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.

Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: tejek who wrote (533510)	11/30/2009 5:45:41 PM
From: i-node	1 Recommendation Read Replies (2) \| Respond to of 1574854

For an example......say your monthly mort. payment is $1000. Of that amount, interest is $900; principle[SIC] is $100 Mortgage expert doesn't know the different between "principle" and "principal". Banks don't like to modify loans.....in fact, they don't like to work with borrowers who are in trouble. You are so totally FOS I can't believe it. Banks don't like nonperforming loans at all. But once they've got a problem, they fall all over themselves to turn them into performing loans because they don't have to take the loss now if the loan is performing, and no bank in its right mind wants to take the loss now if they can possibly collect payments for another year and see where the market stands there. You totally do not have any idea what you're talking about.

To: tejek who wrote (533510)	11/30/2009 8:01:19 PM
From: Tenchusatsu	Respond to of 1574854

Ted, > I haven't read the Obama proposal but this is where I suspect it will step in.....they will try to get those banks that don't currently modify to offer modification plans.......and to make those modifications less rigorous than the one I just outlined in the prior paragraph. Keep in mind the Obama proposal will have some clout because one of the banks with the biggest inventory of home loans is BAC. And BAC owes the feds. Otherwise, I don't seeing it be very successful. Well I suspect banks have their own reasons for not offering modification plans. Some of them may be nefarious, but most are probably due to necessity like you outlined. The language used by the Obama administration, e.g. "cracking down," suggests strongarming tactics, though. In reality, I don't think there is much room for strongarming, but I do see potential win-win scenarios if the administration can stick to greasing the skids, rather than "It's my way or the highway" rhetoric. Like I said before, banks have been known to screw over their borrowers in ways that ultimately become detrimental to both lender and borrower. And that kind of stuff can't go on. Tenchusatsu