Comments on: Reverse Mortgages: Will they help some seniors avoid foreclosure? Perhaps http://blogs.newretirement.com/2008/01/10/reverse-mortgages-will-they-help-some-seniors-avoid-foreclosure-perhaps/ Covering retirement, financial, tax and political topics relevant to people planning for or living in retirement Mon, 14 Sep 2009 19:03:57 +0000 http://wordpress.org/?v=2.9.1 hourly 1 By: Yi http://blogs.newretirement.com/2008/01/10/reverse-mortgages-will-they-help-some-seniors-avoid-foreclosure-perhaps/comment-page-1/#comment-241 Yi Sat, 09 Feb 2008 05:46:07 +0000 http://blogs.newretirement.com/2008/01/10/reverse-mortgages-will-they-help-some-seniors-avoid-foreclosure-perhaps/#comment-241 Good points here-- this is the stuff that the housing bubble blog commenters have been saying 9 months ago, that borrowers are likely to walk away from their mortgages even if they can afford them if they pare down in other areas if they see it as a losing proposition due to being upside down on their mortgages and little self equity invested. If the govt bailout requires mortgagees to pay off the balance in full, many people would still prefer to walk. "As for Sen. Hillary Clinton and her proposed "moratorium on foreclosures": She may soon find that borrowers, not just lenders, are screaming to let them act within their contractual rights." http://online.wsj.com/article/SB120243369715152501.html?mod=opinion_main_commentaries Even if the muni bond insurers make it out of this ok, it looks like municipalities are going to question their value now: http://online.wsj.com/article/SB120243252718052391.html?mod=mkts_main_news_hs_h Hedge funds lost 1.8% last month overall and stock picking funds lost 4.4%. Goldman's largest in history new fund matched the 6% drop in the S&P. Good points here– this is the stuff that the housing bubble blog commenters have been saying 9 months ago, that borrowers are likely to walk away from their mortgages even if they can afford them if they pare down in other areas if they see it as a losing proposition due to being upside down on their mortgages and little self equity invested. If the govt bailout requires mortgagees to pay off the balance in full, many people would still prefer to walk.

“As for Sen. Hillary Clinton and her proposed “moratorium on foreclosures”: She may soon find that borrowers, not just lenders, are screaming to let them act within their contractual rights.”

http://online.wsj.com/article/SB120243369715152501.html?mod=opinion_main_commentaries

Even if the muni bond insurers make it out of this ok, it looks like municipalities are going to question their value now:

http://online.wsj.com/article/SB120243252718052391.html?mod=mkts_main_news_hs_h

Hedge funds lost 1.8% last month overall and stock picking funds lost 4.4%. Goldman’s largest in history new fund matched the 6% drop in the S&P.

]]>