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When I read articles like this, I wonder what the unindended side effects might be. I imagine that some lenders (the smarter ones) will stop making new loans in that state or make new loans more expensive and require higher initial down payments, etc.

zzyzzx says

When I read articles like this, I wonder what the unindended side effects might be. I imagine that some lenders (the smarter ones) will stop making new loans in that state or make new loans more expensive and require higher initial down payments, etc.

Yes, this will certainly seem to make higher rates, higher qualifications and higher down payments the wave of the future (a good effect, actually). But what about current delinquent loans? Will the bank give up on trying to forclose, essentially giving the loan owner a free home, while the bank looks to the taxpayer to be bailed out for the loss? That is, sell the legally uncollectable loan to a government agency like Fannie/Freddie, or some new agency created for that purpose.

It's just another cover up, to avoid the housing market look worse. It will take longer to foreclose on, thus allowing more time to sell what's currently on the market. Even though unemployment is fairly low in Hawaii, around 7% last time I looked, they still have too much to sell. Demand is low while supply is high causing prices to drop. Seeing that most sells are to rich people who just want to rent it out to vacationers, and tourism is dropping. Hawaii is in for further drops, hopefully to 2001 levels eventually.

Patrick should LOVE this! As much attention as he gives to this Real Estate situation, you'd think he would 'get' the connection between liberal politics and how this is playing out. Patrick is IMMERSED in California "stupid-think". Its frustrating to see him get so much right about this thin sliver of economics and yet miss the boat on issues like Universal Healthcare. Hopefully the journey down the Real Estate debacle will help SOME people begin to grasp the conservative principles that maintain that each person has sovereignty and that he rises and falls on his own decisions. Although America has shown a characteristic of wanting to be noble and charitable, trying to make that a policy is a recipe for human nature to recline, relax, and enjoy the provision of Other People's Money.

Patrick should LOVE this! As much attention as he gives to this Real Estate situation, you'd think he would 'get' the connection between liberal politics and how this is playing out. Patrick is IMMERSED in California "stupid-think". Its frustrating to see him get so much right about this thin sliver of economics and yet miss the boat on issues like Universal Healthcare. Hopefully the journey down the Real Estate debacle will help SOME people begin to grasp the conservative principles that maintain that each person has sovereignty and that he rises and falls on his own decisions. Although America has shown a characteristic of wanting to be noble and charitable, trying to make that a policy is a recipe for human nature to recline, relax, and enjoy the provision of Other People's Money.