Comments on: Making Home Affordable Arrives Late to the Accident Scene

By: MasterPo

MasterPo — Thu, 02 Apr 2009 03:28:48 +0000

RC – Just because the loans are being repaid on schedule doesn’t make them any less risky, any less sub-prime.

By: RC Brooks

RC Brooks — Wed, 01 Apr 2009 14:39:06 +0000

You know, something on the who should and should not have been given loans…

it’s interesting to point out that MOST of the subprime loans are still valid. Says something about our much acclaimed credit rating system, particularly a system that admits as much as a 25% inaccuracy rate.

There definitely needs to be a way for lenders to determine credit worthiness.

By: cjbr549

cjbr549 — Fri, 27 Mar 2009 15:39:16 +0000

I find the “Making Homes Affordable” title especialy ironic in that the program will prop up home prices that are still historicaly higher than they should be. By stemming the foreclosures that should be happening, at taxpayer expense, the government is messing with the supply side of the supply and demand equation. This will either prop up home prices at current levels for a while or at least slow down the decline, which in effect makes homes less affordable. I don’t think making homes affordable is at all what this program is about. I think the thought is that if these folks that overuse credit are given a new lease on thier credit cards, they will start buying crap again to get the economy started. Unfortuanately, the economy will have to grow at a rate that will outpace the comming inflation in order to do any good. Don’t see that happening.

By: MasterPo

MasterPo — Fri, 27 Mar 2009 00:09:55 +0000

TML – Maybe. But you gotta deal with what you have.

By: Mr. ToughMoneyLove

Mr. ToughMoneyLove — Wed, 25 Mar 2009 03:47:32 +0000

Pinyo – My point is not so much that the rescue plan is late, but the imposition of loan underwriting standards and due diligence is late. If these borrowers had been properly vetted to begin with, our problems wold be much less severe.

By: Mr. ToughMoneyLove

Mr. ToughMoneyLove — Wed, 25 Mar 2009 03:36:49 +0000

MasterPo – I have to think that a community bank would be more flexible on these issues than a national bank.

By: MasterPo

MasterPo — Wed, 25 Mar 2009 02:56:16 +0000

Rick,

I’m not going to rehash all the stuff about who should/shouldn’t have been given a mortgage in the first place. That’s been beaten well enough already.

As for bankruptcy and foreclosure, can’t prove there’s any improvement by me. A close friend and his wife got into VERY deep financial trouble a couple of months ago. So much so they were about to loose their house. The best the bank would do is say go to foreclosure and *maybe* a deal can be discussed in court! Ultimately someone gave them a personal loan that helped them out of the hole.

But….

2 weeks ago the husband got laid off! The first thing he did was call the bank and tell them (like people are advised all the time on TV these days) to work out some new temporary payment schedule. The bank told him they can’t do anything for at least 3 months!!

No. Can’t prove there’s any “help” by me and my associates.