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Text of Bailout - bend over and smile

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Jan 15, 2002
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Certified Residential Appraiser
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Florida
This thiing was supposed to boost confidence. It does not boost my confidence in our Federal Government.

Personally, I would have waited until there was actual trouble so that everyone could see that it was real and would hurt them, Nobody cares about Wall Street.

I think the Congress is acting hastily. What does it say to you when you get a RUSH order for an appraisal? It usually means there's something wrong. They hope you either will not notice, or if you do, you will not have time to investigate.
 

Workbox

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Joined
Mar 2, 2005
Professional Status
Certified Residential Appraiser
State
Colorado
I would first let the public decide instead of let these deadbeats in Congress, sign off on it.

TELL US THE TRUTH!! How bad is it going to get?! AS they have said in many shows, "they do not want to worry the public"..............OK?....So, you are buying time for What? and want us to just think it all going to be alright?..........This does not sound right.
 

TJSum

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Joined
Nov 12, 2007
Professional Status
Certified Residential Appraiser
State
Maryland
There was an article in the Washington Post recently stating the small local banks are thriving right now. People are fleeing to the safety of these strong local banks who conducted business in the correct fashion. The management of these banks state their deposits have grown so much that they are looking forward to making local residential loans in order to put that deposit money to work. I say let all these greedy national overgrown banks fail, they deserve it by the way they conducted business the past decade or so. Good ridance, let these "monoplies" fail, the economy would end up better off with thousands of small local banks competing against each other. These national overgrown banks can exit stage left and take their favorite AMCs with them, yes the crash might hurt for awhile but the economy would end up being better off in the long run.



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Posted at 02:51 PM ET, 09/26/2008

Small Banks Boom While Some Local Firms Bust

While big banks are collapsing with a resounding thud on a daily basis, smaller banks say they're actually profiting from their big friends' problems.
Deposits are flowing in as customers flee riskier investments, and well-qualified borrowers are lining up for loans, reported Binyamin Appelbaum in Thursday's Business section of The Washington Post.
"We collect money from local savers, and we lend it in the local community," said William Dunkelberg, chairman of Liberty Bell Bank in Cherry Hill, N.J. "We're doing fine. There are 9,000 financial institutions out there, and most of them are small and most of them are doing fine."
Dunkelberg, a professor of economics at Temple University and chief economist for the National Federation of Independent Business, added that a recent survey of that group's members found that only 2 percent said getting a bank loan was the great challenge facing their businesses.

Here is a link to the entire article http://www.washingtonpost.com/wp-dyn/content/article/2008/09/25/AR2008092504155.html
 
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Austin

Elite Member
Joined
Jan 16, 2002
Professional Status
Certified General Appraiser
State
Virginia
There was an article in the Washington Post recently stating the small local banks are thriving right now. People are fleeing to the safety of these strong local banks who conducted business in the correct fashion. The management of these banks state their deposits have grown so much that they are looking forward to making local residential loans in order to put that deposit money to work. I say let all these greedy national overgrown banks fail, they deserve it by the way they conducted business the past decade or so. Good ridance, let these "monoplies" fail, the economy would end up better off with thousands of small local banks competing against each other. These national overgrown banks can exit stage left and take their favorite AMCs with them, yes the crash might hurt for awhile but the economy would end up being better off in the long run.

You are exactly correct TJ but the problem is that will never happen. It is a little thing called politics. You see the way it works is that giving easy credit to people with bad or no credit gets votes. If you want to see it in black and white, read sections 109 and 110 of the bail out bill. m2:
 

Greg Bell

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Joined
Jul 7, 2006
Professional Status
Gvmt Agency, FNMA, HUD, VA etc.
State
Louisiana
FHA grows agian..

EESA requires the Treasury to modify troubled loans - many the result of predatory lending practices - wherever possible to help American families keep their homes. It also directs other federal agencies to modify loans that they own or control. Finally, it improves the HOPE for Homeowners program by expanding eligibility and increasing the tools available to the Department of Housing and Urban Development to help more families keep their homes.
 

Non Sequitur

Elite Member
Supporting Member
Joined
Feb 14, 2002
Professional Status
Certified Residential Appraiser
State
Louisiana
My prediction: this mess will only grow larger and the world will shift to the Euro as the de facto currency. After that the greatness of the U.S. will be done and our grandchildren will know nothing of the opportunities we now have.

This generation failed.
 

Randolph Kinney

Elite Member
Joined
Apr 7, 2005
Professional Status
Retired Appraiser
State
North Carolina
I can see if the government actually can carry out individual loan modifications on principle balance and interest rate where the HO can make the new payment, it should be a boon to other home owners that are making their payments to default. Debt relief is instant cash flow positive.
 

Pamela Biggers

Junior Member
Joined
Jan 15, 2002
Professional Status
Gvmt Agency, FNMA, HUD, VA etc.
State
Arizona
I can see if the government actually can carry out individual loan modifications on principle balance and interest rate where the HO can make the new payment, it should be a boon to other home owners that are making their payments to default. Debt relief is instant cash flow positive.

Loan modifications aren't that easy. The borrower still has to be approved and prove they can pay. Plus the missed payments, interest, and other fees are tacked on to the balance. Sometimes the length of the loan is increased. Basically, they are restructuring the loan. They are NOT forgiving debt - just the fact that the borrower got behind. This would mean the borrower ends up paying more than what the original loan was for. If one bought a home with little or no money down....they are now in an even more upside down position on their home. If they lender determines that the borrower cannot afford the modification they suggest short selling or proceed with the forclosure.

So the other home owners still paying their loans would be stupid to default.
 

Obsolescent

Senior Member
Joined
Jul 6, 2004
Professional Status
Certified Residential Appraiser
State
Minnesota
While doing an inspection on Friday a local Chicago station did a two hour special called "your voice, your money" For those inclined in hearing a portion of that program, start with No. 37 and 34 on the link below. This really clarified and organized the questions that are floating around as to why it might be necessary. I guess the bigger concern is how the current situation impacts the credit markets.

http://wgnradio.com/index.php?option=com_content&task=blogcategory&id=305&Itemid=558
 
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