Comments on: Is the ‘freeze’ a good idea? http://cnnmoneytalkback.blogs.cnnmoney.cnn.com/2007/12/06/is-the-freeze-a-good-idea/ CNNMoney.com Talkback Tue, 24 Nov 2009 15:32:36 +0000 http://wordpress.com/ hourly 1 By: Eric Winkelmann Indio, CA http://cnnmoneytalkback.blogs.cnnmoney.cnn.com/2007/12/06/is-the-freeze-a-good-idea/#comment-8416 Eric Winkelmann Indio, CA Fri, 01 Feb 2008 17:23:30 +0000 http://cnnmoneytalkback.blogs.cnnmoney.cnn.com/2007/12/06/is-the-freeze-a-good-idea/#comment-8416 How about offering a deal to people like me who have a FICO of 800+. How about offering a deal to people like me who have a FICO of 800+.

]]> By: Rich, Budd lake, NJ http://cnnmoneytalkback.blogs.cnnmoney.cnn.com/2007/12/06/is-the-freeze-a-good-idea/#comment-7202 Rich, Budd lake, NJ Thu, 06 Dec 2007 22:29:45 +0000 http://cnnmoneytalkback.blogs.cnnmoney.cnn.com/2007/12/06/is-the-freeze-a-good-idea/#comment-7202 This is bail out of the bank industry plain and simple. This is bail out of the bank industry plain and simple.

]]> By: Roger, Sacramento CA http://cnnmoneytalkback.blogs.cnnmoney.cnn.com/2007/12/06/is-the-freeze-a-good-idea/#comment-7201 Roger, Sacramento CA Thu, 06 Dec 2007 22:23:50 +0000 http://cnnmoneytalkback.blogs.cnnmoney.cnn.com/2007/12/06/is-the-freeze-a-good-idea/#comment-7201 I mean c'mon. The latest now is that we need to have introductory rates fixed because the foreclosure system cannot handle the mounting number of foreclosures. Well we did not see any problems in the housing price appreciation system when prices were going up did we? Not at all, it was "everyone benefits from the home equity increasing." Now its "everyone benefits from rate fixes." Oh really? How about people trying to buy a home at affordable prices instead vastly over-inflated prices? How about people who were irresponsible and borrowed too much? Why should the benefit? This is all just nuts. Government keep your hands off!!! I mean c’mon. The latest now is that we need to have introductory rates fixed because the foreclosure system cannot handle the mounting number of foreclosures. Well we did not see any problems in the housing price appreciation system when prices were going up did we? Not at all, it was “everyone benefits from the home equity increasing.” Now its “everyone benefits from rate fixes.” Oh really? How about people trying to buy a home at affordable prices instead vastly over-inflated prices? How about people who were irresponsible and borrowed too much? Why should the benefit? This is all just nuts. Government keep your hands off!!!

]]> By: John Pueblo Colorado http://cnnmoneytalkback.blogs.cnnmoney.cnn.com/2007/12/06/is-the-freeze-a-good-idea/#comment-7200 John Pueblo Colorado Thu, 06 Dec 2007 22:23:32 +0000 http://cnnmoneytalkback.blogs.cnnmoney.cnn.com/2007/12/06/is-the-freeze-a-good-idea/#comment-7200 This is just like the Savings and Loan issue. Let them go whole hog for a period of time and when the going gets tough say that the world will end if we don't help. The ecomony is a wonderful vehicle for wealth creation. It is also very efficient at lay waste to people or institutions that think they can beat the system. I say let it rip, clean out the blender and let us go again. The US is much more efficient at dealing with financial issues if the government would just stay out of the way. Collect the taxes that are on the books and let the chips on the mortgage issues go where it needs to go based on the economy not on emotion. This is just like the Savings and Loan issue. Let them go whole hog for a period of time and when the going gets tough say that the world will end if we don’t help. The ecomony is a wonderful vehicle for wealth creation. It is also very efficient at lay waste to people or institutions that think they can beat the system. I say let it rip, clean out the blender and let us go again. The US is much more efficient at dealing with financial issues if the government would just stay out of the way. Collect the taxes that are on the books and let the chips on the mortgage issues go where it needs to go based on the economy not on emotion.

]]> By: Pat Savu Maplewood, MN http://cnnmoneytalkback.blogs.cnnmoney.cnn.com/2007/12/06/is-the-freeze-a-good-idea/#comment-7199 Pat Savu Maplewood, MN Thu, 06 Dec 2007 22:23:26 +0000 http://cnnmoneytalkback.blogs.cnnmoney.cnn.com/2007/12/06/is-the-freeze-a-good-idea/#comment-7199 This bailout of subprime ARMs is bad policy. Market forces I guess are for people you loose their jobs and can't pay on theri mortgages. Market forces don't apply I guess when greedy bankers use unrealistic similation programs to estimate their risk of foreclosure (and loosing money) and find out they are wrong. Many of the "poor" people who are loosing their houses have no equity in them. They are loosing nothing to go back to renting. It's the bankers who will loose money on every foreclosure. This bailout of subprime ARMs is bad policy. Market forces I guess are for people you loose their jobs and can’t pay on theri mortgages. Market forces don’t apply I guess when greedy bankers use unrealistic similation programs to estimate their risk of foreclosure (and loosing money) and find out they are wrong.

Many of the “poor” people who are loosing their houses have no equity in them. They are loosing nothing to go back to renting. It’s the bankers who will loose money on every foreclosure.

]]> By: OnionGum - Cranford, NJ http://cnnmoneytalkback.blogs.cnnmoney.cnn.com/2007/12/06/is-the-freeze-a-good-idea/#comment-7198 OnionGum - Cranford, NJ Thu, 06 Dec 2007 22:20:53 +0000 http://cnnmoneytalkback.blogs.cnnmoney.cnn.com/2007/12/06/is-the-freeze-a-good-idea/#comment-7198 I have an idea - if the Federal Governemnt is loaded with money and wiiling to help borrowers who cannot make their mortgage payments, it's only fair to give money equally to borrowers like myself and many who have posted here who used better judgment to get conventional fixed rate loans and didn't fall for the BS schemes. I have an idea – if the Federal Governemnt is loaded with money and wiiling to help borrowers who cannot make their mortgage payments, it’s only fair to give money equally to borrowers like myself and many who have posted here who used better judgment to get conventional fixed rate loans and didn’t fall for the BS schemes.

]]> By: Fontana, CA http://cnnmoneytalkback.blogs.cnnmoney.cnn.com/2007/12/06/is-the-freeze-a-good-idea/#comment-7197 Fontana, CA Thu, 06 Dec 2007 22:19:03 +0000 http://cnnmoneytalkback.blogs.cnnmoney.cnn.com/2007/12/06/is-the-freeze-a-good-idea/#comment-7197 I LIKE MOST OF YOU, FEEL FURIOUS!!! The Republicans are not going Democrats on us. This action is not about the the homeowners is about the banks, and stock holders. Freezing the rates is going to prevent banks from ending up with thousands of homes. They rather keep the owners in their homes and have them continue sending a check. I LIKE MOST OF YOU, FEEL FURIOUS!!!
The Republicans are not going Democrats on us. This action is not about the the homeowners is about the banks, and stock holders. Freezing the rates is going to prevent banks from ending up with thousands of homes. They rather keep the owners in their homes and have them continue sending a check.

]]> By: Ramesh, Mercer, NJ http://cnnmoneytalkback.blogs.cnnmoney.cnn.com/2007/12/06/is-the-freeze-a-good-idea/#comment-7196 Ramesh, Mercer, NJ Thu, 06 Dec 2007 22:18:47 +0000 http://cnnmoneytalkback.blogs.cnnmoney.cnn.com/2007/12/06/is-the-freeze-a-good-idea/#comment-7196 For those looking for a "solution", I have this: Let the markets do its thing and we'll all be wiser and well off. Tinker with the market, and you will have unwanted wrinkles, and longer period of correction and eventual higher cost to everyone. Just as in the case of dotcom crash, lot of "innocent" investors who did not jump into speculative investments got hurt as well -as the entire stock market tanked, we will have lot of homeowners who did not take risky loans suffer as their home prices drop with rising foreclosures. However, in the end, just as the markets recovered from dotcom crash, housing will recover just fine -without any government intervention whatsoever. Astute investors will step in when prices look oversold and bid it up again. How long that will take depends on how long it takes for housing to reach a level appealing to value investor. For those looking for a “solution”, I have this:

Let the markets do its thing and we’ll all be wiser and well off.
Tinker with the market, and you will have unwanted wrinkles, and longer period of correction and eventual higher cost to everyone.

Just as in the case of dotcom crash, lot of “innocent” investors who did not jump into speculative investments got hurt as well -as the entire stock market tanked, we will have lot of homeowners who did not take risky loans suffer as their home prices drop with rising foreclosures.

However, in the end, just as the markets recovered from dotcom crash, housing will recover just fine -without any government intervention whatsoever. Astute investors will step in when prices look oversold and bid it up again. How long that will take depends on how long it takes for housing to reach a level appealing to value investor.

]]> By: Rick Sanderson, Forest Park, IL http://cnnmoneytalkback.blogs.cnnmoney.cnn.com/2007/12/06/is-the-freeze-a-good-idea/#comment-7195 Rick Sanderson, Forest Park, IL Thu, 06 Dec 2007 22:09:14 +0000 http://cnnmoneytalkback.blogs.cnnmoney.cnn.com/2007/12/06/is-the-freeze-a-good-idea/#comment-7195 The housing turmoil is an excess contributed to by overtly optimistic homeowners, profit hungry mortgage brokers, and yield seeking investors. I can understand assisting our nation's people as they face foreclosure and eviction as a matter of national pride and human decency. That having been said, not all Americans can be homeowners. Those people should be renting apartments and living within their means, and by subsidizing inefficient and inappropriate real estate allocation, we are placing an unnecessary financial and social burden on this country. Bail outs will only keep the bubble around longer. The housing turmoil is an excess contributed to by overtly optimistic homeowners, profit hungry mortgage brokers, and yield seeking investors. I can understand assisting our nation’s people as they face foreclosure and eviction as a matter of national pride and human decency. That having been said, not all Americans can be homeowners. Those people should be renting apartments and living within their means, and by subsidizing inefficient and inappropriate real estate allocation, we are placing an unnecessary financial and social burden on this country. Bail outs will only keep the bubble around longer.

]]> By: Bob, Laguna Niguel, CA http://cnnmoneytalkback.blogs.cnnmoney.cnn.com/2007/12/06/is-the-freeze-a-good-idea/#comment-7194 Bob, Laguna Niguel, CA Thu, 06 Dec 2007 22:08:05 +0000 http://cnnmoneytalkback.blogs.cnnmoney.cnn.com/2007/12/06/is-the-freeze-a-good-idea/#comment-7194 BAD, BAD, BAD idea - Why bail this out vs stock market or credit card or other industries? Government stay out business. The business dynamics will win in the end. I have a 5 year loan and would be great to have a rate freeze, yet, it isnt right. BAD, BAD, BAD idea... BOB BAD, BAD, BAD idea – Why bail this out vs stock market or credit card or other industries? Government stay out business. The business dynamics will win in the end. I have a 5 year loan and would be great to have a rate freeze, yet, it isnt right.

BAD, BAD, BAD idea…

BOB

]]> By: Ron Schmitz, Ft. Laud. Fl. http://cnnmoneytalkback.blogs.cnnmoney.cnn.com/2007/12/06/is-the-freeze-a-good-idea/#comment-7192 Ron Schmitz, Ft. Laud. Fl. Thu, 06 Dec 2007 22:07:03 +0000 http://cnnmoneytalkback.blogs.cnnmoney.cnn.com/2007/12/06/is-the-freeze-a-good-idea/#comment-7192 I own a mortgage company so I have a deeper insight as to what is going on in housing/ mortgage markets and how this mess happened. The Fed (Alan Greenspan) lowered the Fed Funds Rate all the way down to 1% in 2003/ 2004. This sparked a speculative frenzy in the housing markets. The 1% was supposed to pull us out of the last recession but it created another problem and a worse than ever recession on the horizon. In my view there is a 99.9% chance that we are going into severe recession in early 2008. It is 500% worse than what they are telling us. Millions of homeowners are 3 to 6 months away from throwing in the towell and filing Bankruptcy and Foreclosure. It is not the peoples fault. They believed that Real Estate was a safe investment. It always had been until now. Wall Street, Greenspan, The Banks that came out with these insane loan programs. Now we have to drink the castor oil. It will be many years before this problem goes away. House prices will have to go back to fundamentals. What average people can afford to pay and no more. The Banks won't lend the money anymore unless you can prove your ability to repay. Look for home prices to drop another 25% minimum. Let the foreclosures come and pass a law that the Banks have to forgive the debt. Put Greenspan in Jail with the TYCO & Enron guys for creating this mess. Who ever heard of 1% rates in a reality world. He is the guilty one. I own a mortgage company so I have a deeper insight as to what is going on in housing/ mortgage markets and how this mess happened. The Fed (Alan Greenspan) lowered the Fed Funds Rate all the way down to 1% in 2003/ 2004. This sparked a speculative frenzy in the housing markets. The 1% was supposed to pull us out of the last recession but it created another problem and a worse than ever recession on the horizon. In my view there is a 99.9% chance that we are going into severe recession in early 2008. It is 500% worse than what they are telling us. Millions of homeowners are 3 to 6 months away from throwing in the towell and filing Bankruptcy and Foreclosure. It is not the peoples fault. They believed that Real Estate was a safe investment. It always had been until now. Wall Street, Greenspan, The Banks that came out with these insane loan programs. Now we have to drink the castor oil. It will be many years before this problem goes away. House prices will have to go back to fundamentals. What average people can afford to pay and no more. The Banks won’t lend the money anymore unless you can prove your ability to repay. Look for home prices to drop another 25% minimum. Let the foreclosures come and pass a law that the Banks have to forgive the debt. Put Greenspan in Jail with the TYCO & Enron guys for creating this mess. Who ever heard of 1% rates in a reality world. He is the guilty one.

]]> By: Garrett K., Bloomington, MN http://cnnmoneytalkback.blogs.cnnmoney.cnn.com/2007/12/06/is-the-freeze-a-good-idea/#comment-7191 Garrett K., Bloomington, MN Thu, 06 Dec 2007 22:04:14 +0000 http://cnnmoneytalkback.blogs.cnnmoney.cnn.com/2007/12/06/is-the-freeze-a-good-idea/#comment-7191 Yes, the freezing of teaser rates is, indeed, a crock. Those of you in favor of the freeze because it "might hurt the value of my home should there be a foreclosure in the neighborhood" are just pathetic. Your home value is nothing more than an emotional barometer--ranging from overjoyed to ticked off--based on how much/little you COULD get if you sold today. Guess what? The value of your house doesn't mean squat unless someone is willing to pay what you want for it. And from here on out, it's going to be increasingly difficult for people to obtain proper financing to buy a home. So the pool of would-be home buyers is diminishing. Oh no, what to do!?! Congress! Help!! If you're happy with your current home and don't plan to move in the near future, then what are you worried about? I sure hope that you home-value-chicken-littles don't have any investments. I mean, how would you be able to sleep at night when the value of your stock/401k/IRA portfolio goes down after a few bad days on Wall Street? If you really believe that your home should ALWAYS appreciate in value, well then you might want to re-consider renting at some point in the near future. Newsflash! Nothing in life is guaranteed. I could go on and on with oft-quoted axioms, such as "history repeats itself," or "what goes up must come down," but I think you get the point. You should know by now that our economy is a living, breathing thing that grows and shrinks over time. So quit having a massive coronary over the necessary correction that needs to take place (and should take place without government intervention). With investments, there's buy, sell, and hold. So all you crybaby homeowners worried about value--just hold! Yes, the freezing of teaser rates is, indeed, a crock.

Those of you in favor of the freeze because it “might hurt the value of my home should there be a foreclosure in the neighborhood” are just pathetic.

Your home value is nothing more than an emotional barometer–ranging from overjoyed to ticked off–based on how much/little you COULD get if you sold today. Guess what? The value of your house doesn’t mean squat unless someone is willing to pay what you want for it. And from here on out, it’s going to be increasingly difficult for people to obtain proper financing to buy a home. So the pool of would-be home buyers is diminishing. Oh no, what to do!?! Congress! Help!!

If you’re happy with your current home and don’t plan to move in the near future, then what are you worried about?

I sure hope that you home-value-chicken-littles don’t have any investments. I mean, how would you be able to sleep at night when the value of your stock/401k/IRA portfolio goes down after a few bad days on Wall Street?

If you really believe that your home should ALWAYS appreciate in value, well then you might want to re-consider renting at some point in the near future. Newsflash! Nothing in life is guaranteed.

I could go on and on with oft-quoted axioms, such as “history repeats itself,” or “what goes up must come down,” but I think you get the point. You should know by now that our economy is a living, breathing thing that grows and shrinks over time. So quit having a massive coronary over the necessary correction that needs to take place (and should take place without government intervention). With investments, there’s buy, sell, and hold. So all you crybaby homeowners worried about value–just hold!

]]> By: Rich, Cincinnati, OH http://cnnmoneytalkback.blogs.cnnmoney.cnn.com/2007/12/06/is-the-freeze-a-good-idea/#comment-7190 Rich, Cincinnati, OH Thu, 06 Dec 2007 22:04:02 +0000 http://cnnmoneytalkback.blogs.cnnmoney.cnn.com/2007/12/06/is-the-freeze-a-good-idea/#comment-7190 I can hardly wait for the next crisis, the one where the stock market drops and everyone "retired" or near retirement who invested aggressively no longer has any money to live on. I guess the Government will just pass a law to reset all the stock prices to DOW 14,000 levels and then say no one is allowed to sell a stock below that price. Life has risks and risk means winners and losers. The government would like to make everyone a winner. There would have been no Great Depression either - just outlaw firing people. I can hardly wait for the next crisis, the one where the stock market drops and everyone “retired” or near retirement who invested aggressively no longer has any money to live on. I guess the Government will just pass a law to reset all the stock prices to DOW 14,000 levels and then say no one is allowed to sell a stock below that price. Life has risks and risk means winners and losers. The government would like to make everyone a winner. There would have been no Great Depression either – just outlaw firing people.

]]> By: Butch, San Gabriel, California http://cnnmoneytalkback.blogs.cnnmoney.cnn.com/2007/12/06/is-the-freeze-a-good-idea/#comment-7189 Butch, San Gabriel, California Thu, 06 Dec 2007 22:03:58 +0000 http://cnnmoneytalkback.blogs.cnnmoney.cnn.com/2007/12/06/is-the-freeze-a-good-idea/#comment-7189 SOooo....If the Gov't can afford to bailout the scammers and the stupid, can they arrange for me a Interest FREE mortgage loan? I'm looking to buy a house and FINALLY the prices are becoming affordable! Now they want to keep the rich richer by giving them a reprieve, how about the rest of us who are stuggling to buy a first home? Gas prices alone keep cutting into my saving for a down payment. With Gov't shoring up housing prices, I don't have a chance! VOTE DEMOCRAT, REPUBLICAN OR INDEPENDENT...JUST DON'T VOTE INCUMBANT! SOooo….If the Gov’t can afford to bailout the scammers and the stupid, can they arrange for me a Interest FREE mortgage loan? I’m looking to buy a house and FINALLY the prices are becoming affordable! Now they want to keep the rich richer by giving them a reprieve, how about the rest of us who are stuggling to buy a first home? Gas prices alone keep cutting into my saving for a down payment. With Gov’t shoring up housing prices, I don’t have a chance!
VOTE DEMOCRAT, REPUBLICAN OR INDEPENDENT…JUST DON’T VOTE INCUMBANT!

]]> By: Jon, Minneapolis, MN http://cnnmoneytalkback.blogs.cnnmoney.cnn.com/2007/12/06/is-the-freeze-a-good-idea/#comment-7188 Jon, Minneapolis, MN Thu, 06 Dec 2007 21:58:34 +0000 http://cnnmoneytalkback.blogs.cnnmoney.cnn.com/2007/12/06/is-the-freeze-a-good-idea/#comment-7188 Hello government bailout! This mortgage proposal with only delay the inevitable and in the process rewards the greedy financing firms who sold unscrupulous loans and the stupid homeowners who got in over their heads. Furthermore, it punishes would be first time homeowners who chose first to rent, the honest homeowner who actually purchased a house he/she could afford, and investors who believed that they were investing in a product that was based upon contractual law. Talk about creating a moral hazard and perhaps significantly altering the financing structure of the mortgage industry from an investor perspective permanently. The unintended consequences of this proposal will undoubtedly be felt for years to come. Hello government bailout! This mortgage proposal with only delay the inevitable and in the process rewards the greedy financing firms who sold unscrupulous loans and the stupid homeowners who got in over their heads. Furthermore, it punishes would be first time homeowners who chose first to rent, the honest homeowner who actually purchased a house he/she could afford, and investors who believed that they were investing in a product that was based upon contractual law. Talk about creating a moral hazard and perhaps significantly altering the financing structure of the mortgage industry from an investor perspective permanently. The unintended consequences of this proposal will undoubtedly be felt for years to come.

]]> By: Foobar, Rockville, MD http://cnnmoneytalkback.blogs.cnnmoney.cnn.com/2007/12/06/is-the-freeze-a-good-idea/#comment-7187 Foobar, Rockville, MD Thu, 06 Dec 2007 21:54:19 +0000 http://cnnmoneytalkback.blogs.cnnmoney.cnn.com/2007/12/06/is-the-freeze-a-good-idea/#comment-7187 1. Call them mortgage owners (avoid the more technical term), rather than homeowners. The latter is laden with emotion and obscures the fact that these people are contractually obligated to payment back a debt. 2. Is the government going to cap the amount that these folks can realize if/when the market turns and they realize a profit on their highly leveraged investment? No. 3. What about the folks that rented? Screw them, I guess. Forget that they made the right decision and punish them. 1. Call them mortgage owners (avoid the more technical term), rather than homeowners. The latter is laden with emotion and obscures the fact that these people are contractually obligated to payment back a debt.

2. Is the government going to cap the amount that these folks can realize if/when the market turns and they realize a profit on their highly leveraged investment? No.

3. What about the folks that rented? Screw them, I guess. Forget that they made the right decision and punish them.

]]> By: Sucker, San Francisco, CA http://cnnmoneytalkback.blogs.cnnmoney.cnn.com/2007/12/06/is-the-freeze-a-good-idea/#comment-7186 Sucker, San Francisco, CA Thu, 06 Dec 2007 21:54:13 +0000 http://cnnmoneytalkback.blogs.cnnmoney.cnn.com/2007/12/06/is-the-freeze-a-good-idea/#comment-7186 Insulting. This is a slap in the face to all of us who had the foresight to get fixed-rate mortgages in the first place. We pay higher rates in return for the security of knowing that there is no risk the payments will increase. Now we are suckers; if we were smart, we have gotten adjustable-rate, interest-only "teaser" mortgages and waited for the government to intervene and bail us out. Being responsible got me a 6% fixed rate... being irresponsible might have gotten me a 3% fixed rate. Insulting. This is a slap in the face to all of us who had the foresight to get fixed-rate mortgages in the first place. We pay higher rates in return for the security of knowing that there is no risk the payments will increase. Now we are suckers; if we were smart, we have gotten adjustable-rate, interest-only “teaser” mortgages and waited for the government to intervene and bail us out.

Being responsible got me a 6% fixed rate… being irresponsible might have gotten me a 3% fixed rate.

]]> By: WRC, Broken Arrow, Oklahoma http://cnnmoneytalkback.blogs.cnnmoney.cnn.com/2007/12/06/is-the-freeze-a-good-idea/#comment-7185 WRC, Broken Arrow, Oklahoma Thu, 06 Dec 2007 21:53:07 +0000 http://cnnmoneytalkback.blogs.cnnmoney.cnn.com/2007/12/06/is-the-freeze-a-good-idea/#comment-7185 The information I am reading about this is very vague. There seems to be no regard for the issues raised by the legal and binding contracts involved in the targeted transactions. The investors who purchased securities backed by these sub-prime mortgages will ultimately not receive the total revenue stream associated with the investment. Would this not reduce the value of the underlying investment vehicle? Therefore, the assets will still have to be revalued at some level and possibly sooner under this plan still forcing banks and others to take losses. How can the government just arbitrarily alter contracts in this way. It just does not seem legal. Logically, the proper approach would be to have the parties to the contract negotiate any settlement. I appears that this approach taken by Bush and others ignore the many hurdles that must be overcome with regard to contractual issues in these financial instruments. The information I am reading about this is very vague. There seems to be no regard for the issues raised by the legal and binding contracts involved in the targeted transactions. The investors who purchased securities backed by these sub-prime mortgages will ultimately not receive the total revenue stream associated with the investment. Would this not reduce the value of the underlying investment vehicle? Therefore, the assets will still have to be revalued at some level and possibly sooner under this plan still forcing banks and others to take losses. How can the government just arbitrarily alter contracts in this way. It just does not seem legal. Logically, the proper approach would be to have the parties to the contract negotiate any settlement. I appears that this approach taken by Bush and others ignore the many hurdles that must be overcome with regard to contractual issues in these financial instruments.

]]> By: J Parker - TX http://cnnmoneytalkback.blogs.cnnmoney.cnn.com/2007/12/06/is-the-freeze-a-good-idea/#comment-7184 J Parker - TX Thu, 06 Dec 2007 21:51:39 +0000 http://cnnmoneytalkback.blogs.cnnmoney.cnn.com/2007/12/06/is-the-freeze-a-good-idea/#comment-7184 Big Time ... Tar-Baby The more intervention the stickier things shall become........... Freezing a private parties lender contract will affect Wallstreet, bond markets, investors, banks, and in the end ALL borrowers from a rate and/or return perspective. It will take a week or 2 to realize that there was a "sonic-boom" within the financial district. The mortgage industry has enough turmoil and infighting without goverment intervention. Continued internal pressure and the pressure of shareholder values would have probably frozen most of the loans in order to save general public relations. There have been a few simple fixes out there to help - such as FHA secure which has it's caveats (simular to the Bush plan). For all the families out there - I can only hope that they search out help should they be in need. Most servicing companies are listening better and are more opt to help the borrower. It took a few years for this mess to surface - thus, will most likely take about the same time to heal. Big Time … Tar-Baby

The more intervention the stickier things shall become………..

Freezing a private parties lender contract will affect Wallstreet, bond markets, investors, banks, and in the end ALL borrowers from a rate and/or return perspective. It will take a week or 2 to realize that there was a “sonic-boom” within the financial district.

The mortgage industry has enough turmoil and infighting without goverment intervention. Continued internal pressure and the pressure of shareholder values would have probably frozen most of the loans in order to save general public relations.

There have been a few simple fixes out there to help – such as FHA secure which has it’s caveats (simular to the Bush plan).

For all the families out there – I can only hope that they search out help should they be in need. Most servicing companies are listening better and are more opt to help the borrower.

It took a few years for this mess to surface – thus, will most likely take about the same time to heal.

]]> By: C.C. Minneapolis, MN http://cnnmoneytalkback.blogs.cnnmoney.cnn.com/2007/12/06/is-the-freeze-a-good-idea/#comment-7183 C.C. Minneapolis, MN Thu, 06 Dec 2007 21:50:51 +0000 http://cnnmoneytalkback.blogs.cnnmoney.cnn.com/2007/12/06/is-the-freeze-a-good-idea/#comment-7183 I saved a lot of money and purchased my house in April 2005. I was offered a 30yr fixed at 5.75% and the ARM at 5%. My credit score was well over 800 at the time I purchased my home. I put 10%, or $23,000 down, for my $230k home which I saved for years. My twin also owns the house with me. We took the ARM at 5%. I KNEW what I was signing and KNEW what the ARM was. People who took extremely low teaser rates should not be bailed out on this. We both knew what we were getting into when we signed the contract for the loan. Both of us are financially sound and knew within 5 years we would need to refinance to a fixed rate. My twin and I are refinancing our current 5% ARM to a 5.62% 30yr fixed which is lower than what we were offered a few years ago when we originally applied for our loan. No bailout is needed. Let the legally binding contract they signed mean something. People need to realize they should not go beyond their means. Buy a house you can afford America. I saved a lot of money and purchased my house in April 2005. I was offered a 30yr fixed at 5.75% and the ARM at 5%. My credit score was well over 800 at the time I purchased my home.

I put 10%, or $23,000 down, for my $230k home which I saved for years. My twin also owns the house with me. We took the ARM at 5%. I KNEW what I was signing and KNEW what the ARM was. People who took extremely low teaser rates should not be bailed out on this.

We both knew what we were getting into when we signed the contract for the loan. Both of us are financially sound and knew within 5 years we would need to refinance to a fixed rate.

My twin and I are refinancing our current 5% ARM to a 5.62% 30yr fixed which is lower than what we were offered a few years ago when we originally applied for our loan.

No bailout is needed. Let the legally binding contract they signed mean something.
People need to realize they should not go beyond their means. Buy a house you can afford America.

]]>