Mortgage modification a tricky issue for banks, lawmakers

many comments will be made how , and why do I have to pay for other peoples mistakes , I for one can assure that this person didnt buy or build a house within the last three years , most likely they are a profitier a person that has either made good on the downfalling of interest rates , or was able to purchase a home while the market was extrmely low , I for one built a home a home in 2005 and every dime of my $70,000 down payment toward the home is gone and some , not to mention my 401k has taken a beaten so yeah we are in that generation your grandparents were in that generation we just are tired of being in debt , so if i have to give up on my home to get out of a bad investment so be it , if a bill is in place today that will drastically reduce the prinicpal on my mortgage and makes our home more affordable so that we can start saving for more important items such as retirement , college funds . I have no rebuttle , the way I see it why should someone else get my home for $100,000 less when most likely I can afford the house with its new terms and price than the new tenant ,
so who played by the rules we did ,buy the best house you can afford ,thiseconomy has affected everyone ,and for us its simply a bad investment, many people for the most part people like trump are protected with bankruptcy with bad investments , why should homeowners be any different . I assure you if we move to an apartment I can recoup much faster than staying in this home continuing to owe more on a home than its worth , the fact is he needs to show homeowners incentive to stay in the home not save their home , their are many others that feel the same way .

This is crazy. In order to stabilize the underlying CDO and asset backed securities that have caused the melt-down.....the banks should be ordered by the federal government to adjust the mortgages to fixed rate 5% loans (or lower if possible). Do not write the pricinple down the people bought and if they don't keep their houses they will never be able to buy again (no equity, credit or money), it should not matter if they are under water today. The problem is not the principle for these homes, it is the crazy, adjusted and flexible rates, penalties and surprizes. The banks financed/wrote these loans they created this mess by taking over an industry and that they had no experience with (relative to the volume the pun out)and arrogantly felt that they could securitize it and sell it to the world using ill concieved models and wrong assumptions.

The Banks are taking Federal Money and support and should be ordered by the Federal Government to make line-item changes to the underlying notes to make them affordable fixed rate mortgages. This will put a floor on the Asset-backs and enable them to stabilize. The 5% or what ever rate stream is better than nothing -- the key is that these loans continue to perform....while the interest rate stream will be lower the underlying securities will be allowed to find a new higher value. Everyone will win. It is a bit draconian and pehaps unheard of, but it is possible and a much better solution than forcing banks to re-write mortgages for under water assets since that will nail down real, hard asset loses....this is the only way, and the toxic assets will be worth more than they are today.

Keep in mind that precious few bankers are savy risk takers. They are risk averse and not very good business people. I've gone to banks when I had no money but had an idea and they gave me a warm handshake. When I've had money and didn't need any, banks have pursued me. I'm sure others have experienced the same. Bankers have hidden behind regulation (which they helped write) and have been protected from the reality of the real world for so long they don't know how to relate to it now. Let them experience hard times and maybe we'll all emerge stronger for it.

Let the banks take the homes back and rent for a year at reasonable rates to the now current owner. Nobody is made homeless. After a year, renters can move or be moved, banks can (always) sell houses to somebody who wants to be a landlord, rents are negotiable, etc.