Okay, the Federal Government will be stepping in to help banks with bad loans on mortgages to help prevent more bank problems. If the loan went bad and the bank foreclosed on the house, then the bank gets the asset. Why does the bank need federal money? Does the bank get the asset and the money? I know this is oversimplification, but any help is appreciated.
Thanks.
Thanks.
The bank does not want home that have gone to foreclosure. A lot of the time the property is worth as much to the bank. The bank does not want the hassle of selling the property either. Think of how most people would leave a home that the bank told them they had to move out of and possibly go homeless. People will not upkeep a house once they find out it is going to be taken away from them.
Mr President Bush, I told you this once before. You have advisers to help you with this. I like your new code name tho.
Remember, when a bank Repo’s a house for $400,000 but it is only worth $200,000, the bank will lose $200,000 on the deal. Now take that amount and times that by 10,000 houses being Repo’d. That is more money than you are spending on the war in Iraq.
So Mr President, do you understand why you have to bail out the US people and the Banks? Remember if you take all their money now, they can’t buy your gas later.
Ya that’s right, I knew that would hit home.
well, how would you feel if you went to the bank to withdraw money and the bank didn’t have any?
Sure, there are plenty of people that OWE to the bank (about half the population!) but if the bank has no actual CASH to give YOU then things come to a crunch.
What happens if the bank is also in the insuring business and a Thyphoon strikes and flattens 3.000 houses? The bank needs money UPFRONT, HARD CASH to pay up for all those damages.
Now, was there any damage done to houses recently? Let me think…