Decius wrote:

Peter Schiff, president of Euro Pacific Capital, predicts that many homeowners who have little or no equity will stop paying their mortgage and then reduce their income to get the biggest payment cut possible. They could stop working overtime or, if two spouses work, one could quit. After the modification, they could try to boost their income again.

"This is a once-in-a-lifetime opportunity," Schiff says. "People are going to feel like complete morons if they don't participate. The people getting punished are the ones who never made an irresponsible decision to buy a house they couldn't afford."

You can say that again.

This is a seriously asinine proposition. Quit a job? In this economy? Reduce your income and go into foreclosure on purpose?

We don't need to compound our financial woes by suggesting that responsible people turn irresponsible, or that they'll be "punished" for fulfilling their debt obligations on their rationally structured mortgage loans.

-janelane, spending 14%

janelane wrote:

Decius wrote:

Peter Schiff, president of Euro Pacific Capital, predicts that many homeowners who have little or no equity will stop paying their mortgage and then reduce their income to get the biggest payment cut possible. They could stop working overtime or, if two spouses work, one could quit. After the modification, they could try to boost their income again.

"This is a once-in-a-lifetime opportunity," Schiff says. "People are going to feel like complete morons if they don't participate. The people getting punished are the ones who never made an irresponsible decision to buy a house they couldn't afford."

You can say that again.

This is a seriously asinine proposition. Quit a job? In this economy? Reduce your income and go into foreclosure on purpose?

We don't need to compound our financial woes by suggesting that responsible people turn irresponsible, or that they'll be "punished" for fulfilling their debt obligations on their rationally structured mortgage loans.

-janelane, spending 14%

BTW, Schiff is not advocating this loan restructuring program. The quote is ambiguous. Just wanted to make sure that got cleared up.

Decius wrote:

Peter Schiff, president of Euro Pacific Capital, predicts that many homeowners who have little or no equity will stop paying their mortgage and then reduce their income to get the biggest payment cut possible. They could stop working overtime or, if two spouses work, one could quit. After the modification, they could try to boost their income again.

"This is a once-in-a-lifetime opportunity," Schiff says. "People are going to feel like complete morons if they don't participate. The people getting punished are the ones who never made an irresponsible decision to buy a house they couldn't afford."

You can say that again.

A friend has a business renegotiating mortgages for people. Its to the point that he literally tells some people to miss a few payments when the mortgage companies won't budge. They will renegotiate all day long if you are behind, but not if you're current. One lady has an 11% rate, has never missed a payment and they won't budge an INCH for her. All she can do is stop paying it and then they'll renegotiate.

Fucked up, huh?