dgs49 wrote:"...the mortgage on every home that is underwater would be written down to its current market value..."
That is, stealing tens - and possibly hundreds - of thousands of dollars from the stockholders of the mortgage bank, and trying to pretend that there is no theft going on.
It's not stealing anything. The bank is only going to be able to recoup market value (or less) if the homes go into foreclosure, and then has absolutely no chance of getting back any of the rest. Doing it as I suggested will at least hold out the very real possibility that they will be able to get back some or all of what was written down, when housing prices rise again.
You do understand the concept of not cutting off your nose to spite your face, don't you? How many more millions of people just walking away from their mortgage obligations will it take for the message to sink in?
ETA - and if the banks are being honest in their financial reporting, they have already written down the values of those mortgages in the books, so if the shareholders were going to take a hit, it should have already happened. But don't let that stop your bleating about "theft".
Last edited by Scooter on Fri Aug 10, 2012 4:54 pm, edited 1 time in total.
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Under a joint authority, San Bernardino County has proposed the use of eminent domain to help homeowners with distressed mortgages. Rather than seizing homes, however, the county and several towns in it intend to seize the mortgages, replacing those mortgages with more affordable ones that would reduce the homeowners' debts and allow them to keep their homes. This proposal has invoked the threat of litigation by the American Securitization Forum and a warning by the Securities Industry and Financial Markets Association (SIFMA) that it could result in mortgage lenders boycotting the financing of homes in the county.
In an official statement released to Reuters, Lt. Governor Gavin Newsom publicly called on SIFMA to "cease making threats to the local officials of San Bernardino County." Newsom stated that while the use of eminent domain to seize mortgages is aggressive, it deserves a fair hearing. Due to San Bernardino County's high foreclosure rate, Newsom added, "We must think big and help our local governments develop solutions -- because the industry and federal government have not."
Eminent domain has been the traditional method governments use to seize property needed for highways, infrastructure, and other public projects. The use of eminent domain to seize and reduce mortgages was designed by Mortgage Resolution Partners in San Francisco. Chicago, and Berkeley, Calif., have also passed resolutions to hold hearings on the use of eminent domain to seize mortgages, which SIFMA and other organizations promise to fight, stating that it is unconstitutional and would negatively impact mortgage markets.
Having already downed a few power drinks, she turns around, faces him, looks him straight in the eye and says:
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Eyes now wide with interest, he responds:
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“If you trust in yourself, and believe in your dreams, and follow your star. . . you'll still get beaten by people who spent their time working hard and learning things and weren't so lazy.”
