SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : The Residential Real Estate Crash Index
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Patricia Trinchero who wrote (176963)1/14/2009 5:43:20 PM
From: tejekRead Replies (3) of 306849
 
I heard tonight that the Obama plan was going to help the people who are in in default on mortgages and /or loans. They are likely to be in default again soon.

The goal is to stabilize the housing market. Until the housing market is stabilized and prices stop going down, then the banks will not be on solid footing. Going after the people in default is one way of stabilizing the housing market. Some of those people in default could handle the monthly payments if it weren't for the usurious interest rates that were charged when the LIBOR rate went up and their loans reset. You recast those loans at interest rates that these people can handle and that will allow them to stay in their houses. By doing that, you reduce the number of foreclosures somewhat and help to stabilize the housing market.

Currently, there is a 6.9 month supply of housing. Equilabrium between supply and demand is at 6 months. Assuming that the 6.9 figure is accurate, we're very close to having supply/demand in balance. Once the housing market is in balance, the drop in prices will slow and eventually stop. Once a bottom is reached in prices the banks won't have to worry if they have enough assets and cash to offset their bad loans. Then they will feel more confident lending.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2026 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News