This WSJ article on deficiency lawsuits leaves me curiously unsympathetic.
I mean, the basic concept behind the practice is worrisome enough: banks foreclose on a property when it goes into default, discover that the foreclosure sale doesn’t recoup their losses, so they get a ‘deficiency judgment’ to try to get the rest from the original borrower. So far, such is life – but where it gets worrisome is where they resell the judgments to third | Read More »
28.4% of mortgages underwater.
Note that this article doesn’t quite get the original report right, sort-of kind-of thank goodness; it confuses mortgage holders with homeowners when reporting the percentage of underwater mortgages (mortgages where the holders owe more on a piece of real estate than the real estate is actually worth). In other words, 28.4% of homeowners with mortgages have underwater ones, not 28.4% of all homes. This should | Read More »
White House to bailout underwater mortgages?
Today’s hot rumor comes from James Pethokoukis: essentially, the White House (which is becoming increasingly frantic about the way that their Super Magical Unicorn Genius economic plans aren’t working) is scheming to partially bail out people with underwater mortgages. I know, I know: the government was not supposed to acquire Fannie/Freddie just to completely rewrite their balance sheets, but the existing scheme to let the | Read More »
Hi, federal government. Pay my mortgage, please.
Hey, is this not Freddie Mac’s strategy? Freddie Mac is asking for $10.6 billion in additional federal aid after posting a big loss in the first three months of the year. It’s another sign that the taxpayer bill for stabilizing the housing market will keep mounting. Asking the government to keep you afloat as an alternative to actually operate under sound fiscal principles, that is. | Read More »