Irvine Housing Blog

The losses have probably already been realized on these loans.  With the huge number of bank failures (including the massive Lehman BK that just got sold, not through FDIC) and bigger banks selling off portions of their books, a lot of servicers like Ocwen hold loans at much below the face value of the note.

The fact that they include owners with equity in the same group as neg-eq owners, shows that they don’t understand the difference between default and resolving a default through foreclosure.  If an owner has equity but can’t cover payments, then the solution is much easier.  First, they have refinancing available into lower rates.  Second they can sell.  It’s no accident that it’s the most underwater homes that occupants get the most time to stay while in default.

LOL! I’ll still default on my house, there’s no way I’ll sign anything MORE tying myself to these bastards. For now, I’m still below or at rental parity, but when the interest rate starts climbing, I start defaulting again. Who needs a principal reduction, when I can default, force a foreclosure, and YOU, the new buyer, gets the benefit of a direct principal reduction.

Indeed, foreclosure is superior to principal reduction. Now if we can just get 25% of americam home-RENTERS to just STOP PAYING all at once, and let the Ponzi collapse. I’m poised and ready to start the non-payment attack on this corrupt financial market. Now also remember, I LLC’d my personal fortune, so walking away from the house is only a republican business decision. How can I be a bad man when it’s only business?

Go ahead and give that to the lender.  Home values will go down another 50% from these levels, so who cares?

Future appreciation…chances are most folks won’t stay in the house long enough to see any of that.  But someone told me RE always goes up!

OT but as I recall there are some IHB Kogi fans
The Kogi truck is at Checkered flag car wash close to Jeffrey and Alton, right now if you haven’t had lunch yet

HTML works here?

When the house is later sold or refinanced, the borrower will be required to share 25% of the appreciated value with the investor.

I understand this to mean that they will have to share 25% of the sale price, not the profit. Am I mistaken?

BTW, Hussman has been calling for “Property Appreciation Rights” for a long time.
http://www.hussmanfunds.com/wmc/wmc090330.htm

“Suppose a $300,000 mortgage is in foreclosure (or the homeowner and lender can agree to the following arrangement outside of foreclosure court). A reasonable mortgage restructuring might be to cut the principal of the mortgage to $200,000, and to create a $100,000 property appreciation right. The homeowner would agree to pay off the PAR to the Treasury (and administered through the IRS) out of future price appreciation on the existing home or subsequent property.  The homeowner would be excluded from taking on any home equity loans or executing any “cash out” refinancings until the PAR was satisfied. The maximum PAR obligation accepted by the Treasury would be based on the value of the home and the income of the homeowner.

I suppose it’s possible for this program to work, but you know that the gov’t will screw it up. And besides, if the gov’t subsidizing homeownership isn’t a good idea, why is the gov’t subsidizing investment rentals a good idea? I suspect that this is just the latest ill-fated attempt to re-inflate the housing bubble.

Obama’s Solution for Foreclosed Homes
http://abcnews.go.com/WNT/video/obamas-solution-foreclosed-homes-14294308

(news video article; 30-second advert before video)

-Darth

Yup, just what the re market needs, more government intrusion because it has worked out so well in the past.

i remember ocwen

boy did they make some garbage loans

they should probably just all be wiped off the books