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bdk
Wrecking crew


Joined: 24 Mar 2008
Posts: 1611
Location: Hell

Simple out-of-the-box fix to the mtg problem
PostPosted: Wed Oct 08, 2008 7:05 pm Reply with quoteBack to top

Ok so everyone is losing their homes and jobs but I am curious about this simple out-of-the-box concept to allow ppl to keep their homes and put the brakes on the tsunami wave of foreclosures. Why not amend or have a rider added to everyones note to:
1) change their rate from an adjustable to a fixed
2) change the amortization from 30 yrs to 50yrs
3) cannot refi for the 1st 10(? maybe 5-7) yrs
4) cannot refi unless equity is there like a 70%ltv
5) limit cashout ex: 30% equity you can only pull out 50% of it(that may be too much) but a limit of some sort to keep ppl from using their home like at ATM AGAIN

I know it seems nuts to do but it would really slow the mess down to do this plus changing to 50yr wont kill anyone really i mean if you sell or refi the bank would still get its money. It will get peoples payments down and allow them sometime to breath and regroup. And maybe adding in that you cant refi for cashout unless you have a significant amount of equity or owned the home for say 10yrs. Having something like this drawn up could work. It would allow people to stay in their home, stabilize market as foreclosures would slow down or come to a stop which means no more decreasing values.

Lets hear what you guys think on this..... pls no bashing


Last edited by bdk on Wed Oct 08, 2008 7:16 pm; edited 1 time in total
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mahalo guy
Demolition Man


Joined: 28 Jun 2008
Posts: 2082
Location: Honolulu

Re: Simple out-of-the-box fix to the mtg problem
PostPosted: Wed Oct 08, 2008 7:11 pm Reply with quoteBack to top

I like it . Can you call an Obama advisor?

Seriously, I like it. The best solution I've heard yet.




bdk wrote:
Ok so everyone is losing their homes and jobs but I am curious about this simple out-of-the-box concept to allow ppl to keep their homes and put the brakes on the tsunami wave of foreclosures. Why not amend or have a rider added to everyones note to:
1) change their rate from an adjustable to a fixed
2) change the amortization from 30 yrs to 50yrs
3) cannot refi for the 1st 10(? maybe 5-7) yrs
4) cannot refi unless equity is there like a 70%ltv

I know it seems nuts to do but it would really slow the mess down to do this plus changing to 50yr wont kill anyone really i mean if you sell or refi the bank would still get its money. It will get peoples payments down and allow them sometime to breath and regroup. And maybe adding in that you cant refi for cashout unless you have a significant amount of equity or owned the home for say 10yrs. Having something like this drawn up could work. It would allow people to stay in their home, stabilize market as foreclosures would slow down or come to a stop which means no more decreasing values.

Lets hear what you guys think on this..... pls no bashing
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mahalo guy
Demolition Man


Joined: 28 Jun 2008
Posts: 2082
Location: Honolulu

Re: Simple out-of-the-box fix to the mtg problem
PostPosted: Wed Oct 08, 2008 7:12 pm Reply with quoteBack to top

Only 1 thing.

A refi is ok, just no cash out.
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angryvoodoo
Demolition Man


Joined: 20 Nov 2007
Posts: 2110
Location: ny

Re: Simple out-of-the-box fix to the mtg problem
PostPosted: Wed Oct 08, 2008 7:14 pm Reply with quoteBack to top

when the banks are done playing pac-manĀ®
something like this will occur.


the numbers of files to wade through are staggering, and when servicing changes it requires a do-over.

its still early for a massive mandatory procedure.


unless there's something I'm missing...

haven't been tuned in all too much lately.

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poorprocessor
C-4


Joined: 06 Jun 2008
Posts: 1040
Location: on a planet far far away..or so I wish

Re: Simple out-of-the-box fix to the mtg problem
PostPosted: Wed Oct 08, 2008 7:18 pm Reply with quoteBack to top

Simplicity always gets ...no one asks the regular people...

But great idea nonetheless

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YOY
Demolition Man


Joined: 24 Mar 2008
Posts: 2310

Re: Simple out-of-the-box fix to the mtg problem
PostPosted: Wed Oct 08, 2008 7:22 pm Reply with quoteBack to top

I like it, puts me out of business but thats happening anyway.

Only problem, what about purchase money? Same deals with terms and controlled rates?
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thebfgb
Schumpeter Reincarnate


Joined: 21 Jan 2008
Posts: 3256

Re: Simple out-of-the-box fix to the mtg problem
PostPosted: Wed Oct 08, 2008 7:55 pm Reply with quoteBack to top

mahalo guy wrote:
I like it . Can you call an Obama advisor?

Seriously, I like it. The best solution I've heard yet.




bdk wrote:
Ok so everyone is losing their homes and jobs but I am curious about this simple out-of-the-box concept to allow ppl to keep their homes and put the brakes on the tsunami wave of foreclosures. Why not amend or have a rider added to everyones note to:
1) change their rate from an adjustable to a fixed
2) change the amortization from 30 yrs to 50yrs
3) cannot refi for the 1st 10(? maybe 5-7) yrs
4) cannot refi unless equity is there like a 70%ltv

I know it seems nuts to do but it would really slow the mess down to do this plus changing to 50yr wont kill anyone really i mean if you sell or refi the bank would still get its money. It will get peoples payments down and allow them sometime to breath and regroup. And maybe adding in that you cant refi for cashout unless you have a significant amount of equity or owned the home for say 10yrs. Having something like this drawn up could work. It would allow people to stay in their home, stabilize market as foreclosures would slow down or come to a stop which means no more decreasing values.

Lets hear what you guys think on this..... pls no bashing


He already has the former CEO who ran Fannie into the ground advising him. Then again Franklin Reins already has his 95 million in the bank so what would he care about the current crisis he helped stage.
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t2940
Schumpeter Reincarnate


Joined: 13 Feb 2008
Posts: 5548
Location: cave dweller

Re: Simple out-of-the-box fix to the mtg problem
PostPosted: Wed Oct 08, 2008 7:59 pm Reply with quoteBack to top

I like it. Maybe turn mine into a hundred year fixed rate so I can stay here.
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bdk
Wrecking crew


Joined: 24 Mar 2008
Posts: 1611
Location: Hell

Re: Simple out-of-the-box fix to the mtg problem
PostPosted: Wed Oct 08, 2008 8:00 pm Reply with quoteBack to top

cmon i know there are some smart people out there i want to hear from you help me out I am seriously considering presenting a proposal to state senate etc etc and will do everything possible to keep it simple.. It will take ideas like this from people like us who actually have a clue to fix the problems thse in government have no clue bunch of blood sucking attorneys being asked to dictate finance please... this thing can work and save a lot of people a lot of grief
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mahalo guy
Demolition Man


Joined: 28 Jun 2008
Posts: 2082
Location: Honolulu

Re: Simple out-of-the-box fix to the mtg problem
PostPosted: Wed Oct 08, 2008 8:03 pm Reply with quoteBack to top

Hey, come on.

Everyone liked it. Go for it.

Really.


bdk wrote:
cmon i know there are some smart people out there i want to hear from you help me out I am seriously considering presenting a proposal to state senate etc etc and will do everything possible to keep it simple.. It will take ideas like this from people like us who actually have a clue to fix the problems thse in government have no clue bunch of blood sucking attorneys being asked to dictate finance please... this thing can work and save a lot of people a lot of grief
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