I Have Several Questions for Mortgage and Real Estate Experts…

catherine at 09:35 2011-01-06 said:

wow, you seem to have it right on...........you are seeing behind the curtain.......

but don't miss that the government and fannie are still securitizing those mortgages........on chainsaw falling capital :shock: (this time THEY KNOW what they are doing)

and I have been saying for years

when a politician smiles and says we are going to have a jobless recovery-----

(and we KNOW who says this :roll: )

that means to me that when THEY are jobless, then America can recover..... Permalink

Mr. X at 22:16 2011-01-06 said:

For the life of me I can not understand why the Gov't just didn't give everyone a haircut on their mortgage instead of trying to devalue the debt via inflation. Permalink

mtgfactsman at 01:31 2011-01-07 said:

You have made some interesting comments with regard to today's Housing Market. However there is a Solution, it is just a matter of how open minded (i.e. realistic) the GSEs and Lenders are willing to be with regard to their REO Inventory and Toxic Assets. The Solution is to provide a Mortgage to ALL Homeowners who are in default, underwater, or willing Buyers using a Mortgage Program which allows them to easily understand and truly qualify for to secure their most valuable Asset, their Home. This benchmark Program will solve a large majority of the negative factors currently affecting the Housing Market. As I mentioned ALL Parties (GSEs, Lenders, Servicers) must be willing to compromise and face reality, not just deny there is a problem. In 2007 when I wrote this Program knowing what the future held with regard to Foreclosures and Negative Equity no one was willing to recognize the problem, now maybe the time has come for everyone to wake up and face facts. Until everyone is prepared to solve the problems facing the Housing Market there will only be limited success. Loan Modifications are re-defaulting at a 30-40% rate, over 700,000 initial Homeowners have already been disqualified for Loan Modifications, 11 million Homeowners are underwater, this is in addition to the 2-4 million REO Properties already sitting on various Balance Sheets. The Foreclosure Crisis is far from over regardless of what you have read. A viable Solution is available it just needs to be presented to the right Person (i.e. President Obama, Fed Chief Bernanke, Chairwoman Bair). Permalink

achtung at 04:58 2011-01-20 said:

mtgfactsman

Good post. I agree with what you are saying, with a few exceptions/questions. First, if there is a 40% failure rate on current modifications, AND the modifications are being done to fit the current budget of the consumer (allegedly), then what program would EVER work?

Second issue/question is that If you were an owner of the mortgage bond right now, and you were told to take a 50% cut in the balance of your holdings, would you ever re-buy another mortgage bond? Would anyone? If not, how do you finance the program?

I am with you on the need to keep people in their houses. Personally, I believe housing issues should be handled through the bankruptcy courts, like any other debt. But I know I will always lose that argument. Permalink