Bottom line: The banks and the mortgage CDO bagholders are screwed.
Really, really, really screwed.
Sorry, it's just the way it is.
Whose stupid idea was it to allow no-down loans in the first place?
Idiots. Frigging idiots. And they deserve to fail. They need to be taught a lesson about fiscal and lending responsibility that will last for generations.
Turn in the keys Underwater Homedebtors of America!!! Run from that debt-trap as fast as you can!!!
Oh, dear, is this gonna get ugly. And you can thank our idiot Congress and Bush for pouring fuel on the fire last week by allowing homedebtors to short sell or foreclose with no tax hit now too! Monkeys I tell ya. Monkeys.
Bank of America CEO Ken Lewis told editors of the Wall Street Journal that he's worried about borrowers with strong credit scores not making loan payments if the housing crisis worsens.
Such concerns by the head of California's largest bank could trigger a tightening of credit availability beyond the subprime customer base.
"There's been a change in social attitudes toward default," Lewis told the Wall Street Journal. "We're seeing people who are current on their credit cards but are defaulting on their mortgages. I'm astonished that people would walk away from their homes."
Apparently even borrowers with strong credit scores are finding it easier to walk away from their mortgages, especially if they put little or no money down on houses and condos purchased for investment purposes.