I just saw on CNBC that 53% of modified mortgages are in redefalut after six months.
OMG!
OMG!
Modified mortgage redefaults
- Thread starter Dtrigg
- Start date
I just saw on CNBC that 53% of modified mortgages are in redefalut after six months.
10% of ALL mortgages are in default/delinq/etc. The peak will be 20. Hold on tight the water is getting choppy.
Not surprising given the high job loss and companies across the board laying off and cutting back. The worst is yet to come. Hold on! Going to see much more outsourcing of labor, parts and service.
Last edited:
The problem isn't the mortgage payments. It's the people who live beyond their means, borrow/spend more than they can afford, and fail to save for a rainy day. We can keep giving handouts to people, but until they learn to become more responsible financially, nothing is going to change in the long run.
The problem is that lenders are, by law, only allowed so much leeway in the modification. Modifications in the lenders repertoire include payment forbearance, adding defaulted payments to principal, and in extreme cases, principal reduction. These modifications do not address the underlying issue - the payment is too high and the homeowner no longer has equity in the home as incentive to continue paying. For many, these modifications represent a band-aid that will only stop the bleeding in the short term.
Not only that, but then we'll see a hugh credit crunch afterwards because of all of the people living on credit cards. Then 30+ years down the road, we are going to see a huge retirement savings crunch because of all of the people raiding their retirement funds to pay current bills. And behind each one, yup, more bailouts. The moral of the story is that you might as well just go out and spend like crazy and blow all your money because all of the hard working, responsible people will just need to bail everyone out anyway. :smile:
Similar threads
