So, as we frequently do, we are bailing out the dumb asses so their dumb assery won’t end up further destroying the economy as a whole. And we’re bailing out the criminals at the top for the same reason. I don’t know about you, but I don’t want six boarded up houses on my street. I have to think that might not help my property value or my quality of life.”

These dumb-ass buyers we in on the scam as deep as the brokers, the bankers, WS and the government regulators. The rating agencies were also in on the scam, I haven’t heard anyone wanting to prosecute Standard and Poor’s or Moodys, like what happened to Arthur Andersen. These dumb-ass buyers knew they were on the edge or over the edge when they bought in, they were trying to stretch the envelope in order to look and play like they were in a wealthier class than they were in.

As far as the boarded up houses and your property value or quality of life, you might find that the neighbors aren’t the kind of neighbors you want anyway. They could be the kind that never clean up the yard, or try to turn the back yard into an auto reclamation yard, or they like to entertain rather seedy people that like to party hard all night long. Your quality of life and property value are still in jeopardy.

I think you found the answer. The bank securitized your loan, and cannot modify the terms without resecuritizing it and maybe there are no programs that you will fit into.

How many other firms did you call? I assume as many as you could find, I probably would. We had a mortgage thru Wells Fargo a few years back. I don’t remember them being flexible, I think they hold their own paper. Many times you will find that when your original bank turns you down others are very interested because they have more flexibility. I think you ought to go thru a broker. Call around.

Yeah, it’s about financial pressure. Our standard of living has declined as a result of taking new jobs in a new town. As I read more about the proposed mortgage program it looks like I would not qualify without first committing fraud (i.e. lying) about where my primary residence is.

The part that frustrates me is my own bank. “Sorry not interested right now. Miss three payments and we will talk.”, they say.

My proposed mortgage modification would have increased their monthly revenue stream, made them more money over the life of the loan, and cut my payment in half. My bank was not interested.

To paraphrase what Greenspan said recently: Capitalism only works when managers of financial institutions operate their businesses with enlightened self interest. Managers must actively monitor their firms capital and risk positions to maintain bank solvency.

From what I can tell the bank that holds my loan would rather see me default than modify the term (the length of repayment) of the loan in a way that would make them more money.

The real question is “Why?”

Maybe they have securitized my loan so they don’t take the loss when I default.
Maybe they have found a way to profit by my default with billions in giveaways and trillions in guarantees from the “nanny state”.
Maybe the insolvency of the bank IS IN THE ENLIGHTENED SELF INTEREST OF ITS FINANCIAL MANAGERS. After all, none of them have lost their jobs or lost their “performance” bonuses.

Sara, I do not want to turn this into a rant, but like you worry about the poor leaches bleeding our society dry with welfare fraud, I am worried about the masters of the universe that run it from commanding heights. I think they messed up and are continuing to do so. With no consequences for them.

As for Santelli, I think he is a magician. He wants us to look at the shiny ball so he can help his friends complete their tricks.

As for me, Ive already thought about my worst case scenario. The worst thing that can happen is I lose my house, my $40,000 down payment, and about $30,000 in equity. It’s not pretty, but I have accepted it as a worst case scenario. One more thing, Wells Fargo will own another house it can’t sell.

Fantastic post

From what I understand, you need to be living in the home to qualify for help. The goal is to keep people in shelter, not to mitigate financial pressure. Is that what the issue is with your refi?

We apply gentle and non-damaging punishments, just enough pain to teach a lesson.

So, using your parenting principles, when your son Michael Jr. does something wrong, you increase his allowance, and you penalize his sister Mary instead. That will teach Susie a lesson!

I’m always checking the responses in your blog to see what’s new. I posted a response about dealing with the banks as I try to secure a refinance for my home. I posted it at about 8:10. The weird thing is, sometimes I see it in with the other responses and other times it’s not there.

What do you think is happening?

I removed comment moderation but some comments still get caught as spam. Don’t know why. Just relax - I’ll get them up eventually.

ed.