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walk away, wait 3 years, can buy home, no problem
invite response
2011 Mar 4, 3:52am 19,616 views 117 comments
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American in Japan
2011 Mar 25, 2:03am
@Payoff2011
My LOL was more of a "they deserve to pay more for their irresposibility" laugh than a "your idea is crazy to think interest rate and downpayments could ever get so high again laugh" FYI.
@fatblond
"If you look at this issue strictly from a numbers perspective, there are far to many people that have or will have foreclosures on their record for banks not to lend to them after some period of time."
So will those who didn't walk away get some outstanding rates/deals from banks since they are "rare gems" as borrowers?
maxweber
2011 Mar 25, 3:42am
Hmmm, good info from several in here. Nothing on mortgage tranches. Would be nice to hear from someone who knows if CMO's are trading. Obviously they are since our mortgages are immediately being sold to F/F/G. The whole trick was to stuff a tranche full of crapola and relabel it as A+ or whatever. So, if they are selling and FED or whomever is buying then who really cares if they will really pay. You see, it doesn't matter to the FED because they can just print more money. I think people on this list tend to loose sight of the overall system and what matters. Some Joe Conartist strategically defaulting doesn't break the buck when the FED/banks can eat the mortgage payment and pretend its still a fine investment. FED has "Total assets in the March 16 week came in at $2.587 trillion. " -- http://www.totalmortgage.com/blog/mortgage-rates/federal-reserve-may-resume-asset-purchases/5377
How many are mortgages? how many are not being paid? how abuot F/F/G? Are they actually expecting their mortgages to be paid? Who's the sly fox: the worker who saves and pays for his house or the conartist who takes advantage of these free money programs?
At least one Congressman on the Housing committee filed for bankruptcy himself:
http://www.cincinnatiohiobankruptcyattorney.com/2011/02/congressman-files-for-personal-bankruptcy.shtml
FED position info:
http://www.infiniteunknown.net/2011/02/28/federal-reserve-owns-37-percent-more-treasurys-than-china-balance-sheet-update/
1.2T MBS, ~2T treasuries. Same pump.
1.2T/50M houses with mortgages (I guess) => $24k. Or, at $200K home value, 6M houses. That is a LOT.
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I heard this phrase everywhere, blogs, forums, here
The housing peak was 2007. Then some early folks started to walk away in 2008.
So this year is the year those folks could "buy a home again".
Has this been done before, I wonder?
I was wondering how it really works, someone who walked away, then after 3 years, went to the mortgage broker/bank,
applied for the loan, bank ran the credit analysis, and the audit/processing people did not raise any flag "hey, you defaulted before, no worries, we will lend you again"
#housing