Comments on Loan Survivor's articles RSS Syndication from SeekingAlpha.com http://seekingalpha.com/author/loan-survivor/articles http://seekingalpha.com/article/174924-mortgage-rates-falling-in-the-fall?source=feed#comment-775329 775329 Tue, 24 Nov 2009 11:49:21 -0500
Once the rates go back up and the tax credits expire, house prices will start the next leg down. It's inevitable. The Obama administration is just trying to forestall the correction until after the 2010 midterms.

Look for an extension of the housing credit for another 6 months in March and another round of MBS purchases by the FED to get us through November 2010. ]]> http://seekingalpha.com/article/174924-mortgage-rates-falling-in-the-fall?source=feed#comment-774639 774639 Tue, 24 Nov 2009 00:37:51 -0500 http://seekingalpha.com/article/170465-homebuyer-tax-credit-not-a-done-deal?source=feed#comment-744012 744012 "More than 1.25 million taxpayers have taken advantage of the tax > credit to pursue the American dream of home ownership." > > Persue? Who are you kidding? It's a handout. > I thought the American dream was a privledge, NOT A RIGHT. > > > You are so backwards with your thinking, it scares me what a weak > nation we have become. > NOT MY AMERICA]]> Wed, 04 Nov 2009 08:35:21 -0500 Adam


On Nov 02 10:37 AM j-dub wrote:

> "More than 1.25 million taxpayers have taken advantage of the tax
> credit to pursue the American dream of home ownership."
>
> Persue? Who are you kidding? It's a handout.
> I thought the American dream was a privledge, NOT A RIGHT.
>
>
> You are so backwards with your thinking, it scares me what a weak
> nation we have become.
> NOT MY AMERICA]]> http://seekingalpha.com/article/170465-homebuyer-tax-credit-not-a-done-deal?source=feed#comment-742474 742474 Tue, 03 Nov 2009 11:47:28 -0500 http://seekingalpha.com/article/170465-homebuyer-tax-credit-not-a-done-deal?source=feed#comment-741719 741719 Tue, 03 Nov 2009 01:22:14 -0500 http://seekingalpha.com/article/170465-homebuyer-tax-credit-not-a-done-deal?source=feed#comment-740930 740930 Mon, 02 Nov 2009 15:42:15 -0500 http://seekingalpha.com/article/170465-homebuyer-tax-credit-not-a-done-deal?source=feed#comment-740827 740827 There are a lot of people who have not been able to save a nest egg, > and can handle the monthly payments just fine, have a little in the > bank, but not enough for the "paper trail" that usually follows purchasing > a home! The closing costs in most states are just ridiculous!
All > of us pay our taxes, and to see some people get into a home and fix > up something that was decaying in a neighborhood that was once in > pristine condition, then so be it! Let a few people be helped in > the United States rather than a world of people who don't give a > rats a-- about us! Stop complaining that it's our "tax dollars" when > we're handing out money to every Tom, Dick & Harry anyway. We > might as well have something "nice to show for the money"!! I for > one hope this continues at least until tax time next year 2010!]]> Mon, 02 Nov 2009 14:41:11 -0500 Then you don't buy a home!!!!
America-life is not about instant gratification

"Let a few people be helped in
the United States rather than a world of people who don't give a
rats a-- about us! Stop complaining that it's our "tax dollars" when we're handing out money to every Tom, Dick & Harry anyway."
I agree BUT two wrongs don't make a right and it will just cause people to lose money on their home when the value inevitably drops when the punch bowl is removed.
NOT MY AMERICA


On Nov 02 01:15 PM Dani Watson wrote:

> There are a lot of people who have not been able to save a nest egg,
> and can handle the monthly payments just fine, have a little in the
> bank, but not enough for the "paper trail" that usually follows purchasing
> a home! The closing costs in most states are just ridiculous!
All
> of us pay our taxes, and to see some people get into a home and fix
> up something that was decaying in a neighborhood that was once in
> pristine condition, then so be it! Let a few people be helped in
> the United States rather than a world of people who don't give a
> rats a-- about us! Stop complaining that it's our "tax dollars" when
> we're handing out money to every Tom, Dick & Harry anyway. We
> might as well have something "nice to show for the money"!! I for
> one hope this continues at least until tax time next year 2010!]]> http://seekingalpha.com/article/170465-homebuyer-tax-credit-not-a-done-deal?source=feed#comment-740676 740676 Mon, 02 Nov 2009 13:15:01 -0500 All of us pay our taxes, and to see some people get into a home and fix up something that was decaying in a neighborhood that was once in pristine condition, then so be it! Let a few people be helped in the United States rather than a world of people who don't give a rats a-- about us! Stop complaining that it's our "tax dollars" when we're handing out money to every Tom, Dick & Harry anyway. We might as well have something "nice to show for the money"!! I for one hope this continues at least until tax time next year 2010!]]> http://seekingalpha.com/article/170465-homebuyer-tax-credit-not-a-done-deal?source=feed#comment-740633 740633 Mon, 02 Nov 2009 12:49:14 -0500
Using the tax credit isn't fraud and I have seen first hand how it is used. I'm a real estate agent and we get paid for selling real estate, same as you get paid for your time at work, regardless of your job description. I just sold a foreclosed house to a young couple who are using it for renovations. Two agents were paid, a banker, a home inspector, an appraiser and a closing attorney. How can that NOT justify stimulus?]]> http://seekingalpha.com/article/170465-homebuyer-tax-credit-not-a-done-deal?source=feed#comment-740534 740534 Mon, 02 Nov 2009 12:26:43 -0500
Can I deduct from taxes buyer's & seller's agent fees that I as the seller have to pay for...NOTHING?

That is the real problem. You take a product, add 6% and sell, add 6% and sell, and so on. How long you think you can do this? It got to fail one day. It did, today. This is an unfair system that got us where we are today.]]> http://seekingalpha.com/article/170465-homebuyer-tax-credit-not-a-done-deal?source=feed#comment-740517 740517 Mon, 02 Nov 2009 12:19:36 -0500
I doubt and I hope not! I live in the house 3 years and need to move but can't use the credit while I pay for everybody's else credit. On one side this can help to sell my house but on the other it means free handouts to fix fraud that was and is happening in the real estate industry causing all this mess we are in.]]> http://seekingalpha.com/article/170465-homebuyer-tax-credit-not-a-done-deal?source=feed#comment-740470 740470 Mon, 02 Nov 2009 11:50:35 -0500 http://seekingalpha.com/article/170465-homebuyer-tax-credit-not-a-done-deal?source=feed#comment-740315 740315 Mon, 02 Nov 2009 10:37:12 -0500
Persue? Who are you kidding? It's a handout.
I thought the American dream was a privledge, NOT A RIGHT.


You are so backwards with your thinking, it scares me what a weak nation we have become.
NOT MY AMERICA
]]> http://seekingalpha.com/article/148707-are-loan-modification-programs-working?source=feed#comment-739855 739855 Sun, 01 Nov 2009 23:53:26 -0500 www.RefinancingCondo.com)

While there is much work that needs to be done, homeowners are getting the help they need, and home loan modification is a big part of that help.]]> http://seekingalpha.com/article/148707-are-loan-modification-programs-working?source=feed#comment-739853 739853 Making Home Affordable plan. While there is much work that needs to be done, homeowners are getting the help they need, and home loan modification is a big part of that help.]]> Sun, 01 Nov 2009 23:53:24 -0500 www.RefinancingCondo.com">Making Home Affordable plan.

While there is much work that needs to be done, homeowners are getting the help they need, and home loan modification is a big part of that help.]]> http://seekingalpha.com/article/148707-are-loan-modification-programs-working?source=feed#comment-600552 600552 Fri, 24 Jul 2009 06:00:30 -0400
The loan modification process can be frustrating and confusing for many distressed homeowners. But you have to know what exactly is loan modification. A loan modification is a permanent change in one or more terms of a borrower's home loan.]]> http://seekingalpha.com/article/149841-178-loan-mod-companies-pursued-by-government-it-s-about-time?source=feed#comment-596639 596639 Tue, 21 Jul 2009 12:10:02 -0400
Tony - that is funny!

Moon - the people with the money rarely get prosecuted:(

John - free market is great in theory, but if it worked perfectly we wouldn't need 80% of the laws we have.

Phoenix - great insight and numbers. Problem is I haven't found a computer yet with an "emotion" button on it. People love their homes and will do irrational things like paying thousands to strangers for a possible loan modification to try to save them. Also, if we extrapolate your argument then everyone in this country should pull their money out of the stock markets and either invest elsewhere or sit on it until market returns to its "highs".

Thank you all for your comments:)]]> http://seekingalpha.com/article/149841-178-loan-mod-companies-pursued-by-government-it-s-about-time?source=feed#comment-596521 596521 Tue, 21 Jul 2009 11:01:19 -0400
Assume: Homeowner owes $400,000.00 on a home that is now worth $200,000.00. The loan of $400,000.00 has an interest rate of 6.5% The homeowner has reached out to their lender and is now offered a loan modification for an interest rate of 4.5%. This scenario achieves the following:

Current mortgage: $400,000.00 @ 6.5% = $2,528.27 per month.

Modified mortgage: $400,000.00 @ 4.5% = $2,026.74 per month.

Savings of ~$500.00 per month. On the surface, saving $500.00 per month sounds like a good deal, but is it?

Since the asset is worth only $200,000.00, consider the various interest rates for a term of 30 years:

6.5% rate gives a payment of $1,264.14.

8.5% rate gives a payment of $1,537.83.

12.0% rate gives a payment of $2,057.23, similar to modified payment proposed.

15% rate gives a payment of $2,528.89, similar to current mortgage payment.

In effect, the current lender is asking you pay a cash flow to them on an asset worth $200,000.00 with the modified loan at 12% or at the current monthly payment at 15%. This assumes that you pay your mortgage for a total of 30 years. Paying a mortgage at those rates makes no sense.

Accepting Loan Modification Cash Flow Analysis ($200,000.00 value):

30 years with a payment of $2,026.74 yielding 11.933% for a total of payments of $729,626.40.

30 years with a payoff at 10 years with a payment of $2,026.74 requires a $319,532.34 payoff yielding 14.933% for a total of payments of $562,741.14.

30 years with a payoff at 5 years with a payment of $2,026.74 requires a $363,972.30 payoff yielding 21.616% for a total of payments of $485,576.70.

This analysis is important. It would be rare that a consumer will actually go longer than 10 years with a modified loan and realistically it will end up being refinanced or the property sold somewhere between 5 to 10 years. That would mean the consumer will end up paying somewhere between 15% to almost 22%.

However, if the homeowner becomes a renter, consider this cash flow analysis:

Renting for various periods:

Renting for 10 years with rent for years 1-3 at $1,600.00 at years 4-6 at $1,750.00 at years 7-10 at $1,850.00 would be a total of payments of $213,000.00.

Renting for 5 years with rent for years 1-3 at $1,600.00 at years 4-5 at $1,750.00 would be a total of payments of $99,600.00.

Of course, none of this assumes any increase in value for the underlying property being owned nor any tax benefit. Any increase in value over the next 5-10 years is highly speculative and even a 5% increase per year still does not impact the 10 years projection in any real favorable ways. As consumers grasp this concept, the results could be dramatic.]]> http://seekingalpha.com/article/149841-178-loan-mod-companies-pursued-by-government-it-s-about-time?source=feed#comment-596287 596287 Tue, 21 Jul 2009 08:53:39 -0400
No one else stepped up to the plate, as they say...the best and brightest were no to be found....

If you all have time to criticize, then you have time to help...

You're either part of the solution, or you're part fo the problem.]]> http://seekingalpha.com/article/149841-178-loan-mod-companies-pursued-by-government-it-s-about-time?source=feed#comment-596090 596090 Tue, 21 Jul 2009 02:14:45 -0400
These people need to be shut down for good, not just their corrupt employers. They know very well regulators are too slow and there are too few to catch them all in a timely fashion.

]]> http://seekingalpha.com/article/149841-178-loan-mod-companies-pursued-by-government-it-s-about-time?source=feed#comment-595582 595582 Mon, 20 Jul 2009 16:28:44 -0400 http://seekingalpha.com/article/149841-178-loan-mod-companies-pursued-by-government-it-s-about-time?source=feed#comment-595146 595146 Mon, 20 Jul 2009 11:50:04 -0400 http://seekingalpha.com/article/149841-178-loan-mod-companies-pursued-by-government-it-s-about-time?source=feed#comment-594881 594881 jack]]> Mon, 20 Jul 2009 09:23:24 -0400 > jack]]> http://seekingalpha.com/article/148707-are-loan-modification-programs-working?source=feed#comment-589334 589334 Wed, 15 Jul 2009 13:25:50 -0400
The missing ingredient that would drive effective loan mods is the lack of recourse to bankruptcy for home buyers who live in their own homes.

Bottom-up loan mods obtained case-by-case, mainly via pre- and post-bankruptcy filing negotiated settlements, are better than top-down government-driven schemes that exclude folks who would be included with good underwriting and include folks that good underwriting would exclude.
]]> http://seekingalpha.com/article/148707-are-loan-modification-programs-working?source=feed#comment-589306 589306 Wed, 15 Jul 2009 13:11:47 -0400
Mr. and Mrs. ZZZZZ have a mortgage payment of $1,170 ($200,000 loan with 30 year payout at 5.75% interest). The ZZZZ’s lose their job and can only pay $470, so the government pays the difference of $700 so the ZZZZ’s remain homeowners and work through their problem. It takes the ZZZZ’s 10 months to get back on their feet, the government paid out $7,000 and now the ZZZZ’s owe the government. But the government says, okay you can start paying us back in seven years and the payment will be over 10 years at an interest rate of 3%.

What the government has done is provide assistance to the property owner (just like the bailout plans for the Financial Industry and Automotive Industry) and requires them to pay back the obligation starting in seven years. This is not a freebie, but short term assistance. Franklin Roosevelt called it Lend Lease.

This program is not perfect, it can assist a lot of people who want to own homes and most importantly it is channeled directly to the property owner, not a large corporation that has motives other than keeping the property owner solvent. A significant benefit of this program is that payments to financial institutions will resume and cash flow will get back to normal levels, thus credit availability should improve.

There need to be conditions, such as confirming gross income via income tax statements, confirming employment and confirming current payroll. The only group of individuals who would be excluded are those who own more than one property (there should be no break to the investor who treated real estate as a business) and cases where mortgage fraud exists in the form of straw buyers and invalid sales (properties that sold more than three times within five years and the value change was greater than 150%)

The total assistance would be capped at $50,000 and could run for 24 to 36 months. So in a given year up to $25,000 could be provided. The government would be releasing the funds over 12 months, this the federal outlay would be limited. The total cost of 10 million loans receive assistance would be $250 Billion per year or $500 billion in total. This is much cheaper than the TARP bailout and part of this can be funded with the current $70 billion in TARP repayments.

The greatest difficulty in implementing this program is processing and accounting. Loan Servicing companies would need to add staff (if one servicer can process 50 applications a week, 4,000 servicers would need to be hired, plus additional support staff) Wow, as many as 10,000 new jobs would be created. Add to this job creation the fact that several million homes do not go into foreclosure and more jobs are not lost to desperate situations.

Yes it is possible and yes it can work.

The reason it can work is because real estate goes through cycles. If people are forced to sell at liquidation prices everyone loses. Give property owners a chance to get back on their feet, get back to work and the whole economy starts to turn around.

As stated early, this is not perfect and many will complain about the injustice. But think about the injustice of the corporate bailouts, the injustice that first time home buyers get a break, the injustice that shareholders come before the individuals who created value in the companies by buying products. One can go on and on, or we can try. We only fail if we do not try.


]]> http://seekingalpha.com/article/148707-are-loan-modification-programs-working?source=feed#comment-588995 588995 Wed, 15 Jul 2009 10:39:04 -0400 Mods -hmm-only save less than 5% in our market. That means an owner has good credit, a solid home w/equity in a good area and a secure job(in health care) and current or less than 90 days late. Odds are not good folks.

The big problem is on the backs of those paying the mortgage. Give them the a 3% reward for paying on time. But,They are losing equity everyday, yet taxed more-for less. How: Lenders refuse to take title on many pending foreclosed homes leaving it to the defaulted owners who bailed. So, now the cities and states; which are near bankrupt must foreclose/raze the junkers. Increased taxes are the citites answer, but there are fewer homes/owners to be taxed and the equity piggy bank continues down! More homes go on the market etc....
Lenders are just letting wall st and DC see better numbers-the losses are coming folks-just not this year.

Therefore, home values will continue to fall, causing more hardship foreclosures next year, and thus any loan mods will fail due to continued loss of home values, more future layoffs etc....

Is there anyone out there reading the tea leaves or in the streets dealing w/ foreclosures like myself? Am I a loan(sic) here?
At least I can tell you the truth-like it or not.]]> http://seekingalpha.com/article/148707-are-loan-modification-programs-working?source=feed#comment-588240 588240 Tue, 14 Jul 2009 17:53:43 -0400
Your last sentence states it the best.

We are reading data that means what? The real question is 6 months from now to see how many people are current on the loans. We are so addicted to immediate results, we forget that it does really take time for this to work.

If you want cheap wine make it yourself or if you want a good bottle it needs to age.]]> http://seekingalpha.com/article/148707-are-loan-modification-programs-working?source=feed#comment-588207 588207 Tue, 14 Jul 2009 17:22:22 -0400 http://seekingalpha.com/article/148707-are-loan-modification-programs-working?source=feed#comment-588173 588173 Tue, 14 Jul 2009 16:51:16 -0400 http://seekingalpha.com/article/148707-are-loan-modification-programs-working?source=feed#comment-588142 588142 http://www.housingnewslive.com/blog.php ]]> Tue, 14 Jul 2009 16:23:19 -0400
"In the first quarter, loan companies modified 185,156 mortgages, up 55 percent from the previous quarter. But the number of foreclosures in process increased to 844,389, up 22 percent."

The loan modification efforts to prevent the increase of foreclosure rates have not got a huge welcome. The reason is because the lender needs to revise the ‘borrowing terms’ of the troubled borrower who is struggling to repay the loan on time. It also involves reducing the interest rate which is generally not received well by the lender who would lose some margin in the sale. In addition, the revised plan involves cutting the principal amount by reconsidering the financial state of the borrower and hence, it tackles the benefit of the borrower than guarding the interest of the lender.

Check out : www.housingnewslive.co...
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