Only 170,000 have completed the paperwork, while 1.1 million home owners have begun the process.
The program is having a tiny impact on America's high rates of foreclosures.
Las Vegas is hard-hit by foreclosures but fewer than 4,000 homeowners have completed the paperwork for the program.
Read more on Over One Million Enroll In Obama's Mortgage Modification Scheme…
Filed under Banks, Foreclosure, Politics, mortgage by Luke Ford
February 25, 2010
Chase Blamed For Not Modifying More Mortgages
Why are banks getting blamed for not modifying more mortgages?
Why should they modify mortgages unless they believe it is in their self-interest?
What about the sanctity of contracts? People signed up for certain terms. If they can't live up to them, then they default and the bank forecloses.
Filed under Banks, Foreclosure, mortgage by Luke Ford
February 10, 2010
Why Fannie Mae, Freddie Mac Went Broke
Because they follow the dictates of politicians.
Politicians, be they Republicans or Democrats, saw increased home ownership as an absolute good. They ended up sacrificing our entire economy for this false god.
Filed under Banks, Politics, fannie mae, freddie mac, mortgage by Luke Ford
I love that Steely Dan song, 'Are you reelin' in the years?'
That's the song I hear in my head as I read about Federal Reserve chair Ben Bernanke talk about his plans to reel in the stimulus once the economy is on firmer footing.
February 9, 2010
Low Rates For Those With Great Credit Scores
You keep hearing on the news about record low mortgage rates. But you're having a hard time getting a hold of those low rates for yourself.
Exactly who is taking advantage of these low rates?
About 11 million American households are underwater on their mortgage.
So why don't more Americans walk away?
That's the theme of about a dozen articles in the New York Times over the past month.
Filed under Banks, Foreclosure, mortgage by Luke Ford
Yeah. We live in a global village.
It sounds like Germany is underwriting bailouts of Greece. Germany is the European country best situated to ride out this storm.
Remember how the Bush administration kept assuring us in 2007 that the subprime collapse was contained? Well, it wasn't. Some of my friends have been wiped out.
Read more on Will Debt Problems In Greece, Portugal and Spain Hurt You?…
Filed under Banks by Luke Ford
Banks and businesses walk away all the time from bad investments. It's called cutting your losses.
Individuals? Not so much. They're scared. They're scared of defaulting. They fear it shows bad character. They fear the hit it will give to their credit rating. They've never defaulted on anything so massive in their life. Their fears override their rationality.
Read more on Too Scared To Walk Away From An Underwater Mortgage…
Filed under Banks, Foreclosure, mortgage by Luke Ford
I am amazed at how often people stay in underwater homes. They have a huge economic incentive to walk away but they feel a moral responsibility to pay off their mortgage, even when it is not in their self-interest.
Read more on Feeling Like A Sucker For Not Walking Away From An Underwater Home…
Filed under Banks, Foreclosure, mortgage by Luke Ford
President Obama came out with his Making Home Affordable program. It's designed to help people struggling with their mortgage payments to modify their mortgages into something more affordable.
There's a big federal and state government push to reduce mortgage defaults. Home foreclosures drive down property values, which mean more people will go under water (owe more on their homes than it is worth).
Read more on Making Home Affordable Program Eases Up On Paperwork Requirements…
Filed under Banks, Foreclosure, Politics, mortgage by Luke Ford