Bernanke urges banks to forgive portions of mortgages

NEW -> Contingent Buyer Assistance Program
Yep. He's saying that they will sell all of it below face value ("at a haircut") just to stay in business, and that the private equity firms, pension funds, and/or fixed-income investors can sit back and reap the long-term payback... assuming that the mortgages making up the RMBS and ABS aren't going to default at a rate higher than what they bid/offered (paid) for them.
 
"Mortgage companies have changed or restructured loans for more than 1m US homeowners since last July, according to new data provided by Hope Now, an alliance of lenders set up with the backing of the Bush administration last year to tackle the housing meltdown."

Does anyone believe this statistic is true?
 
IR - Call me a cynic, but I can not help but think they are including anybody who has refinanced, changed the amount they were paying, (not owed), called their lender, or even sneezed in their lender's direction. And the first question that comes to my mind is, "How many refinancings had anything to do with the Hope Program or had included any type of advantage for the borrower that they did not already have?"
 
Hope now has not helped a million people, not a chance in Hades. None of these so called government or lender type of programs to save people from foreclosure has helped. Less than 5% of the people if that. I was just reading that of the 55k foreclosed homes that are in Arizona half of them are unoccupied. Funny, so i want the government to help some flipper or speculator to save their home. No way, take it for the team and buy a helmet...Where is Tom Vu when you need him?
 
<< Funny, so i want the government to help some flipper or speculator to save their home. >>

Vulture capitalists...of which I are one. So shuddup. < teasing >
 
"cliffs notes: can't fight gravity."

Can't fight gravity... that's all the answer anyone needs to counter proposals of how to keep the housing bubble inflated. Can' t fight gravity... I like it!
 
IIRC, 75% of the "workouts" were that the borrowers paid off their balances late. I guess the late fees were forgiven or something like that. 25% were genuine workouts, but no indication to how substantial they were. I would guess those were overwhelmingly reductions in usurious interest rates to somewhat-less-usurious rates.
 
I read, don't know where that the number of people actually significantly helped was absolutely trivial.

Thing you guys aren't considering, is once the banks foreclose, so far they are not cutting prices on enough houses to start to form a bottom. they are sitting on them, and they are starting to rot. It doesn't help prospective first time home buyers if the house they would have bought is so ruined by vandals, or lack of upkeep to the point that it has to be torn down, or so ruined that only a professional contractor would be able to fix it.

I betcha the banks have simply forgotten about, or lost track of, a significant fraction of the the REOs. By significant, I mean 1% or more. With millions of foreclosures that is tens of thousands of literally forgotten houses.
 
Note the trashed houses shown in the interview. Some accounting of this physical destruction in the cost-benefits analysis should be made. Granted it's probably not happening in any of the neighborhoods that the posters here live in, but it's definitely happening.
 
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