Crunch Hardtack
Member
- Joined
- May 2, 2006
- Professional Status
- Certified Residential Appraiser
- State
- Ohio
Link: http://mrmortgage.ml-implode.com/20...ders-banks-now-to-be-bailed-out-too-breaking/
Excerpt: "Added last minute to the underwater refi, Fannie/Freddie, FHA, Wall St, Foreign Gov’t, Washington DC, bank and investment bank bailout was a ‘2nd lien provision’ making the 2nd mortgage holder an equity partner in your home as well. Remember, HELOCs are likely near total loss for the banks over time. Not any more.
Already in the original bailout proposal, banks get to turn their toxic first mortgages into FHA at a much smaller haircut (principal reduction) than these toxic loans are selling for on the street. Now, banks can give up their toxic 2nds in exchange for appreciation in your home and an ‘IOU’ that will probably have a higher value than the 2nd mortgage itself. Now you have two partners; the Gov’t and the bank! I can’t verify this but I bet if you have a first and 2nd mortgage, the ‘bailout’ will result in you getting the least percentage of the upside in the future."
Great, just great.
Excerpt: "Added last minute to the underwater refi, Fannie/Freddie, FHA, Wall St, Foreign Gov’t, Washington DC, bank and investment bank bailout was a ‘2nd lien provision’ making the 2nd mortgage holder an equity partner in your home as well. Remember, HELOCs are likely near total loss for the banks over time. Not any more.
Already in the original bailout proposal, banks get to turn their toxic first mortgages into FHA at a much smaller haircut (principal reduction) than these toxic loans are selling for on the street. Now, banks can give up their toxic 2nds in exchange for appreciation in your home and an ‘IOU’ that will probably have a higher value than the 2nd mortgage itself. Now you have two partners; the Gov’t and the bank! I can’t verify this but I bet if you have a first and 2nd mortgage, the ‘bailout’ will result in you getting the least percentage of the upside in the future."
Great, just great.