Comments on: Only Forceful Action Can Change Foreclosure Crisis Tide

By: 1lowelisamarie1

1lowelisamarie1 — Sat, 01 Aug 2009 22:06:28 +0000

Just checking in. Your right about one thing whoever, It does seem like an old delapitated home would for sure lose value not appreciate. I would much rather have a nice new home with all the modern updates.

By: whoever

whoever — Sat, 01 Aug 2009 20:17:45 +0000

Well, with my limited understanding, can't we modify the loans+”interest” to take 100 years to pay off, instead of 30? Legislate offspring into the mix? Quit bs'ing about real property values “always appreciate, never depreciate” – yeah right, everything rots. So a new house today must necessarily be worth less as time goes on. People fake that property values increase because they're trying to recoup their interest payments, which should not be included in a property value. Might have been truer in the pioneer development days, but rundown lived-in homes subject to natural elements DECREASE in value I am sure. So why do we even agree to these bs loans in the first place? Interest-free, maybe… For sure I support converting default owners to renter tenants, and the rest to HUD until private programs evolve. Dunno.

By: Stout Law Firm

Stout Law Firm — Wed, 29 Jul 2009 08:34:11 +0000

http://foreclosurenv.wordpress.com/
NEVADA FORECLOSURE MEDIATION BLOG

By: 1lowelisamarie1

1lowelisamarie1 — Wed, 22 Jul 2009 08:04:19 +0000

anybody who thinks foreclosure is even a choice, when it can be stopped is a cold hearted snake. Where do you think these families are going to go? To the street. Small children in America in tents on the street until the states can house them, you want to talk about problems. There are countless problems arising from foreclosures, families torn apart, education is a joke-its hard to concentrate when you dont know where your parents will put you to bed, how will you have clean school clothes, what about meals? It goes on, Health care is the least of their worries. Who gives a crap about the banks that DID cause this entire mess. The consumers did NOT come up with this game, who's bright idea was it for subprime? Some greedy bastards wanting to turn your home into profit.

By: rohitmahajan

rohitmahajan — Tue, 21 Jul 2009 23:30:19 +0000

Forceful action may be a solution of one problem but it may become a starting point of other problem. In my opinion, these too can work, i.e, modifications in existing loan plan such as reduced interest rates, extended maturity date , changing from adjustable to fixed interest rates, and the reduced principle.
An interesting link to visit is http://www.housingnewslive.com/blog.php

By: debbysue

debbysue — Sun, 19 Jul 2009 22:07:12 +0000

I totally agree, this should have passed. And who has it again…..WallStreet, where this mess started!

By: jjohnson85249

jjohnson85249 — Sun, 19 Jul 2009 04:16:03 +0000

wall street lackeys now include the white house

When Geittner and Obama had the chance to push for loan modifications through the courts (bankruptcy judges)they chose wall street over main street. housing would have already started to recover if the legislation would have passed. Obama and Geittner chose to join a group of wall street lackeys – senators kyl, bayh, martinez,spectre and others rather than give homeowners a negotiating tool that would have been far more effective than anything thats been tried.Obama and Geittner are trying to save face by threatening the loan servicers (much the same way that they did with the banks that the taxpayers have bailed out)and no one is intimidated by this.The banking / mortgage interests are running this country and you can look at your elected officials campaign contributions to verify it. as long as wall street continues to pay for our elected officials votes- we don't stand a chance.perhaps next elections we (voters) should VOTE OUT all the incumbents and start over

By: bobccc

bobccc — Sat, 18 Jul 2009 16:57:15 +0000

According to a retired HUD official, over 5 million home loans went to illegal aliens! You don't have to be too smart to know that many of them would default on those loans…then you have the “house flippers”, some just walked away when they couldn't sell the house.

Corrupt loaning practices, corrupt realtors, people buying that didn't care to pay their mortgages, corrupt Barney Frank & Chris Dodd, corrupt ACORN, all have hurt the people who try to pay, and those that are losing their homes because their jobs have gone south!

A web of deceit from the top, down!

By: debbysue

debbysue — Thu, 16 Jul 2009 11:31:27 +0000

I read this article this evening and then I was anxious to read the comments below, since I have been in the lending industry for 22 yrs. First let me say that I feel LisaMarie1 is completely wrong in blaming the lenders for this complete fall out. Just my opinion, I know, but I feel we ALL have a responsiblity in what happened (or those in trouble now due to loan changes) and is continueing to happen. Flat out GREED is what caused this situation and the end results were forseen ahead of time. But instant cash and gratification and live for today and worry about tomorrow or let the next guy worry about tomorrow won out. It had to be for it is simple math and common sense. Investors offered to the public a way to purchase a home off of a credit score without verifying their income and/or assets And with little money/investment in the transaction, towards the end.
They knew if they offered it to the public they would go for it. They knew most of these loans were "lies" per say, otherwise why would someone who truly qualified for a loan take a higher interest rate and do one the of the many no doc loans? That is common sense.
These loans were initially meant for self employed borrowers whos bottom line taxable income was $30,000, though their income before write offs was $160,000. (just an example folks and a realistic one). You could see where the income was coming from, you could see that though the taxable income was only $30,000, they carried a mortgage or rent of $1500 fine along with two car payments in the family and a few credits cards just fine and on time. They took advantage of the "paper" write offs the IRS allows. These loans made sense to me. Not to mention, the money/investment involved was 20%.
Then they offered these loans to salaried borrowers. Why? Then they reduced the down payment all the way to 5% and even offered the 80/20 programs. These were not all coming from non-conforming lenders. FNMA and FHLMC jumped in early in the game. Then the grand finaly was you don't have to show us where the money is coming from. Basically, we don't want to know.
Where do the lenders get these programs? WallStreet. FHA and VA did not participate in such things. As much as I hate to see the government now controlling our housing, I have to look at what the government could have and should have done to stop this disaster. I was not happy to hear that they took over 80% of those agencies who have 50% of our mortgages. When you look at those, existing FHA and VA loans, how much is left to the private sector? It is pretty dam scary to me. However, I have to look at the fact that this would not have happend to this magnitude if the government had stepped in years ago and said no, you can't do this. There are limits. But instead, much of the government was pushing to make homes more affordable to those that they felt "deserved" home ownership and were just less fortunate individuals. They pushed and pushed. They did not help these people, they helped them bury themselves!
If I have heard "every american deserves home ownership" once, I have heard it a million times and it makes me sick. We "deserve" nothing. America gives us the "opportunity" to EARN home ownership and many other things. It is a wonderful place and we are all blessed because of that opportunity.....not freeby.
So Lisamarie1, you are probably wondering by now, how do I feel differently than you? Because of the statement above. Because we as stupid consumers bought into this thought. We bought into the BS. And, we are responsible for ourselves, and no one else. I am not directing my comments directly at you, for I read all of the ones on here tonight. You just wrote the most is all. I disagree with many of them, as I am sure many will disagree with me.
These things that we are seeing now did not start with the no-doc program. It goes all the way to the credit scoring system, that took years to pass. I felt it was a screwed up system from the beginning, and this just shows even more that it is a screwed up system. They said, hey if your credit score is 680 or better, you deserve to buy any home of your choice. Have faith in yourself because we have faith in you. Any one who has credit such as this, will find a way to make the payment.
There are many reasons the credit score system is a bad system and I can go into my reasons should anyone be interested in hearing it!
Let me clarify once again before I go into this more. I am NOT a fan of the government controlling our housing market!!! Or what I should say is, Owning the homes we live in. That is a much better way of putting it I guess. I have to look at the FHA manual (4155) that allows for compensating factors a borrower may have to give "room" for the buyer to qualify outside of the box you might say. It specifically states that a lender can Not use good credit as a compensating factor. Good credit is expected, for borrowers are expected pay their bills on time. Where did this principal go? Out the window it appears. Having good credit (which should not necessarily mean perfect credit) is a part of a person EARNING home ownership, but should not be the only factor. Income, assets and debt ratios play a role in the qualifying part of a loan. They have to regardless of who you are and what a "score" says.
Can you blame a WAMU or AHM or Bank of America, Mortgage Brokers and/or their loan officers? Not really. When the industry goes one way in such a mass as it did, and the individual loan officer says I can do this loan for you, but I won't, they loose their job and they have a family to feed. When a broker or lender says we are not going to participate in this madness, people go and get it some where else and that company suffers greatly or goes under. The flood gates were wide open on these programs and pushed every where. In the past these loans might have represented 5% at best of the pipeline. The last couple of years, they were 50% or more of the pipelines.
I am simply asking you to not put all the blame in one basket. We are all responsible for ourselves. The comment of the LO telling the borrower that this rate is just for one year for you can refinance in one year. Since when does the LO have a crystal ball on the future? How do they know the value of your home will continue to rise? How do they know what the rate will be in a year? Okay, not the average consumers profession. But that is blind faith. Who is at fault for having blind faith concerning things that we all should know, no individual has control over.
There is so much that I could go into, and this is far to long as it is. But seriously, too much time is put into "who is to blame" rather than a solution and compromising on fixing this mess. Blame is a waste of time when trying to discuss how do we turn this around. We have to look forward and seek out real solutions; and yes, I agree totally, not just a Bandaid to the problem.

By: 1lowelisamarie1

1lowelisamarie1 — Wed, 15 Jul 2009 07:09:52 +0000

Hey John, there are three types of liar loans, and yes you have described one. Then theres the broker who doctored the docs to push them through so he could make that commission, then theres the broker who tells the borrower with poor credit and no understanding of preditory lending ,that this loan is to their benifit because it will improve their credit score and they will be financed at a better rate within 12 months and not to worry about the stated rate increase as it will never make it that far, and then before the first payment is due the homeowners loan is in a security pool because nobody ever had any intention of dealing with that home owner again. Once again I'll ask “should a person lose his home for trusting the lender to be honest and not misrepresent the truth?” You must be a bankster.