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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: TobagoJack who wrote (51968)	7/1/2009 9:40:38 PM
From: Elroy Jetson	Read Replies (1) \| Respond to of 218047

They're attempting to slow down the avalanche of home foreclosures by lowering the interest rate on people whose home is worth more than their mortgage. If the lower rate can keep some people paying their mortgage rather than walking and dumping the loss on the government, it will save the taxpayer some money. This offer will cost nothing and ultimately will apply to very few people. Japan offered these style loans through their treasury acting as the Home Lending Organization. This likely slowed down the decline of home prices in Japan, but after 16 years of declining home values the price decline was probably exactly the same. Back in the crazy days some lenders, like General Motors' subsidiary Ditech Home Loans, offered cash-out mortgages for 125% of home, betting on future housing appreciation. That money created spending equal to 106% of total national income, spent on crap from China and granite kitchen counters in every cheap home. .

To: TobagoJack who wrote (51968)	7/1/2009 10:03:35 PM
From: Elroy Jetson	Read Replies (1) \| Respond to of 218047

This is the gist if the concept, get money from the borrowers now - not later. Fannie Mae and Freddie Mac own or guarantee more than half of the single-family mortgages in the U.S. The government- chartered companies were seized by regulators in September amid concern that their capital wasn’t sufficient to weather the worst housing slump since the Great Depression. The companies each said in separate statements today that borrowers with loan-to-value ratios of between 105 percent and 125 percent must refinance through their existing mortgage company to qualify. Fannie Mae is additionally paying lenders an incentive equal to half a percentage point, to encourage refinancings to shorter terms of 20 or 25 years. Freddie Mac said it is also offering a “special price incentive” as well to borrowers that accept a shorter repayment schedule. bloomberg.com .