Mortgage Bail Out

[lynks66]

What role do you feel the government should have in many of the upcoming foreclosures and the overall "mortgage crisis" facing the nation?

[colonel-fan]

None.

 

When you enter into a signed contract, you need to live with the consequences.

[woodsrider]

None.

 

When you enter into a signed contract, you need to live with the consequences.

:thumb:

 

When you buy a house it's time to play grown up.

[Gunner11]

None.

 

When you enter into a signed contract, you need to live with the consequences.

 

:thumb:

[98NCCalum]

Absolutely 0 role.

[HHSDad]

Nor should the government bail out the companies that loaned the money.

[IM4THEHOUNDS]

Government should play no role whatsoever. Keep Uncle Sugar out of it.

[H]

I don't think the government should take any material role (guaranteeing mortgages, bailing our homeowners, bailing out lenders, etc.), however I do think there is value in the government acting as an arbitrator to encourage lenders and homeowners to work out terms that would minimize the number of homes being turned over by foreclosure. The objective of such an arbitration agreement might include a reduced interest rate for the borrower, such that their adjustable rate loan remains affordable. This sounds like a helping hand of government program, but it would really be intended to soften the blow to the economy that is being caused by the number of foreclosures and the resultant loss of property values. Although the lenders would lose some of the interest payment in this case, that loss must be balanced against the loss they will incur by taking over the property and trying to disposition it in a very soft real estate market. That process, multiplied by millions of foreclosures across the country, is leading some analysts to forecast that U.S. home values could fall by 25% by the time this thing unwinds. That would be a harsh blow to the teetering economy.

[colonel-fan]

Walter Williams' article sums most of the points for me.

 

 

Subprime Bailout

[lynks66]

I don't think the government should take any material role (guaranteeing mortgages, bailing our homeowners, bailing out lenders, etc.), however I do think there is value in the government acting as an arbitrator to encourage lenders and homeowners to work out terms that would minimize the number of homes being turned over by foreclosure. The objective of such an arbitration agreement might include a reduced interest rate for the borrower, such that their adjustable rate loan remains affordable. This sounds like a helping hand of government program, but it would really be intended to soften the blow to the economy that is being caused by the number of foreclosures and the resultant loss of property values. Although the lenders would lose some of the interest payment in this case, that loss must be balanced against the loss they will incur by taking over the property and trying to disposition it in a very soft real estate market. That process, multiplied by millions of foreclosures across the country, is leading some analysts to forecast that U.S. home values could fall by 25% by the time this thing unwinds. That would be a harsh blow to the teetering economy.

 

 

I think that is up to the lenders to decide if they would rather offer a break versus foreclosing. I don't like the government stepping in on this.

[woodsrider]

I don't think the government should take any material role (guaranteeing mortgages, bailing our homeowners, bailing out lenders, etc.), however I do think there is value in the government acting as an arbitrator to encourage lenders and homeowners to work out terms that would minimize the number of homes being turned over by foreclosure. The objective of such an arbitration agreement might include a reduced interest rate for the borrower, such that their adjustable rate loan remains affordable. This sounds like a helping hand of government program, but it would really be intended to soften the blow to the economy that is being caused by the number of foreclosures and the resultant loss of property values. Although the lenders would lose some of the interest payment in this case, that loss must be balanced against the loss they will incur by taking over the property and trying to disposition it in a very soft real estate market. That process, multiplied by millions of foreclosures across the country, is leading some analysts to forecast that U.S. home values could fall by 25% by the time this thing unwinds. That would be a harsh blow to the teetering economy.

I definitely think it would be in the best interest of all parties involved to what ever they can to avoid the foreclosure. But they should be up to the lendor. But in my mind it would be smart to at least explore it.

[Habib]

I don't think the government should take any material role (guaranteeing mortgages, bailing our homeowners, bailing out lenders, etc.), however I do think there is value in the government acting as an arbitrator to encourage lenders and homeowners to work out terms that would minimize the number of homes being turned over by foreclosure. The objective of such an arbitration agreement might include a reduced interest rate for the borrower, such that their adjustable rate loan remains affordable. This sounds like a helping hand of government program, but it would really be intended to soften the blow to the economy that is being caused by the number of foreclosures and the resultant loss of property values. Although the lenders would lose some of the interest payment in this case, that loss must be balanced against the loss they will incur by taking over the property and trying to disposition it in a very soft real estate market. That process, multiplied by millions of foreclosures across the country, is leading some analysts to forecast that U.S. home values could fall by 25% by the time this thing unwinds. That would be a harsh blow to the teetering economy.

 

I don't know enough about the mortgage/lending business, but this sounds reasonable. Lenders and borrowers are both at fault for latching on to irresponsible loans, should we let our economy take a huge hit because of it?

[colonel-fan]

I don't know enough about the mortgage/lending business, but this sounds reasonable. Lenders and borrowers are both at fault for latching on to irresponsible loans, should we let our economy take a huge hit because of it?

 

Yes, as a bail out could worsen the situation.

 

I'm all for some revised regulations though.

[Habib]

Yes, as a bail out could worsen the situation.

 

I'm all for some revised regulations though.

 

If you read H's post he's not advocating a typical bailout.

[kygirl]

H you make good points. Another point that I would make is the fact there are alot of folks out there who work hard to meet their mortgages why wouldn't lendors be inclined to encourage that practice by offering incentives such as a reduced interest rate for those borrowers.

Second point, that these people who take out loans should be required to take classes regarding the rules of lending before loans are made. We have acquired a champagne taste and a beer budget mentality in this country which is a major problem.