Posted on: 06th May, 2010 03:38 am
The US government, since the inception of this housing market slump, has tried all means to harness it. Buying mortgage securities, lowering interest rates, setting new standards and making policies. However, the outcomes are not so satisfying.The recent policy of reducing principal on mortgage loans is causing a bit of a chaos for banks. What do you say - how can the government tackle this issue?
Original Blog Link: blog.mfgmortgagerates.com/?p=67
Original Blog Link: blog.mfgmortgagerates.com/?p=67
In my opinion once people get employment and they get enough trust (as well as money ) on the home loan banking then and then only there will be some deals happening in the market and thus it will regain its status.
Why should the government be the one who has to come in and save everyone? The people signed the note saying they were going to pay back the loan with the terms agreed, right? The property was put up as collateral so in case of default, bank gets the collateral.
Why are banks resisting reducing the loan amounts people agreed to pay them? How would you feel if you lent me 1k and a year later I wanted you to take $400 and call it even?
Pretty simple, pay your mortgage as you agreed to. Or don't and give the house back and go find someplace to rent.
Why are banks resisting reducing the loan amounts people agreed to pay them? How would you feel if you lent me 1k and a year later I wanted you to take $400 and call it even?
Pretty simple, pay your mortgage as you agreed to. Or don't and give the house back and go find someplace to rent.