[cobra de capell]

Originally Posted by 427 S/O

I mentioned some time back, restructuring delinquent loans to 40 yr. might be an instant and quick fix?. I really don't see investors, who put up the money for home loans, agreeing to any reduction in principal. Unless of course, Barney limp wrist uses your money to pay the difference.

It depends of the type of loan one has now (those in trouble). If they have a floating rate with a balloon payment even a 30 year fixed loan would help them out – big time. If they have a 30 year fixed loan, for example $300,000, 40 years reduces the payment by only $164 per month, so it’s really all about the current market interest rate versus the rate a lot of people are facing as rates adjust on variable rate loans.

The problem is that a high percentage of those in trouble are also flaky, e.g. other toys (boats, etc), lots of kids with lots of kid toys – loss of a job is a two job family – they may not have started out that way – it just happened, or perhaps they did and it was just a matter of time.

The best way to handle this is allow foreclosures to happen. Perhaps – let people sort of off by not noted the foreclosure on their credit report so that they can secure a rental and perhaps buy something they can afford down the road, perhaps even next door to the one they lost.

If the courts are allowed to step in and reduce mortgages - all of us will pay with that routine factored in each time a financial institution makes a loan.