The Mother Of All Frauds

Rocky_Shorz · 09-22-2008, 03:00 AM

I had rewritten my first post, one thing I want bring up is this, The part that could help the current homeowner is this might save many from foreclosure, it's the HELOCs that have nothing to back it right now, and many are almost as large as the original mortgage. the 2nd on a short sale gets a 10% kicker to make them go away, so the banks can toss it to the Fed to get it off their books, taking a 95% hit, but frees up other money they can borrow for other loans. All a homeowner needs to do right now is stop paying the second and keep the first current... This is going to help the collapse of many families falling into foreclosure...

Once the property does sell, the Fed has a lien on it for the 5% plus whatever fees involved which once again can turn into a profit...

The banks are still getting slammed, but dumping bad debt and getting it off their books helps the whole institution.

09-22-2008, 03:00 AM	#10
Rocky_Shorz Avalon Senior Member Join Date: Sep 2008 Location: USA Posts: 1,098	Re: The Mother Of All Frauds I had rewritten my first post, one thing I want bring up is this, The part that could help the current homeowner is this might save many from foreclosure, it's the HELOCs that have nothing to back it right now, and many are almost as large as the original mortgage. the 2nd on a short sale gets a 10% kicker to make them go away, so the banks can toss it to the Fed to get it off their books, taking a 95% hit, but frees up other money they can borrow for other loans. All a homeowner needs to do right now is stop paying the second and keep the first current... This is going to help the collapse of many families falling into foreclosure... Once the property does sell, the Fed has a lien on it for the 5% plus whatever fees involved which once again can turn into a profit... The banks are still getting slammed, but dumping bad debt and getting it off their books helps the whole institution.