Comments on: The Next Mortgage Crisis http://donklephant.com/2008/12/17/the-next-mortgage-crisis/ Big Teeth. Huge Ass. Surprisingly Reasonable. Sun, 22 Nov 2009 05:46:37 -0800 http://wordpress.org/?v=2.8.4 hourly 1 By: Donklephant » Blog Archive » Alt-A Mortgage Backed Securities Downgraded http://donklephant.com/2008/12/17/the-next-mortgage-crisis/comment-page-1/#comment-437537 Donklephant » Blog Archive » Alt-A Mortgage Backed Securities Downgraded Tue, 10 Mar 2009 14:00:20 +0000 http://donklephant.com/?p=12155#comment-437537 [...] when I highlighted a 60 Minutes piece back in December that talked about [...] [...] when I highlighted a 60 Minutes piece back in December that talked about [...]

]]> By: kranky kritter http://donklephant.com/2008/12/17/the-next-mortgage-crisis/comment-page-1/#comment-432364 kranky kritter Wed, 17 Dec 2008 14:38:31 +0000 http://donklephant.com/?p=12155#comment-432364 Saw most of this the other night. The way we get through the problems with upcoming problems including defaults on various mortgage loans is by identifying situations where borrowers have sufficient income to pay for said home based on reasonable valuations, and then refinancing or renegotiating these loans to viable and sensible compromise terms. What we need to maximize is the number of properties with stable sustainable ownership. We should avoid bailing out banks and other holders of investments whose worth is based on unsustainable poorly structured loans. And we should also avoid bailing out home "owners" who are now, for whatever reason and under whatever circumstances, stuck with a mortgage on a home that they can't afford to own based on something like that home's current value and the debtor's current or reasonably expected income. Saw most of this the other night. The way we get through the problems with upcoming problems including defaults on various mortgage loans is by identifying situations where borrowers have sufficient income to pay for said home based on reasonable valuations, and then refinancing or renegotiating these loans to viable and sensible compromise terms.

What we need to maximize is the number of properties with stable sustainable ownership. We should avoid bailing out banks and other holders of investments whose worth is based on unsustainable poorly structured loans. And we should also avoid bailing out home “owners” who are now, for whatever reason and under whatever circumstances, stuck with a mortgage on a home that they can’t afford to own based on something like that home’s current value and the debtor’s current or reasonably expected income.

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