Your Ideas About the Mortgage Crisis

[acluett]

I think our leaders need to figure out a way to extend the lengths of the loans approaching default. In other words, if a homeowner approaching default has a 30 year note, then extend it to 40 or 50 years. That gives homeowners some breathing room, lowers their monthly payments (in many cases), and gives them time to stay in their homes and the potential to see the value rise and ultimately make some money.

Let's face it, when you buy a home you are assuming a huge risk. There have never been guarantees that the value will increase. The banks and mortgage backers ultimately agreed to carry these notes; therefore, they share the risk with the homeowner.

Taxpayers should not be responsible for bailing out homeowners. Not now. Not ever.

 

[Johnnyboy29073]

I think our leaders need to figure out a way to extend the lengths of the loans approaching default. In other words, if a homeowner approaching default has a 30 year note, then extend it to 40 or 50 years. That gives homeowners some breathing room, lowers their monthly payments (in many cases), and gives them time to stay in their homes and the potential to see the value rise and ultimately make some money.

Let's face it, when you buy a home you are assuming a huge risk. There have never been guarantees that the value will increase. The banks and mortgage backers ultimately agreed to carry these notes; therefore, they share the risk with the homeowner.

Taxpayers should not be responsible for bailing out homeowners. Not now. Not ever.

How do you presume to indemnify the secondary market investors?

 

[thall]

acluett, how do you think our leaders will accomplish this,whatever they accomplish will be done with your tax dollars.

 

[Larry Tew]

Guys, the OP only posted once back in February. It is unlikely she is reading your replies. The thread was 8 months old when johnnyboy made the first reply.

 

[thall]

Need to find something else to do with my time. Watch some football and baseball this afternoon.

 

[houcoogster]

One way to solve the problem with home values going south is to create inflation, particularly wage inflation.

However, this too has many negative unintended consequences.

 

[Iselllife]

What is everyone's timetable for a recovery?

 

[CCWriter]

I 'll take a wild "guess".... 2-3 years.

 

[Mr. Bill]

There will be some markets that just won't recover.

The Russians are loving Miami more and more these days.

 

[SportsNut]

What is everyone's timetable for a recovery?

First off define the term recovery? This is a nebulous term, really.

All real estate markets are local, not national. Some markets haven't suffered much of a downturn at all, while others have been decimated. Some markets will NOT recover for a decade, maybe longer.

With that said, there are still buying opportunities in even devastated markets everyday. There frankly is little stability to investing in re in most markets unless you price in another 20-25% drop in values, then you might be fairly safe. Buying "at the mkt" today is risky. There is a new type of insurance available where a re buyer can insure their home against a drop in fair market values. Here is an example of that, like paying 35 to 40 bucks per month insures that if your mkt drops in value and you need to sell, you could collect the shortfall from the insurance company. Might be something to consider for transients who buy a home and might need to sell in a shorter time window.