Homeowners Get The Boot For Bad Paperwork While Banks Get Millions For Same: "'I paid $250,000 for something. It's worth $150,000 today. There's a second lien on it of $50,000, and a first lien of $200,000. What do I do?'
'And the first thing I'd ask them is, 'Is it non-recourse debt?' And if it's non-recourse debt, I have an answer. If they say, 'Yes, it's recourse, but I'm broke', then okay. Now we have the facts.'
Kaufman and Caldwell discussed the second lien issue. Kaufman noted the 'reluctance of some financial institutions to extinguish second liens because they're carrying them on the books at 90 percent of value.'
'It seems to me the only reason that they're carrying the second liens is because they don't want to write them down because they're carrying them at 90 percent of value, and they're worth nowhere near 90 percent of value,' he added.
'You know, that particular thing we hear a lot,' Caldwell said. But, she noted, those second liens 'continue to be current.'
Experts outside the firms holding and selling second liens uniformly say there's no reason for a homeowner to keep paying their seconds if they're delinquent on or struggling with their primary mortgage.
The administration would never concede that point, though. Neither would the nation's biggest banks. A deal is a deal, after all.
'For those who are concerned that somehow there's something morally suspect about restructuring loans, I should note that every day on Wall Street the people of power and privilege in this society restructure their debt,' Silvers said. 'It is commonplace for everyone but the poor.'
'As people have noted,' Troske explained, 'we are at a point where... house prices are worth less than they were. Banks need to write that off, and of course, people need to write that off as well.'"
The 'working-class' has been duping itself for decades with the assumption of membership in something called a 'middle-class'. Drop their income a small amount and they financially spin out of control., soon realizing the fact is that they are people doing what they are told in order to survive past the end of the month - nothing more substantial than that ties them to society.
