patrick.net

Yeah, where's the bailout for those of us that can easily afford our homes, have reasonable 30 year mortgages, and are upsidown? Where the hell is my free money??

I keep saying my husband and I should have bought the nicest house in Orinda for a million or more, right now we'd probably be "distressed" and could qualify for free handouts and have a house in Orinda for the same price..

This seems like a horrible deal. More bail outs? More taxpayer money give away to those who overborrowed against the future debt of America passing the debt to the rest of the taxpayers?

I'm completely against this. Going to contact my senator(s) now, because nothing more pisses me off than more bail outs.

At this rate they might as well force all the landlords to lower rents, all the banks to give money out, and all the farmers to farm for free. And when the game is over yet again and we are broke the retired administration cay say "oops we were wrong".

Forget about the old America - the parasites are charge now.

Banksters and thier FB modern day serfs will continue to be in charge for a long time probably....

lurking says

The investors ultimately get the shaft and that is everyone that has bank stocks and mutual funds. I hope the public rises up against yet another give a way program.

America has to wake up in many ways!

Yes its RIDICULOUS the op thinks this is 'all over'! haha. Its just started! And it will last the rest of our lives.

There are millions of loan mods they ALREADY DID. (2% interest rate which only applies to part of the principal is common). These loans will be around for 30+ years - I know they are supposed to be '5 year mods' that is BS - they will get extended permanently. This will kill job growth and keep house prices artifically high by keeping deadbeats in homes they cant afford. Its like S-8 for homeowners.

Meanwhile they are writing loan mods by the thousand and short sales are racheting up.

So I guess the trend with the feds is going to be 'a home should only cost 31% of your backend DTI!' Which means bailouts/freeebies 4eva.

Obama told us he would 'spread the wealth' - this is it people! Vote democrat! lolz.

http://www.americanbankingnews.com/2010/07/20/bank-of-america-loan-modifications-total-650000-nyse-bac/
(this is only ONE bank..yes its the largest......but the total is from last summer)

toothfairy says

Now that the strategic defaulters and short sellers are out of the system generally the only ones left are people who did the right thing and are now getting their bail out.

Huh? In the little bubble desert city of Hemet, with a little population of 74,000 total, there are 367 homes in preforeclosure, that have gotten a Notice of Default, but without an Auction date yet.

Those are the future strategic defaulters and short sellers that you claim are out of the system. Those who pay their mortages and taxes on time can bail out these deadbeats:

Mr.Fantastic says

They get free money out of my pocket

Tude says

...More taxpayer money give away to those who overborrowed against the future debt of America passing the debt to the rest of the taxpayers?

This has nothing to do with taxpayer money. Did you guys even read the article?

The modified mortgages could cost the five financial behemoths -- Bank of America, JPMorgan Chase, Citigroup, Wells Fargo and Ally Financial -- as much as $30 billion, according to sources.

toothfairy says

This seems like a fair deal.

It's fair to give monetary rewards to people for buying more house than they could afford? What the fuck is fair about that? Did the meaning of the word "fair" change when I wasn't looking?

"NEW YORK — The Obama administration is seeking to force the nation’s five largest mortgage firms to reduce monthly payments for as many as three million distressed homeowners in as little as six months as part of an agreement to settle accusations of improper foreclosures and violations."

Accusations and threats only. Very little to show as evidence. These homeowners were delinquent on their mortgages for months if not years anyway.

PockyClipsNow says

Meanwhile they are writing loan mods by the thousand and short sales are racheting up.
So I guess the trend with the feds is going to be ‘a home should only cost 31% of your backend DTI!’ Which means bailouts/freeebies 4eva.
Obama told us he would ’spread the wealth’ - this is it people! Vote democrat! lolz.

Yep! can it get any more crazy than this ?

Now that the strategic defaulters and short sellers are out of the system

Really? When did this happen? Sounds like somebody is dreaming of a free handout.

klarek says

Really? When did this happen? Sounds like somebody is dreaming of a free handout.

Just another sound bite from realtors to sway the public in believing prices have settled.

thomas.wong1986 says

klarek says

Really? When did this happen? Sounds like somebody is dreaming of a free handout.

Just another sound bite from realtors to sway the public in believing prices have settled.

What is Tooth Fairy actually suggesting though, that foreclosures have stopped? That principal reduction is actually justified? Doesn't make sense any way you cut it, but TF obviously has an interest in seeing people become rewarded for their dumb decisions.

Klarek. Yes, Its all BS to even claim it stopped. There is plenty to come... thanks to Govt.

Mr.Fantastic says

Natural market forces.

Govt has a warped mind ! They are still in denial that home prices should be lower.
The banks would be all too willing to get rid of the FC homes ASAP, but its the govt that in the way. God almighty why dont these idiots sober up and get over it already.

We are going to have PERMANENTLY HIGH foreclosures and short sales due to the feds response to save all banks and throw bones at FB's.

This situation will never end. Its already too late. The millions of mods have been done.

Over time you might think rising home prices will fix this but those people with loan mods will simply get yet another round of free HELOC $ right on top of the mod....then default....then try to game it again with a fraudlent short sale to their brother in law or other BS (which I see all the time).

We know this will happen because this is what has happened so will keep happening. Its like crime - never goes away.

For half the country (we will call them credit junkie parasites) running up every debt you can THEN declaring bankruptcy every 7 or so years is ALREADY common. This housing policy is more free shit for them to game.

I can't pay my taxes, will I get a reduction in my taxes? it's very similar notion to paying a mortgage but the benefit is you get a deduction and now reduction in monthly payments ... what a deal!

Mr.Fantastic says

Yeah it’s weird that he would suggest the “dead beats” are already out of the system when short sales are still a big part of the market.
Principal reduction is moral hazard anyway you cut it. Obama is going about this in the wrong way. He shouldn’t force the banks to give free money away, banks only do that with government money. He should force the banks to release all the shadow inventory, and let the housing market plummet. Natural market forces.

Exactly! I have been quoting on this forum for quite while now. Forces of nature applies to economics as well. It is not in anybody's(government,banks,sellers,buyers etc..) hand to correct the current market.

I should say *most* deadbeats. Anyone who was only in it because they expected to flip is hopefully long gone by now (would be stupid not to be).

so the only people left are ones who intended to do right thing. it's not their fault the bans were playing games that caused values to plummet over 50% in some cases.

I have some sympathy for those people. banks have been bailed out now it's time to help average homeowners. Most deadbeats walked away by now anyway.

renters are not really screwed because they're able to buy a house at prices from 10 years ago.

Toothfairy, if someone is upside down on their house it is not because they made a "right decision". There are plenty of people who lived for years by simply borrowing frivolously against their house. I don't believe they need to be given another free lunch courtesy of the rest of the taxpayers.

sfproshopper says

I can’t pay my taxes, will I get a reduction in my taxes? it’s very similar notion to paying a mortgage but the benefit is you get a deduction and now reduction in monthly payments … what a deal!
On Patrick.net since 2008

Yup, I am a "distressed taxpayer" too - I need a bailout!!!

toothfairy says

I have some sympathy for those people. banks have been bailed out now it’s time to help average homeowners.

The "average" homeowner isn't underwater and doesn't need any help. The ones you're describing don't deserve any help. We've gone overboard subsidizing stupid and expensive purchases. To continue to do so or to step it up would not help our situation at all, and is immoral.

toothfairy says

renters are not really screwed because they’re able to buy a house at prices from 10 years ago.

So what? Prices will fall anyway. Suppose that it drives prices below fundamentals, investors will just scoop them up. So what's the point? What if those underwater people DON'T sell their houses? What if in ten years they sell for a nice profit and get to keep the money you're advocating should be written off of their principal balance. How is that fair?

toothfairy says

Most deadbeats walked away by now anyway.

Contingent upon those who haven't walked away yet not earning "deadbeat" status? Where do you even come up with this conclusion?

What's your real reason to see something like this happen?

bayhousehunter says

Yup, I am a “distressed taxpayer” too - I need a bailout!!!

me too. why the hell am I paying taxes to bail out some who can't manage their finances?