(I posted this elsewhere.)

These advocacy groups, which I understand include The Leadership Council on Civil Rights, and The National Council of La Razza, are proposing “special circumstances” (6 month stays of execution) for their constituents. But as you correctly indicated, such advocacy group actions will only plunge the real estate sector into further chaos.

Mortgage brokers will be clamoring for prospective clients, all of whom must be super-humanly qualified, with lily-white credit histories. The market will grind to a proverbial halt. And all will be shackled.

Those who were dumb enough to sign sub-prime mortgages must face the consequences, i.e. stop spending money, contact their lenders, sell assets, and sell or foreclose on their homes.

It is a sad story – if you only watch the last 5 minutes of the film.

But when you rewind to the beginning and observe financial illiteracy in action, you start to appreciate the simplicity of what has really happened.

These people were not duped. They simply failed to take 10 minutes and ask themselves “what if”.

Why, because man has a sinful nature. This truth is borne out in every exploitation of man by man for selfish gain.

If we want to have better lives we cannot exploit others. We cannot flaunt God’s perfect laws that warn us of the destruction inherent in “sinful” behavior. People who exploit others are not happy and always lose in the end. O, yes, for a short time it appears that they are untouchable. History is packed with examples. From Hitler, to Stalin, to false prophets, tele-evangelists, politicians, Ponzites, and the list goes on and on.

Jesus shows us the greatest path in Mark 12:30-31,

And thou shalt love the Lord thy God with all thy heart, and with all thy soul, and with all thy mind, and with all thy strength: this is the first commandment. And the second is like, namely this, Thou shalt love thy neighbour as thyself. There is none other commandment greater than these.

Our problems is the sin nature and our legacy of sin. Jesus took care of both of these by dying to pay for our sin and by promising to complete the good work of transformation began in giving those who trust in Him a new nature.

Politicians and laws will not prevent the sin nature from carrying out its destructive behavior… it will find a way. The solution is to be transformed within. That is accomplished by asking Jesus to save us.

I realize many will attempt to write this off as fanatical and discount it by disparaging comments and references to the false prophets and televangelists, but they aren’t the real issue. Jesus is the issue and He is the way, the truth, and the life. Not those who merely purport to follow Him and exploit people in His name. He will bring them to justice for their sins.

It is Jesus that has the answer and not men or religion or denominations or cults. If you look you will see lives changed, transformed, for the good of all. Yes, you will see false teachers that do evil to others too, but they will have their end.

Jesus is incomparable in history and He came and died that we might have life. He is not some man made false so-called god, but the Creator and Savior of mankind.

The problems that we encounter in our world may be euphemistically called “Murphy’s Law”, but they are the direct result of rejecting God’s perfect way and pursuing our own selfish way. This sin is the cause of all the sorrows of mankind and the more we sin the greater the suffering will be. Just as a loving parent sets of boundaries for their child to protect them knowing that certain paths will lead to their suffering or destruction, so God in His love sets up boundaries. We always seem to think we know better.

This whole neg. am. debacle had a predecessor several decades ago. We were warned by the experience of previous generations, but each generation is “wiser” than those before it. Just like Adam and Eve were “wiser” in their own eyes than God and manifested their wisdom in rejecting God’s way.

We are all guilty of it. Somehow it is different for us and our generation. Somehow …

Banks say that they don’t want to foreclose (they typically only get 70% of the original value in those cases… but they don’t get the say in this. The Federal Reserve, or the appropriate governing body forces them to move the nonperforming asset. Banks are banks, not real estate companies, they want to lose as little money as possible… but their governing bodies are not there to maximize banks profits, but protect investors and depositors. What is in the bank’s best interest is not always what’s best for stakeholders.

Populations expands till it can’t. People drive to a certain level of risk.
Lend to a certain level of risk.

Work the system to the extent of law allows… or they can obviously get away with.

Hover over a link. In the top right corner, there is a “Disable” right below options. Click that and it disables it on your browser.

Chuck Ponzi.

Wow, you save up 1800$ per month in eq rent. Enjoy life and walk away crying how you were abused.

I wonder if they are proposing… so do the banks eat the loss on not adjusting? Does the public pay for this (AIIIEEEEEEGGGGG)? Does the debt get added on to the end of the loan?

Are the people going to have to make a bubble payment on this?

I agree with your assessment 100%. If they actually did this, credit would dry up overnight. Hell, if it didn’t I would go out and buy a property with an option ARM with 100% financing (making sure to get a kickback at closing). I would not make any payments, and the bank could not foreclose. Hopefully, a lot of other people would follow my lead and I could actually flip the property for a profit. Either way, I would walk away with money from the first closing and maybe some from the second with no risk. Why wouldn’t people do this? It is free money.

What the people need who are in over their heads is someone to buy them out. If they put this moratorium in place, there will be no buyers.

Chuck Ponzi

I wonder what the advocacy groups have to say about buyers that falsified their income?