? Fed To Takeover Banks Bad Loans: What Will This Mean for Us? Chime In.

[FireandRain]

Well, like many of us who find ourselves underwater on our home mortgages, I find the new announcement that the Fed is planning on establishing a "bad bank" run by the FDIC, to isolate the nations banking system's toxic assets, essentially "buying them"... very interesting! The cost of this move is widely speculated to be upwards of a trillion dollars.

So, what will this mean for those of us whose home loans are considered 'toxic assets'?

One thing is for certain...This is, by far, the most broad sweeping measure EVER taken by the U.S. government to stem the tide of foreclosures and get the banks back into the game of lending.

Most of us have already heard of the possibility of 'cram down legislation' which would, in effect, FORCE banks to modify the terms of home loans by way of a bankrupcy court judgement. However, this new announcement by the U.S. Gov't takes this idea to a whole new level!

So here's the BIG question:
What will this new Gov't "Bad Bank" DO with our toxic home loans once they acquire them?

Widespread, super-aggressive loan modifications?

If so, how does this affect our current strategies as we seek out loan modifications?

May it make MUCH more sense to sit tight and wait and see what the "bad bank" will do to modify our bad loans? Could be.

From what I gather, this move by the Gov't may very affect LOTS of us in here..

What do you think?

[HopingtoFind]

I do believe that more aggressive modifications that will involve principal reductions are coming in the near future.fficeffice" />>>
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I also don't think that our current modifications will interfere with the future ones, I don't see how they would... So, I wouldn't just sit and wait for something to happen. But that is just my opinion...>>
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[FireandRain]

I'm a little surprised that more people haven't weighed in on this pretty ground-breaking development...

[chasepmt2hot-firefighter]

Maybe Moe will after he analyzes the details.

[FireandRain]

Could be. Obama admin. are planning on makiing a major announcement next week... My father's longtime financial advisor said yesterday that it has been leaked (intentional by Obama admin/Fed) that the program will be HUGE! Like upwards of a Trillion dollars...

[dasmom]

Originally Posted by FireandRain

Well, like many of us who find ourselves underwater on our home mortgages, I find the new announcement that the Fed is planning on establishing a "bad bank" run by the FDIC, to isolate the nations banking system's toxic assets, essentially "buying them"... very interesting! The cost of this move is widely speculated to be upwards of a trillion dollars.

So, what will this mean for those of us whose home loans are considered 'toxic assets'?

What do you think?

Well, I'd like to have more detailed information before I feel that this is going to be a good deal for homeowners. I think we'll have a better sense as it unfolds.

[Witts_end]

Is principal reduction even likely?? Ive been trying.. If lenders know its coming why arent they trying to fix what they can now?? They know sonething gotta change.. Right??