mcl_mixer

The Next Leg up in Financials

ifuwish2, do you really think the bank is going to refinance somone's loan if they're unemployed, behind on their payments, or still don't have enough income because they lied about their income on the original loan? Over 5 million people have lost their jobs in the last 6 - 9 months. They're not going to qualify for a refi. Back in 2005 and 2006, about 30% of all home purchases were for investment properties or second homes. They're not going to qualify either. If someone owes $200k on a house now worth $140, do you really think the banks going to just write off that $60k. Doubt it. An expert on CNBC this morning stated that the banks are in good shape because only 3% of their loans are non-performing. That would be great if their balance sheets hadn't have been leveraged at 40:1. This rally's almost over. Look out below!


On Apr 17 01:58 AM ifuwish2 wrote:

> mcl_mixer i dont understand why you cant see why if someones house
> payments are $1200.00 a month and they refinance it and their payment
> is $800.00 now that they can pay their mortgage payments now. the
> banks then make 100% on the bad loans now so i guess some people
> still have no concept of the idea. it may be quite complicated for
> some,,,,so you buy your faz and ill buy the stocks and see who makes
> more..this is a win ,win situation for the banks

The Next Leg up in Financials

‘What happens to bank financial statements when a toxic mortgage gets refinanced?’

Let me see if I understand your point. These banks are going to refinance the loans of people that are either behind in payments, unemployed, underwater, initially lied about their income, or are already in foreclosure, and that's going to improve the banks balance sheet? Bet these people have excellent FICO scores. I don't follow your logic. I think I'll buy some FAZ.