Noted Barry

There are a couple govt. programs (FHLBB and Block Grant) which give down payment assistance with no payback if the person occupies the home for a certain number of years. The same model has been used for Block Grant storefront renovation “loans.” In the FHLBB case they put their lien as a covenant in the deed. In other cases they file a 2nd mortgage. In both cases there is no payment involved but a clawback if the home is sold before reaching X years (usually 5.)

I do not understand why the mortgage industry, rather than completely foregoing principal in the write-down process, does not just file a silent 2nd on the property for the amount “foregiven.” Then, if the property sells 15 years from now during which the property value has (hopefully) appreciated there is at least a ghost of a chance to get the money back and in the meantime the borrower gets the relief he/she needs.

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There is not a lot of room to move much lower, many are already valued at less than it would cost to replace if they burned down.

People outside the trades don’t understand the difference between “replace” and “build”. It’s cheap to replace. Tap fees, curb and gutter ec… are the problem with building entry level housing in a city (Hence the burbs and ex-burbs). We couldn’t build them fast enough to keep up with the CDO software for a few years. So that the old “price to replace” means nothing to anyone but ol’ Greenspan.

Sorry I’m a suck up I had to get a greenie dig in.

June 22nd, 2010 at 5:50 pm
High end homes are cooked. What’s selling are mid and lower priced homes.

What is selling is homes below the Jumbo limit that GSE will buy the note one.
Done.
Next.

Perfect post Barry.

Like the new wonky mix on the posts. Readers are down to level where I’m in the shallow end of the gene pool, just where I like it.

Last couple of weeks: Good stuff, good trash talkin. Still I’ll be pissed if the first batch of TBP TV doesn’t have a shoot in front of a beehive (Don’t stand in front of the hive entrance).

Keep it fun.

Get the assets under management over a cool billion.
Then have some fun buying the Ms. BP a toy car (don’t worry you’ll hit 2b before that ferrari hybrid is out)

Thanks for the ride.

Agressive policy concept to remedy said fiasco:

Anyone who wants citizenship who is waiting in line for it, or thinking about it, or given up on it…. buy a home and its yours. Welcome to America.

Chinese industrialist wanna fixer-upper in Malibu? buy a home – Welcome to America.

Indian Doctor want to come to the US? buy a home

Russian Arms dealer? approved

Mexican drug lord? welcome to Phoenix as US citizen

Owe back taxes? amnesty baby.

Saudi oil nephew/prince/ playboy/ sheik/ bored 30-something? Need a yacht with that oceanfront condo in Miami?

Come on, sure the plan has some warts, but there’s gotta be 5 million immigrants out there somewhere with the $$ and we could use the tax base. Offer em dual citizenship. It’ll be the next great wave of legal immigration. I’m sure the wave of Italian, Irish, German, and Jews in the 1920′s and 30′s weren’t all choir boys.

I’m sure there’s even some family’s of working stiffs illegals that could afford a home and would pony up and buy instead of renting if mortgage companies could deal with ‘em. I mean they gave mortgages to people without jobs and assets, citizenship shouldn’t be as issue.

We need some new dollars to get this thing crackin…

Think of it as a blue light special for citizenship. (you know, like always, if you can afford it) – What’s more American than that?

We have to replace

Give me your tired, your poor, Your huddled masses yearning to breathe free

with

Give me your spoiled, your rich, Your smartly dressed crowd, yearning for an ocean view and Viking appliances

I cannot agree more. Principal reduction is all we have left… PRINCIPLES hit the zero lower bound in 2008.