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Saturday, October 16, 2010

The moratorium is NOT THE PROBLEM

Here is a good article from the Huff Post that hits on a lot of the bullshit that is being thrown around.

Look at how this idiot contradicted himself:

A national moratorium would be very damaging to exactly the kind of people we're trying to protect," Treasury Secretary Tim Geithner said on Wednesday, "because the consequence of that would be in neighborhoods that have been most affected by the foreclosure crisis, where you see lots of houses on the block empty, unoccupied, what it means is those communities will be living longer with houses unoccupied, with more pressure on their house price with the people still in their houses."

So are the houses unoccupied or are people still in their houses Tim?

How is the person still in his house, maintaining it bad for the neighbor?  HELLO WON'T THE NEIGHBOR BE HARMED MORE BY THE FORECLOSURE WHICH IMMEDIATELY BRINGS DOWN THE VALUE OF HIS HOUSE!

Are these idiots saying that vacant houses are bad for neighborhoods?  That's true, so stop throwing people our of their houses and MODIFIY THEIR LOANS>>>>>>>these people are willing to pay a principal balance that is the same as what they are going to sell if for at auction... why not NOT SELL IT?

"Wall Street agrees: SO ARE THEY SAYING THAT WE SHOULD BELIEVE WALL STREET?"It would be catastrophic to impose a system wide moratorium on all foreclosures and such actions could do damage to the housing market and the economy," the Securities Industry and Financial Markets Association, a Wall Street lobbyshop, said in a statement. "It must be recognized that the mortgage market, investors and the health of the economy are all inter-related. Investors in the housing market--including American workers with pension funds, 401k plans, and mutual funds--would unjustly suffer losses in their savings from these actions."




Dean Baker, co-director of the progressive Center for Economic and Policy Research, said in an email to HuffPost that the threat of a foreclosure moratorium would give homeowners leverage to win mortgage modifications while doing nothing to hurt banks.

"If a bank realizes that it will have to spend a lot of time and money cleaning up its paperwork to go through a foreclosure it may suddenly get more serious about offering a modification that will people to stay in their home," wrote Baker in an email to HuffPost. "Also, even if that doesn't happen, homeowners may be able to stay in their homes (rent and/or mortgagefree) for another 2-3 months while the banks get the paperwork in order. What's the down side for the homeowner?"

As for banks, Baker calls bull on fears that a moratorium could have catastrophic consequences. "The fact that the banks say a moratorium would be catastrophic should be taken as having absolutely zero value. There are few people on the planet with less credibility," Baker wrote. "For the last two years everyone familiar with the housing market has been talking about the 'shadow inventory.' These are the hundreds of thousands of foreclosed homes that banks have deliberately kept off the market. The reason is presumably that they were worried about glutting the market with foreclosed properties, depressing prices even more."

What's damaging homeowners is the failure of Secretary Geithner and others in the administration to hold the servicers accountable for breaking the mortgage system and for violating the law. What's damaging is Treasury's failure to create and mandate a loan modification program that would actually help homeowners stay in their homes and stabilize their communities," wrote Rheingold. "What would be helpful would be the imposition of this necessary timeout so that servicers can use this time to learn how to comply with the law and Treasury can finally figure out a solution to the problem of hundreds of thousands or millions of unnecessary foreclosures."

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