Tweet
If you owe money, pay it. If you can't, give up the ghost.
In this case the government has forced banks to eat bad loans and take losses. To continue this fiscally irresponsible act, the government now wants banks to mediate with those unable to pay their mortgage--many of whom took out loans they knew they could not repay unless the market continued to raise crazily.
OK, we get to mediation. the homeowners say, "we can't afford to pay". The lenders then say, how much can you pay" and get an answer. Oh, this has already been done.
Now the question is, "when will you pay, you are 6,9 or 12 months behind" If the answer is not within 24 hours, the ghost is gone, nothing more can be said or done. To do otherwise is to force banks to give homes to those who can't pay or won't pay--meaning those who can pay will see extremely high interest charges to make up for the lost homes.
This is a mess, time to admit it, and end it. Government needs to stand aside. It is not their business.
More...
In this case the government has forced banks to eat bad loans and take losses. To continue this fiscally irresponsible act, the government now wants banks to mediate with those unable to pay their mortgage--many of whom took out loans they knew they could not repay unless the market continued to raise crazily.
OK, we get to mediation. the homeowners say, "we can't afford to pay". The lenders then say, how much can you pay" and get an answer. Oh, this has already been done.
Now the question is, "when will you pay, you are 6,9 or 12 months behind" If the answer is not within 24 hours, the ghost is gone, nothing more can be said or done. To do otherwise is to force banks to give homes to those who can't pay or won't pay--meaning those who can pay will see extremely high interest charges to make up for the lost homes.
This is a mess, time to admit it, and end it. Government needs to stand aside. It is not their business.
More...