Is it Me?
 

Agreed . it is only because we won that they aren't war criminals. other than "So, we say so. I don't have a good answer."

Is it Me?
 

A significant percentage (perhaps most) of the foreclosures are on "investor" properties. If there's no one living in them and no hope of flipping, then there's no reason to make payments. Make no payments for 6 months and don't return calls from teh lender, what else is the lender going to do?

Is it Me?
 

That's good enough for me.

Is it Me?
 

408-21

Is it Me?
 

Really? The flippers were that much of the market?

free-market Democrats
 

The more I read about this "bailout" - I don't get it.

The qualifications are so limited, it's only going to affect about 100,000 loans. A drop in the bucket. And most aren't even what is regarded as sub-prime. So why do anything at all?

The whole concept is deplorable. By propping up artificially high RE values - ostensibly so homeowners can continue the "American Dream" of owning a home - it's keeping countless others on the outside of the American Dream of owning a home.

free-market Democrats
 

Even the corpse of Lee Iacocca thinks it's bad policy.

free-market Democrats
 

Subprime, Alt-A, and Prime in mortgage lending all depend on three major factors: Credit Score (credit history), total Income-to-debt ratio (ability to service debt) and Collateral value.

You can make $500k/year and have perfect credit but be sub-prime if you want 100% financing on a $5mm house and have no other assets. You can be prime making $30k/year with a so-so (but not bad) credit score if you are borrowing $40k to buy a $55k house in north-central PA.

free-market Democrats
 

Well, its not a real plan at all. It's just a photo-op. In my own craven little view, I'd let the market implode. RE is all about location anyway, so none of the people buying wisely would be hurt all that much, which is kind of how a market is supposed to work, no?

Is it Me?
 

In a lot of places, yes. There are several new condo buildings in Chicago where, a few months after the initial closings, about 30% of the units are listed for re-sale. Parts of Florida and Las Vegas are likely worse. No doubt, the foreclosures in Michigan ad Ohio aren't being driven by flippers.

Is it Me?
 

Sit on a portfolio of useless REO? Or more likely do a workout and eat half the UPB?

Is it Me?
 

Yet, Chicago hasn't really been hit that hard. We really never had the huge run-up that Florida/Cal/Phx/Vegas did, so prices have leveled off substantially, but not significantly dropped.

ETA: although maybe that's not the case for fungible high-rise condos.

Is it Me?
 

Hey, the borrower has to call you back first. And taking back the real estate allows some deferral on recognizing the loss. Plus, if the 2d lien is with another lender (common) then you don't have to deal with them, too.

In any given situation, of course a workout is the better course for almost everyone. I take the "bailout" as being a pre-negotiated framework for workouts with a pre-determined set of qualifcations on the borrower side. Let's the lenders plow through a bunch of re-negotiations using trained apes.

Is it Me?
 

Has that case where the Fed Judge dismissed a foreclosure action because the owners of the securities couldn't get the original mortgage papers caused any reverberations? I read the ruling and, after cracking up a bit, thought "Wow, what a gift for lawyers. All those billable hours tracking that stuff through the pipeline."

Is it Me?
 

Prices haven't really started dropping yet, but the re-sale market (and the new market, too; Trump apparently hasn't signed a contract on anything in months) for DT condos is pretty much D-E-D. Houses in my (city) neighborhood are lingering for quite a while and a number have had modest price reductions.