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    • Wed, Dec 10, 2008 - 01:56am

      #2
      lundsta

      lundsta

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      Re: Illinois Gov. Arrested on Corruption Charges

    I am just curious……How do you feel Bank of America was involved?

    • Fri, Dec 05, 2008 - 10:10pm

      #21
      lundsta

      lundsta

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      Re: total national credit score data mining Imagine the …

    Question 1.

     

    In a modification the loan terms and contract stays the same. The only thing that changes is the payment (via interest rate or monthly payment decreases) Those loans do exist but a borrower would not start out with a 30 year fixed and then be changed to a non-recourse loan. Also Non-recourse loans are typically found in commercial real estate deals.

    " A non-recourse debt of $30 billion was issued to JPMorgan Chase by the Federal Reserve in order to purchase Bear Stearns
    on March 16, 2008. The non-recourse loan was issued with Bear Stearns
    less liquid assets as collateral, meaning that the Federal Reserve will
    absorb the loss should the value of those assets be below their
    collateralized value." (Wikipedia 3)

    Wikipedia ~ Nonrecourse debt  

    http://en.wikipedia.org/wiki/Nonrecourse_debt 

    Question 2

    FHA loans are being treated as investor owned and modifications are not being granted. This may change. The bottom line is no one wants to lose money.  

     

    I hope this helps. My previous commet was to "Rlee" also known as Bob.  I just did not want you to think I was ranting for no good reason. 

     

    • Thu, Dec 04, 2008 - 08:50pm

      #16
      lundsta

      lundsta

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      Re: OK, let’s take a vote

    [quote=krogoth]

    Bailout for the big 3 or no?

     

    Krogoth says NO

     

    [/quote]

    Krogoth, my vote is no. The article below states that Ford is getting financial guidence from JP Morgan. 

    http://www.bloomberg.com/apps/news?pid=20601109&sid=acvyeNy4syAE&refer=home

    More proof that Goldman Sachs and JP are major players and have their hands in everything. Bailouts are black and white. You either do them or not. It is not wise to do both. Now that they have JP on their side they will most likely get their 34 billion lifeline.  

    • Thu, Dec 04, 2008 - 05:24pm

      #19
      lundsta

      lundsta

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      Re: total national credit score data mining Imagine the …

    To bad they won’t use any of our ideas. I guess they would never listen to a 23 year old woman anyways. Haha. Thanks for your response.

     Bob,

    This is just my perspective, but I feel it is important to research and understand all aspects of these issues. I cannot protect my family without all of this information. I know what my children will be facing in the next few years. I cannot teach them, protect them or most of all encourage them without all of this insight. This forum topic provided good information about what is to come so any person can use that info to protect loved ones.  

    • Thu, Dec 04, 2008 - 02:23am

      #17
      lundsta

      lundsta

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      Re: total national credit score data mining Imagine the …

    I can only answer your first question based on the larger banking institutions.

     

    5% could qualify for a modification. I am finding that only 2.5% actually follow through the entire process and get the modification. Next is the tricky part. The modifications we started in the beginning of 2008 are now back in the delinquency state. (The 2.5% are now needing help once again) Once a bank does a mod they will not do another one for at least 1 year. A maximum of 5 the entire length of the loan. A sneaky way for banks to postpone losses.

    Opportunities for modifications do not change with the amount of liens on the property.  

    I would have to get back to you about the FHA mortgage. They tend to keep that information secret.  

    I am still trying to find the best way to resolve the crisis.

    I think moving all trouble homeowners into a fixed interest rate loan is key. The gov was proposing new mortgage loans at 4.5% so I will use that number.

    Then make the loans unsecured. The banks cannot afford the mass foreclosures anyways. This would also prevent the gov from writing off banks bad debts. The plan allows people to stay in their homes. 

    The unsecured debt could then be totaled together with other outstanding debt. Equally one payment for all debt.

    So now the picture would look like this:

    100k (1st mort)

    50k (2nd mort)

    25k (credit card debt)

    175k total debt @ 4.5% interest =886.0 per month

    I know some people would loose out here, but it would be shared between bankers, gov and homeowners. No plan is perfect. I do not agree with wiping out all debt. Debt forgiveness is unfair to the people that pay on time and manage their money. Bailouts are also not acceptable. If assistance was the best option it is best to spread it around. The trickle down effect only works for non-selfish creatures. Last I checked this was not the human race. 

    The only other option is a "do-over". Let things burn out and then rebuild.  

     

     

     

     

     

     

     

     

     

    • Mon, Dec 01, 2008 - 04:29am

      #10
      lundsta

      lundsta

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      Re: Which bank rating service is reliable?

    The bank ratings will be the same for publically traded and non-publically traded firms. Just remember the information is a few months old. Alot has happened since September.

    • Sat, Nov 29, 2008 - 05:38am

      #13
      lundsta

      lundsta

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      Re: total national credit score data mining Imagine the …

    Thank you for your response. What other questions are you working out?

    • Fri, Nov 28, 2008 - 04:45am

      #11
      lundsta

      lundsta

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      Re: total national credit score data mining Imagine the …

    I guess asking why will not get me anywhere. I am constantly asking questions about things I can’t change. If you do have any ideas to the question please let me know. Different perspectives always help.

    • Wed, Nov 26, 2008 - 08:49pm

      #9
      lundsta

      lundsta

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      Re: Here is the Solution to ALL our troubles

    I guess we gave them that right. Why don’t the US citizens get to vote on the cabinet, fed and court positions? I am suprised our founding fathers did not put that in the constitution. It feels like Americans have taken our country for granted. Me included, I have no idea what it is like to fight for freedom.We trust to easy and don’t think for ourselves. When I die someday I am going to have to give the founding fathers a really good reason why…..better get going on my excuses.

    • Wed, Nov 26, 2008 - 08:39pm

      #9
      lundsta

      lundsta

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      Re: total national credit score data mining Imagine the …

    I did want to add on concern I am still watching. All the people that are doing foreclosures, short sales or walking away from debt are not getting the full picture.

    Most people have 2 or more mortgages on these properties. The options above usually indicates that only the 1st lien will be wiped clean. The other liens turn into unsecured debt and haunt the homeowner forever. The government also sees this lien as income and will tax you. The first wave of these accounts are coming the the surface. Over the next 2-3 years the beast will show it fangs.

    Here is an example:

    1st mort 100k

    2nd mort 50k

    The borrower cannot afford the home and the bank will not do a modification. The borrower does a short sale for 95k. The 1st mort will take the entire amount and charge off the 5k. The 2nd lien is turned into a unsecured line of credit after the sale (Usually with interest above 9%). So the borrower still owes 50k. Fast forward 3 months for 2008 taxes and this borrower has to report 50k as income for 2008.

    People need to wake up and see that the gov is just as guilty as the banks.

    Another concern is since the bailout passed the guidelines for modifications are tighter. If your income to debt ratio is 65% or higher you don’t make enough and if it is lower than 50% they believe you can afford the payments. This is even more proof for some reason the banks don’t want to do modifications. Maybe you can shed some light and tell me why? I am at a loss on this one.

    I am sorry if this is long.

     

     

Viewing 10 posts - 11 through 20 (of 48 total)