Irvine Housing Blog

“Without some kind of debt forgiveness, the people who live in our neighborhoods will owe hundreds of thousands of dollars in zombie debt collection for years. (This issue is one of the reasons for civil unrest in Spain.)”  Note: article has virtually nothing to do with housing and involves a whopping 500 “protesters.” And by ‘the people who live in our neighborhoods’ do you mean squatters?  Because I was under the impression that once you lose the house you don’t own and aren’t paying the mortgage on, you move on to a rental somewhere else.

“I like this law despite the fact it creates moral hazard because its a greater moral tragedy to sentence these people to debt servitude and being hounded by zombie debt collectors.”  LOL.  Really?  You’re joking right.

It’s early but either we’re being Punk’d or we’re reading Michele Bachmann’s latest hallucination.  This one post seems to undo everything you’ve stood for for the past 5 years.  I’m going back to bed to sleep it off and hope it was all just a bad dream IR.

We are going to have a similar problem to Spain’s with our student debt.

Realtor lady’s teeth are freakishly white!

Does anyone know the typical “standards” required for servicers to allow you to pursue a short sale?  I think you have to be “troubled” financially before they’ll even agree to entertain a short sale, no?  But how troubled need you be?

What if the borrowers have no financial issues whatsoever, but just want out?

the post-Reagan/Clinton student loans are essentially unforgiveable except for:
1.  Death
2.  Govt service

BK does not erase it.

For the medical profession, there’s are ways to have partial forgivenesss working for a not-for-profit or govt associated hospital which is a huge percentage of the hospitals in the US.

The PTB want high national debt service.  That way they can decide where your money is spent and invested.

Drip drip drip… All too little too late. If our economy hinges on debating the merits of short sales vs. foreclosures, and debtors praying they won’t get sued then you know what kind of shape we’re in. Wish I could hibernate until 2020.

I like the spirit of SB 458 but it should include a provision that allows the debtor to put a couple of slugs into the Realtor® who sold him the house at close range, flesh wounds, and taunt him or her for a few hours and remind him or her of the lies he or she spewed. CAr might have a problem with this but any reasonable human being with even a rudimentary sense of justice would understand that God would smile at every howl of agony from a wounded Realtor®.

I read somewhere because of this new law banks are not willing to forgive as much now. Junior lien holders are asking for more in short sale deals also.
Realtors are claiming that short sales are getting more difficult now to close because of this law. Any thoughts on that?

The statute lends itself to being read that if a first mortgage loan consents to take a short sale, then even if the second secured position was never asked to consent in advance, they also have to discharge their position and furthermore can’t collect any of the heloc or other loan.  Good thing California doesn’t have any lawyers who twist vague statutory remedial language for the consumer’s benefit.  But try reading it that way, and that may even BE the intent behind its terrible vague language.  What sane lender, fannie, freddie, fha, heloc, would EVER make a loan there again?

Debt forgiveness is a moral hazard, so we should have the government make housing prices $1 million dollars per 1000 feet of living space. Tie the loan to the family name, and extract the payments from them until it is paid off.

I think Meg could use another indentured servant, this time one that is legal. Too bad you tried to “enter” the elite wealthy homeowners by purchasing a 2 bedroom condo, now get to work for Meg!