Silicon Investor (SI) -- The First Internet Community

STOCKTALK

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 Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: Ramsey Su who wrote (40644)	9/1/2005 6:02:00 PM
From: sciAticA errAticA	Read Replies (1) \| Respond to of 110194

Fate Of Mortgages In Damaged Areas Unclear The Housing Bubble Thursday, September 01, 2005 thehousingbubble2.blogspot.com Consumer Affairs ( consumeraffairs.com ) brings up the new bankruptcy rules that involve natural disasters. "Under the new bankruptcy legislation, homeowners who have refinanced may be liable for the full cost of their loans if they waived their protections when signing their new agreements." "Such was the fate of many homeowners after a series of landslides in Laguna Beach, California, in June of 2005, the Los Angeles Times ( latimes.com ) reported. It remains to be seen how this will affect bankruptcy or relief petitions in the wake of Katrina." Insurer AIG has this to say ( news-record.com ) about mortgages in the storm damaged areas. "Mortgage insurer AIG United Guaranty laid out guidelines Wednesday for how it will insure its clients with borrowers in areas affected by Hurricane Katrina. It did not have figures available, but many mortgages could be in potential jeopardy." AIG insures 4,145 mortgages in Alabama; 7,131 in Louisiana, and 1,644 in Mississippi, a spokeswoman said. AIG said it wanted lenders to make arrangements with borrowers with severe property damage or temporary job losses to prevent foreclosure." "Chris Goodwin, vice president of Loss Management (said), 'In working with lenders whose customers have been affected, we are prepared to accept a range of reasonable solutions where mortgage payment is concerned.'"

To: Ramsey Su who wrote (40644)	9/2/2005 3:09:55 AM
From: John Vosilla	Respond to of 110194

Don't forget not only are the courts going to be substantially behind for a long time but no local judge will allow a final judgement on a foreclosure as a result of this catastrophe. The mess will straighten out but it will take years for the legal end to be worked out with the tax payer and mortgage insurers taking the big hit. Many of those old frame houses with little or any mortgage probably get demolished and flow through the tax deed sale process for nonpayment of taxes.