February 12, 2008

FLASH: Hank Paulsen to announce yet ANOTHER failed housing gambler rescue scheme. It's the 720 Hour Housing Gambler Foreclosure Freeze!


Gotta love these election year smokescreens from Paulson and Bush. He's simply trying to help his banker buddies from going under, under the guise of helping homedebtors keep their overpriced houses. Well, we're not buying it gents. The clueless mainstream media is, like this article, but we're not.

This one has Bank of America Corp., Citigroup Inc., Countrywide Financial Corp., JPMorgan Chase & Co., Washington Mutual Inc. and Wells Fargo & Co suspending foreclosures for 720 hours (i.e. 30 days) for "seriously overdue" housing gamblers, so that they can work on a way to make sure the banks don't lose their money.

What fools like Paulson still don't get is that plans like this actually ENCOURAGE people to stop paying their f*cking mortgages! Seriously, how stupid can this guy be?

NOTE TO 'SERIOUSLY OVERDUE' HOUSING GAMBLERS - WALK AWAY!!

DON'T GIVE ONE MORE PENNY TO THE BANKS!!! YOUR DEBT-TRAP WILL JUST CONTINUE TO DEPRECIATE, YET YOUR FINANCIAL FREEDOM IS AT HAND!! WALK AWAY AND RENT!! IT'S A LOT CHEAPER!!


Man, Paulson and the banks must hate HousingPANIC. Maybe I should go on the run (oh, wait, I am on the run)

Federal Government Is Set to Announce New Plan to Help At-Risk Borrowers With Mortgages

WASHINGTON (AP) -- At-risk borrowers with all types of mortgages, not just high-cost subprime loans, could be eligible for help under a new plan involving six big home lenders. The plan, called Project Lifeline, will be announced Tuesday by the Treasury Department and the Department of Housing and Urban Development, said a person familiar with the plan who confirmed earlier news reports about the plan but spoke on condition of anonymity because it had not yet been made public.

Against a backdrop of surging defaults and administration officials' prodding of the mortgage industry, the plan will allow seriously overdue homeowners to suspend foreclosures for 30 days while lenders try to work out more affordable loan terms.

65 comments:

Anonymous said...

They just don't get it. The housing market must be allowed to correct. Back in 2003 when house prices really started to take off where I lived I had thoughts about this whole thing. I saw the prices skyrocketing and wondered how families that are just starting out were supposed to be able to buy a home. In that area (B/W Metro) even with super loose credit it became impossible for those making less than $100k a year to buy a home.

If we let the market freefall now we will be better off in the long run. Affordability will return to those hardworking families that deserve it.

Ed said...

.
.
.
WTF will be the next plan? A free house to every baby born along with the $5K Hillary baby bonus?

westwest888 said...

Economists at the Federal Deposit Insurance Corp. estimate foreclosures this year will be about 1 million more than average, a level that FDIC Chairman Sheila Bair has said ``is just too high.'' They average about 600,000 in a typical year.

WTF? Too high? If too many companies go bankrupt this year are you going to monetize their accounts payable to keep them open? It's a natural cycle. Who is she to say how many houses are or are not allowed to change owners due to non payment?

Princess Mononoke said...

Paulson is just a reflection of Bush!

Another idiot speaking out of his a$$. It is soooo hard to listen to them both and all their other comrades!

Our own government is dis-regarding business contracts. Good example they are setting for the sheeple. Desparate times call for desparate measures!

I would advise the sheeple to do the same. Why live strapped with a heap of debt, a prisoner and miserable.

happy homeowner in the stix said...

It will probably be as successful as Project Hope, or whatever they called that previous subprime bailout plan.

Don't get so worked up over it, guys.

They'll have another one in a couple of months. Bank on it. It also will accomplish bupkis.

keith said...

Let me recap this plan:

If you've made your mortgage payments as promised you get nothing, but if you haven't you get rewarded in the form of lower interest rate and debt forgivness?

Amazing

Absolutely amazing.

Moral Hazard anyone?

Why anyone is making a mortgage payment in America today makes no sense to me.

Anonymous said...

They should've rounded up to 1000 hours

Anonymous said...

EXACTLY!!
Well summed up, Keith.

The Government has taken away every single incentive there ever was for staying in your house, they just don't get that the fundamental issue is AFFORDABILITY!!

All of these people are sitting in houses that are MASSIVELY-Over-valued and the only thing that will change that is major price declines. There is no "riding the storm out" people!! Your house apprciated like it did due to systemic fraud, and it has to come down the historical mean now that there is no market and no qualified buyer pool to support that propped- up price!!

All this Govt. meddling is just post-poning the inevitable, and it should be CRIMINAL that they are acting to keep these bogus prices on life support...it only penalizes the responsible!!

MADDENING...just maddening.

Taxpayers: Get ready to take it in the shorts!! Fannie and Freddie will soon fail, and WE will get stuck with the bill.

Anonymous said...

hmmm, "Project Lifeline" ???

tastes like "Operation Iraqi Freedom" but with half the calories.

Smug Bastard

Anonymous said...

Paulsen:

While CEO of Goldman Sachs, said something like "only 10% of the employees are important to this firm".
The reality probably is that if 10% of the employees are lying, greedy, corrupt, cheating, conflict of interest ridden lowlifes, then yes, 10% of the employees of GS are important to the firm.

At the risk of sounding like a cynical, bitter SOB, firms like GS have an intense screening process for their employees, especially the back office and technical people, so they don't go running around to the press saying how dishonest the firm is.

The fact is that much of the business of GS and other firms like it is built on fraud, lying and deception. That's why former CEOs of these firms are perfect for government.

Anonymous said...

I can see that pure hate is beginning to eat peoples hearts on these boards.

Let this be a known wise advise, hate will eat you until you have no soul.

the mortgage guy said...

It's a bunch of BS. Governor Rell of CT has supposedly put together such a symposium. Of which J.P. Morgan Chase is part of.

I have a client who is the poster child for the subprime debacle. On time with payments until the reset etc.

This poor bastard is getting nothing but a run around from Chase. They tell him he needs $x to push the plan forward. He gets $x together and then they tack on thousands more in committee and legal fees. So he goes scrambling again.

Meanwhile, while the client is scrambling to get the money together the bastards put his house in foreclosure.

Apparently the public relations departments of these banks have not spoken to the work out departments, where it's business as usual. Which is playing hardball with the delinquent.

anon666 said...

So,if I quit paying my mortgage payment for 90 days and go in to default I get a lower interest rate? Sounds great, where do I sign up!

Anonymous said...

So we are out of "Hope Now", and now getting into "Project Lifeline". It doesn't sound like things are getting better ... What's next? "Operation Roll Over and Die".

Anonymous said...

They can do whatever they want to save the FB's as long as it doesn't involve taxpayer money.

Bail Me Out said...

Its not hate mind you...its bitterness...The Govt takes your hard earned cash with out choice,pisses it away to the unworthy,ignore the worthy,bail out the greedy at the expense of the meek then after all that ...you get the finger. I was once in the dark before I started reading blogs (truth) and listened to the MSM for news. In many ways I wish I was still in the dark because when you pay attention and see them stealing in broad day-light(Stimulus plan or Housing bailout?) ...bitter man...just bitter.

Anonymous said...

Don't be so hard on the blood-sucking mortgage lenders and their cronies. They only want to avoid having more Real-Estate-Owned (REO). They earn more interest income if FB's die a slow death, and get thoroughly tapped out, instead of the quick death. FB's need some time to liquidate stamp collections, signed baseballs, and Chinese-made stuff bought on credit. The slow drain of the FB's is a better way to leave a dried empty carcass.

Anonymous said...

If government is so concerned why don't they come out with a legislation that will make it illegal to walk out of your home.

Anonymous said...

My favorite from the AP story was this little gem...

"With home prices falling, even some people with good credit have gotten behind on their payments."

What do falling home prices have to do with one's ability to make mortgage payments that were agreed to under contract?

RayW said...

All the talk, anger and protesting will do no good. We can point out the lunacy of this plan but in the end I think somebody is whispering in the ears of powerful people that the money, credit, banking system is on the brink of collapse and they are doing whatever it takes to keep it from happening.

I think I'll quit making my car payment and blame the lender for giving me a bad loan. Maybe they won't repossess my car just like people aren't having their houses repossessed for not making their mortgage payments..

NOT!

Anonymous said...

When good men fail to act, evil prevails.

satan is a republican said...

Anon. 2:51 PM said:

"I can see that pure hate is beginning to eat peoples hearts on these boards.

Let this be a known wise advise, hate will eat you until you have no soul."

You're right. We hate lying, fraud, corruption, graft, dishonesty and an infinite universe of other similar words to describe what is happening to not only our real estate and financial markets, but our society.

Do you have a problem with hating lies?

Illegals Everywhere said...

I just read the details of this plan on Yahoo. This is just one further example of the desperate arbitrary decisions being made by our corporate government.

The fact is that anyone 3 months behind is Beyond The Point of Return. The fact is that 99.999% of those 3 months late have no intention of paying any further payments. Therefore; they will take this 30 day window of opportunity to further delay eviction.

This plan should clearly depict to anyone with a functioning brain just how hopeless the situation really is.

DOPES said...

"These lenders say they will contact homeowners who are 90 or more days overdue on their monthly mortgage payments. They will be given the opportunity to put the foreclosure process on pause for 30 days while the lenders try to work out a way to make the mortgage more affordable to the homeowner."

I JUST PICKED UP ANOTHER 30 FREE DAYS OF LIVING IN MY MCMANSION!!!

THANKS ANGELO!!!

KEEP BUYING THEM ORANGE CD'S BOYS!!!

DOPES!!!

Anonymous said...

A country filled with no responsibility of one's actions. A country of freeloaders and do nothings who wait around for the government to bail them out. A country of lazy asses who produce nothing but consume everything.
It's time to move overseas and get out before this country crumbles under the own weight of it's greed and laziness.

bank dick said...

Some observations:

1) FDIC announces that they will only insure accounts at failed institutions up to the $100K limit -- no exceptions -- unless the acquiring bank wants to pay more (LOL).

2) Starting in April, the IMF plans to sell 400 tonnes of gold to raise cash. Not that it needs it of course, it just wants to raise some cash...

3) Banks are raising their credit card interest rates to the max while at the same time lobbying hard for another 3/4 point cut from the Fed. Let's see, borrow at 2.5% and lend at 29% -- not bad, almost loan shark territory! But will that spread be enough to cover the losses on their balance sheets?

4) The business services index (ISM) is in free fall, or as Scott Anderson, senior economist at Wells Fargo & Co. said, "The numbers are so terrible, it's beyond belief."

Yes, the correct reaction to all of this good news is optimism and higher share prices in the markets!

Pavlov's House said...

Now this is getting interesting. What are John and Mary 6P going to do when the hear about this? Stop paying there mortgage? Cable? Electric? Why shouldn't they? Wait, they said that you have to be currently 90 days in arrears, so does that mean that that dipshit down the road gets a deal just because he started NOT PAYING earlier. Or will there be the "Bring Back the Sheeple" payment stimulous plan this spring for all those who started not paying this winter.

Your leaders have forsaken you for the villianous, treasonous, sabatours and thieves. They are giving quarter to those that should not be quartered. (I believe its called the 3rd Amendment, not that the Constitution matters anymore.) Welcome to the Kessel. Those that can flee, flee. Those that don't will end up turning on themselves and others as the Kessel begins to boil.

This is one Super Gigantic ClusterFuck that is spinning widely out of control. Too bad Einstein was right, time moves in one direction...

67%/33% election is postponed: "due to unforeseen economic distruptions that could unduly influence the outcome of the election, the election has been postponed", the Decider.

Anonymous said...

I want the job of coming up with all of these snazzy names for these various projects and operations. I'm betting that the guys who do this must have watched a lot of "A-Team" and "Rambo" and "Iron Eagle" crap programming.

tater said...

Homeowner calling banker who holds the mortgage on his house: Mr Banker I have heard of this Project Lifeline and i want to see if you could answer a few questions for me.

Banker to homeowner: Sure!
Well we have a new program for you. if you are now 90 days past due we are going to give you another 30 days to help you work things out.

Homeowner: Well, i am not late. i just have a few questions about the program.

Banker: I really don't have much time because i am just here to help the ones who don't pay they're bills on time. if you pay your bills on time then you don't qualify. Oh wait! we are offering complimentary paper weights (valued at 25 cents) to our first 100 customers who open a $75,000 money market account that pays 1.5 per cent annum.

Homeowner: I don't have $75,000.

Banker: If that's the case then have a great day.

Keefer you hit it spot on. The ones who pay their bills on time, in accordance with their mortgage contract, are in effect given NOTHING. But, the dead beats are given free passes. They should rename this program to: "Deadbeat Homeowner Welfare Program".

Anonymous said...

Keith, I agree with you 99% of the time and always enjoy reading your blog. The only thing that I have problem is with your comment of walking away from the mortgage. That person's FICO score will take a huge hit and the foreclosure will remain as a public record on there credit report for seven years. That is going to prevent them from even getting or retaining an existing credit card. It is easy for all of us to advise these folks to just up and leave, but the reality of this is very serious.

Happy Homedebtor said...

I still see all this bitching about affordability, and yet when I did my taxes the other night, the avg family income was apparently almost 120K for the nation. Sure, in Cali and NYC that won't get you much, but in those places you're also paying for the right to live there. (shrug)

Depending on my bonus, we *might* officially break below 3x on our house, wewt! Damn good considering we bought it at 5x 11 months ago. :D

I guess you all just need to learn to work harder?

Anonymous said...

It's all about pumping the stock market one more quarter. And there the Wall Street crooks go, selling every time the sheeple buy into the phony rallies.

This country is doomed because you gave power to crooks run everything. These secret society freaks and cronies are having a feast at your tax expense, from a phony war that's transferring billions into their pockets to $90 oil. Enjoy, you voted (or not) for it.

Oh, you can put your Made in China flag away because there's no return from here. The crooks are here to stay, sucking blood from the sheeple until the last dime. Case in point, everybody is buying into the corrupt MSM bull$hit that, somehow, they're in love with a Black Democrat (3 X more liberal than Hillary) candidate for president of the USA. Nice to see Kerry, the Skull & Bones member, endorsing Obama right away. Kerry, the same Skull & Bones freak who was running against Bush just to lose and make sure that the secret society elected the current monkey in the White House.

Let me make simple for you, sheeple: If the corrupt mainstream media is making some candidate a rock star, day and night, vote for the opposite candidate because it's all rigged. Not only that, you have all the hard core GOP bootlickers also in love with a Black Democrat who's 3 X more liberal than Hillary. You know something stinks here.

Hey, but what can you do. Let the country sink to hell. No way back now.

Anonymous said...

Let this be a known wise advise, hate will eat you until you have no soul.

They are Republicans. They have no soul.

Anonymous said...

The Govt takes your hard earned cash with out choice,pisses it away to the unworthy,ignore the worthy,bail out the greedy at the expense of the meek then after all that ...you get the finger.

You voted for Bush/Cheney twice. Don't come crying now. If Gore were the president nothing like that would be happening.

Anonymous said...

Bwahahaha...you geniuses just found out that house ownership is the biggest lie ever told by bankers and NAR to turn you into a debt slave?

Russ DoGG said...

Man, Paulson and the banks must hate HousingPANIC. Maybe I should go on the run (oh, wait, I am on the run)

I love this Blog! This is great entertainment n humor. Keep it up Keith! And thanks for the investment disclosures.

I like to use the stories to taunt a local realtor blog. But with teh semester getting into swing, I soon won't ahve enough time to do much more of that.

Back to high-speed fluid flow....

Peter T said...

When will renters be protected from being thrown on the street? Renters lose their jobs and have to pay high medical bills, too, but I haven't heard yet anyone suggesting a moratorium on rent payments for such renters.

Peter T said...

> They can do whatever they want to save the FB's as long as it doesn't involve taxpayer money.

My sentiment exactly. Let them sort the things out they brought upon themselves.

gadfly said...

Paulson, Bernanke and the Banks desperate efforts to keep the housing market aloft should be made into a Hollywood comedy with the title:

"The House that Keeps Falling down"

With the story so far, it might even win an Oscar.

michael said...

it's not hate, it's truth.

some folks just don't like the truth.

aboveitall said...

WICHITA (AP) -- Borrowers at-risk of defaulting on their mortgages will be eligible for another new plan, according to a spokesperson for the Department of Food and Nutritional Science and the Treasury Department. "In this time of increasing nationwide obesity, and outrageous price increases on all types of foodstuffs, fruits, and vegetables, it is time for consumers to declare that they won't stand for it anymore!"

Some details were revealed by a person familiar with the plan, who spoke on condition of anonymity because it had not yet been formally announced. At the heart of the plan is a mechanism for anyone who signs up, to have their grocery money automatically transferred to their mortgage bank, so that they can no longer buy food. "Food is increasing in price. House prices are falling. It is better for consumers to spend their money on housing."

Anonymous said...

To the anon that was worried that if someone forecloses, they won't get to keep their current credit cards: if someone keeps making their credit card payments, the cc company does not care if you foreclosed, they will let you keep the card.

DOPES said...

I WAS JUST OUT HAVING LUNCH WITH MY HELOC CREDIT CARD...

NEXT TABLE OVER WAS A BUNCH OF MORTGAGE BROKERS...

THEY WERE ALL NOISY, HAPPY AND BRAGGING THAT REFI'S ARE RINGING THEIR PHONES OFF THE HOOK!!!

THEY COULDN'T QUIT LAUGHING ABOUT HOW THEY GAVE ALL THE HOMEDEBTORS THE WRONG LOANS THE FIRST TIME, AND HOW THEY'RE GETTING TO CHARGE THEM A SECOND TIME TO GET THE RIGHT ONE!!!

DOPES!!!

Anonymous said...

>> Bwahahaha...you geniuses just found out that house ownership is the biggest lie ever told by bankers and NAR to turn you into a debt slave?

Bwahahaha...jokes on you! The *income tax* is the biggest lie ever told!

Anonymous said...

Looks like Hillary is getting her plan even before winning the nomination ;)

Anonymous said...

DONT YOU REALIZE IT? BY DOING THIS NOW THE BANKS WONT HAVE TO SHOW THE LOSS DURING THE FIRST QUARTER,IT GIVES THEM TILL THE SECOND QUARTER TO REPORT,,,IT BUYS THEM A FULL REPOTING QUARTER

Anonymous said...

Whatever. It's the monthly "please stick to the wall" bailout plan.

How about the "everyone tells the truth plan?" Now, now, relax just for a quarter. I didn't say we have to do it all the time.

Anonymous said...

Ask yourself:

If you pay as planned... you are a SUCKER

if you don't pay but think you can pay a fraction and get away with it ... There is HELP for you.

If you decide to walk out....GO FOR IT as nothing will happen to you...

The moral of the story:
Is Greed and Crime what this New World order is all about?

JaneZinfandel said...

Anonymous said...

DONT YOU REALIZE IT? BY DOING THIS NOW THE BANKS WONT HAVE TO SHOW THE LOSS DURING THE FIRST QUARTER,IT GIVES THEM TILL THE SECOND QUARTER TO REPORT,,,IT BUYS THEM A FULL REPOTING QUARTER

Agreed. It also buys a little time for those who are paying attention to get their money out of the bank before the CDS explosion.

"All safe deposit boxes in banks or financial institutions have been sealed... and may only be opened in the presence of an agent of the I.R.S." - President F.D. Roosevelt, 1933 – DOW ~ 65

Ruh Roh

michael said...

"THEY COULDN'T QUIT LAUGHING ABOUT HOW THEY GAVE ALL THE HOMEDEBTORS THE WRONG LOANS THE FIRST TIME, AND HOW THEY'RE GETTING TO CHARGE THEM A SECOND TIME TO GET THE RIGHT ONE!!!"

where are all the product liability lawyers?

Anonymous said...

This is one Super Gigantic ClusterFuck that is spinning widely out of control. Too bad Einstein was right, time moves in one direction...

He also famously said:

"Only two things are infinite: the universe and human stupidity. And I'm not sure about the universe..."

Wah, wah.

And the above poster hit the nail directly on the head. This 30 day moratorium is nothing more than a delay tactic allowing the banks to push off the losses into the following quarter.

brokersleaveyoubroke said...

"These lenders say they will contact homeowners who are 90 or more days overdue on their monthly mortgage payments. They will be given the opportunity to put the foreclosure process on pause for 30 days while the lenders try to work out a way to make the mortgage more affordable to the homeowner."

Is this some kind of a joke? People who are three months behind have already been contacted by the lender many many times by phone and mail. people who want to work it out have already talked to the bank, the rest just ignore the calls and throw the mail in the garbage.
All these bailout plans have one thing in common, keep the people in the houses so they can continue to make payments. None of the plans actually helps people in trouble get out from under the impossible debt and into something they can actually afford. I'm not in favor of any bailout but if they must have a plan it should be to help the people find a rental after they mail in the keys.

Anonymous said...

Warren Buffet has to bail out the world. Sounds like a repeat of the panic of 1907. And we need the FED for what reason????

JaneZinfandel said...

Bernanke sees housing better by year end: (Reuters)

Federal Reserve Chairman Ben Bernanke told lawmakers Tuesday he expects the downtrodden U.S. housing sector to improve by the end of the year, a senator who participated in the closed-door meeting said.

This is the bullshit that makes me want to run screaming, hair on fire, stark ass naked, right through the center of the mall with a flame thrower.

Yoski said...

Let's see. Paulson & Co. reward bad behavior (defaulting on loans) and punish good behavior (regular payments on a 30 year fixed). What do they expect the outcome of such a punishment/reward system will be?
Exactly, more bad behavior. If I am not behind on my mortgage today I will make damn sure I miss the next 3 payments so I can get on the gravy train. "Hey, you either cut my payment in half inedefinitely or I walk! Take it or leave it suckers. Who is in the driver's seat now?"

If "they" would punish bad behavior via 1099 forms, garnishment of wages and forced labor camps we would see a lot less foreclosures and late payments. Right now ALL the incentives are for being a deadbeat. It's rather entertaining to watch, every move they make gets them deeper into the quick sand.

Yoski said...

happy homedebtor says:
"the avg family income was apparently almost 120K for the nation. "
Not really, the average is around $75K. Still, the median is more important and that sits at around $48,023 per family in 2006
http://en.wikipedia.org/wiki/Household_income_in_the_United_States

The average is skewed by very few making very much. The top 16%
( $100+K per year ) make 33% of all earned income.

BondsOfSteel said...

I think this plan just saves the banks from having to hire more people to process foreclosures on time.

I hear in Cape Corral, there's like a 120 day backlog in the courts anyway. Miami is extending foreclosure days from 2->3 week to handle the backload.

Let the assets that still have some cash flow sit... and process the rest.

Andrew Hac said...

Yes, it is the time to pay the Piper for that Wild-Wild-West Housing Bubble Party last night. Add in the maxed out CC debt, the home equity extract, the spend-like-there-is-no-tomorrow mentality of the Americano, the oversize SUV, the run-down-the-cow F350 pickup truck and the Americano is now having a handful of shits, pukes, and hangover biles to deal with. But worry not, my dear fat-ass buckteeth Americano, Dubya Shrub will lead you through the dark, ominous, pee-in-the-pant time. He has to, he has no choice, since the dim nitwit Americano voted for him 2 terms in a row. Yes, it is fittingly beautiful: "The head turkey leads the horde of fat, blind turkey down the gutter...".

Now, a little verse from the "Man With The White Beard" to cheer things up for the horde of Snapper Turtle, Porpoise, and Armadillo

Psalm 23:4

"Yea, though I walk through the valley of the shadow of the Housing Bubble,
I will fear no foreclosure:
for Dubya Shrub & Penis Shooter art with me:
thy bail-out and thy rebate-check, they comfort me."

Anonymous said...

oh my what a depression....

BMW US sales up 7% in 2007 vs. 2006

Audi US sales up 1.1% in Jan '08 vs Jan'07

Mazda reported its best January EVER in 2008 in terms of sales in the US



Yep you are all correct HPers. It's like 1933 all over again.

Paul E. Math said...

We have run out of ways to allow people to borrow and thus increase the money supply. In situations like these we turn to the borrower of last resort: the federal government.

I can foresee a scenario in which our national debt skyrockets due to bailout after bailout. Fannie Mae and Freddie Mac, the monolines (ambac, mbia), subprime borrowers, alt-a, prime borrowers. Absolutely everyone gets a bailout as long as your fiscal irresponsibility is big enough.

If you're an individual down on your luck, out of a job, have a health problem or family issues then you're probably shit out of luck. But if you've overspent on a home and can't pay your mortgage, like millions of others, then the government will borrow money to help you out.

This is how we'll keep the money supply and stave off deflation. But when that's over, it really is over for this country.

Anonymous said...

"doin' a heck of a job there brown... er, ah Paulson"

Anonymous said...

Anonymous said...
Keith, I agree with you 99% of the time and always enjoy reading your blog. The only thing that I have problem is with your comment of walking away from the mortgage. That person's FICO score will take a huge hit and the foreclosure will remain as a public record on there credit report for seven years. That is going to prevent them from even getting or retaining an existing credit card. It is easy for all of us to advise these folks to just up and leave, but the reality of this is very serious.

February 12, 2008 6:05 PM



eventaully they will reorg FICO. They have to lend to SOMEONE. If the avrg US FICO is 320, then 321 will be good enough...

Anonymous said...

Anonymous said...
Looks like Hillary is getting her plan even before winning the nomination ;)

February 12, 2008 7:16 PM



guess what? it's not Hillary's plan....

Anonymous said...

"Keith, I agree with you 99% of the time and always enjoy reading your blog. The only thing that I have problem is with your comment of walking away from the mortgage. That person's FICO score will take a huge hit and the foreclosure will remain as a public record on there credit report for seven years. That is going to prevent them from even getting or retaining an existing credit card. It is easy for all of us to advise these folks to just up and leave, but the reality of this is very serious."

No one NEEDS a credit card or any other credit for that matter. If someone is stupid enough to get themselves in this mess in the first place, not being able to get credit for seven years will hopefully help them break the habit!

It blows my mind that people can't believe the world actually worked before cheap unlimited credit was available for anyone with a pulse.

k.w. - southerm, ca. said...

As long as people continue to believe that to be "successful" requires paying for a house, we'll continue to see stupidity with this housing mess for a long time to come.

Meanwhile, jobeless rates continue to climb, wages are depressed for most, and billions get thrown away every month on a war we should never have started in the first place.