The government is looking for payback!

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xsocal land merchant_IHB

xsocal land merchant_IHB

New member
<p>It looks like the government is looking for some payback as far as the <a href="http://news.yahoo.com/s/ap/20080218/ap_on_bi_ge/subprime_wall_street">Wall Street whiz kids involvement in the sub-prime mess.</a></p>

<p><em>"This could get a lot nastier, for many reasons," said John Akula, a business law lecturer at the Massachusetts Institute of Technology's Sloan School of Management. "Prolonged close scrutiny often turns up all kinds of dubious practices that in normal times are under the radar.</em></p>

<p>This will get interesting if they really get into the dynamics of the lending and securitization activities. At least they will generate lots of noise and press like looking into steriod use among baseball players.</p>

<p>Regards</p>
 
<p>Wait a minute. Foreclosure blighted Baltimore? Big B is only a Cat 3 on Countrywide's radar. Balto is just plain blighted. It was blighted by pollution when I was born there, and blighted by poverty after that since all the white people did their white flight thing and fled to the burbs, and now it's industrial base is lost, so it's blighted by few jobs. My mom who lives there hasn't reported any noticeable uptick in foreclosures, tho her house isn't worth what it would have been worth if she'd sold it a couple of years ago.</p>

<p>But there certainly will be fingers pointed.</p>

<p>And BS and Goldman S et al, haven't learned anything. I read on a thread at CRisk that they are enticing older people to buy unwanted life insurance, paying them a lot of money with the beneficiary being a 3rd person. Then alledgedly slicing and dicing that after securitization. Next step is, hire the Maf to execute older people who threaten to live too long. the states are busily trying to to outlaw this.</p>

<p>It started innocently enough with viatical transfers for aids patients in the 80s.</p>
 
<p>I think the next big rip-off will be reverse mortages for older folks. </p>

<p>They may work in specific cases but I would probably not reccomend them to clients or friends.</p>

<p> </p>
 
xsocal,

Why wouldn't you recommend a reverse mortgage? My grandparents are thinking of taking out a reverse mortgage (in their 90s) but the small bit of research on them that I've done via the AARP website leaves me unsure due to the high fees and such. What would you suggest for an elderly couple who owns a home free and clear and in their 90s and needs cash for medical expenses not covered by insurance?
 
<p>HoC</p>

<p>The fees are the main reason. If your parents are in their 90's it may be ok. The reps peddel them to people in 60's and I think after fees and costs the people may out last the dollars they get then the problem of no home arises late in life.</p>

<p>Thats why I said "in specific cases" they may be a solution. If they are pushed onto people that don't really fit the profile like NO Doc loans were then in a few years we will have another problem.</p>

<p>There are other ways to get equity out such as life estates where the house is sold and the parents can live there for the period of their lives. Much less costs and no upper limits on the amount.</p>

<p>Just a thought.</p>
 
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