Mike’s Real Estate Show

The only issue we have is WHO owns these loans. You say the “banks” but they are the “servicers” no doubt of most of these loans. So who do we really ding? Most of these homeowners actually think they have the “teaser” rate AS their rate and have no idea what a “neg-am” loan does to their initial balance. They are defaulting on the TEASER RATES!!  What is the end result desired in Bush’s Plan? To gradually have folks loose their homes instead of a massive implosion?
  The sad thing is I still have lender’s approaching me with their “option ARM” and “neg-am” loans and unbelievably using 2% appreciation a year for the next 5 years to justify a neg-am loan!!  Amazing!