r2i forum

Bush
1) "It's not the government's job to bail out speculators or those who made the decision to buy a home they knew they could never afford. Yet there are many American homeowners who could get through this difficult time with a little flexibility from their lenders or a little help from their government."

2) "This has led some homeowners to take out loans larger than they could afford based on overly optimistic assumptions about the future performance of the housing market," Bush said. "Others may have been confused by the terms of their loan, or misled by irresponsible lenders. Whatever the reason they chose this kind of mortgage, some borrowers are now unable to make their monthly payments, or facing foreclosure."[/quote]

Deb Riechmann
Mortgage foreclosures and late payments are expected to worsen. Some 2 million adjustable rate mortgages are to reset to higher rates this year and next. Steep penalties for prepaying mortgages have added to some homeowners' headaches.
[/quote]

bush
3) "Let's say the value of your house declines by $20,000 and your adjustable rate mortgage payments have grown to a level you cannot afford," Bush said. "If the bank modifies your mortgage and forgives $20,000 of your loan, the tax code treats that $20,000 as taxable income. When your home is losing value and your family is under financial stress, the last thing you need to do is to be hit with higher taxes."
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What do you all think? Opinions and Assertions are welcome.
CoC:
a) evidence will be welcome
b) lack of evidence will not be accused as lies or similar.
c) evidence will not be bullied for.

Let us also know if you are A) home-owner, B) Prospective Home-Owner, or C) Neither.


Thanks.

FreeSpirit;42488 'Privatization of profit and socializing of risk' (not my quote, read somewhere else)[/quote]

I agree. Thats an apt quote, was trying to put together something like that. I think in thsi case the system is headed towards that.

genuine buyers most probably bought their home within their means and probably dont need govt help.

After the 911 and dotcom bust fed brought down the rate significantly but wall street took very long to respond, if it has. It will be interesting to see if similar pattern exhibits itslef with housing now.