Bush. – sorry, update 2 typo –
I see some people talking about moral, and some say better for family; some even blame the bank or people obviouse cannot afford. PEOPLE, it is the fault in the system. If AIG is not “almost dead”, all this foreclosure would not be a problem to anybody. Yes, not a problem to underwater homeowner, bank nor bailout taxpayer or government.
When the Fed lend 10K to a bank at 2%. Bank use 10x leverage to lend 100K to homeowner at 5%. Bank pay AIG 0.5% for credit default protection (hence bank don’t care if the homeowner cannot pay their rent; that 0.5% is in lieu of their due-deligent and make their marketing cheaper). Bank pay 1% for their marketing effort. Now the bank makes 3.3% (5 – 2/10 – 0.5 -1) profit.
If AIG is “healthy”, I beg the credit is still plentiful and housing price is firm and nobody is underwater. Nobody will walkaway as asset is appreciated and we are not in this discussion of moral or greed.
The main problem is the systematic fault of factional reserve. Bank & Wall Street will find way to explore their legal leverage ratio to maximize profit. As government allow such fault in the system, any less oversight on it will sure cause crisis – like this one. Anything can be de-regulated, financial oversignt cannot be de-regulated under capitalism. Conclusion: blame de-regulation under Bush.

]]> By: ME2000 http://www.fieldcheckgroup.com/2009/04/23/231/comment-page-4/#comment-409 ME2000 Tue, 12 May 2009 19:28:30 +0000 http://www.fieldcheckgroup.com/?p=231#comment-409 I see some people talking about moral, and some say better for family; some even blame the bank or people obviouse cannot afford. PEOPLE, it is the fault in the system. If AIG is not "almost dead", all this foreclosure would not be a problem to anybody. Yes, not a problem to underwater homeowner, bank nor bailout taxpayer or government. When the Fed lend 10K to a bank at 2%. Bank use 10x leverage to lend 100K to homeowner at 5%. Bank pay AIG 0.5% for credit default protection (hence bank don't care if the homeowner cannot pay their rent; that 0.5% is cheaper than their due-deligent and make their marking cheaper). Bank pay 1% for their marketing effort. Now the bank makes 3.5% profit. If AIG is "healthy", I beg the credit is still plentiful and housing price is firm and nobody is underwater. Nobody will walkaway as asset is appreciated and we are not in this discussion of moral or greed. The main problem is the systematic fault of factional reserve. Bank & Wall Street will find way to explore their legal leverage ratio to maximize profit. As government allow such fault in the system, any less oversight on it will sure cause crisis - like this one. Anything can be de-regulated, financial oversignt cannot be de-regulated under capitalism. Conclusion: blame de-regulation under Bush. I see some people talking about moral, and some say better for family; some even blame the bank or people obviouse cannot afford. PEOPLE, it is the fault in the system. If AIG is not “almost dead”, all this foreclosure would not be a problem to anybody. Yes, not a problem to underwater homeowner, bank nor bailout taxpayer or government.
When the Fed lend 10K to a bank at 2%. Bank use 10x leverage to lend 100K to homeowner at 5%. Bank pay AIG 0.5% for credit default protection (hence bank don’t care if the homeowner cannot pay their rent; that 0.5% is cheaper than their due-deligent and make their marking cheaper). Bank pay 1% for their marketing effort. Now the bank makes 3.5% profit.
If AIG is “healthy”, I beg the credit is still plentiful and housing price is firm and nobody is underwater. Nobody will walkaway as asset is appreciated and we are not in this discussion of moral or greed.
The main problem is the systematic fault of factional reserve. Bank & Wall Street will find way to explore their legal leverage ratio to maximize profit. As government allow such fault in the system, any less oversight on it will sure cause crisis – like this one. Anything can be de-regulated, financial oversignt cannot be de-regulated under capitalism. Conclusion: blame de-regulation under Bush.

]]> By: Mr. Mortgage http://www.fieldcheckgroup.com/2009/04/23/231/comment-page-4/#comment-390 Mr. Mortgage Fri, 08 May 2009 21:18:42 +0000 http://www.fieldcheckgroup.com/?p=231#comment-390 You guys are crazy -- good to see all of you again. Mark You guys are crazy — good to see all of you again. Mark

]]> By: wonton http://www.fieldcheckgroup.com/2009/04/23/231/comment-page-4/#comment-389 wonton Fri, 08 May 2009 17:27:29 +0000 http://www.fieldcheckgroup.com/?p=231#comment-389 "We’re all players in the same game. I’m saying that nobody is looking out for your future except yourself." Benzy, THAT we can agree on!! “We’re all players in the same game. I’m saying that nobody is looking out for your future except yourself.”

Benzy, THAT we can agree on!!

]]> By: Partyboy http://www.fieldcheckgroup.com/2009/04/23/231/comment-page-4/#comment-385 Partyboy Fri, 08 May 2009 04:34:35 +0000 http://www.fieldcheckgroup.com/?p=231#comment-385 Yeah, I realized that after I posted. Not everyone will walk or get foreclosed on. But those who do will see someone else benefit from the principal reduction. And it makes sense that the banks don't do it for current owners because once they do one, it will be a free for all. It's an impossible situation to address with a one size fits all solution so it makes the seemingly nonsensical decisions some of the lenders are making a bit more understandable. There are countless stories of lenders refusing a short sale offer for 70% of the balance only to accept 50% of the balance a year later after the foreclosure. There has to be a reason...oh well, learn your lessons and move on. Just learn from the past and plan for the future. What else can you do? Yeah, I realized that after I posted. Not everyone will walk or get foreclosed on. But those who do will see someone else benefit from the principal reduction. And it makes sense that the banks don’t do it for current owners because once they do one, it will be a free for all. It’s an impossible situation to address with a one size fits all solution so it makes the seemingly nonsensical decisions some of the lenders are making a bit more understandable. There are countless stories of lenders refusing a short sale offer for 70% of the balance only to accept 50% of the balance a year later after the foreclosure. There has to be a reason…oh well, learn your lessons and move on. Just learn from the past and plan for the future. What else can you do?

]]> By: ex_owner_now_renter http://www.fieldcheckgroup.com/2009/04/23/231/comment-page-4/#comment-384 ex_owner_now_renter Fri, 08 May 2009 03:12:48 +0000 http://www.fieldcheckgroup.com/?p=231#comment-384 Benzi..don't worry.. I'm not buying anytime soon... what I'm saying is that if I were/and could get a loan right now.. I've already saved up already 3.5% that could be used for a downpayment.. that FHA allows so many to get in with! The new new buyers sure have lots of skin in the game! Yes god help us! Benzi..don’t worry.. I’m not buying anytime soon… what I’m saying is that if I were/and could get a loan right now.. I’ve already saved up already 3.5% that could be used for a downpayment.. that FHA allows so many to get in with! The new new buyers sure have lots of skin in the game!

Yes god help us!

]]> By: Benzy http://www.fieldcheckgroup.com/2009/04/23/231/comment-page-4/#comment-383 Benzy Thu, 07 May 2009 22:27:29 +0000 http://www.fieldcheckgroup.com/?p=231#comment-383 "I don’t want a downpayment at %1 interest.. I’ve got my own right now! (a 3.5%)…" God help us. “I don’t want a downpayment at %1 interest.. I’ve got my own right now!
(a 3.5%)…”

God help us.

]]> By: ex_owner_now_renter http://www.fieldcheckgroup.com/2009/04/23/231/comment-page-4/#comment-382 ex_owner_now_renter Thu, 07 May 2009 22:23:17 +0000 http://www.fieldcheckgroup.com/?p=231#comment-382 Benzi, Anothe storm? from defaulted/additional buyers coming in? You may want to worry about the next wave on the horizon.. those that defaulted are not back in now I don't want a downpayment at %1 interest.. I've got my own right now! (a 3.5%)... Partyboy..small correction.. not all of the homes bought during 2003-2007..will be sold - there are enough pp like Benzi...that will/can wait it out... Benzi,

Anothe storm? from defaulted/additional buyers coming in? You may want to worry about the next wave on the horizon.. those that defaulted are not back in now

I don’t want a downpayment at %1 interest.. I’ve got my own right now!
(a 3.5%)…

Partyboy..small correction.. not all of the homes bought during 2003-2007..will be sold – there are enough pp like Benzi…that will/can wait it out…

]]> By: ex_owner_now_renter http://www.fieldcheckgroup.com/2009/04/23/231/comment-page-4/#comment-381 ex_owner_now_renter Thu, 07 May 2009 22:15:27 +0000 http://www.fieldcheckgroup.com/?p=231#comment-381 Partyboy, You're correct... but that would be for the new onwer (old owner becomes an ex-owner.. like moi!) Partyboy,

You’re correct… but that would be for the new onwer (old owner becomes an ex-owner.. like moi!)

]]> By: Partyboy http://www.fieldcheckgroup.com/2009/04/23/231/comment-page-4/#comment-380 Partyboy Thu, 07 May 2009 13:38:18 +0000 http://www.fieldcheckgroup.com/?p=231#comment-380 "Some of you want your home appraised at today value (and bank reduce the balance to all owners that bought in 2003-2007)… not going to happen" It is going to happen. All banks who own mortgages that are underwater are going to reduce the principal. It's just not going to happen until the house get short sold or sold at auction. “Some of you want your home appraised at today value (and bank reduce the balance to all owners that bought in 2003-2007)… not going to happen”

It is going to happen. All banks who own mortgages that are underwater are going to reduce the principal. It’s just not going to happen until the house get short sold or sold at auction.

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