should the Gov't require banks to renegotiate - Loan Modification - Free Foreclosure Help

Therapist · #1 (**permalink**) 10-23-2009, 02:13 PM

bad loans at lesser amounts as an option to foreclosure? lesser amount being the "new" fair market value. often 2-3 hundred thousand dollars less.

SomeGuy · #2 (**permalink**) 10-23-2009, 03:32 PM

2 to 3 hundred thousand less? How big of a house do you have?

Paul Revere · #3 (**permalink**) 10-23-2009, 04:55 PM

Well, it's in the bank's best interest to do so. Banks don't need the govt to tell them that. Homes just are not selling right now.

Thelastninja · #4 (**permalink**) 10-23-2009, 06:49 PM

No. The governments job should be to enforce contracts, not rewrite them.

chuck_junior · #5 (**permalink**) 10-23-2009, 09:35 PM

It makes more sense than people living in tent cities. The projections are that the housing market overall will drop 11-18% during 2010, and rebound somewhat in 2011.If you do the math on a home loan you will find that you are paying back 2.5-3X (If you on an A.R.M. you are REALLY boned at 4-6X) the face value of the loan over time. Also, if you look at your typical loan at the end of the 1st year not enough principal has been applied to the face value of the loan for you to own all of the doorknobs on the place.The whole thinking about home loans needs to be re-thought by the banking industry."A bird in the hand...Yadda Yadda Yadda."

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