Quote:
Originally Posted by nmap
I'm under the impression that this is a very big surprise to all concerned.
Homeowners who have failed to pay their mortgages can't be foreclosed on in Kansas - and other states may follow Kansas' lead.
Those who own mortgage backed securities - pension funds, for example - may find those securities are nearly worthless.
The entities who sold the securities to others - like the pension funds - may face civil litigation for fraud.
Future mortgage backed securities may not be something anyone wants to buy - which could lead to more expensive mortgages in future.
|
Additional fallout.
Existing, vacant, foreclosed properties are NOT moving (in our area). The ask prices are ridiculously low, yet in our disucssions with the realtors (My home is flanked by forclosed properties) even at this extreme, they can not get potential buyers financed so one contract after another falls through. The HOA has picked up the lawn care to keep it in check, but eventually there are going to be real issues with these homes should they continue to remain vacant (it has been over 18 months already). I have already taken on minor repair work (fences and such) just to keep it from looking like a slum.
Not good.