Comments on: Mortgage Rate Freeze

By: john@hvordan tjene penger på blogg

john@hvordan tjene penger på blogg — Thu, 05 Mar 2009 14:28:09 +0000

I totally agree with jeff. If people can't pay try to help them out, but it won't do much good if they don't have a job or income at all..**john´s last blog post..Tjene penger på blogging - leksjon 4

By: jeff@T1 line. T1 internet

jeff@T1 line. T1 internet — Wed, 11 Feb 2009 16:17:57 +0000

The fact that alot of the mortages that have been redone already are going back into default shows that no matter what they do some homes will be foreclosed on. The people did not have the money to pay and will not be able to no matter what. If they can repay fine help them out and refinace but no job no income come on foreclose already.

By: Tony@Cheap hosting.

Tony@Cheap hosting. — Fri, 19 Dec 2008 19:03:23 +0000

No matter what the goverment does thier still is to many houses. Some people owned 5 or more hoping to flip them. I can see buying house remodeling it to make some extra money but to buy 5 or more homes and hope to resell at a huge profit and not doing anything to them makes no sense.

They saw easy money now they learned it is not so easy and the rest of us have to bail the market out.

By: dean grazio

dean grazio — Thu, 18 Dec 2008 20:51:58 +0000

To be honest, I find that the market IS self-correcting, it’s going to be a hell lot easier for us if the government just leave us alone instead of trying to help out.

By: Kevin2@High Yield Savings Account.

Kevin2@High Yield Savings Account. — Wed, 10 Dec 2008 16:22:59 +0000

For some reason my comment name did not work just fixing it so it is correct when i post. I could not fix it in change comment form.**Kevin2´s last blog post..Hsbc online banking.

By: Kevin2@High Yield Savings Account.

Kevin2@High Yield Savings Account. — Wed, 10 Dec 2008 16:04:20 +0000

I think they should only do this for people who had a real hardship like lose of job or medical problems. If you do this for people who knew they could not afford home or have mutiple ones people will stop making payments to get bail out.

By: The Fed Can’t Fix Home Prices | The Phoenix Real Estate Guy

The Fed Can’t Fix Home Prices | The Phoenix Real Estate Guy — Thu, 13 Mar 2008 05:28:17 +0000

[...] I’ve said before, I think the government needs to leave the market alone and let market dynamics and [...]

By: John Hunter

John Hunter — Sat, 08 Dec 2007 20:43:12 +0000

I have to look into more what it actually is, but if I understand it the government is paying nothing, giving no other incentives (like reducing taxes owed). With that being the case I can’t see why some people think it is bad. Now as to whether it is close to a fix for the whole problem that seems to be a pretty obvious: No. But if all the government is doing is using some moral suasion I don’t have a problem with it. It is an interesting case where no single mortgage holder owes enough to harm the lenders but together the class does hold enough to harm them.

“If you owe the bank $100 that’s your problem. If you owe the bank $100 million, that’s the bank’s problem.” J. Paul Getty

Individual mortgage holders are in the first situation, together they are in the second. It seems to me if there really is some significant amount of freezing of loan rates thaa will have a significant impact on how much harm the foreclosures do to real estate prices and the economy.

By: Jay - The Phoenix Real Estate Guy

Jay - The Phoenix Real Estate Guy — Fri, 07 Dec 2007 22:08:37 +0000

Spot on Noah…

John’s random thought #1 answers a question I hear a lot — that being “who is going to pay for this?” No one is making up the difference. It’s about losing less money.

By: Noah

Noah — Fri, 07 Dec 2007 14:42:03 +0000

Thanks for post Jay!! I think this is more a political move heading into an election year. You are right, the gov’t should just let this be and let market forces correct the problem.

I hate to say it, but we desperately need a recession. We need those who made bad bets to get punished, the system to weed out the bad bets, the balance sheets to come clean, the borrowers who shouldnt have bought to get hurt, prices to come down more to stimulate sales, and complete reform in the innovations of the financial industry that created products like CDO’s, CMO’s, SIV’s, etc..

This will bring liquidity and confidence back for longer term sustainable growth. In short, we need to go through pain to get through this mess. Either the pain is loooong & slow, or its quicker but more sharp. Ill take quicker & more sharp so that we see the light at the end of the tunnel faster! No one wants a 5+ year bear market because of all of this, trust me!