The Coming Mortgage Debt Reduction Programs
A Follow up
Rising unemployment - Clocking in at 110,000 this month
Declining home prices - Home prices are doing better than last year, but foreclosures, tighter credit requirements and job loss will keep a lid on price.
Alt A mortgage rate resets- More than $200bn of outstanding pay-option adjustable-rate mortgages. More than 40% of borrowers are 60 or more days past due on payments
The home crises is far from over and millions of Americans are still faced with underwater mortgages and increasing mortgage payments. It is estimated that 10 to 12 million more foreclosures may take place. Clearly, the Govt programs are no longer sufficient, if the metric is to slow the foreclosure process and keep homes off the market.
The FDIC acquires failed banks, some 124 just this year and may soon be require failed banks to cut principal mortgage debt rather than forbearing a portion until a later day or lowering interest rates.
FDIC Chair Sheila Blair told Bloomberg news that the FDIC is considering a loss-sharing for failed banks, requiring the banks to write down mortgage principals because job loss is driving mortgage distress.
Last week I wrote that Citigroup had suggested that banks would have to step up and do principal write downs to share in the burden of this great recession. It wont be long before we hear from Obama about how its time for the banks to step up and share the burden. About time, I think
Thanks for Reading
www.yourpropertypath.com
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Fannie Mae Gets Into The Home Rental Business NAR Report Third Quarter The official figures indicate recession has ended
Rising unemployment - Clocking in at 110,000 this month
Declining home prices - Home prices are doing better than last year, but foreclosures, tighter credit requirements and job loss will keep a lid on price.
Alt A mortgage rate resets- More than $200bn of outstanding pay-option adjustable-rate mortgages. More than 40% of borrowers are 60 or more days past due on payments
The home crises is far from over and millions of Americans are still faced with underwater mortgages and increasing mortgage payments. It is estimated that 10 to 12 million more foreclosures may take place. Clearly, the Govt programs are no longer sufficient, if the metric is to slow the foreclosure process and keep homes off the market.
The FDIC acquires failed banks, some 124 just this year and may soon be require failed banks to cut principal mortgage debt rather than forbearing a portion until a later day or lowering interest rates.
FDIC Chair Sheila Blair told Bloomberg news that the FDIC is considering a loss-sharing for failed banks, requiring the banks to write down mortgage principals because job loss is driving mortgage distress.
Last week I wrote that Citigroup had suggested that banks would have to step up and do principal write downs to share in the burden of this great recession. It wont be long before we hear from Obama about how its time for the banks to step up and share the burden. About time, I think
Thanks for Reading
www.yourpropertypath.com
Related Articles
Comments (3)
The market has to clear as they say and the more the government gets involved (help) the slower and less efficient the clearing process will be. I totally agree that it would be painful you can't argue that point. But we will have to pay the piper some how some way. We can do it over 1-2 years or 5-7 years. I say rip that darn band-aid off and let the seeds of capitalism kick in. But the powers that be seem to like the other option
Michael Zuber, over 16 years ago
You are right...still the problem can sink banks, agents, @ 20% of the economy perhaps a return to the darker days of this great recession more jpb loss (110k lost this month and Im happy!)...if we dont forstall this somehow it will be worse So much more at stake that I think sometimes you have to help even the undeserving because the cost of not doing so is greater.
Howard, over 16 years ago
I'm so tired of watching the clueless get a bailed out of their poor choices. They bought too much house or they didn't save enough to cover job loss or unexpected medical problems. They spent and spent and now they think it's not their fault. These people think the lender took advantage of them and some how it's the lender's fault they are in trouble. 85% of the property I take back has at least one or two of the following: New cars, RVs, boats, big screen TVs, a 2009 kitchen in a 1954 house. If you lost $500K in the stock market nobody bails you out. Let them sink. They will come back better for it.
david, over 16 years ago