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To: Les H who wrote (191174)	9/10/2002 10:36:41 AM
From: MulhollandDrive	Respond to of 436258

isn't that what has been at the root problems with the japanese banks? unwillingness to write down bad loans? of course i guess 4 payments delinquent doesn't quite reach that threshold these days... <g>

To: Les H who wrote (191174)	9/10/2002 11:39:23 AM
From: yard_man	Read Replies (2) \| Respond to of 436258

our problem in a microcosm ... >>The solution devised by her lender and a counselor at Housing Opportunities Made Equal, a community group here, is typical of the recent changes. Ms. Lane is about to resume her regular payment, and her lender, Countrywide Mortgage, will add the missed payments — with interest, they come to about $3,000 — to the end of her mortgage.<< Why ever pay off anything -- just push the term out indefinitely -- banks never have to recognize any bad debts -- we can all get the things we so richly deserve right now, instead of saving money -- income stream for the banks is smoothed into the future. Works for me <g> Better yet -- why not just assign the loan to her children and let the interest accrue until they get out of college -- they can start paying then ...

To: Les H who wrote (191174)	9/10/2002 11:43:25 AM
From: yard_man	Respond to of 436258

This cost per foreclosure has only been computed based on rising house prices -- wait till they start falling in earnest -- there is good reason to be short these dogs. >>This approach is not without risks. Ralph B. Karrigan, an executive vice president of SunTrust Mortgage, a division of one of the biggest banks in Richmond, estimates that Fannie Mae and Freddie Mac lose about $12,000 on a typical foreclosure here. They spend about $2,000 trying to coax late borrowers back to their payment schedules, Mr. Karrigan said. If unemployment fails to improve by the end of this year, numerous delinquent loans might turn from a $2,000 cost into a $14,000 cost. "Many of these tactics are stall tactics," Mr. Karrigan said. "If they can't make the payments, you're doing nothing more than deferring the inevitable foreclosure." <<