tag:blogger.com,1999:blog-11719208.post5957011890207360799..comments2023-11-05T04:36:14.223-08:00Comments on The Mess That Greenspan Made: Underwater loans, O'Neil's housing planTimhttp://www.blogger.com/profile/16530974968126497397noreply@blogger.comBlogger5125tag:blogger.com,1999:blog-11719208.post-50180663020584364532008-10-31T11:22:00.000-07:002008-10-31T11:22:00.000-07:00CNBC yesterday stated that homes in Los Angeles ar...CNBC yesterday stated that homes in Los Angeles are at their historical income::homeValue ratio. I would like to partake in the drugs that they use over there.Danhttps://www.blogger.com/profile/14611189349119964821noreply@blogger.comtag:blogger.com,1999:blog-11719208.post-68927238473764813762008-10-31T10:56:00.000-07:002008-10-31T10:56:00.000-07:00http://www.santacruzsentinel.com/business/ci_10864...http://www.santacruzsentinel.com/business/ci_10864126<BR/><BR/>20% down is not a SOLUTION to the problem that exists today. If the value of the property is less than the amount of the loan, I proposes a rate cut to 1 percent per annum, good for the next 12 months. Silly? Stupid? Outrageous?<BR/>Not in my view.<BR/>I considers this strategy the best way for lenders to preserve their investment and for borrowers to keep their homes. "What good is receiving a taxable amount of<BR/>interest if the home reverts and you have an actual loss of principal?" It makes total sense to keep people in their houses.<BR/><BR/>I recommended a 1 percent interest rate and a 6% payment rate, for a home in Fresno. It was appraised at $262,000 when the homeowner borrowed $170,000. Today, the home<BR/>is appraised at $150,000.<BR/>I have seen many borrowers give up and walk away from their homes.<BR/>My clients taken back 37 houses in the past 12 months. In the previous 15 years, it was six homes.<BR/>I am a Soquel, Ca. mortgage broker who proposes a sharp cut in interest rates to give borrowers hope.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-11719208.post-43740749922509684022008-10-31T09:27:00.000-07:002008-10-31T09:27:00.000-07:00I'm sure O'Neal means real 20 percent downpayments...I'm sure O'Neal means <EM><B>real</B></EM> 20 percent downpayments where the borrower comes up with the money.Timhttps://www.blogger.com/profile/16530974968126497397noreply@blogger.comtag:blogger.com,1999:blog-11719208.post-68327967787423245072008-10-31T08:45:00.000-07:002008-10-31T08:45:00.000-07:00Regarding underwater mortgages, this sounds quite ...Regarding underwater mortgages, this sounds quite similar to deleveraging. Very little capital using borrowed money to greatly magnify returns on that capital, followed by a loss which wiped out the little initial capital and left the borrower insolvent.<BR/><BR/>Regarding 20% down payment minimum requirement, didn't Fannie and Freddie already have such a requirement? If memory serves me, Countrywide was using "piggy back loans", i.e. 80% mortgage that can be sold to Fannie and a 20% home equity loan for the down payment.AJhttps://www.blogger.com/profile/14159764843937350178noreply@blogger.comtag:blogger.com,1999:blog-11719208.post-4146516124643882332008-10-31T07:48:00.000-07:002008-10-31T07:48:00.000-07:00My favorite nonsense proposal is Obama's "foreclos...My favorite nonsense proposal is Obama's "foreclosure moratorium." I think, if he does get elected, he's going to get quite a "talking to" by the "money guys" (with their pals Lenny and Squiggy) about how that's really not a "good idea."<BR/><BR/>As others on the web suggests, another name for that proposal is "free ride" and the suggestion, if that happens, is for people to just stop paying their mortgages.<BR/><BR/>- PeteAnonymousnoreply@blogger.com