tkap

Total Rating:
0 / 0

3 Comments

    • Sat Dec 8th 11:34 AM | Rating: 0 0
      Commented on:
      Some Straight Talk On the Mortgage Mess
      Herb...........thanks for telling it like it is! I would add that this mess has been dropped on the doorstep of America, not by Wall Street, but rather by a handful of rating agencies in competition for transaction fees from Wall Street, these the same rating agencies that once upon a time relied upon investor clients for their revenue.
      View article »
    • Sat Dec 8th 10:49 AM | Rating: 0 0
      Commented on:
      The Government's Subprime 'Bailout' Plan Will Kill the Housing Market
      To rocyeah:
      Thanks for the reference...once again, I am reminded of how glad I am that I never considered going to law school.
      View article »
    • Fri Dec 7th 17:49 PM | Rating: 0 0
      Commented on:
      The Government's Subprime 'Bailout' Plan Will Kill the Housing Market
      Davy......I missed the neg-am aspect of this plan. Does the proposed plan allow for ARM mortgage rates to reset in accordance with the existing loan contract while simply holding monthly payments at the current level for five years (leaving unpaid interest to accrue as added principal)? If so, this is not an interest rate freeze, but rather is a potential screw job for the "homeowner", for the benefit of the banks and holders of commercial paper. The effect is to delay (while increasing the probability of) default. And, while it perhaps buys some time for investors and banks, it encourages a homeowner with negative equity in his property to continue to throw good money after bad, while housing prices continue to fall and his loan principal grows. I think most homeowners in these circumstances will be wise enough to send in the keys in lieu of their next monthly payment......this assumes that the "homeowner" could lease a comparable property for significantly less than the after tax value of his mortgage payment. This is an important point because, if the "homeowner doesn't have a favorable leasing alternative, he will and should stay put.

      As for jcrash's point about the lender going after a defaulted homeowner for the deficiency in a foreclosure, he's correct, I believe, in some states....but there used to be (and may still be) many states with anti-deficiency laws on the books which prevent the mortgage holder from chasing the defaulted homeowner in an effort to recover a deficiency. Maybe somebody more knowledgeable than me can elaborate on this legal issue.
      View article »
Loading...
Symbols:
Authors:
Quick Links:
Contribute an Article Become a Seeking Alpha Contributor

Transcripts

More Transcripts»