Anonymous_IHB
New member
<A href="http://www.bloomberg.com/apps/news?pid=newsarchive&sid=al5p85mlike0">http://www.bloomberg.com/apps/news?pid=newsarchive&sid=al5p85mlike0</a>
Obama Mortgage Refinancing Program May Expand, Lockhart Says
- Thread starter Anonymous_IHB
- Start date
NEW -> Contingent Buyer Assistance Program
freedomCM_IHB
New member
amazing. or not.
125% LTV. talk about debtors prison...
125% LTV. talk about debtors prison...
usctrojanman29_IHB
New member
[quote author="freedomCM" date=1245458002]amazing. or not.
125% LTV. talk about debtors prison...</blockquote>
More taxpayer money is just going to be flushed down the toilet. Wow, they are going to pull out all the guns to keep the real estate propped up, aren't they?
125% LTV. talk about debtors prison...</blockquote>
More taxpayer money is just going to be flushed down the toilet. Wow, they are going to pull out all the guns to keep the real estate propped up, aren't they?
IrvineRenter_IHB
New member
At 125% LTV, I doubt they will get much participation. Most people will choose to walk if they are that far underwater.
freedomCM_IHB
New member
The comments on CR are all over the board.
Most thoughtful people echo IR's sentiments.
But we know that most people who have 125%LTV aren't so thoughtful (financially, at least) since they are in that situation, no?
Some say that so long as the refi's are from the FHA, FRE, etc (or even a bank's own) book, it will only help the bank, as the people will continue to pay on their loans, rather than walking. (as opposed to them refi-ing other lender's book, which is a loser).
Most thoughtful people echo IR's sentiments.
But we know that most people who have 125%LTV aren't so thoughtful (financially, at least) since they are in that situation, no?
Some say that so long as the refi's are from the FHA, FRE, etc (or even a bank's own) book, it will only help the bank, as the people will continue to pay on their loans, rather than walking. (as opposed to them refi-ing other lender's book, which is a loser).
Soylent Green Is People_IHB
New member
So I'm not a thoughtful person on CR's hoocodanode board....? 
People are willing to be debt slaves, partly out of convenience, partly out of honor. If a person isn't moving and is upside down I am seeing a great deal of interest in refinancing. Many others I speak to simply feel its right to live up to their commitment, if only at a lower cost per month. You'd be surprised at just how many people are willing to suck it up and pay off the loan they knowingly took out.
The thing to remember in this market is that values go up, values go down, and values can go back up as they will at some point, only at a very slow rate. Most people who bought in 1999 (start of bubble) to 2004 (not top but peaky...) are likely to continue paying their loans. Their equity position for the most part is down 30-40 percent, but most of those buyers did not have the zero down stated kind that arose from 2004 to 2006. The likely walkers are the 2004-2007ish buyers who really stepped in it.
As a side note, in the Friday 'Tard meeting I attend, someone asked "Are there any Stated Income loans out there" to which I replied, yes: Cash.
Then a CW/BofA rep said that if a Short Sale home was originally financed with a stated income loan and if the buyer of the SS is willing to assume the terms, the original guidelines for the existing stated income loan would be available. Crazy, and worth a double check, but the CW/BofA rep isn't a doofus and I trust what he says based on past experience.
My .02
Soylent Green Is People.
People are willing to be debt slaves, partly out of convenience, partly out of honor. If a person isn't moving and is upside down I am seeing a great deal of interest in refinancing. Many others I speak to simply feel its right to live up to their commitment, if only at a lower cost per month. You'd be surprised at just how many people are willing to suck it up and pay off the loan they knowingly took out.
The thing to remember in this market is that values go up, values go down, and values can go back up as they will at some point, only at a very slow rate. Most people who bought in 1999 (start of bubble) to 2004 (not top but peaky...) are likely to continue paying their loans. Their equity position for the most part is down 30-40 percent, but most of those buyers did not have the zero down stated kind that arose from 2004 to 2006. The likely walkers are the 2004-2007ish buyers who really stepped in it.
As a side note, in the Friday 'Tard meeting I attend, someone asked "Are there any Stated Income loans out there" to which I replied, yes: Cash.
Then a CW/BofA rep said that if a Short Sale home was originally financed with a stated income loan and if the buyer of the SS is willing to assume the terms, the original guidelines for the existing stated income loan would be available. Crazy, and worth a double check, but the CW/BofA rep isn't a doofus and I trust what he says based on past experience.
My .02
Soylent Green Is People.