RatWatcher

Prime Mortgages Are Also Going Sour

I think this is correct. It is simply the difference between a realized and unrealized loss. The TARP is buying time for values to recover. Unfortunately, the situation seems to be one in which values will remain low longer than banks can hold out. Watch out when the dam breaks.


On Aug 20 09:26 PM Dialectical Materialist wrote:

> I am certainly no expert, but I have read that there are financial
> reasons for banks to delay. As the property sits in foreclosure,
> it's value is still subjective. Once it is sold in a distressed
> sale the loss on the mortgage is fixed. Also, it costs money to
> bring the process to fruition. So processing a lot of foreclosures
> is costly in two ways -- the losses realized and the money to process
> the sale.
>
> On Aug 20 07:36 PM Suncatcher wrote:

Credit Card Crunch: Creating a New Generation of Subprime

'My wife has been sick for over five years and our insurance doesn't cover everything. As one small example, her medication costs me over one thousand dollars a month. I'm retired and my retirement fund has been cut in half. Now tell me, where am I to get the money every month?'

Are you planning to pay this back? Respectfully of your situation, this sounds like you are planning to default. That is not borrowing. It's stealing.