The Pros & Cons of Saving Your Homes
By Barry Ritholtz - March 26th, 2010, 3:30AM
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Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data, ability to repeat discredited memes, and lack of respect for scientific knowledge. Also, be sure to create straw men and argue against things I have neither said nor even implied. Any irrelevancies you can mention will also be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.
March 27th, 2010 at 4:08 am
This guy has is good. I did not realize that his move to MSNBC and away for CNBC was such a radical shift.
Yes I agree, if you owe more on your home then it is worth, of course you should walk away. Why wouldn’t you?
March 28th, 2010 at 3:30 am
Every underwater homeowner should be modified without principal reductions or second mortgage writedowns, they agreed to the amount. The financial industry financially harmed them by creating underwater with underselling the massive influx of REO’s starting the deflationary cycle and should be held accountable. I have sent a 10 page proposal to the government requesting that they enforce the consumers protection with a defective product, underwater mortgages and not at the taxpayers expense. Capitalism means the involved parties pay for any losses.
The payment is lowered automatically and there is a matched pay down option , the investor matches up to 2 x the amount the homeowner paid to negative equity after 10 years. There is no moral hazard, every underwater homeowner is entitled to the modification.
There will be foreclosures, because you can not reasonably expect a homeowner who hasn’t made a payment in over a year to pay anything. Housing values will continue to decline, but with a massive modification program they will stablize. The additional benefit is the amount of disposable income will increase fueling the GDP which fuels the creation of new jobs.
If you are interested in a copy to review or forward, please email me at sue806@aol.com