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chux03
6th November 2008, 02:34
Get ready to default!!!! Check this out:

http://mrmortgage.ml-implode.com/2008/11/04/no-more-mortgage-payments-soon-get-ready-to-default/


From the above linked article:

NO MORE MORTGAGE PAYMENTS SOON - Get Ready to Default!

Posted on November 4th, 2008 in Daily Mortgage/Housing News - The Real Story, Mr Mortgage's Personal Opinions/Research

Oh my. Friends, get ready to default on your mortgage…on purpose. The first chatter about the government sponsored loan modification initiative has surfaced from Paul Jackson at Housing Wire and what a disaster it is.

I have been telling you guys for months that a homeowner bailout is coming. But this is unlike anything I expected - it actually encourages mortgage holders of all paper grades to default. This is better than a Pay Option ARM because the monthly payments are zero! Why not default when you get to skip three years of mortgage payments and pay the government back five years from now at FED FUNDS RATE!

Kelly
6th November 2008, 03:53
“In five years’ time, participants would, in all likelihood, be able to sell their homes or refinance their mortgages at amounts that would allow them to repay the loan.”

Mr. Mortgage doesn't seem to get it. The plan being considered allows people to borrow three years worth of mortgage payments up front, BUT IT REQUIRES A BALLOON PAYMENT IN FULL WITHIN FIVE YEARS TIME. Promising people that "in all liklihood" they will be able to sell their home or refinance to make this payment is a crock of BS. So who can gaurentee anybody that the price of housing is going to go back up? If people can't sell their homes to cover their mortgage, or rewrite their loans to reflect true market value, this program will only damn the homeowner even further.

This is no remedy for anything.

main1event
6th November 2008, 06:54
They cant stop foreclosures, none of it makes sense. If you lose your job and cant make any payments, do you get to live in that house for free? People bought houses for price appreciation, period. Now that they are so severely underwater why not just send back the keys? They paid 50% of their incomes and received low teaser rates to just barely squeeze into the house. Do you really think 0% modified loans are really going to help when they received 3% loans in the first place? Sure they'll save a few hundred, but thats no consequence when you lose your job.

My prediction is next year is going to be a complete bloodbath. The government would do better if they just let the houses go and sold them dirt cheap. I know I'd be willing to take a couple off their hands if houses were affordable.

BTW, wheres my Silver bailout?

Kelly
6th November 2008, 08:35
This is no bailout for the homeowner. This is ultimately just another bailout for the banks. They are trying to keep people from foreclosing. When people default on their loans, in this peculiar little musical chair game of credit default swaps, its the last guy in line holding the CDS who gets stuck without a chair. He's the one who will get stuck with the difference for what they can actually sell a house for on the open market today and the sum written into the original inflated mortgage.

All this partidular program does is attempt to talk the homeowner from walking on their loan by forestalling the inevitable for a few years. It's a scam laid out to make sure it's the homeowner who is left holding the bag, rather than the banks or the government.

Furthermore, if Research24 is correct, there is also a clause written into this package that states that if the homeowner accepts the bailout money now, they can NEVER default on this loan, no matter what. This means they can hound you for the rest of your life and also attach your wages.

Any homeowner having a bad time of it, needs to run like hell from this offer. If you know people who are facing foreclosure, be a friend and warn them not to sign up for this package. They are better off walking out on their homes.

main1event
6th November 2008, 09:12
Kelly,

I agree, anyone from the government there to help, is not friend of yours. Its just a deal with the devil.

SkinnerVic
6th November 2008, 09:14
This is no bailout for the homeowner. This is ultimately just another bailout for the banks. They are trying to keep people from foreclosing. When people default on their loans, in this peculiar little musical chair game of credit default swaps, its the last guy in line holding the CDS who gets stuck without a chair. He's the one who will get stuck with the difference for what they can actually sell a house for on the open market today and the sum written into the original inflated mortgage.

Ms. Kelly once again has hit this one on the head! I tend to take a pragmatic look at who the players are in a game first before trying to understand this or any other "game". In this case, one of the players (banks) are eager for this game. That in and of itself should tell you something.

I've got the same feeling about the recent buddy-buddy of the banks and consumer credit card bailout coming. It's not like those two to team up, and when they do you should be very scared before you see any of the fine print.

augernaut
6th November 2008, 09:21
No offence intended but walk out of thier homes with thier familys and posessions and go where?...Ive lost my job recently and my immediate family is all i have......still wont take the gubmint cheese though

Kelly
6th November 2008, 09:38
No offence intended but walk out of thier homes with thier familys and posessions and go where?...

I think you are going to have to rely on your own wits. Look for help, there is nothing wrong with that, but look for it in your local community. Whatever you do, especially in this strange, predatory environment, always, always, always read the fine print on any help that is offered you.

You'd honestly be better off walking out on your home and trying to scrape together the money to buy a yurt to keep your family housed, than you would to stay in your home and accept any kind of bailout package as predatory as this one is.

This bailout is not an attempt to end predatory lending practices. This bailout is just an attempt to repackage the same old thing.

main1event
6th November 2008, 09:47
No offence intended but walk out of thier homes with thier familys and posessions and go where?...Ive lost my job recently and my immediate family is all i have......still wont take the gubmint cheese though

See thats a myth, that many people still possess today, "Where do I go"

There are many places. Rent is still far cheaper than to buy. Many years ago people moved in together. Americans have become to complacent and believe they are entitled to a house.

balou2
7th November 2008, 01:09
And what the hell does this have to do with the silver market? That's not the topic. Please...put in the Open Forum. Ridiculous.

main1event
7th November 2008, 08:02
Ballou, housing has everything to do with the silver market. Its about fiscal responsibility and why we are in this mess. I started buying silver when I realized what was happening in housing.