And finally someone who makes sense...

NEW -> Contingent Buyer Assistance Program
tmare_IHB

tmare_IHB

New member
I realize that not everyone here agrees with his view of the entire stimulus but everything else makes perfect sense. Finally I have something in print to prove to those I know who can't afford the payment on 550K mortgages for houses that wouldn't sell for 350K now. Just get out!

Check this out:

Mortgage Bailout Declared Futile
 
Q. Won’t that depend on the appraisal you get?

A. That’s the next wave of fraud: appraisals, because that’s what stands between you and refinancing. You might get an appraiser to say your house is worth that much for a refi. But I bet you can’t find anybody to buy it for that much.
Click to expand...

thats been my on my mind ever since I saw that 105% LTV rule. A- There will be some shady appraisals done. B- Who ends up paying for the appraisal when it is done and turns out to be 150% LTV and no refinance can be done? The lender who now won't get any fees since they can't refinance or the homeowner who will go into foreclsosure? Seems like no one would be willing to pay the appraiser. Another incentive for the appraiser to do a higher appraisal to qualify for that 105% LTV to ensure that they get paid.
 
I think appraisers have had the sh*t knocked out of them recently, I can't see it happening again, people and banks are too scared. But who knows?
 
Q. So you’re saying it’s better for society for people to file for bankruptcy or walk away from their homes?

A. Give up their homes, unquestionably. The reason is that paying a $5,000 a month mortgage when the home has no equity, you have no asset to protect. You could give it up and improve your cash flow and improve your life. People have to recognize they have nothing to protect if they owe $600,000 on a house worth $400,000. Those values aren’t going to come back soon, because people can’t fake it anymore.

Q. How many people should walk away from their homes?

A. I couldn’t give you exact numbers. Probably anyone who bought a home after 2000 is going to be underwater. I don’t think that’s a stretch.

Great article tmare, thanks for posting.
 
Reading the article is like listening to the devil finally tell the truth.

As I predicted long ago, the clever ones who created the mess will be hired after the crash to sort through the mess. Bob Simpson (the interviewee) is looking to hire articulate mortgage industry professionals who know "...how a loan officer can slip false income into a file without the borrower knowing about it? Do you know how to falsify a source of down payment or a VOD?"

Vomit. I'm just glad that soon the industry will be (or at least should be) shrunk down to its normal size.
 
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