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A Handy Dandy Subprime Mortgage Primer (Merge)


Zen-like Todd

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Wasn't this posted about a month ago? BTW the problem has been beyond subprime for maybe a year now. So basically it's "the handy dandy mortgage primer (circa 2001-2007)". People are screwed but I'm pretty happy since it means I can own a decent sized house...

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While I'm spamming this thread... wonder why we didn't create a thread on the Fed's comments yesterday that bank's should... "Just reduce the loan amount..." for people having trouble paying their loans. Hah! They can all crash and burn the way they've run this country to hell (I'm talking about the greedy bankers, brokers, and everyone else who got us into this mess). I swear, buying a home in the past 4 years is like being infected with a flesh eating virus.

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While I'm spamming this thread... wonder why we didn't create a thread on the Fed's comments yesterday that bank's should... "Just reduce the loan amount..." for people having trouble paying their loans.

So this is where these folks were coming from today with the "no I don't want my loan modified, I need you to reduce my principal balance to keep my house" and I would simply reply "Excuse me? I'm sorry but to my knowledge there is no such program."

Unreal.

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People have no idea what will happen if the banks are forced to reduce the amount of loans or honor arms for longer time frames. It's a shame that we can't just be big enough to say we screwed up and have to pay the piper.

They are already honoring arms for longer time frames. Its actually been a big help in just a short amount of time. However I would imagine reducing the loan amounts would be a disaster.

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So this is where these folks were coming from today with the "no I don't want my loan modified, I need you to reduce my principal balance to keep my house" and I would simply reply "Excuse me? I'm sorry but to my knowledge there is no such program."

Unreal.

Here you go...Bernanke at his finest...

http://www.bloomberg.com/apps/news?pid=20601109&sid=aV6kqOuYFc5E&refer=news

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Oldskool,

Greenspan caused this mess. We need Volcker to come back. Ben is an idiot for cutting rates so aggressively however... the fact that people on the Internet saw this coming for 3 years now doesn't speak well to the higher-ups who want to say... "We never saw this happening" or "who could've known". It's funny the banks are getting hosed because people have figured out they can just walk away... I mean when you pay no money down there's no loss there...

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Who is WE? I didn't lend out loans to people who could not pay them back, sucker someone in with a teaser interest rate, nor did I take out a loan I could not afford to pay back. **** um, they gambled and lost. Maybe with the potential fall out I will be able to trade up a bigger house that I can afford?

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People have no idea what will happen if the banks are forced to reduce the amount of loans or honor arms for longer time frames. It's a shame that we can't just be big enough to say we screwed up and have to pay the piper.

Well we could. Just have the Federal Reserve print more money, voila!

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