Obama May Prohibit Home-Loan Foreclosures Without HAMP Review

[BCA2009]

http://www.bloomberg.com/apps/news?pid=20601087&sid=ahuuwBS8KYq8

[OhioFiler]

Lovely. Obama is hellbent on holding off any form of recovery. Why delay the inevitable? Falsely delaying the foreclosures merely extends the problem. Let's get the foreclosures over with so the economy can establish a base for growth.

[DeadManCrawling]

Tossing kerosene on the fire always puts it out, right?

This looks good to some borrowers, but it really is wrong in so many ways it is hard to comprehend.

And it is not to the benefit of anyone but banks, in truth. Keeps the bad debt off the books, extends things a little longer, and effectively will further freeze credit markets.

It is also a direct contradiction with other programs that were supposed to fix the economy and housing in general.

How can this be applied anyway? I doubt there is any legal basis for the government to intrude into contracts like mortgages, but I suppose since government IS the housing market right now, they can ignore pesky things like the Constitution and UCC laws.

Think about it-banks will now have, under the guise of helping homeowners, another tool to use at will to keep bad debts hidden. This benefits only banks, I'm afraid, a real wolf in sheeple's clothing.

[backtoschool]

Tossing kerosene on the fire always puts it out, right?

This looks good to some borrowers, but it really is wrong in so many ways it is hard to comprehend.

And it is not to the benefit of anyone but banks, in truth. Keeps the bad debt off the books, extends things a little longer, and effectively will further freeze credit markets.

It is also a direct contradiction with other programs that were supposed to fix the economy and housing in general.

How can this be applied anyway? I doubt there is any legal basis for the government to intrude into contracts like mortgages, but I suppose since government IS the housing market right now, they can ignore pesky things like the Constitution and UCC laws.

Think about it-banks will now have, under the guise of helping homeowners, another tool to use at will to keep bad debts hidden. This benefits only banks, I'm afraid, a real wolf in sheeple's clothing.

I totally agree with you and OhioFiler. Since the government is the only housing market right now, they can get away with doing pretty much anything they want, but it will hurt our ability to recover from the housing crisis in a major way in my opinion. Banks need to declare the bad assets on their books as bad at the true market price those assets are worth right now, or we will never be able to resume lending and grow the economy.