Comments on: State of California to delay housing recovery and trap homeowners in a prison of debt

By: Marie Pham

Marie Pham — Fri, 15 May 2009 16:01:42 +0000

There are sellers out there buying REOs for cash at a low price and after they move into the new home they let their primary residence be foreclosed. Banks are aware of this schemes so they don’t lend out to homeowners with a current mortgage, that has no equity, they don’t believe that the homeowners will rent out the properties. The three large banks are not making purchase loans on this type of clients even if the clients have a fico of 800, and qualified income, the lenders know that the homeowners are willing to have their credit ruined , they will have their properties foreclosed after they get a better, lower priced homes to replace their primary homes.

By: SEO SERVICES

SEO SERVICES — Fri, 15 May 2009 06:22:00 +0000

This will be happening more and more as people can’t afford their skyrocketing mortgages and bail. They’ll do anything to get a nice house with a size and mortgage they can manage. I’m sure hundreds, if not thousands of others have done it as well, but they just won’t admit.

I am very concerned about the economy as a whole getting.

I am also very, very surprised that goverment taking a very little steps to overcome the problems.

By: Phoenix Mortgage

Phoenix Mortgage — Fri, 24 Apr 2009 02:37:20 +0000

Some banks are offering a pricipal reduction to help keep homeowners from foreclosures. What they are not clear about is that they take that amount reduced from the balance and add it back to the loan amount at the end of the term or when the consumer sells or refinance their home and loan.

By: Anonymous

Anonymous — Wed, 15 Apr 2009 05:57:54 +0000

By: Sean

Sean — Fri, 13 Mar 2009 18:42:33 +0000

Hi Marie,

Thanks for commenting. Personally I seriously doubt we will see interest rates rise to those levels solely as a result of bk cram downs. Two things to keep in mind:

1. They are only being crammed down because they made loans at idiotic valuations that were never supported by incomes in those areas.

2. With interest rates on things like treasuries as low as they are, and an aging population desparate for fixed income their will be plenty of competition to make loans at reasonable valuations as the risk of loss is low once home values are supportable on incomes in the area.

By: Marie Pham

Marie Pham — Fri, 13 Mar 2009 17:23:18 +0000

I like your comment. I think we’ll be seeing a lot of bankrupcies, if the bill of stripping the junior liens passes from the Senate. The Judges will have the power to strip the junior liens and modify the loans. Obviously Lenders are not in support of this Bill. If this bill passes, future buyers will see interest rate rises as high as 11 or 13 percent in the late 80’s. There is no perfect way to fix this problem.

By: Sean

Sean — Fri, 27 Feb 2009 05:49:14 +0000

Spoke about this topic tonight on KCRA Channel 3 in Sacramento. You can watch the appearance here:

http://www.kcra.com/video/18806832/index.html” target=”_self”>

http://www.kcra.com/video/18806832/index.html” target=”_self”>http://www.kcra.com/video/18806832/index.html