Comments on: We’re from the Gubment, We’re Here to Help

By: bbypy

bbypy — Fri, 25 Jun 2010 03:15:29 +0000

Banks have no profit (i.e. loot) without lending. In the case of all the big state-backed institutions, it isn’t even their money that is being put at risk but they collect the fees and interest. Of course they’ll lend again to the high risk groups, unless enough people figure out whats going on and shut down state-sponsored credit facilities.

By: Eric

Eric — Thu, 24 Jun 2010 22:38:25 +0000

I find it unbelievable that Fannie May will EVER lend to people who have defaulted. Those people should have to save up 20% down.

By: DLP

DLP — Thu, 24 Jun 2010 22:35:43 +0000

I think that’s the way it works i most other countries – you can’t just walk away and mail your keys back to the bank.

By: Mike G

Mike G — Thu, 24 Jun 2010 22:29:47 +0000

What comes next is killing non-recourse mortgages altogether. Default on your house and they’ll come after all your other assets.

By: hb

hb — Thu, 24 Jun 2010 21:51:28 +0000

So true. You are the boss.

By: js

js — Thu, 24 Jun 2010 21:10:07 +0000

haha, yea, it is probably in their financial interest not to buy a house for another 7 years anyway.

By: Tony Danza

Tony Danza — Thu, 24 Jun 2010 20:49:10 +0000

That’s perfect for walk awayers, the housing market might have bottomed in 7 years!

By: Dan

Dan — Thu, 24 Jun 2010 20:33:17 +0000

It’s time for the GSEs to go away… they have terrible names anyway.

By: 3rd Generation

3rd Generation — Thu, 24 Jun 2010 18:49:42 +0000

Perfect. What an opportunity for Private Mortgage Companies on a local scale! Co-Ops and credit Unions. Who wants to deal with Uncle Barry on a mortgage anyway?

By: hb

hb — Thu, 24 Jun 2010 18:08:30 +0000

Just some more scare tactics by banks and now the gubment as perpetrated by the media. Just like the last story you posted in this vein there are no examples of this actually happening.

Good luck proving a default was “strategic”. They would not only need to pursue and WIN a judgment in court but then actually collect. Bankruptcy protection would slow that baby on down just about every time.

With these tactics there won’t be any buyers left for 7 years. F and F won’t have any choice in a few years but to keep on writing loans to less the stellar borrowers. Comedy.