I wonder why she doesn't just rent

dryfly-Bring water from the moon would 'work' too.

Did you see the estimate on costs of getting water to the moon? Per NASA, $50,000 / Gallon. Ouch.

I wonder why she doesn't just rent

What, and miss out on all the future house price depreciation? Only idiots (loser renters) would do that.

I don’t think it’s a bad thing that the bad loans occurred. It was an effort to keep prices from falling too fast. That’s a policy.

Yeesh. What else can be said that wouldn't be outright snarking? I love how moving prices down is the bane of the existence of the world (e.g. shopping for value) unless you are on Wall Street then everything must be value before you will commit OPM to the cause.
.
Communist Russia's "Pretend to work; pretend to be paid" has been here for a while, but it is definitely getting more pronounced as more of the plebes are without stable employment, savings, and declining UE benefits.

wow..this needs to be put in front of everyone I know...hitting send button in 1,2, 3 lift off....

this is truly a tragedy of epic proportions...50%pti, are you kidding me...Barney Frank needs to be hung for treason...

I have held off maxing out my credit cards but now have a precious metal company that will let me order via CC's.....I'm so close to joining the american disaster recovery crew that I can feel my fica slowly fading away like the sun over the west coast....

I'm angry..hold it....I'm about to become a credit criminal....

"She spent the first few weeks picking up garbage in the backyard"
Wow, either she has a really big back yard or there was a lot of trash there. I think the author of the article needs to be bitch slapped.

lawyerliz wrote:

Any comments on the peace prize?

See last thread. Commentariat torn between outrage and people annoyed with the outrage it seems

congratulations to us

our official new housing policy is: let's make a bad loan!

glad to see we have officially embraced poor risk controls ad handouts for all.

But is it a good policy?

It's good policy in that it helps subsidize banks while they are unloading toxic loans off on Gov't Agencies.

Once the banks are done unloading their junk on the public, all these foolish programs will end. And Bernanke and Frank will find out what dupes they have been.

LL,

Nobel prize is just another Tuesdays Country Music Awards. For you entertainment.

why does CR hate freedom?

But is it a good policy?.........

Only if you're the wolf. Bernadine Shimon has run from a house of straw to a house of sticks. I don't see any house of bricks in her future.

OT Obligatory USD/JPY Comment:
.
I'm glad that the volatility has returned to that cross. Seeing the Yen appreciate/depreciate by an entire Yen in a single day is the kind of movement that makes me feel very comfortable. The current top two major world economies can enjoy that much movement, how?
.
The observation of the day is that 88.40 is the line that the Yen will not cross.

2nd example in article is even better-

Chaz Fullenkamp, an automotive technician in Columbus, Ohio, got an F.H.A. loan even though he was living on the financial edge. “If I got unemployed, I’d be wiped out in a month or two,” he says. Thanks to the F.H.A., however, he is better off than he used to be.

Mr. Fullenkamp used F.H.A. insurance to buy a house this spring for $179,000. The eager seller paid the closing costs and also gave Mr. Fullenkamp $2,500 in cash. He immediately applied for the $8,000 tax rebate. Even taking his down payment into account, he came out ahead.

“I knew in my heart I could not really afford the house, but they gave it to me anyway,” said Mr. Fullenkamp, 22. “I thought, ‘Wow, I’m surprised I pulled that off.’ ”

22 year kid...I would love to see his credit profile....

3.5% or $4,600 down was her life savings? ruhoh

creditcriminalslovetarp wrote:

Wow, I’m surprised I pulled that off.

Obligatory: If you are playing poker and can't tell who is the mark at the table...

“I don’t think it’s a bad thing that the bad loans occurred. It was an effort to keep prices from falling too fast. That’s a policy.”

So Barney finally outed the FHA? About time somebody did.

Well maybe now we can talk 'honestly' about it -- as disgusting as the 'policy' is -- at least now we aren't hiding it in some closet & pretending it was for some other 'social good'.

lawyerliz wrote:

Any comments on the peace prize? Am I poking a stick into a pile
of ants?

We been there - done that. Consensus is the Swedish translation for 'peace' is the same as 'not Bush'.

"I think the Peace Prize was really being awarded in hopes of keeping the US out of new wars for the next few years."

Unfortunately, the prize can't be taken away if it doesn't (see J. McCain 'Bomb Bomb Bomb, Bomb Bomb Bomb Iran).

thank god patientrenter is at work. someone would have to talk him from the ledge if read this.

Basel Too wrote:

someone would have to talk him from the ledge if read this.

Thank gawd the US Gov't just passed its Cash 4 Safety Nets program to help protect people from themselves!

"So Barney finally outed the FHA? About time somebody did."

My first reaction was that he outed the Administration/Fed.

Wow. The Barney Frank quote is mind-boggling. Its policy to make bad loans.

yagij wrote:

Like the: He didn't say he was gay. He just said he was 40, never married, and enjoyed interior decorating...

You're right, he can't control the lisp and I should not be allowing that to influence my perception of him.

I've never heard of a Price-Fixing scheme that was bad policy.

patientrenter seems to have accepted that homeowners have all the leverage with congress...I on the other hand am staring down 48 feet to the street..that could be a good song title.. with a country beat....

At the current rate of appreciation/depreciation, the Canadian and US dollars are going to be at parity sometime next week.

I know dryfly and I have had it out a few times regarding exchange rates and I certainly recognize that the world--including Canada--can't continue using the USA as it's finished good dumping ground, but dammit, it means a hell of a lot more work for me.

And I already have plenty.

Staffers overheard Barry singing "I'm Mr. "American Dream"
Since I was 17
Don't matter if I step on the scene
Or sneak away to the Philippines
You want a piece of me?"
You want a piece, piece of me?

noob goldberg wrote:

it means a hell of a lot more work for me.
.
And I already have plenty.

Boss: Remind me, noob, what is the national and provincial UE rate again?

duke: obama will win the pulitzer first, just like his idol JFK. and just like JFK's work, it'll be about profiles in courage, except that all the profiles will be about himself.

they may have only allowed her to pull out half of her savings, and what she did pull out, she had to pay taxes on.
IIRC, this withdrawal would be tax-exempt

yagij wrote:

Boss: Remind me, noob, what is the national and provincial UE rate again?

8.4% in Canada. But point taken, whining shall cease.

EDIT: 5.6% in the Ottawa region, however. No shortage of jobs...yet.

FHA, the new New Century Financial.

Basel Too
his only problem is he'll have it ghosted by some hack (Rahm, Bill Clinton?) since
Ted Sorensen's dead (I think?) and it will suck...
in ten years I predict he'll be hosting the Academy Awards

"As Frank said, this is "a policy". But is it a good policy?"

........don't mind me, I'm trying to catch up.........

Barney Frank is an idiot - the school teacher example probably shows the typical amount of common-sense in today's public school instructors. Two perfect examples of "dumbing-down" still working in America decades later.

Enough toying around today. L8R all.

From the My Actions Are Louder Than My Words Department:

Despite that praise, Birkenfeld, who pleaded guilty to a single fraud conspiracy count in June 2008 for helping a billionaire hide assets from the Internal Revenue Service, was sentenced to 40 months in prison and ordered to start serving his time no later than January 8.

So the administration made a big deal out of closing tax havens to American wealth, and yet have no problem throwing their one whistle blower from the UBS case into the can for over 3 years. Glad to see that TPTB are still looking out for their own.
.
Another reason to never play nice with the gov't officials without a lawyer and preferably never at all.

Maybe she can qualify for a loan modification!

Loans originated after 12/31/2008 are not eligible for HAMP.

Also, just because she claims her take-home pay to be $2200/mo., that doesn't mean her gross income is quite so low. Assuming she earns anywhere in the top 75% among high school teacher salaries for Aurora, CO ( per salary.com), that still puts her over 31% DTI.

schnaps, dti and pti are 2 different things..we don't know what her other debts are..this is house payment only...PTI...in 90's it was rare to see it above 23%...

Not his family

It wasn't clear from the article, but if she just started teaching since the divorce she's probably on the upper left of this chart, grossing in the vicinity of $40k....

Teacher Salary Schedule

gabyjan,

Nicely put. And so brief. I'm trying to find all the pieces of my poor head.

gabyjan,

A bad loan was equal to fingers in the dike perhaps?

Obama wins Nobel Peace prize must really piss off and check the US military industrial complex and Neocons. I would short Halliburton and a few others.

Nicely put. And so brief. I'm trying to find all the pieces of my poor head.

Frank being 'frank'...

creditcriminalslovetarp wrote:

schnaps, dti and pti are 2 different things

Oh, I know that. But what a lot of people don't get is that HAMP is only concerned with those DTI "front-end' ratios. Which means a lot of borrowers won't qualify for a HAMP, because they're already under 31%. It's not their house payment that's busting their budget, it's all their other debts.

Also - no 'c' in shnaps around these parts - please....

Let's see would I rather be in Bismarck North Dakota this weekend, or Fairbanks Alaska...

I blogged about this article last night, the first borrowers front end DTI near as I can figure is at a minimum 38%.

The second borrower got paid to buy a house (Cash back at closing + tax credit) and admits to not being able to afford it.

Effective Demand: How are these FHA loans being made?

We aren't doing the borrowers any favors giving them these loans (or in politician speak, "Attaining the dream of home ownership")

As i said before, we are throwing dumb borrowers and taxpayer cash in front of the housing bus trying to slow it down.

Our government is spending billions on affordable housing but also spending billions to keep house prices high.

Still another anecdote where I ask 'Who wins?' and the answer is Bank.

FWIW - As I read the teacher's situation, she will get a negligible tax benefit from her interest payments.

Congrats to Nemo! But I'm confused. I thought Bernanke was a fan of signaling as a policy tool. Doesn't signaling imply clear guidance. The recent speeches don't fit with the signaling dogma, which seemed to be upheld during the start of the crisis. Just an observation.

cinco-

I work from home...I trade. It's not a question of affording the payments...I can. It's a moralistic choice at this point. Half of my neighborhood has stopped paying because they got in over there heads. I am not one of them. As I said it's a choice I am really close to making.......

Ciao
MS

MS,

As long you're not planning on holding a clearance or starting a new job with a financial institution (bank, investement, brokerage, insurance, or suprisingly clerk at 7-11) you'll be fine.

FHA guidelines for loan mods were recently changed (going from memory so bare with me) to allow something like 30% principal reduction.

It seems like the plan is... put anyone in a home that will sign the paperwork. Keep them there through mods if it doesn't work. Send bill to taxpayer.

blackhat-

Yes...that is really the entire problem IMO. No one is ever accountable for anything any longer...I just see a payment going up in flames and I really don't think they even account for it properly any longer. Why keep contributing to s system that in a year or two will be so far gone you might as well set fire to the money..it will be the same end result IMO.

Ciao
MS

Did anyone catch the graphic in the NYT article about the FHA (in CR's post)?

It shows FHA loan defaults by loan vintage and shows that 20% of 2008 loans have defaulted!

And adding insult to injury, the default rates on all loan vintages since 2004 all have a strong first derivative.

NOTE: I've been tracking Alameda County foreclosures by vintage and I've seen the same behavior; the foreclosure rate is still climbing rapidly for loans after early 2005.

Not paying mortgage is a viable option given where we are in this country. I know of four families in "default." One has not been paying since July 2007; still living in gorgeous house. Its hard to see downside given the big picture and where we are seemingly headed - FICO scores are indeed becoming irrelevant - they belong with S&P triple A ratings of the previous years. Stop playing their game, by their rules.

Retailers’ Sales for September Only Reach 2005 Levels
Sorry if this is a repost-

See my comment posted yesterday maybe to the effect that the oceanfront condos--1 room,
kitchen facing ocean,good rentals so far, older, will only cash flow if there is NO mortgage at all.
Older building, needs repairs.

CR has posted graphs before showing how FHA loans (as a % of total) are increasing. I searched but couldn't find any. Anyone have a link? Thanks.

When it rains, it pours.

I got at least fifteen calls yesterday for ten different jobs, a couple from applications I submitted in July. This morning I have calls already for 3 different positions. Damn. I actually have two offers right now, good possibility of a third and a possibility of a substantial career jump.

it's really strange, I don't think I had day like that even when the economy was good.

what field Broward? what area?

broward wrote:

I got at least fifteen calls yesterday for ten different jobs, a couple from applications I submitted in July. This morning I have calls already for 3 different positions. Damn. I actually have two offers right now, good possibility of a third and a possibility of a substantial career jump.

I used to HATE that. Look for months, finally get an offer, get ready to close on it -- and then two or three more pop up.

Haven't had that problem in some time. Unfortunately.

What the ??? I wake up and the President gets the Nobel Peace Prize and Rep. Frank is saying making bad loans is good policy. It's a world gone crazy...

Damn, Broward, WTG!

Congratulations, Broward! Yeah!

Uncle Ar wrote:

8k free money you get to keep, no? Is there a stipulation about staying current on your mortgage to keep the 8k?

I think you actually need to be paying taxes to take advantage of it. If $1100 is half of her take home pay, and she's a single Mom, she may not be paying much in federal income taxes.

She lost a house to foreclosure, declared bankruptcy

so how does one get an FC, declare BK, spend dti of >40$% and qualify for a loan???????

I think you actually need to be paying taxes to take advantage of it.

I definitely dont think that is true.

[I've got Forex (now trading glod!), Goldline dot com and Google Local Business Center ads.]

Way to go Broward.

RockyR wrote:

it's not. it's a credit, not a deduction.

So if you have no tax liability, they send you $8K? I must have been bad in a past life or something-

ED - You are correct, the FTHC is a "refundable" credit.

However, the NYT article said she had been through a foreclosure; doesn't say when, so she might not qualify if within the last three years (and if she was on the title with her ex-husband). The rules do get complicated for situations like that.

I agree about the other rules, just saying owing taxes ain't one of them

Not to raise the specter of moral hazard again...but while trickle down economics may not work, it is clear trickle down ethics(or the lack thereof) does work. Please don't read me wrong, I am not passing moral judgment, I understand where people are coming from. A favorite fantasy of mine, is the final scene in Fight Club...but none of this matters now because we have passed the point...normal, reasonable people view the situation as a game. Little life story here. As an only child, my family monopoly games were kind of boring and very much by the rules, except for free parking...sixth grade, my birthday, had two friends over who had lots of siblings...we played monopoly. I went downstairs to check on some snacks...when I came back...I noticed they had kept playing without me. Some rule about play continuing when one is absent from the table. Thought this was grossly unfair, because I was pretty sure they landed on my hotels...but of course absent landlord can't collect rent...my response, very childish, was to divest myself out of the game. This is what I see now as a nation ahead of us. As long as the game was perceived fair (easy credit, etc..) we were willing to be screwed. Now, we're throwing tantrums and refusing to play. While a perfectly understandable reaction...I am still not convinced this is the road we want to travel down. My personal choice is to be a fool and keep paying my rent(house payment) until if circumstances dictate, I can't. We need a better choice than mutual economic self destruction. It is a hard decision for me. I think the banks long ago passed the line into promoting financial slavery. Been hoping for a Robin Hood, a shepherd...but it looks like he didn't return home from the crusades this time around.

IT - enterprise applications but I have pretty broad background. Yes, Bob, that's exactly what happened. it was like one mousetrap went off, and set off another, which set off another.

I always thought that guff about people wanting what they can't have was bogus but I'm actually seeing it in action right now. WTF?

As near as I can tell, unemployment levels in certain areas and domains have bottomed out and there's now a bidding war on, of a sorts.

dryfly wrote:

So Barney finally outed the FHA? About time somebody did.

I know there was a similar matter of policy before. I think it was Summer 2008, after the Bear Sterns failure and securitization died but before Fannie Mae and Freddie Mac died. FNM and FRE were told to keep the mortgage market moving by Congress, maybe FHA too. At least that's what I remember

"7.77 percent of the portfolio is in default"

We're gonna need a bigger Boat

1. Tax Credit, not a deduction. Yes, she will get at least $8k check for "tax refund."
2. It is actually $8k OR 10% of purchase price, whichever is less. So a home that sells for say, $75k only nets $7500, and so on.
3. Where I live, $134k purchase price is not a "fixer-upper." That is complete effing bull. I do not care that house prices are higher in Colorado, nor do I want my tax money propping up home prices in effing Denver.
4. If Colorado is not paying teachers enough to buy a home of their own, they need to move away to communities where "fixer-uppers" can be had for $50k or so. When all of the teachers move to Missouri or Kansas, Colorado will be totally effed, but eff it. If you ain't likin' it where you is, effing move, for eff's sake!!!!

IT - enterprise applications but I have pretty broad background.

Good for you, broward. I'm starting to hear of more IT hiring in the last few weeks. In the opportunities coming your way, are the companies expanding existing installations or starting brand new projects from the ground? Are they publicly-traded companies or privately held?

I wonder why she doesn't just rent

Do not deny her basic human right of buying a home she can't afford with other people money she wont be able to pay back. The govt. should provide free homes for everyone !
~splat

AP- Bloomberg- FT all running a story on how some company? named SCONE has called the economic recovery officially started. Something about west coast rebound.... Market will be up 200 points on that bottom call... what's a SCONE...

"creditcriminalslovetarp (profile) wrote on Fri, 10/9/2009 - 9:30 am
reply ignore user
did $ find a bottom last night..I'm sure Barney did...."

they both got a reach around

BLS: Job Openings at Series Low at End of August

steelhead wrote:

Barney is the bottom.

That's what I thought-

MS wrote:
Half of my neighborhood has stopped paying because they got in over there heads.

Wow, that was sudden. Wasn't it early last year that you said there were no signs of foreclosure around you in a No. San Diego county neighborhood. Were they all purchased about the same time or some other co-incidence.

"Mutual economic self destruction" is indeed in no ones best interest. The fear is that we are being led to eventual economic destruction anyway following the policies of the last year. My hope is that policy makers will recognize that at some point there are a number of participant who will no longer play by their rules if perceived unfair - they need to change those rules until they are seen as equitable.

Broward did the same thing last year , bought a 20 yr old (antique tags, no emmisions requirements) Jeep cherokee larado off craigs list, one owner, fully loaded, for 800 bucks.... will not buy a new car again for a while.... a long while if ever again.

Actually, "scone" is a pun on my real name. But don't tell anybody.

sdtfs-
Yes that was early 2008......WE had alot of turnover in early 2006 into 2007. That would put them just about at the reset level with a notorious 3-yr option arm. Many purchases in my neighborhood were done with that.....ahem....."product". Funny thing is that the first one that was foreclosed on has been "sold" three times already..with no one ever moving in. Just another MLS game being played with it IMO.

Ciao
MS

rosethorn wrote:

What the ??? I wake up and the President gets the Nobel Peace Prize and Rep. Frank is saying making bad loans is good policy. It's a world gone crazy...

do do DO do, do do DO do.

Rose Thorn turns off the alarm on the clock radio. Is it true that O has gotten the Nobility Prize and a US senator said bad loans are good policy?

You are about to enter another dimension. A dimension not only of sight and sound, but of mind. A journey into a wondrous land of imagination. Next stop, the Twilight Zone!

FHA please die.

I've spent the decade waiting (and saving) to buy my first house, but I refuse to compete with idiot lenders and buyers who will pay more than they can afford. Maybe next year a guy with a good income and savings will have a chance.