Comments on: New Data: Housing Crisis Gets Worse; Many Modified Mortgages Still Delinquent!

By: Joshua Dorkin

Joshua Dorkin — Sat, 27 Dec 2008 03:38:34 +0000

I’m sorry to hear that Italy is dealing with a similar mess as we are. In fact, I’d challenge someone to tell me of a country out there that isn’t going through a financial/housing crisis right now.

By: Paulo Pagano

Paulo Pagano — Sat, 27 Dec 2008 02:14:50 +0000

hi and greetings from Italy, which is in now in a very similar position to the USA regarding current mortgage crisis

By: Steve Hula

Steve Hula — Wed, 24 Dec 2008 17:22:28 +0000

We have been in the Real Estate business for 30 years and would like to offer our idea for a solution, or at least an idea, to ease the housing crisis.

Step #1: Give everyone who has a mortgage a 120 day moratorium on their mortgage payments. This would be retroactive for anyone who is currently late on their payment. This would act as a great stimulus to the economy, especially at Christmas time when people are motivated to spend money!

Step #2: Individuals apply for Gov payoff and refinance into a 30 yr. fixed rate of 3% – 4%. Applicant shows decrease or loss of income. Gov will payoff the loan, same as any home owner could do at anytime they were able, and the Gov will hold the deed to these homes so will have something if the home owner still goes into default. If a home owner is still unable afford the payment, work a Gov Subsidized loan with them and keep them in their home, same as the Gov does with Gov subsidized housing projects across the country, only difference is that the Gov will own these homes, not the developers who build Gov subsidized housing projects.

This process could be run through the mortgage lenders, and anyone associated with this process would provide a huge shot in the arm for them and should create additional jobs at the same time.

In short, if the banks don’t want to loan money to help jump start the economy, it’s time for the Gov to step in and do it for them!

By: bangzenk

bangzenk — Wed, 24 Dec 2008 08:41:54 +0000

I agree with you Charles. Thank you. bangzenk’s last blog post: Bailout Billions Gone?

By: charles

charles — Wed, 24 Dec 2008 05:53:20 +0000

Arn....I totally agree with you. Charles charles’s last blog post: The BiggerPockets Real Estate Show tackles Madoff & Housing Bailouts

By: Arn Cenedella

Arn Cenedella — Wed, 24 Dec 2008 02:20:34 +0000

Charles: This is not suprising to me. The whole mortgage modification game is a big sham created by our Wash DC politicians to make us think they are doing something to clean up the mess they created. The truth is that most of the people in sub-prime mortgages could not afford mortgages for even 50% of the loan amount they were originally approved for. So how is any modification going to help anyone? Most sub-prime borrowers did not put a dime into buy a property. That being said, their loan balances are so far above the current market value of the property; that it will be years if ever until the market value increases above the loan balance. The government should just get out of the way. Let the lenders foreclosure and sell the property at a loss. They made the loans. Let them take the loss. These properties will be re-sold at supportable market values and we can re-establish a floor for the real estate market. In addition, these modifcations are not fair. Why should a borrower who put no money down get balied out and someone whop put cash down and is therefore NOT underwater and still making payments NOT get bailed out? Does not make any sense. Arn Cenedella’s last blog post: Foreclosure Opportunities #2

By: Rich Mundle

Rich Mundle — Tue, 23 Dec 2008 21:52:00 +0000

Pretty hard to pay your mortgage when you don't have a job. Rich Mundle - Sherwood Park Real Estate