4 ms·

I think that the benefit of the Tails option is that your monthly mortgage payments are more in line with what your home is actually worth, as opposed to the in

by mbreese 13y ago

I think that the benefit of the Tails option is that your monthly mortgage payments are more in line with what your home is actually worth, as opposed to the inflated market value of the original mortgage.

cinquemb 13y ago
Oh, so the homes get refinanced in the process? Does that happen every time the market cycle goes into a down turn, or just an one and done in the kick the can down the road kind of way?
- fnordfnordfnord 13y ago
  >Oh, so the homes get refinanced in the process? That's what they're selling. Whether it really happens...? It wouldn't be the first time a gov't entity promised a plan that would 'help' homeowners and that plan failed to actually do so.
  - cinquemb 13y ago
    Ok, so basically the fundamentals aren't really being addressed to why this is even a problem in the first place, and the game can go on for another day. Fun to watch… As an aside, I wonder if it would just be better sign yourself onto a mansion, get your neighbor to burn "your" house down (using pgp to communicate this with temporal keys), collect insurance, cover neighbors bail and skip to the some emerging market (with no extradition treaty with the US or its allies) together with your "ill" gotten earnings in ones under luggage. </joke>
    - fnordfnordfnord 13y ago
      May there be a throng of distraught weeping bankers and insurers at your funeral, sir.
- mbreese 13y ago
  Yes. (from the article) The city buys the original mortgage and then sells you a new mortgage for a more appropriate valuation. This would hopefully be a one and done deal, but it does kind open a pandora's box in the process.
smtddr 13y ago
I don't claim to understand a lot of this, but I know if the principle of my home was altered to current market value & mortgage payment was made to match(looking at zillow.com's numbers) I'd be paying 1k/month less. That would be life-changing for my family. I wish someone would come seize my mortgage. That being said, I don't fully understand who's getting negatively impacted by me not paying so I await replies to my comment to enlighten me.
- chiph 13y ago
  The investors who bought the bundled mortgages would be harmed. After all, if your mortgage was $300k and under this forced refinancing scheme it's now mortgaged at $200k, that $100k just didn't vanish - someone lost that money. It might have been divided up amongst 1500 small investors, or it might have been a handful of larger investors, the net result is the same -- someone is out that money. On the larger stage, the City of Richmond is cutting their own throat by doing this. It's doubtful that I'd ever buy any of their municipal bonds after this. If I were somehow persuaded to (fat chance), it'd cost them a much higher rate - something like what Detroit is paying.
  - cinquemb 13y ago
    >It's doubtful that I'd ever buy any of their municipal bonds after this Funny thing is, people probably own their munibonds and don't even know it.
  - smtddr 13y ago
    Ah, okay. Then it depends on how I feel about the investors taking the hit. I imagine(incorrectly?) the investors as a group of wealthy people that won't suffer a huge decrease in quality-of-life by taking the hit but all the "regular" people in underwater mortgages would have significant gain in quality-of-life by the freed financial resources. This is me thinking that for a lot of people about 40% to 50% of their income goes to mortgage payments. The other problem though, is that wealthy people always seem to have a way of passing the damage down to the working class.
    - 13y ago
smsm42 13y ago
What is the home "actually worth" changes monthly, and even that is a very rough estimate since you have no idea how much it is worth until you actually sell it. So it would be more in line with whatever bureaucrat decides the home is worth in some particular point of time, probably basing on political considerations having little to do with market reality. It probably would result in some money being robbed from the banks - after all, that's where the money is - and some payments being lowered - after all, that's where the votes are - but it would have very little to do with actual market values.

by mbreese 13y ago

cinquemb 13y ago

Oh, so the homes get refinanced in the process? Does that happen every time the market cycle goes into a down turn, or just an one and done in the kick the can down the road kind of way?

fnordfnordfnord 13y ago
>Oh, so the homes get refinanced in the process? That's what they're selling. Whether it really happens...? It wouldn't be the first time a gov't entity promised a plan that would 'help' homeowners and that plan failed to actually do so.
- cinquemb 13y ago
  Ok, so basically the fundamentals aren't really being addressed to why this is even a problem in the first place, and the game can go on for another day. Fun to watch… As an aside, I wonder if it would just be better sign yourself onto a mansion, get your neighbor to burn "your" house down (using pgp to communicate this with temporal keys), collect insurance, cover neighbors bail and skip to the some emerging market (with no extradition treaty with the US or its allies) together with your "ill" gotten earnings in ones under luggage. </joke>
  - fnordfnordfnord 13y ago
    May there be a throng of distraught weeping bankers and insurers at your funeral, sir.
mbreese 13y ago
Yes. (from the article) The city buys the original mortgage and then sells you a new mortgage for a more appropriate valuation. This would hopefully be a one and done deal, but it does kind open a pandora's box in the process.

smtddr 13y ago

I don't claim to understand a lot of this, but I know if the principle of my home was altered to current market value & mortgage payment was made to match(looking at zillow.com's numbers) I'd be paying 1k/month less. That would be life-changing for my family. I wish someone would come seize my mortgage. That being said, I don't fully understand who's getting negatively impacted by me not paying so I await replies to my comment to enlighten me.

chiph 13y ago
The investors who bought the bundled mortgages would be harmed. After all, if your mortgage was $300k and under this forced refinancing scheme it's now mortgaged at $200k, that $100k just didn't vanish - someone lost that money. It might have been divided up amongst 1500 small investors, or it might have been a handful of larger investors, the net result is the same -- someone is out that money. On the larger stage, the City of Richmond is cutting their own throat by doing this. It's doubtful that I'd ever buy any of their municipal bonds after this. If I were somehow persuaded to (fat chance), it'd cost them a much higher rate - something like what Detroit is paying.
- cinquemb 13y ago
  >It's doubtful that I'd ever buy any of their municipal bonds after this Funny thing is, people probably own their munibonds and don't even know it.
- smtddr 13y ago
  Ah, okay. Then it depends on how I feel about the investors taking the hit. I imagine(incorrectly?) the investors as a group of wealthy people that won't suffer a huge decrease in quality-of-life by taking the hit but all the "regular" people in underwater mortgages would have significant gain in quality-of-life by the freed financial resources. This is me thinking that for a lot of people about 40% to 50% of their income goes to mortgage payments. The other problem though, is that wealthy people always seem to have a way of passing the damage down to the working class.
  - 13y ago

smsm42 13y ago

What is the home "actually worth" changes monthly, and even that is a very rough estimate since you have no idea how much it is worth until you actually sell it. So it would be more in line with whatever bureaucrat decides the home is worth in some particular point of time, probably basing on political considerations having little to do with market reality. It probably would result in some money being robbed from the banks - after all, that's where the money is - and some payments being lowered - after all, that's where the votes are - but it would have very little to do with actual market values.