Mortgage Principal Cuts Don’t Help Homeowners
Reducing mortgage balances is a risky idea that hasn’t been shown to keep borrowers who owe more than their property’s worth in their homes, according to Credit Suisse Group AG. (CSGN)
Of the 11 million of “underwater” homeowners, about 6.5 million have never missed a payment and 2 million more are making on-time payments after a delinquency, said Dale Westhoff, the bank’s global head of structured products research. Widespread principal reductions may drive defaults “much, much higher” as borrowers seek the aid, he said.
“We’ve never done this before; we don’t know what the risk is,” Westhoff, a top-ranked mortgage-bond analyst in polls by Institutional Investor magazine for 15 years in a row while at Bear Stearns Cos., said today at a briefing for reporters in New York. Along with creating so-called moral hazard, the step may also tighten lending by forcing banks to offer “price protection” to borrowers, he said.
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I Vent, what state are you in? Have YOU had luck in finding attorneys to defend against the banks’ foreclosures?
It is hard to find one that “gets it”. Most attorneys seem to want to help the banks victimize us by only helping us modify the loans (affirm the contract with the fraud, in other words, help the banks cover their fraud and let the banks know exactly what our financial situation is).
@tonycat..I am in Illinois and I have not found an attorney yet who will fight for what I want…they all tell you that you are right about everything that you are telling them….and you can sue the bank for 2-3 times the value of your home…but your chances of winning are like winning the lottery with or without an attorney…one attorney wanted me to sign a contract…that I would cooperate with HUD….waive all rights to sue the pretender lender…pay the attorney $750.00 a month..direct deposit…plus 20% of the loan write down if he got one….and he would get my case dismissed as long as I cooperated with HUD..but if I did not cooperate he would report me to the judge and I would be thrown right back in fraudclosure! Some of them say they cant Rep you or you cant afford them…I have many crazy stories..So I am pretty much repping myself on 2 fraudclosures…our home and business..the business property was going to be our retirement money…I have an attorney advising me who told me that he doesn’t even want to get involved in this mess but he would help me outside of court.. It is all truly unbelievable…I could write a book about this crap..!
Lenders don’t want to modify the loans because they get more money when there is a default because then they can apply for the credit default insurance. Also, the lenders who became servicers may have there own real estate department so they become the listing broker getting the commission.
Take a look at Countrywide. When the banking industry collapsed, the officers left the company with their big bonuses and went on to form a company which is listed on the New York Stock exchange as PMT. They bought bundles of mortgages from their former company at les than 50 percent of the mortgage and foreclosed on the homeowner so they could access the credit default insurance. They had no motivation to modify loans. They should be in jail.
….and besides the CEOs have yacht payments…..!
They better hope the mother ship comes soon. The people are lighting their torches and sharpening their pitchforks..!
They dont deserve another dime anyways……An attorney told me a few months ago that out of 100 loan workouts the Banks gave 3 principle reductions…I say what are people thinking refinancing those fraudulent loans in the first place? These people are being set up tl fail.. An honest attorney told me don’t sign or agree to anything from the bank…Their debt is unsustainable….
The ol’ moral hazard argument from the crooks. Even listening to them is a tragedy.
I know, what fairey tales! Straight from the predators mouths. They have a different mind set than the rest of us. None of what they have done makes sense to me. Their only mind set is greed, pilfer, steal and destroy! I dont think they know what a conscions is! They have to have the missing link in their brains that murders have and serial killers. Not that -that is any excuse for them.