Banks takes some responsibility and help out homeowners
@cartoon4umaniacs (1648)
United States
November 28, 2007 12:51am CST
With all these foreclosure and people in trouble why not help make a win-win situation. Banks instead of taking the home back why not lower the mortgage and extend the years that way people still get to stay in the home and banks still get money coming in. Banks make money no matter what. Why have all these inventories on your hand and need to pay to up keep them? It's better to work with the homeowners and let them up keep their own home. Just my opinion what do you guys think out there?
1 response
@rdurusan (624)
• Philippines
28 Nov 07
I think for humanitarian reason alone,you're stand for the banks to take responsibility is a great and noble deed if done.Unfortunately,no bank will heed your advice if that is an advice,because that is business.If i'm not mistaken they get good profit in foreclosing homes.
@cartoon4umaniacs (1648)
• United States
28 Nov 07
Actually they don't get profit from foreclosures because right now the market is pretty bad so no homes are being sold or if it did sold it's because it was sold for a very bargain price so the bank wouldn't have made that much. Plus they have too many house on their hands they can't keep up with the supply. If there is no demand they have to drop the price-simple economics. But if they drop the price and still no demand they have to figure another way to solve the problem. If they don't they themselves will go belly up like citywide mortgage did and citibank is on it's way as well. So in their best interest too they should work something out with homeowners. Thank you for your post.
@adamk911 (54)
• United States
28 Nov 07
I think the idea here is a great one. But as the last person said the banks are not making profit from foreclosing on a home. Look at it this way because im buying a forclosure home right now. This is a real situation with the old owner of the house im buying now. Person A: The first owner of the house bought this house 2 or 3 years ago for 460k so he was financing that much from the bank. He was in the house for 2 years in mean time buying another house he was fixing this one up to rent. After the floating rates went his monthly went from 1400 to 2800 or even 3000 a month. Now he cant afford his monthly, Bank: It costs the bank a good chunk of change to go through with the foreclosure process and them paying there real estate people to now list it online for resale. Now this particular house is on the market and im buying it for 150k. The bank just lost about 310k plus the real estate and foreclosure fees.
Its a great thing for me but it sucks for the banks and mortgage companies.:-)
@cartoon4umaniacs (1648)
• United States
29 Nov 07
Yup, great for you unless it the real estate market dips some more after you buy it. Not, trying to rain on your on you dear just that it's reality. I think is best if the banks works with first time buyers such as yourself or even investors and homeowners. Man there are enough houses here to satisfy everyone and then some. Thanks for your comment.
