Comments on: Bush Doesn’t Want Bankruptcy Law Changed

By: mikew

mikew — Fri, 29 Feb 2008 14:55:48 +0000

The Supreme Court would never allow it to pass.

By: Mark

Mark — Fri, 29 Feb 2008 04:21:54 +0000

I agree with Morgan, this bill has bad written all over it. Investors leaving in droves will increase the problem by orders of magnitude.

If this bill passes, and judges show that they like to use their new power, mark my words: housing down 60-70% peak-to-trough, nationally. Bank on it.

By: Bush Doesn’t Want Bankruptcy Law Changed | The Long List of Odysseus Medal Nominees | Realtors and real estate, mortgages, lending, investments

Fri, 29 Feb 2008 01:35:01 +0000

[...] Bush Doesn’t Want Bankruptcy Law Changed, by Morgan Brown. [...]

By: mikew

mikew — Thu, 28 Feb 2008 22:41:01 +0000

I agree 110% with everyone.

By: Morgan

Morgan — Thu, 28 Feb 2008 21:05:39 +0000

kelly » I agree that the banks are not doing enough, but think about the nightmare that letting courts change mortgage terms creates. No standard changes, totally subjective and completely at the whim of any bankruptcy judge. We are just asking for a complete shut-down of the non-conforming secondary market and a spike in home borrowing costs as investors see the housing market as a risk not worth taking. There should be a better process of getting home loans modified – but it shouldn’t be through the courts and bankruptcy law. Personally that spells financial disaster on a much larger magnitude than the current foreclosure problem.

By: Eric

Eric — Thu, 28 Feb 2008 20:41:17 +0000

Kelly, I agree.

Without bringing the election into this, listen to what is said here by Cavuto’s guest, Ron Paul has to say about his chat with Bernanke and the concept of ignoring inflation for the sake of adjusting rates:

http://www.youtube.com/watch?v=YnijgIbm1qc

The whole administration seems to be ignoring the point here. We’re tossing blame back and forth and completely hoping the issue will just fix itself.

But as we’re seeing now, other countries are picking up our debt either for trade or unwillingly and that’s going to backfire heavily.

If Morgan doesn’t mind me adding another link here

HousingDoom had a GREAT writeup about how right now you CANNOT work with most banks with regards to “getting good” on homes going into foreclosure:

http://housingdoom.com/2008/02/23/can-you-work-with-the-lenders/

By: kelly

kelly — Thu, 28 Feb 2008 18:09:00 +0000

Morgan, we have to think this all the way through. The banks are not effectively dealing with the defaults and are just taking back properties in record numbers. How is that working for investor confidence? At least in the BK courts, the objective is to straighten out the debt, over time, which is what the banks could do, but so far haven’t figured out how or if they can.