OK: of all of the places we jumped to, we selected 850B as the touchdown pad although? I believe all existing mortgages should have been maintained in an escrow acct by the government, and then all properties auctioned off at a fire sale. Then the occupant must be given first choice to refinance on a 30 yr fastened towards the new property value as established by the market public sale course of or the present mortgage, whichever is lower. On this thought, the federal government acts as escrow agent till the property is auctioned
Example: i purchased it for 300 on a 5 yr ARM. I preserve paying my cost to the federal government until it's auctioned; it is auctioned off at 200 to a bank of funding group. I get first option to buy it from them at 200 with a 30 yr fixed. All of the payments I made to the federal government escrow acct get utilized against that new contract as fairness/down payment.
M: I agree that the $850B touchdown pad looks like an odd place to land. The real downside in my mind is the dearth of liquidity.
OK: That's how you identify the new true market worth of the house and shield the house owner and provides him an opportunity to profit from the brand new market value, and keep continuity of payments. Let banks borrow from the Fed at a price that reflects their very own credit worthiness. Now in the event you argue that banks that aren't credit score worthy needs to be provided credit i have to ask: why is that ever a good resolution?
M: For example, in your situation, any individual needed to eat that $100k that the property went down. I believe there have been so few individuals still making funds on a few of these properties that even when someone was willing to eat the $100k (the government or whoever) - the homeowners would be unable to stay in the house and make funds - even when the supposed market worth of the home was now $200k.
Okay: Let the various smaller banks and credit score unions that did not blow up get credit from the Fed as a reward for having been good stewards of the public trust. The 100k loss is eaten by the bankrupt bank in their bankruptcy process
M: The true difficulty in my thoughts is the irresponsible borrowing and lending that has gone on.
Okay: so shall we say the 300k property, was now valued at 200k, and the current occupant can't make funds on a 200k house. Too bad. The brand new property proprietor purchased the 200k home from the government who repaid it from the bankrupt bank.
M: So - if the bank eats the $100k loss - if they've enough of them, they go out of business. The issue is that all of those folks have been doing this and so they turned them into investment vehicles that dropped in value.
Example: i purchased it for 300 on a 5 yr ARM. I preserve paying my cost to the federal government until it's auctioned; it is auctioned off at 200 to a bank of funding group. I get first option to buy it from them at 200 with a 30 yr fixed. All of the payments I made to the federal government escrow acct get utilized against that new contract as fairness/down payment.
M: I agree that the $850B touchdown pad looks like an odd place to land. The real downside in my mind is the dearth of liquidity.
OK: That's how you identify the new true market worth of the house and shield the house owner and provides him an opportunity to profit from the brand new market value, and keep continuity of payments. Let banks borrow from the Fed at a price that reflects their very own credit worthiness. Now in the event you argue that banks that aren't credit score worthy needs to be provided credit i have to ask: why is that ever a good resolution?
M: For example, in your situation, any individual needed to eat that $100k that the property went down. I believe there have been so few individuals still making funds on a few of these properties that even when someone was willing to eat the $100k (the government or whoever) - the homeowners would be unable to stay in the house and make funds - even when the supposed market worth of the home was now $200k.
Okay: Let the various smaller banks and credit score unions that did not blow up get credit from the Fed as a reward for having been good stewards of the public trust. The 100k loss is eaten by the bankrupt bank in their bankruptcy process
M: The true difficulty in my thoughts is the irresponsible borrowing and lending that has gone on.
Okay: so shall we say the 300k property, was now valued at 200k, and the current occupant can't make funds on a 200k house. Too bad. The brand new property proprietor purchased the 200k home from the government who repaid it from the bankrupt bank.
M: So - if the bank eats the $100k loss - if they've enough of them, they go out of business. The issue is that all of those folks have been doing this and so they turned them into investment vehicles that dropped in value.
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