1. Welcome! Please take a few seconds to create your free account to post threads, make some friends, remove a few ads while surfing and much more. ClutchFans has been bringing fans together to talk Houston Sports since 1996. Join us!

Where banks fear to tread a nonprofit is an angel

Discussion in 'BBS Hangout: Debate & Discussion' started by Phillyrocket, Oct 24, 2011.

  1. Phillyrocket

    Phillyrocket Member

    Joined:
    Jun 12, 2002
    Messages:
    13,739
    Likes Received:
    10,211
    http://finance.yahoo.com/blogs/dani...e-non-profit-lender-doing-help-150316843.html

    I was hopeful banks would do this voluntarily or the HAMP program would do this on a larger scale.

    I like it and wish this would be expanded. The government could utilize a new tax credit or perhaps a type of build america bond for state bond banks and local governments to get this going on a broader scale.

    Thoughts?
     
  2. Johndoe804

    Johndoe804 Member

    Joined:
    Jun 24, 2010
    Messages:
    3,233
    Likes Received:
    147
    How can they a home at a high price and re-sell it to the former owner at a lower price with better mortgage terms and still provide investors a 4.25% annual return? I suppose they'd have to take a hit on some of their other profitable operations.
     
  3. geeimsobored

    geeimsobored Contributing Member

    Joined:
    Aug 20, 2005
    Messages:
    8,870
    Likes Received:
    3,164
    They're not buying at the 2007 value of these houses, they're buying that at present market price. They're buying the foreclosed property. Banks have to charge based on the current market value of those homes. (which is obviously lower than the mortgage they gave out before the bubble) On top of that you can get even bigger discounts.

    Essentially all this company is doing is paying current market value for the foreclosed houses and then they turn around and give a mortgage that reflects the actual current value. And they collect interest on that so that's where their returns come from.
     
  4. Phillyrocket

    Phillyrocket Member

    Joined:
    Jun 12, 2002
    Messages:
    13,739
    Likes Received:
    10,211
    So if Obama jumped on this tomorrow and authorized bonds similar to the BABs should it be supported or is this more goverment intervention and rewarding people who bought more house than they could afford?
     
  5. GladiatoRowdy

    GladiatoRowdy Contributing Member

    Joined:
    Oct 15, 2002
    Messages:
    16,596
    Likes Received:
    494
    If Obama jumped on this and authorized bonds, it SHOULD be supported. Unfortunately, the usual suspects would crow about "more government intervention" and scapegoat people who they say "bought more house than they could afford."
     
  6. DaDakota

    DaDakota If you want to know, just ask!

    Joined:
    Mar 14, 1999
    Messages:
    124,034
    Likes Received:
    32,940
    Jon Stewert said it best, they should have offered the bailouts to the people but only in a form in which they could pay down their mortgages, this way the banks would have gotten the capital they needed and the people would have kept their houses.

    And the banks would have been forced to keep lending to make more $$$$...

    Meh, makes too much sense to ever happen.

    DD
     
  7. StupidMoniker

    StupidMoniker I lost a bet

    Joined:
    Jul 18, 2001
    Messages:
    15,075
    Likes Received:
    2,113
    Obama should not be able to replicate this, because it is not something the government has the power to do (constitutionally speaking). Any number of banks (or private individuals) should be willing and able to do this though. There would also be no need to limit the buyer to the original owners.
     
  8. pgabriel

    pgabriel Educated Negro

    Joined:
    Dec 6, 2002
    Messages:
    42,755
    Likes Received:
    2,987
    there aren't a bunch of new buyers out there.
     

Share This Page

  • About ClutchFans

    Since 1996, ClutchFans has been loud and proud covering the Houston Rockets, helping set an industry standard for team fan sites. The forums have been a home for Houston sports fans as well as basketball fanatics around the globe.

  • Support ClutchFans!

    If you find that ClutchFans is a valuable resource for you, please consider becoming a Supporting Member. Supporting Members can upload photos and attachments directly to their posts, customize their user title and more. Gold Supporters see zero ads!


    Upgrade Now