Mortgage Help Rip-Off

[Jhhnn]

I think, Legend Killer, that what you're saying makes some sense, except that you're ignoring the market underlying the market, the price of and demand for real estate itself. The mortgage securities in question were issued in a time of false demand and were based on unrealistic expectations of further price increases in real estate. That market has reversed itself for a variety of reasons, and shows no signs whatsoever of resurgence. There's no reason for it to do so, given the more stringent lending requirements and new (higher) bottom line for homebuyers. Until such time as legitimate buyers can qualify for loans they can truly afford, prices will recede, and foreclosures increase. Very straightforward. And the value of existing mortgage backed securities will reflect that trend.

Yes, the Fed can restore some liquidity, buy some time, and have moved strongly to do so. Which, unfortunately, affects the world market in other ways- devaluing the dollar and opening the door to inflation. They can't hold rates low forever, simply because the consequences would be too great...

This liquidity crunch didn't happen for no reason at all- it happened because of over leveraging of over valued illiquid assets. And it's just beginning, soon to be followed by CLO's...

I don't have to be a banker to recognize that those who had been buying CDO's at face value (or anything near it) are no longer doing so, and to recognize what that means... nor to understand what happens to those insuring such bonds-

http://online.wsj.com/article/...in_review_and_outlooks

Leverage is good on the way up, but can be lethal on the way down...

Which is not to say that I'm opposed to some sort of orderly unwinding, just that I'm not sure it's a thing that all the parties can survive. We need banks and investment houses and all that goes with it so I'm hoping that it all works out. I'm just trying to be realistic at the same time...

 

[Wheezer]

People like this don't deserve a bailout....which is what's happening.


Couple #1- stupid. How can you not look at the financial impact a home will have on you?...fvcking morons.


Couple #2...they bought that house to flip it. NO ONE with any brains gets into a mortgage of that size for the long term with a variable rate. If you are going to stay in a home for any extended period of time you go for a fixed...10-15-20-30 year....that is not what they did.

They wanted to flip, they planned on the house going up and selling the home before the rate went up. If it did not sell they "thought" that they would be safe and be able to refinance for the same or lower rate. But because the neighbors around them probably played the same game and lost, their house like others around them are not worth crap....too bad to sad.

They gambled and lost and now...want out because things did not go the way they planned.

Well that is the way it goes in business and that is what flipping a house is...it is a business, sometime you have good days sometime you have bad.

There are too many people like couples #1 and #2 that fvcked themselves out of a lot of money and drove property values down. Now they are crying "boo-hoo it ain't fair" and want the rest of us to sweep in and bail them out.....fvck 'em.