Background on the mortage crisis: The Risk from Underwater Homeowners

[RandomGuy]

The continuing existence of every large bank in America and Europe is predicated upon not admitting the true value of their distressed loans. So, no writedowns.

Simple, succinct, pretty much correct.

[RandomGuy]

allowing a judge to determine loan repayment terms is catastrophic

Because as we all know, it is in everybody's best interest to continue the wave of foreclosures, causing more underwater mortgages, causing more people to stop paying, causing more foreclosures.

If you don't really understand what the underlying systemic problem is, why do you bother suggesting or critiquing solutions?

[RandomGuy]

If you are deep underwater and willing to walk away, the smart thing to do would be to ask for and do ent multiple requests for adjustments to your loan (threatening to walk away in a nice way). If they are ignored, then when you walk away, you probably have a better chance of getting another house loan down the line.

Yup.

Ultimately, the lender is the one taking the ultimate risk, and if they are willing to accept a much greater loss when you walk out, then they are not doing their job.

[TDMVPDPOY]

lol every day i keep on reading news about the housing market.....seriously some ppl who write these articles better get their facts straight with real numbers whats happening in the economy. Alot of first home buyers are jumping on the bandwagon buying a house cause of the low interest rates, then again a year ago with the market booming alot of buyers were jumping into the market cause they thought house prices were going to continue to go up and interest rates were unlikely going to go down << even the finance minister at the time told them to lock in rates LMAO @ 7-8%, those buyers a year ago today are playing the blame game cause they locked in their rates while its hovering around 4-5% now.

I dunno what the uncertainty of the future holds in the economy, but they shouldnt have articles everyday boasting about the housing market and numbers of people jumping on bandwagon...i dont like how they use this to influence people to start spending or buying a house, when it looks like they dont have the capacity to do so when things either get tough down the line if the economy keeps on tankn and people losing jobs etc. At the same time why dont they write articles of how many ppl are struggling to pay debts or ppl with foreclosures....