Gov't creates another foreclosure wave

If those "one in five" who are just now defaulting is unemployed, I'm thinking it has more to do with WALL STREET fucking up the economy than a loan program that's been in place for 35 years.

the loan program is part of the ill-thinking of wall street, which is to promote endless spending instead of saving.

the stupid government should stop the ridiculous 3.5% down FHA purchase, a 20% down must be mandatory across the board

The facts in the Washington Post piece would dispute that Matt. It says the maximum home purchase guidelines were ignored or not enforced and come off as mere "suggestions". It also looks like the loans had no DTI component and the fact that buyers had first and second mortgages along with local funding means the whole thing was a house of cards. So the question is why the problems now and not for the full 35 years. Well tighter lending standards and a not rising real estate market means these people can't refinance their way out of this or sell to pay off their debt. This is just like the argument that Clinton didn't help create a housing bubble, since it blew up during George Bush.

>If those "one in five" who are just now defaulting is unemployed, I'm thinking it has more to do with WALL STREET fucking up the economy than a loan program that's been in place for 35 years.

Someone else is always responsible for NYCMatt's failings and personal weaknesses. Bring out the inflatable rat. Strike until triple penalty overtime is paid.

That's why I like Manhattan co-ops, 20% to 100% down payments required with an average of about 25%. Also require substantial liquidity beyond down payment and a good income stream.

Better quality of owner, one that can afford their monthly payments, unique these days.

That's why defaults in co-ops are practically non-existent.

The govt policies which led bankers to huge bonuses by bundling mortgages. Yes that pot of gold which let RBS, UBS, CSuisse, Nomura, socGen, bnp paribas, and every po dung bank in the world come to nyc to expand their i bank and let 20th tier MBAers get $200k signing bonuses had ZERO bubble effect on nyc coops!!!!!!

Fking delusional fk.

You've no clue on this credit cycle. When entire banks pull stakes to lick their wounded nuts..... Let's see if coops take a hit. :)

I've made my bet by renting. Hahhahahhahnahhanahahaananaaaaaaaaaaaaaaaa. My thumbs are hoarse.

> I've made my bet by renting. Hahhahahhahnahhanahahaananaaaaaaaaaaaaaaaa. My thumbs are hoarse.

till when? 2015? 2023?

RIversider does not want poor people to own houses.

"That's why defaults in co-ops are practically non-existent."

Until those people who passed the board with flying colors lose their incomes for two years.

So you are saying that the boards weren't looking at the right thing when they approved the new shareholder.

I want people to own homes that can afford to pay for them.

"So you are saying that the boards weren't looking at the right thing when they approved the new shareholder."

It's impossible to predict if and when someone might lose their employment for a significant period of time.

@notadmin.

Until mortgage rates hit 6% then I'll re assess. But who buys when morons like Bernie tell you to buy?

@ Riversider. 'afford it' => code for code for early bubblers to say 'keep my the bubble price going'.

Most ppl in coops who bought in 1980-2003, could not pass their own board if you X out their bubble equity from housesitting.. That means you, you coop loving masturbator.

well, if the economy sucks and more people lose their jobs and can't pay their mortgage, then coops will face a foreclosure wave too.

Coops have first lien and most buildings require substantial down-payments. I would not believe they have a great deal of exposure.

banks can't even foreclose deadbeat houses and condos in nyc, how could they do anything to coops, if any?

"Coops have first lien and most buildings require substantial down-payments. I would not believe they have a great deal of exposure."

Again, they DO have a great deal of exposure if their tenants lose their primary (and often ONLY) source of income for extended periods, as we've seen in this current depression.

Coal miner sees the canary (condos) die.

Riversider's logical conclusion is 'i can hold my breath longer'

"So the question is why the problems now and not for the full 35 years. Well tighter lending standards and a not rising real estate market means these people can't refinance their way out of this or sell to pay off their debt."

Like in the early 90s? Logic fail. Perhaps the answer lies in the global debt bubble, combined with over agressive bank lenders (somebody supplied the rest of the money after all), mortgage securitization and the rest of the usual suspects that contributed to a wave of housing problems.