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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: Broken_Clock who wrote (200574)	5/6/2009 2:01:24 PM
From: pheilman_	Read Replies (1) \| Respond to of 306849

From Menlo Park California: (putting a finger in the dike) "The Foreclosure Prevention Program targets owner-occupied homes with mortgages more than 90 days past due. Program administrators would approach the bank that holds the defaulting mortgage and ask it to sell the mortgage at the home's current fair market value - the same amount the bank would receive if the home went through foreclosure, but with fewer expenses and less time and trouble for the bank, said David Shapiro, CEO of the EARN Group, a Los Gatos company that develops real estate financing tools. A local community bank would then refinance the mortgage for about 70 percent of the home's fair market value. In what is essentially a "silent second mortgage," the city would put up about 30 percent of the home's value as a cash investment, leaving the homeowner with a mortgage for 70 percent of the home's fair market value at today's low interest rates. The homeowner's monthly housing costs potentially could be halved, EARN said. " sfgate.com And my favorite comment: tom1 5/4/2009 11:58:58 Sounds like a great plan. I should be 90 days late on my mortgage in about three months ... The bank takes the haircut up front and the benefits seem to accrue to the state. Of course the deadbeats will just continue to miss payments. CNBS talked about it, perhaps the deathly fear of winding up like Stockton or Vallejo is the motivation. And the police state of Menlo Park simply couldn't ever reduce their spending. (I call it the police state for their brutal parking laws, no overnight parking on the street, intended to keep the housing minimally occupied)