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I fail to understand the first sentence of this blog:

Tough luck if youre in danger of defaulting on your home loan.

Why should home loans be holier than other loans. If lender loaned money without proper risk assesment of borrower, let both of them take losses and move on. It is not as if there are no places to rent. Just foreclose and rent. Why should tax payers take the loss for the mistakes of lenders/borrowers.

Paddy Hirsch : responding to gb | Respond
April 30, 2009 4:19 PM PT

I’m not saying home loans should be holier than any other loan, gb. I’m merely stating that homeowners verging on default were hoping that the Obama Adminstration would be able to get that cramdown legislation through Congress, which would have got those borrowers off the hook. But that’s obviously not happening, for now, so if you were one of those borrowers, tough luck. Or hard cheese. Or…

Woo Hoo! I was so worried they would pass this and destroy the borrower/lender market. Who would lend if a court can change it at any time?

Love what you are doing Paddy. Posts stark examples of the messed up reality we are surviving through.

I’m with gb. Let the cycle run the course. Default, foreclose, and move on. Mortgages are secured by collateral. Let the banks feel the pain of the utter stupidity of loaning $300K on a $150K house to a $100K borrower. The market-driven cramdown will be brutally effective. If the banks fail to loan to credit worthy borrowers at reasonable rates to stimulate demand, housing prices will continue to fall, prompting bigger bank losses through foreclosure.

Sit back and watch the system work.

Don

I side with the people facing foreclosure. With the quantatative geniuses who decided to profit by bundling mortgages; people can’t figure out who holds their mortgage, can’t renegotiate from an ARM to adjustable rate. Loosing a home is loosing a dream. They are not just going to move on. Their children are not just going to move on like it’s an inconvenience.

What I had to dig for and what I would like to hear more about is why the 2 Senators from Arizona, a high foreclosure state, voted against the measure. I know one has so many houses, he doesn’t know where he lives. What are their proposals? I don’t view this as a defeat for the President, but people have to hold their elected officials accountable.

“One way industry lobbyists don’t want the process streamlined is by giving borrowers leverage. Currently, bankruptcy judges are barred from modifying loans on primary residences. Changing that law has been a priority for consumer advocates for years, and Obama’s plan asks Congress to finally do it. The point isn’t so much to help borrowers who end up in bankruptcy court—hardly an ideal outcome—but rather to arm borrowers with a countering threat when offered crappy loan workouts. The large servicers do not relish the idea of a judge digging through poorly made and poorly serviced loans, many of them riddled with fraud.” http://www.thenation.com/doc/20090518/wright/single?rel=nofollow

Iam so sick of you assholes talking about ppl that borrowed more then they could!! Iam so of the the whiny ,b.s of we are getting punished and we pay our bills waaaaaaaaaa,waaaaa I purchased my house in 2005 in Las Vegas . I was ”a” paper .Zero down ,full stated income loan and 6.25 percent!!I was laid off ,after 10 years in a casino. I can no longer pay my mortgage as Iam working 2 jobs and still not able to earn enough on a house that is 160k under water!! this bill would have saved my home that I worked my ass off for …and i should just ”walk away”….”move on” no , better rent some ones eles home and pay their mortgage that will go into forclousure! I wish i could reach out to all you ignorant ppl and knock your teeth out!!