Sarasota real estate homeowners make “business” decisions about “underwater” properties, drawing criticism from Wall Street “hypocrites.”
Bankers RUN the FED & line their pockets regardless of "business" decisions!
The gull of mortgage “bankers”….
Who do “THEY” think they are?
In a Jan. 7, 2010, New York Times article, Roger Lowenstein quotes John Courson, president and C.E.O. of the Mortgage Bankers Association, who indicates homeowners who default on their mortgages should think about the “message” they will send to “their family and their kids and their friends.”
John, the message homeowners who default on their mortgages (even when they voluntarily walk away) send to their family, kids & friends is that THEY have the ability to make business decisions about a home/house…just as Wall Street BANKERS and CORPORATE CEO’S have made for years.
Without doubt, Florida has been smacked hard with defaults & foreclosures…as prices continue plummeting despite increased sales.
And now commercial property defaults are setting all-time default records as bankers criticize regular folk making business decisions.
Click Read More below now for another banker’s idiotic comments to a group of fellow bankers. What should we expect from bankers. Wasn’t it bankers (or was it “irresponsible people wanting homes they couldn’t afford”) who dumped us into a DEpression?
BANKERS JUST DON’T GET IT
In his article, Lowenstein adds “…given that nearly a quarter of mortgages are underwater, and that 10 percent of mortgages are delinquent, Brent White, a University of Arizona law professor, is surprised that more people haven’t walked. He thinks the desire to avoid shame is a factor, as are overblown fears of harm to credit ratings.”
Shame?
Did the taxpayers parade corporate CEO’s through the streets after they ratcheted banks and businesses into the ground?
Courson has no clue what the average homeowner is fighting today. For a couple years, the defaults targeted subprime mortgages purportedly taken by irresponsible people buying more than they could afford.
- From where did these loan products come anyway?
- Why were “LIAR” or “NINJA” loans (that is, loans requiring no documentation such as income, job & assets) allowed in the first place?
- Why were property values ALLOWED to skyrocket 30-50% a year?
- Why didn’t Greenspan’s FED not raise interest rates at least on investors?
- Why did mortgage BANKERS set people up for failure?
For years, I’ve followed the hatred on forums from people who think this entire mortgage (and now national economic) collapse is the fault of IRRESPONSIBLE people attempting to buy more house than they could afford.
Many of the loudest screamers now are losing their homes, as the collapse has taken their jobs, leaving them unable to pay their house payment. Who’s screaming now!
Dirty politicians bail
out dirty bankers!
Instead, “our” dirty politicians bail out (at taxpayer expense of course) these dirty bankers. In return, these same CEO’s grabbed MILLIONS in bonuses. Apparently, brain-dead shareholders voted to let these idiots pillage these banks and businesses even more at taxpayer and consumer expense.
John Courson of the Mortgage Bankers Association literally must be out of his head!
Loan modifications under HARP are not addressing the avalanche of defaults, now adding commercial defaults.
Correctly, Lowenstein adds, “If lenders feared an avalanche of strategic defaults, they would have an incentive to renegotiate loan terms. In theory, this could produce a wave of loan modifications — the very goal the Treasury has been pursuing to end the crisis.”
source: http://www.nytimes.com/2010/01/10/magazine/10FOB-wwln-t.html
image: http://myiq2xu.wordpress.com/2009/04/05/let-them-eat-cake/
BOTTOM LINE: If a property you own is $50,000-$150,000 (or more) underwater with little (or no) chance of breaking even in your lifetime, should he (or you) keep paying on it?
Does he (or do you) have a moral obligation?
If he chooses to default strategically, here’s the factor: Is he (or are you) judgment proof? Especially in RECOURSE states such as Florida, protecting one’s assets from a judgment is paramount. It’s not about credit, as the hit to one’s credit is not life-threatening. YES, I’ve seen many credit reports, before and after. An 800 drops to 580 BECAUSE of lates, not so much the short sale or foreclosure. According to legal and tax experts, the issue is judgment proofing before short selling it away for a BETTER house $1,000s LESS.
Sarasota real estate, both residential and commercial, is taking a beating as commercial defaults pick up steam. I’m certain you have an opinion on this explosive topic affecting nearly every Sarasota property owner. For many Sarasota homeowners (I presume), their lives have not changed one bit since 2006. They are making as much money as ever before. They have no concerns about their “jobs” or making their house payments. Yet, I talked with a Longboat Key one-time multi-millionaire who’s down over 70% on NET worth, thanks to Madoff, Nadal & a failed economy in general. Financial hardship hits even exclusive Longboat and Siesta Keys. And guys like John Courson should know better than to make such idiotic comments.
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