Comments on: Most ARMs Not Likely To Be Affected By Reset Freeze http://housingdoom.com/2007/12/02/most-arms-not-likely-to-be-frozen/ "He who defends everything defends nothing." - Frederick the Great Thu, 18 Mar 2010 17:28:55 +0000 http://wordpress.org/?v=2.9.1 hourly 1 By: leggo http://housingdoom.com/2007/12/02/most-arms-not-likely-to-be-frozen/comment-page-1/#comment-12058 leggo Mon, 03 Dec 2007 06:12:24 +0000 http://housingdoom.com/2007/12/02/most-arms-not-likely-to-be-frozen/#comment-12058 Why do I feel like killing a banker? http://bankingpanic.blogspot.com/2007/12/no-hope-for-hopenow.html Why do I feel like killing a banker?

http://bankingpanic.blogspot.com/2007/12/no-hope-for-hopenow.html

]]> By: longwaver http://housingdoom.com/2007/12/02/most-arms-not-likely-to-be-frozen/comment-page-1/#comment-12057 longwaver Mon, 03 Dec 2007 05:36:57 +0000 http://housingdoom.com/2007/12/02/most-arms-not-likely-to-be-frozen/#comment-12057 As far as I can tell none of these lawmakers are actually putting any teeth in any of this. They are just announcing "agreements". What we need is significant government involvement. Let's say a new law that forces real estate agents to cover any losses in the first 5 years after I buy a place if I spend more than 3X my W-2 income! The more they attempt to "price fix" the market the faster this will fall. It's bad to price fix consumables like milk and gas... It's really really bad to price fix a depreciating asset that requires debt. Really really bad... No really.. it's a bad idea :-) As far as I can tell none of these lawmakers are actually putting any teeth in any of this. They are just announcing “agreements”. What we need is significant government involvement.

Let’s say a new law that forces real estate agents to cover any losses in the first 5 years after I buy a place if I spend more than 3X my W-2 income!

The more they attempt to “price fix” the market the faster this will fall. It’s bad to price fix consumables like milk and gas… It’s really really bad to price fix a depreciating asset that requires debt. Really really bad… No really.. it’s a bad idea :-)

]]> By: surak http://housingdoom.com/2007/12/02/most-arms-not-likely-to-be-frozen/comment-page-1/#comment-12056 surak Mon, 03 Dec 2007 04:35:03 +0000 http://housingdoom.com/2007/12/02/most-arms-not-likely-to-be-frozen/#comment-12056 If this is an effort to keep prices high, then less people will qualify for loans and even greater unemployment will result. This in itself along with all the other adverse factors affecting the economy will cause greater decreases in home prices. The ironic fact is that home prices need to come down to prices that support fundamentals of a person(s) ability to actually make payments (i.e. 3X annual income per mortagage. If this is an effort to keep prices high, then less people will qualify for loans and even greater unemployment will result. This in itself along with all the other adverse factors affecting the economy will cause greater decreases in home prices. The ironic fact is that home prices need to come down to prices that support fundamentals of a person(s) ability to actually make payments (i.e. 3X annual income per mortagage.

]]> By: whine country real estate http://housingdoom.com/2007/12/02/most-arms-not-likely-to-be-frozen/comment-page-1/#comment-12051 whine country real estate Mon, 03 Dec 2007 01:00:39 +0000 http://housingdoom.com/2007/12/02/most-arms-not-likely-to-be-frozen/#comment-12051 This is insane. The rate on my PR is set to adjust in June, 2008. We lost over $700,000 in bad apartment investments last year. I had planned to refinance my 4.75%, 5-year ARM. With all of the publicity about calling your lending institution (PHH, in my case) and asking for a freeze, I think I'll do this as an experiment and find out what it's really all about. "Overcoming Real Estate Losses" at http://WhineCountryRealEstate.blogspot.com/ This is insane. The rate on my PR is set to adjust in June, 2008. We lost over $700,000 in bad apartment investments last year. I had planned to refinance my 4.75%, 5-year ARM. With all of the publicity about calling your lending institution (PHH, in my case) and asking for a freeze, I think I’ll do this as an experiment and find out what it’s really all about.

“Overcoming Real Estate Losses” at http://WhineCountryRealEstate.blogspot.com/

]]> By: Your Jewish Master http://housingdoom.com/2007/12/02/most-arms-not-likely-to-be-frozen/comment-page-1/#comment-12050 Your Jewish Master Mon, 03 Dec 2007 00:53:43 +0000 http://housingdoom.com/2007/12/02/most-arms-not-likely-to-be-frozen/#comment-12050 Wow. 2008 is going to be even rougher. Wow. 2008 is going to be even rougher.

]]> By: JimAtLaw http://housingdoom.com/2007/12/02/most-arms-not-likely-to-be-frozen/comment-page-1/#comment-12043 JimAtLaw Sun, 02 Dec 2007 15:07:14 +0000 http://housingdoom.com/2007/12/02/most-arms-not-likely-to-be-frozen/#comment-12043 It's already too late for the first wave of resets. Methinks this is really aimed at the second wave of resets that would otherwise start next year, comprised overall of a more affluent mix of borrowers who still bought homes they couldn't afford. If allowed to go forward, this will not only reward the irresponsible and punish those of us who waited to buy something we could actually pay for, it will likely have serious long-term negative effects on mortgage availability and foreign investment here. (See my comment to the Friday thread.) It’s already too late for the first wave of resets. Methinks this is really aimed at the second wave of resets that would otherwise start next year, comprised overall of a more affluent mix of borrowers who still bought homes they couldn’t afford.

If allowed to go forward, this will not only reward the irresponsible and punish those of us who waited to buy something we could actually pay for, it will likely have serious long-term negative effects on mortgage availability and foreign investment here. (See my comment to the Friday thread.)

]]> By: Richcinaz http://housingdoom.com/2007/12/02/most-arms-not-likely-to-be-frozen/comment-page-1/#comment-12041 Richcinaz Sun, 02 Dec 2007 13:23:45 +0000 http://housingdoom.com/2007/12/02/most-arms-not-likely-to-be-frozen/#comment-12041 Another futile attempt to bail out the boys on Wallstreet. The housing market may be bad or even terrible but it's small potatoes compared to what's happening in the securities market's. In the spirit of the season I don't think Mr. Scrooge will be too happy when you try and change the terms of his note. Will he invest more money in them? I think not. Another futile attempt to bail out the boys on Wallstreet. The housing market may be bad or even terrible but it’s small potatoes compared to what’s happening in the securities market’s.

In the spirit of the season I don’t think Mr. Scrooge will be too happy when you try and change the terms of his note. Will he invest more money in them? I think not.

]]> By: sandman http://housingdoom.com/2007/12/02/most-arms-not-likely-to-be-frozen/comment-page-1/#comment-12039 sandman Sun, 02 Dec 2007 08:51:51 +0000 http://housingdoom.com/2007/12/02/most-arms-not-likely-to-be-frozen/#comment-12039 <i>The plan, however, will not be able to prevent ANY home values from falling</i> This is key. I'd actually go one farther and say that it will put more downward pressure on prices. What investor in their right mind would consider these securities if they know that big brother can swoop in and change the terms whenever he wants? I'm not just talking subprime papers, this will instantly affect the entire chain, top to bottom. On another note, I haven't heard if these agreements will also postpone the onset of principal payments. Rate increases were only half the battle, and if this doesn't affect principal payments then I'd say that the effectiveness of the program will be far less than they think. The plan, however, will not be able to prevent ANY home values from falling

This is key. I’d actually go one farther and say that it will put more downward pressure on prices. What investor in their right mind would consider these securities if they know that big brother can swoop in and change the terms whenever he wants? I’m not just talking subprime papers, this will instantly affect the entire chain, top to bottom.

On another note, I haven’t heard if these agreements will also postpone the onset of principal payments. Rate increases were only half the battle, and if this doesn’t affect principal payments then I’d say that the effectiveness of the program will be far less than they think.

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