What could possibly go wrong with this idea?

[Inconel710]

Here's the part that illustrates just how flawed the thinking of these people is:

If enacted, the initiative would state a finding that “foreclosure has become a method of increasing a lending institution, loan servicer, mortgagee, trustee and beneficiary’s bottom line and profits by turning borrowers out of their homes.”

They don't realize the bank LOSES on most foreclosures. They're already out the money they fronted you buy the house and typically don't get all of that back between your payments and how much they get from the sale of the house.

Typical, foolish, illogical, mushy brained thinking from California. Makes me even more ashamed I was born there. My only defense is my dad was a Marine and my birth there wasn't by choice!

[Byte Stryke]

Here's the part that illustrates just how flawed the thinking of these people is:

They don't realize the bank LOSES on most foreclosures. They're already out the money they fronted you buy the house and typically don't get all of that back between your payments and how much they get from the sale of the house.

Typical, foolish, illogical, mushy brained thinking from California. Makes me even more ashamed I was born there. My only defense is my dad was a Marine and my birth there wasn't by choice!

actually under the recent TARP program and the federal bailout it makes the bank MORE money.
They get to tack on administrative costs and the ORIGINAL value of the house as where originally they could only get resell value... which was causing banks to invert due to plummeting housing values

[TFOGGER]

Wow...it's like they looked back and said "hey, what fucked everything up in the first place? Yeah, let's do that again!"

It's pretty f*cked up when watching the legislative process in this country is like watching reruns of "Jackass"...

[Irving]

Passage of this bill would probably take foreclosure to the federal level. Federal judge would order eviction. Federal marshals would evict the tenant, then auction the house.

Why? Because banks are federally insured. They are NOT insured by the state. Federal law supercedes state law...

How banks are insured has nothing to do with this.

[hammer03]

Easy fix for that one, once the law passes all house purchases will just have to be cash purchases. There isn't a bank in the world that would guarantee a 300k+ home loan unsecured. Although if it's going to pass, I may just have to buy some investment property....