tom1 wrote on May 23, 2009 09:31 PM: socialism hath arrived in Nevada !!!

When you have to pay $5.00 for a single tomato at the grocery store then perhaps you will understand the consequences of your actions........

Rwmember who voted for this measure and vote them out in 2010 and 2012....and beyond.........

Vicky S. wrote on May 23, 2009 05:46 PM: Help those that had fixed mortgages. Those that didn't squeeze out every nickel of their equity. Finally, please help those that lost their jobs as a result of this hot mess!

Upside down wrote on May 23, 2009 04:01 PM: I'd like to pose a question. Suppose there was a bill that allowed BK judges to write down the principle balance of the loan to the appriased value today. And let's say that the banks who own the paper would get more money than if they went thru a foreclosure? The lenders have already lost this money it is just a matter of cutting the loses and keeping communities together.
I mean if a home is 100k upside down that money is gone whether the banks take the loss in a write down or thru a foreclosure. Foreclosed homes might get 60% of the appraisal value (net to bank). The write down would give the banks 90% and that would only go to loans where all avenues (modifications etc etc) were exhausted. Wouldn't that be better for all parties invloved?
BK is no small hurdle, all avenues would have to be exhausted, credit would still be tarnished and you would pay the cost with higher interest rates until back in good standing. But homes would not be literally given away; a home near Alta dr sold for $ 18,000 last mo in a foreclosure. A home that sold for 1.2 mil in 4/08 sold for 575K on 1/09.
BK judges are already allowed to write down principle on 2nd homes, on cars and boats so why not principle residences? There is precedent for re-writing contracts. Why not now to put a floor in the market and stop the bleeding??
Sentate 61 Sen John Ensign voted against such a bill, wouldn't even work a compromise on it.
So who would be hurt? Investors? carpet baggers? the only one maybe is the 1st time buyer who has walked into a market of a lifetime....

This plan won't work wrote on May 23, 2009 11:45 AM: Does anyone really think that this is going to help solve the foreclosure problem in Nevada? Banks will not agree to write down the balance of the mortgages to current market value and homeowners will not agree to keep a house that is worth $150k less than what they paid for it. Merely modifying the terms of the loan won't entice homeowners to remain in a home that has lost 60% of its value. The reality is that many borrowers in default are trying to get out of the house altogether; they do not want to own the home any longer. It has nothing to do with exotic mortgages that are set to reset at higher interest rates.

If policy makers really want to stop the foreclosure crisis, they should encourage mortgage note holders to pursue deficiency judgments against foreclosed borrowers. If a borrower knew that they would have to pay the full amount of their mortgage even if they foreclosed, chances are they would continue to pay their debts.

SBK wrote on May 23, 2009 10:59 AM: I agree with your comments, guru. According to the above article people were "enticed" into exotic mortgages.

Except for those people with verifiable intellectual deficits, mental illness or other cognitive impairment, the person signing the loan documents is indicating via signature that they understand and agree to the terms.

We all know non-traditional mortgages are a gamble. You are betting that the interest rate will not increase or that you will have the option to refinance. Those of us with traditional mortgages were not willing to assume those risks and, instead, opted for the safety of a fixed rate. Any basic financial book will inform a potential borrower that you should not take out a variable rate mortgage unless you have calculated your payment at the highest mortgage rate your loan allows and are sure you can cover the increased payment.

I'm not under the illusion that the world is fair. Just tired of individuals not taking accountability for their choices and expecting others to subsidize the cost and/or consequences they should rightfully assume. Obviously, I am not referring to individuals with medical problems, job loss or other situations that are clearly outside their realm of "choice", just those who took a gamble, lost, and now see this as an opportunity to work the system at the expense of others but could actually pay thier mortgages if they had lived within their means.

boowii wrote on May 23, 2009 09:48 AM: How about the people renting foreclose home and did not know anything about it?

guru wrote on May 23, 2009 09:33 AM: Let's not help those with 100% financing and paid the least.

Let's not "fix" their loan and erase all late fees etc. Those costs will be passed onto MBS investors, other borrowers, and society (village) at large. The national deficit grows and grows. Who will pay for that and When?

The only people I feel sorry for are those with Traditional mortgages (70-80% LTV), as they actually LOST MONEY that they will never get back! The government should really be focused on those who actually LOST MONEY!

believe it wrote on May 23, 2009 09:32 AM: if this wasn't such a debt driven economy, then we would not have all of these problems, it says the lenders do not have to yeild to the concessions, so then what does this really do. NOTHING AT ALL!!!!!!!!

Waste x 3 wrote on May 23, 2009 09:23 AM: Waste of Time, Money and Public Resources, as the loan Servicers and Borrowers can communicate. They do not need a Mediator (coach).

just 400 bucks? wrote on May 23, 2009 09:15 AM: With a home and tens of thousands of dollars at stake, the mediator pay should be $14,000, not just 400 bucks!

And what is with the "no matter how long they last", referring to how long it takes to resolve, possibly days or weeks.

I suppose this is Contributing to the community.

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