Relevant:
- Of Course Borrowers are Paying for Higher Lending Costs - Did Our Gov't Think Lenders Would? (Plus: CFPB Can't Tell Arse From Hole in the Ground)
- Bernanke to Lenders: Reduce Principal
- Foreclosure is rarely fair
- BofA Accord May Lead to Mortgage-Principal Writedowns, Bill Clinton Says
- What's Next? Is Obama Going To Protect Investors Against Loss In The Stock Market ?
2010-04-14 — housingdoom.com
"If lenders find it more economical to reduce principal and keep a current borrower rather than foreclosing however, I'm not opposed to it. What is annoying here though is having lenders pretend that they are taking this stance as some sort of champions of financial morality. Since when have banks been opposed to Americans consuming more than they could afford or worried about what is fair? "
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Comments:
kindandgentlejd at 01:01 2010-04-15 said:
This was a well done commentary. You have to admit, it is a tad arrogant on their part that it is ok for them to make the business decision not to do anything for the consumer when the loss if the consumer should walk is for the most part solely theirs (anti-deficiency laws in California). They do not want any criticism for their business decision but sure have plenty of criticism for the homeowner who equally makes the decision to walk as a sound business decision. The real fear they should be concerned with is that the 85% number of homeowners who are paying on time start to walk in bigger numbers. The only way to keep that number under control is to get housing prices going back up and that will never happen as long as the 15% are not paying and driving down home prices or keeping them lower. Sooner or later, people need to move for jobs or other reasons and the longer they are underwater the more the odds favor that homeowner making a business decision. Permalinkadd a comment | go to forum thread
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