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Citi drops opposition to mortgage 'cram-down'; in bankruptcies
Topic Started: Jan 13 2009, 06:35 AM (164 Views)
jon-nyc
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Cheers
This came out while I was away - Citi has dropped its opposition to allowing bankruptcy judges to change mortgage terms.

They added the important caveat that it be for existing mortgages only, not new ones.


I think this is good news, and ultimately something like this will get passed. It will cause a little pain to markets, but will help the housing market immensely. It will find a bottom much earlier than it otherwise would.


I also think its important to allow this only on existing mortgages - not new ones. Otherwise it will shut a lot of people - especially poorer ones - out of the mortgage market in the future.


http://money.cnn.com/2009/01/08/news/companies/citi_hom...stversion=2009010813
In my defense, I was left unsupervised.
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lb1
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Fulla-Carp
jon-nyc
Jan 13 2009, 06:35 AM


Otherwise it will shut a lot of people - especially poorer ones - out of the mortgage market in the future.


Wasn't this a big contributor to the problems we are having, people getting morgatges that couldn't afford them.

I have a house for sale, and it has been on the market for about six months. I got an offer Saturday that wasn't what I was asking but was well within what I would accept. I turned it down because the guy was going for a 100% loan. He wasn't able to make a down payment but he was approved by a finance company. I told the agent to bring someone that can afford the property.

lb
My position is simple: you jumped to an unwarranted conclusion and slung mud on an issue where none was deserved. Quirt 03/08/09
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jon-nyc
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Indeed it was, lb.

But I approach this from a point of view of pragmatism, not moralism or even fairness. Therefore I'm looking for the set of policies that will get us out of this mess as soon as possible with as little damage as possible. If the housing market can find a bottom in 6-12 months, as opposed to 36-48 months, the economy and those of us who participate in it will be better off for it.

Viewing this pragmatically instead of morally puts me out of step with a majority of my fellow citizens, I realize. But fortunately it puts me in step with a majority of our leadership.

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Mikhailoh
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If you want trouble, find yourself a redhead
It is morally repugnant, though. I have a mortgage I can afford and diligently pay it. Others make poor decisions and get bailed out. They get a pass. Sticks in my craw big time.
Once in his life, every man is entitled to fall madly in love with a gorgeous redhead - Lucille Ball
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jon-nyc
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Bankruptcy isn't exactly a bailout, Mik.
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Mikhailoh
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If you want trouble, find yourself a redhead
It is if they get to keep their home with a forcibly reduced mortgage.
Once in his life, every man is entitled to fall madly in love with a gorgeous redhead - Lucille Ball
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jon-nyc
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I don't deny that bankruptcy benefits the bankrupt, it is voluntary after all and results in a lessening of their obligations. But its a pretty serious black mark, all the same. Its not a bailout in the Citibank or GM sense of the word.
In my defense, I was left unsupervised.
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Mikhailoh
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If you want trouble, find yourself a redhead
It used to be. People I know who are in bankruptcy are now getting credit card and mortgage offers in the mail. The banks know they cannot declare bankruptcy again for 10 years, so they are, perversely, safe bets.

Some institutions never learn.
Once in his life, every man is entitled to fall madly in love with a gorgeous redhead - Lucille Ball
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OperaTenor
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Pisa-Carp
Having done a Ch. 13 reorganization myself, I will tell you there wasn't one bit of it I saw as a "benefit".

Thanks.



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Mikhailoh
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It's a lot different these days.
Once in his life, every man is entitled to fall madly in love with a gorgeous redhead - Lucille Ball
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Axtremus
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HOLY CARP!!!
On topic, I agree with jon.

On the side... Mik, if you think bankruptcy is so much fun, why not you give it a try and write memoir about it, right here on TNCR? ;)
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Mikhailoh
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If you want trouble, find yourself a redhead
I didn't say it was fun you Gay Commie Muslim Zionist Irishman. I said it is not the same onus today it was before, when if you declared bankruptcy you could not get credit. Now you're a great risk because you CAN'T declare bankruptcy again for 10 years.
Once in his life, every man is entitled to fall madly in love with a gorgeous redhead - Lucille Ball
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Red Rice
HOLY CARP!!!
Mikhailoh
Jan 13 2009, 08:21 AM
I didn't say it was fun you Gay Commie Muslin Zionist Irishman.
:spit:
Civilisation, I vaguely realized then - and subsequent observation has confirmed the view - could not progress that way. It must have a greater guiding principle to survive. To treat it as a carcase off which each man tears as much as he can for himself, is to stand convicted a brute, fit for nothing better than a jungle existence, which is a death-struggle, leading nowhither. I did not believe that was the human destiny, for Man individually was sane and reasonable, only collectively a fool.

I hope the gunner of that Hun two-seater shot him clean, bullet to heart, and that his plane, on fire, fell like a meteor through the sky he loved. Since he had to end, I hope he ended so. But, oh, the waste! The loss!

- Cecil Lewis
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Axtremus
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HOLY CARP!!!
Mikhailoh
Jan 13 2009, 08:21 AM
... you ... Irishman.
Hey, I find that offensive and I demand an apology, you red-headed transvestite! :veryangry:
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Mikhailoh
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:lol2:
Once in his life, every man is entitled to fall madly in love with a gorgeous redhead - Lucille Ball
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