Comments on: Bankruptcy Law Changes Part of Obama’s $275 Billion Housing Plan http://moneymorning.com/2009/02/19/housing-bubble/ Global Investment News Mon, 13 Feb 2012 18:41:47 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: White House Mends Fences With Wall Street http://moneymorning.com/2009/02/19/housing-bubble/comment-page-1/#comment-5384 White House Mends Fences With Wall Street Sat, 28 Mar 2009 16:00:56 +0000 http://www.moneymorning.com/?p=4964#comment-5384 [...] Money Morning: Bankruptcy Law Changes Part of Obama’s $275 Billion Housing Plan [...] [...] Money Morning: Bankruptcy Law Changes Part of Obama's $275 Billion Housing Plan [...]

]]> By: U.S. Housing Market Shows Signs of Life as Government Programs Kick In http://moneymorning.com/2009/02/19/housing-bubble/comment-page-1/#comment-5383 U.S. Housing Market Shows Signs of Life as Government Programs Kick In Wed, 25 Mar 2009 19:28:20 +0000 http://www.moneymorning.com/?p=4964#comment-5383 [...] Money Morning: Bankruptcy Law Changes Part of Obama’s $275 Billion Housing Plan [...] [...] Money Morning: Bankruptcy Law Changes Part of Obama's $275 Billion Housing Plan [...]

]]> By: Obama's Housing Plan May Leave Many Homeowners Out in the Cold http://moneymorning.com/2009/02/19/housing-bubble/comment-page-1/#comment-5382 Obama's Housing Plan May Leave Many Homeowners Out in the Cold Fri, 06 Mar 2009 06:30:56 +0000 http://www.moneymorning.com/?p=4964#comment-5382 [...] mortgages to keep banks from moving to foreclosure. As reported previously by Money Morning, that law – known as “cram down” in bankruptcy parlance – could backfire and even cause the mortgage market to seize up, as investors stop buying [...] [...] mortgages to keep banks from moving to foreclosure. As reported previously by Money Morning, that law – known as “cram down” in bankruptcy parlance – could backfire and even cause the mortgage market to seize up, as investors stop buying [...]

]]> By: Jim http://moneymorning.com/2009/02/19/housing-bubble/comment-page-1/#comment-5381 Jim Thu, 05 Mar 2009 13:01:55 +0000 http://www.moneymorning.com/?p=4964#comment-5381 If you read the Obama plan, its hard to miss their disdain for speculators who bought houses trying to make money. Many of the foreclosures, particularly in Florida, Nevada, and California, are of houses bought on speculation. It seems Obama's argument that foreclosures affect all of us, so we need to do these things to stop them, would apply to speculators also. With houses bought on speculation, two families lives are upended by foreclosure: the speculators and the renters (since they generally have to move). It is also not generally recognized that many of the speculators were low income people. I recently learned that the custodian at our church lost a rental property recently to foreclosure, and his renters had to move abruptly. I get the sense that the Obama administration is making all these decisions without really understanding the data. If you read the Obama plan, its hard to miss their disdain for speculators who bought houses trying to make money. Many of the foreclosures, particularly in Florida, Nevada, and California, are of houses bought on speculation. It seems Obama's argument that foreclosures affect all of us, so we need to do these things to stop them, would apply to speculators also. With houses bought on speculation, two families lives are upended by foreclosure: the speculators and the renters (since they generally have to move).

It is also not generally recognized that many of the speculators were low income people. I recently learned that the custodian at our church lost a rental property recently to foreclosure, and his renters had to move abruptly. I get the sense that the Obama administration is making all these decisions without really understanding the data.

]]> By: steve http://moneymorning.com/2009/02/19/housing-bubble/comment-page-1/#comment-5380 steve Tue, 03 Mar 2009 17:09:11 +0000 http://www.moneymorning.com/?p=4964#comment-5380 I think it would be a great idea to let the judges modify home loans it will get banks to do it before it goes to court. right now values afalling rapidly and banks dont want to lower rates. Right now bakrupsy courts modify car loans-boats-investment properties so why now the one thing people value most their homes. I think it would be a great idea to let the judges modify home loans it will get banks to do it before it goes to court. right now values afalling rapidly and banks dont want to lower rates. Right now bakrupsy courts modify car loans-boats-investment properties so why now the one thing people value most their homes.

]]> By: Robert http://moneymorning.com/2009/02/19/housing-bubble/comment-page-1/#comment-5378 Robert Sat, 21 Feb 2009 00:28:54 +0000 http://www.moneymorning.com/?p=4964#comment-5378 At some point, even those who have a prayer of being able to pay back their mortgages, crammed-down or not, will wonder why they should continue to make the payments to pay $500,000 for a property that has dropped in value to $25,000, when they could cease making the payments, and instead buy a similar property for $25,000 and own it free and clear. They tried to stop home foreclosures in the Great Depression. It didn't work then, either. And they aren't doing anyone any favors by enabling millions of Americans to buy homes for many times their true value, thereby incurring big losses in the amount of the difference between what they pay and what the homes are actually worth. At some point, even those who have a prayer of being able to pay back their mortgages, crammed-down or not, will wonder why they should continue to make the payments to pay $500,000 for a property that has dropped in value to $25,000, when they could cease making the payments, and instead buy a similar property for $25,000 and own it free and clear. They tried to stop home foreclosures in the Great Depression. It didn't work then, either. And they aren't doing anyone any favors by enabling millions of Americans to buy homes for many times their true value, thereby incurring big losses in the amount of the difference between what they pay and what the homes are actually worth.

]]> By: Andy http://moneymorning.com/2009/02/19/housing-bubble/comment-page-1/#comment-5379 Andy Fri, 20 Feb 2009 15:28:58 +0000 http://www.moneymorning.com/?p=4964#comment-5379 Far too many incentives for lenders and brokers and rather than incentivize them to help home owners, they may get greedy chasing incentive bonuses. Far too many incentives for lenders and brokers and rather than incentivize them to help home owners, they may get greedy chasing incentive bonuses.

]]>