Comments on: New Effort To Stop Foreclosures, Ho Hum http://www.fhaloanpros.com/2007/10/new-effort-to-stop-foreclosures-ho-hum/ The Unofficial Guide to FHA Loans & Mortgages Thu, 16 Oct 2008 00:28:33 +0000 http://wordpress.org/?v=2.6 By: A. sutton http://www.fhaloanpros.com/2007/10/new-effort-to-stop-foreclosures-ho-hum/#comment-22582 A. sutton Mon, 11 Aug 2008 19:41:16 +0000 http://www.fhaloanpros.com/2007/10/new-effort-to-stop-foreclosures-ho-hum/#comment-22582 Just heard that our lender has cut the pay of their workers..So conducting business when you have BK deadlines to resolve the debt is very challenging...how are the Bills...to work with the homeowner are going to hold off a sale...now..at time...we want to resolve our debt.. Just heard that our lender has cut the pay of their workers..So conducting business when you have BK deadlines to resolve the debt is very challenging…how are the Bills…to work with the homeowner are going to hold off a sale…now..at time…we want to resolve our debt..

]]> By: Kip http://www.fhaloanpros.com/2007/10/new-effort-to-stop-foreclosures-ho-hum/#comment-1107 Kip Thu, 29 Nov 2007 15:33:11 +0000 http://www.fhaloanpros.com/2007/10/new-effort-to-stop-foreclosures-ho-hum/#comment-1107 Greed, defined as "I want 'more' and I love feeling like I have 'more'". Greed is bantered about as if it describes people who buy more boats and vacations. I find that for me it means feeding my children, able to pay my mortgage in some way that does not kick my kids out of a minimally expensive home (they do not get less expensive that the house I bought here in the Northeast), and on an on all about giving the kids a food shelter and clothing. Can we do better? Sure, we learn new ways every week. But "greed"? I took an ARM for three years so I could stabilize the kids after divorce for as long as society would help me stabilize them. If it blows up in 2.5 years from now, so be it. At least the kids were not displaced for awhile longer. Greed? Maybe. Parenting? Yes, at its most "obligate" requirement. Does this amount to "stealing" credit based on need? Well, its not like robbing the corner store for bread. That would be patently illegal, though maybe just as common. Greed, defined as “I want ‘more’ and I love feeling like I have ‘more’”. Greed is bantered about as if it describes people who buy more boats and vacations. I find that for me it means feeding my children, able to pay my mortgage in some way that does not kick my kids out of a minimally expensive home (they do not get less expensive that the house I bought here in the Northeast), and on an on all about giving the kids a food shelter and clothing. Can we do better? Sure, we learn new ways every week. But “greed”? I took an ARM for three years so I could stabilize the kids after divorce for as long as society would help me stabilize them. If it blows up in 2.5 years from now, so be it. At least the kids were not displaced for awhile longer. Greed? Maybe. Parenting? Yes, at its most “obligate” requirement. Does this amount to “stealing” credit based on need? Well, its not like robbing the corner store for bread. That would be patently illegal, though maybe just as common.

]]> By: Peter G. Miller http://www.fhaloanpros.com/2007/10/new-effort-to-stop-foreclosures-ho-hum/#comment-460 Peter G. Miller Sat, 20 Oct 2007 01:11:02 +0000 http://www.fhaloanpros.com/2007/10/new-effort-to-stop-foreclosures-ho-hum/#comment-460 Robert -- Thank you. I appreciate what you are saying. Multiplied many, many times what you describe is at the heart of our current mortgage meltdown. And you are absolutely correct: These loans were doomed from day one. The question raised by your posting is this: Where were the underwriters? Why did they not decline the "$100,000" borrower and others who were grossly unqualified? This is the mystery to me. The checks and balances didn't work. Robert –

Thank you. I appreciate what you are saying.

Multiplied many, many times what you describe is at the heart of our current mortgage meltdown. And you are absolutely correct: These loans were doomed from day one.

The question raised by your posting is this: Where were the underwriters? Why did they not decline the “$100,000″ borrower and others who were grossly unqualified? This is the mystery to me. The checks and balances didn’t work.

]]> By: Robert Costes http://www.fhaloanpros.com/2007/10/new-effort-to-stop-foreclosures-ho-hum/#comment-459 Robert Costes Sat, 20 Oct 2007 00:53:53 +0000 http://www.fhaloanpros.com/2007/10/new-effort-to-stop-foreclosures-ho-hum/#comment-459 I agree with you Peter that not all borrowers or lenders should be bailed out. I was a loan officer for a major player in sub-prime and witnessed the irationality and greed on both sides. The lenders created programs that were in-no-way prudent and doomed to blow up from the beginning. The borrowers were like pigs at a trough using their home equity as a credit card to live way above their means. I always gave people an of a fixed program to mitigate their risk. But they would almost always take the lowest payment and the most cash and let the future be damned. To give you an idea of the mind set then - One borrower bragged about making $100,000 per year $40,000 from the post office and $60,000 from appreciation. In my view it is not up to the general taxpayer to bail out the lenders or the borrowers who have acted like spoiled children and gone out of control. I agree with you Peter that not all borrowers or lenders should be bailed out. I was a loan officer for a major player in sub-prime and witnessed the irationality and greed on both sides. The lenders created programs that were in-no-way prudent and doomed to blow up from the beginning. The borrowers were like pigs at a trough using their home equity as a credit card to live way above their means. I always gave people an of a fixed program to mitigate their risk. But they would almost always take the lowest payment and the most cash and let the future be damned. To give you an idea of the mind set then - One borrower bragged about making $100,000 per year $40,000 from the post office and $60,000 from appreciation. In my view it is not up to the general taxpayer to bail out the lenders or the borrowers who have acted like spoiled children and gone out of control.

]]> By: Peter G. Miller http://www.fhaloanpros.com/2007/10/new-effort-to-stop-foreclosures-ho-hum/#comment-381 Peter G. Miller Fri, 12 Oct 2007 00:01:06 +0000 http://www.fhaloanpros.com/2007/10/new-effort-to-stop-foreclosures-ho-hum/#comment-381 Sam -- Thanks for your note. You make a good point, which is that no government program is going to save all borrowers with toxic loans. However, there are many borrowers who still can be helped. We could, if we elect, modify the bankruptcy code so that home mortgages could be modified -- at present that is not the case. We could make overcharging someone for mortgage financing a crime. We could require that all loans must be documented. We could require that all loan officers must have a fiduciary obligation to borrowers. We could end prepayment penalties for subprime loans. We could require that all loans must be suitable for borrowers. The list goes on. As well, not all borrowers should be saved. Investors should have known better and people who materially-lied on loan applications do not deserve a bail-out. Alternatively, lenders who underwrote such loans also should not be bailed out. Sam –

Thanks for your note. You make a good point, which is that no government program is going to save all borrowers with toxic loans.

However, there are many borrowers who still can be helped. We could, if we elect, modify the bankruptcy code so that home mortgages could be modified — at present that is not the case. We could make overcharging someone for mortgage financing a crime. We could require that all loans must be documented. We could require that all loan officers must have a fiduciary obligation to borrowers. We could end prepayment penalties for subprime loans. We could require that all loans must be suitable for borrowers. The list goes on.

As well, not all borrowers should be saved. Investors should have known better and people who materially-lied on loan applications do not deserve a bail-out. Alternatively, lenders who underwrote such loans also should not be bailed out.

]]> By: Samuel D. Bornstein http://www.fhaloanpros.com/2007/10/new-effort-to-stop-foreclosures-ho-hum/#comment-379 Samuel D. Bornstein Thu, 11 Oct 2007 22:57:46 +0000 http://www.fhaloanpros.com/2007/10/new-effort-to-stop-foreclosures-ho-hum/#comment-379 Loan modifications will not work because even thought the monthly payment stays low, how can we have confidence in the subprime borrower who has a poor credit history, and is in this mess because of it. These borrowers need to learn how to better manage their spending. They need a stiff course in financial literacy which will help guide them to become more responsible consumers. Even though the reset may mean an increase of $400 per month... Hey that's only $13 per day. Why not cut the daily expenditures by $13. That may save their homes at reset. Cut down on the lattes..and save your home. Loan modifications will not work because even thought the monthly payment stays low, how can we have confidence in the subprime borrower who has a poor credit history, and is in this mess because of it. These borrowers need to learn how to better manage their spending. They need a stiff course in financial literacy which will help guide them to become more responsible consumers. Even though the reset may mean an increase of $400 per month… Hey that’s only $13 per day. Why not cut the daily expenditures by $13. That may save their homes at reset. Cut down on the lattes..and save your home.

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