brpinion

Foreclosure Moratoriums: It's Time to Get Real

If the government lowers principal what incentive will their neighbors have to keep paying their full mortgage payment? Are we saying the less responsible should benefit at the cost of their neighbor who may be cutting way back to keep up their payments? If I knew my neighbors were getting their mortgage cut I would want the same from the bank.

Also, What about the person who put 20% down and prices drop 25%. He can keep making his payment (because it is on a smaller principal balance) but his neighbor who put nothing down and puts in a pool can get his principal cut 25%?

I cant wait to see how the people who had the audacity to make a large down payment react to principal cuts for people who bought more than they could afford with no money down. And, if you bought any house with no money down you bought more house than you could afford!

Home Prices May Be Nearing Bottom, Bank Equities to Follow?

One big reason loans will continue to default in mass is that no one can afford to sell their home. I live in a booming area of atlanta where a hugely successful residential/retail/hot... development broke ground 4 years ago. At that time condos sold by lottery (because there were so many willing buyers) for $430,000 to $490,000 are now being sold in foreclosure between $199,000 and $235,000!

Therefore, no one can afford to sell at a quarter million dollar loss. People can't move for new jobs or if their family expands. I have watched this disaster unfold and wonder if this is happening elsewhere. If you don't believe me look up "Atlantic Station" and the condo/hotel "Twelve" in Atlanta. Check out the prices on realtor.com