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To: Paul Senior who wrote (30423)	3/26/2008 3:34:04 PM
From: Broken_Clock	Respond to of 78670

I'm not understanding ---- Lack of moral character coupled with ignorance of financial matters for many of J6P nation. Add on to that the fact that we see the elite wealthy are screwing the public and walking away and it's monkey see monkey do.

To: Paul Senior who wrote (30423)	3/26/2008 3:34:17 PM
From: Debt Free	Read Replies (1) \| Respond to of 78670

Paul A lot of them had adjustable rate mortgages that have reset to a higher rate. As a result, what once may have been an affordable rate (due to a low teaser rate) suddenly becomes much more expensive. People need to understand that the decisions that one makes today, has implications for tomorrow. If they did a honest assessment then a lot of them may not have purchased the house that they did. imo

To: Paul Senior who wrote (30423)	3/26/2008 6:47:05 PM
From: Madharry	Read Replies (1) \| Respond to of 78670

sombody buys an $800,000 house with no money down. they are paying $48000 in interest alone. if the price of the house drops by 20%, they have now lost $160,000 with no upturn in sight. why should they not turn the keys back to the bank, walk across the street and buy a house from some motivated seller, or better yet rent with an option to buy. now they can potentially own a comparable house for $640,000 and probably save about 20% by renting vs. paying interest on the overvalued house. Of course they may also have been living finance free in the house for a couple of years until the foreclosure process is completed. some people like paulson might call it reneging other people might call it sound business practice. I pretty sure the homebuilders will take a chance on such people especially if they are now willing to put money down. Thats why I think the financials have not stopped going down yet. I also wonder how the fed is going to treat mortgage collateral that is in default. do they return it to the lender for collection? get substitute collateral that hasn t defaulted or do they pretend that its still AAA paper? interesting.

To: Paul Senior who wrote (30423)	3/27/2008 12:13:45 AM
From: Spekulatius	Respond to of 78670

Well maybe people can move out of their homes with no penalty, but they've got to live somewhere. Most will rent first and have to go through credit repair. It will take probably 2 years before they are creditworthy enough to be considered for a mortgage 9if they work their credit report agressively) Getting back in to a home will be more difficult for people who've skipped. Although this next home they'd be getting might've come down in price, this time I will expect they will have to put up a bunch of downpayment before someone would be willing to lend them money. Maybe yes, maybe now. We are very likely going to have a democratic government that will be very friendly to people who "lost their homes" or who "wanted to loose their homes'. Who going to tell the difference, especially if there are many of them? It would be stupid to underestimate American ingenuity on that matter. If it makes financial sense, people will stick it to the lenders. there will be an army of lawyers and RE professionals out there to help them, just as there was and army of mortgage brokers that got them into houses they could not afford. I think the likelihood of this scenario to happen is substantial and I do not think that the ramification of this are baked in any of the forecast for banks, mortgage insurers or FNM and FRE. If housing prices continue to go down, the losses from "prime" mortgages will pale those from subprime.