Comments on: Housing double-dip threatens banks

By: jeffersjr

jeffersjr — Tue, 07 Sep 2010 16:07:43 +0000

It’s actually worse…those that were enticed into the housing market by gov’t programs will feel just the latest ponz of the banking industry.

They’ll say you made rates low, you subsidized downpayments, you said “buy” I bought. Now foreclosures on my street are up and my downpayment is gone. I’m underwater and you say you can no longer help.

What’s the equivalent of the 1930′s farmer’s pitchfork? Anyone?

By: DaBear

DaBear — Sat, 04 Sep 2010 15:13:02 +0000

“Nearly 15 percent of all loans are past-due or in foreclosure”. And the sad fact is that most banks still have not shown these loans as being losses on their books. As long as these loans are in the process of “renegotiation” or “pending litigation” then the bank does not have to take the hit on their books. That is why so many people I know are still living in their houses two years after they stopped making the monthly payments. It is easy to show a profit when you don’t have to declare your losses.

By: GMartin73

GMartin73 — Fri, 03 Sep 2010 16:50:45 +0000

Housing crisis? We have yet to see even a bit of a crisis. Jobs lost, upside-down home values, credit card debt, student load debt,sinking credit scores, and we produce very little of what we consume. The definition of the “American Dream” needs a drastic make-over. Buying homes makes little sense (unless you have liquid assets or are credit worthy), people are going in debt to pay for an education that will not pay them back, and to top it off retirement is a big question mark given our “leaders” handling of SS. The times have changed and we are still trying live like it is 1980. Lifeboat anyone?

By: JackMack

JackMack — Fri, 03 Sep 2010 15:52:13 +0000

Mr. Saft, your articles are always edifying, and this one is no exception. I would only disagree with your conclusion, though. If there is one thing that Republicans and Democrats in Congress can absolutely agree upon, it is bailing out banks. Rest assured there will be plenty more to come. Sufficient numbers of Republicans will rant, rave, and rail to be able to gain additional political capital, but the party will fall in line, and the banks will get their trillions out of our hides.

By: cranston

cranston — Fri, 03 Sep 2010 10:51:57 +0000

They will feed the pigs again. The 700 billion revolving TARP fund is still in existence. “Belly up to the trough, gentlemen, have a few more rum and cocaines on me.”…- Uncle Sam

By: Dafydd

Dafydd — Fri, 03 Sep 2010 09:27:43 +0000

Sure a lot of mortgages are delinquent, and it will probably get worse. But there is a limit. When credit is scarce there may be reason to continue paying on an underwater property if you can’t get another mortgage and if the interest rate is low enough to make it cheaper than, or at least competitive with, renting.

Unless rents are also falling (and I don’t think they are) keeping your current mortgage may be the cheapest housing available, whatever the actual value of the house.

I would expect high end properties to fall in price more than lower end ones. None of this is guaranteed to save the banks.

By: STORYBURNthere

STORYBURNthere — Fri, 03 Sep 2010 01:10:18 +0000

14% of all mortgages are either delinquent or in foreclosures