Foreclosed homes

" Paul bought a certain. Back to program and two five blurted out that you thought that was their personal. National debate Kiev where Federer and store them. Where there'd be prepared for this state of things were reasonable. There was a law."

" I'm not going to hop hop across its current that's not around so greatly hurt or was it reasonable jail why they have straight they were brother opinion just -- that for the next two hour's -- make -- happy. Laws so you know that the bailout. Blues continues yes even though the stimulus package is done union you'd think maybe that'd be the end of -- you know as a -- Barack Obama's left hand -- south by any any rights and that kinda twisted -- the way that that -- the positive what is -- Bill Clinton was a lefty George Bush the -- Ross Perot. Lots -- left which could explain the -- national -- to -- and his unique pattern explains the nationalize it he's right hand I don't think he's still irresponsible I rest my case you think he's -- oldies screwed up everything clearly his four years are still playing -- steps -- And arm and it is so this stimulus stuff even though that bill is done there's still the car manufacturers who back looking for more Wallace and there's talk of nationalized in the bank's deal. And out of -- is going to make a proposal this week for homeowners yup he wants that bail out everybody made a bad loan I have to admit this I was driving into it and hearing on the news on the senator podcast yeah. And I talked about how Barack wants to. Give it's really go to the banks make special deals -- for revamping mortgages that people can afford -- I can afford my mortgage but let's this is a -- let's play dead yeah how can I let's play about how can I get myself stop pain I I did -- if they teach you. To be bad. -- She is an opportunity here in the guide to best exploit this opportunity would be Steve -- he would have the thought you had he messy I didn't and he was advised clients on how to kind of you know give him the old kind of you know fake. Mold so that all of a sudden you find your mortgage -- is subsidized by somebody else well isn't a coincidence because it's time to our regularly scheduled conversation with Steve says we call the -- misses -- or something like that Steve sorry joins us from the Boston Globe good morning Steve."

" I I know -- to stand below the bridge it aspect of the -- emerges this is deranged and believable the gifted 10%. So tell us about this this plan that is being hoisted upon us the latest."

" His it is in Phoenix today which I'd much rather book -- Winter vacation tourist at Phoenix yet but."

" Coordinator Paul -- empty after the show you can I don't arrange grows beyond that I collect on a cruise -- it's going to be separated into a gulp of his ticket dot by the pop up. It."

" There's one of those sort of epicenter areas for arrest for bad real estate problems that's one of the reasons that he's there -- that the warm temperatures and he's going to roll out this plan that is best anybody can net tell will be some sort of deal in which. It is fifty billion dollars that's already been. Carved out. Approve money that is going to be used to. Sort of dollar for dollar match banks and buying down interest rates for people who basically can't afford their mortgages."

" So this is cooperative deal. Where half of the money would be picked up by the federal government in the banks would have to taking -- for the other half and that would be to lower. The interest rates without without lowering the amount of capital that's tied up."

" It won't take it well it I haven't seen as planned yet so this is -- my knowledge. Understanding of it but you're not going to reduced the amount outstanding necessarily but. In terms of being able to afford your monthly mortgage payment. That ultimately it's gonna bite down. Debt payment and whether that's I presume that that's going to be principally. And interest rates by town but but -- the key element is is making. -- homeowner who can't make your monthly payments. Be able to afford that check."

" Steve how is this not. A continuation of what at least -- and I've described the absurd policies. Of extending credit to people who had a no work history lousy credit. No. Either ability ought inclination to pay how is this just not a further extension of those ridiculous policies."

" It it it did it's not a good road to go down and I don't think anybody thinks it is. You know in terms of policy at one of the big problems that you have we've we've talked before about this problem of having. So much work -- real estate on the market Alex. Killing prices overall because justice inventory of enormous amounts of stop it's literally vacant across the country. And you know what are you going to do about that the end and in terms of just pouring more and more stopped. Until the market in you know I can't say that I'm thrilled about it and -- somebody is accurate in you know they've made my normal mortgage payment you're after a year."

" Yeah makes you feel like you're getting the shaft because you're doing okay you're getting by you're working hard you're struggling in your mate make you and me exactly the points I heard from several people touch points so well stated people person -- the present on the cape over the weekend -- and I just talking of people about what's gone on in the life. People furious about the notion of bailing out people who -- never -- about the loss in the first place or who just don't even make. The legitimate effort that the -- family in the find very family and the -- of Finneran families -- and we say at all while I tax money is going all the the -- Come on give it a break and win this you know what these terms. Are all kind of finally worked out. What's the government's reaction going to be when people again by temperament or -- say you know hey screw what they wrote me down once okay I'll not pay again right -- I doubt again do you see yourself in the -- usually offer help ya -- hostages and we keep paying ransom it's nuts."

" Yeah you know I got it right economics in the in the New York Times David Leonard has very good piece on the front page today. They're talking about not only this element of people who can't afford. Their monthly payment but the other element out there in the in the real estate market which is people can afford that. The monthly payment but there houses under water and that the threat of them just saying screw it up walking away I'm never gonna get my money back in this house and I can do better by either just. Going someplace else or renting or doing whatever I'm just gonna mail the -- and and you know that clearly is an economic threat -- as a population. That's a much bigger number than the people who can't afford to make a month to month."

" You're talking people or upside down on their homes. And that would. A lot of people -- Massachusetts shore. But that that's essentially the federal government paying for the fact that there's about economy. And and compensating ever -- for the bad economy which is also or. You're talking about a very dangerous precedent it."

" The fact that the that is the real estate the prices of real estate market where. Artificially inflated land when they bought their homes basically and sort of it he'd be making up for it and I I think. -- as far as we can tell the Obama plan today. It will pointedly does this steer clear that whole issue would. And you know eight in this piece that he wrote they gave what it was talking about the New England experience that we have. There -- terrible. Modern history period where. The second national phenomenon has taken place but it has happened did in sort of regional silos and here in New England. We had a lot of upside down mortgages back in the late nineties early nineties should mean ladies ladies early marriage -- and know what happened there and in fact. It is researching. The federal reserve bank of Boston looked at this and said what do these people do. And the numbers or extremely small in terms of people who literally just walked away that. Ultimately people dead and believe it or not a majority of those people you know appreciate the fact that it's the wrong thing to do would stay. But I think there's a difference this time that I don't know how it's gonna factor in in that. The overall economy as much worse and so if you're sitting there saying okay I'm willing to continue to make this payment even though I'm under water my mortgage. In my house. What happens if I lose my job -- after travels somewhere to get a new job you certainly a very. Good possibility in the."

" He would have a lot of people packing up the banning the homes and saying -- so literally could."

" Sell it to make the mortgage meat anyway so. So it is one way or another there's going to be default there. Or you know what if you know I it was my second job or or somebody gets sick and that. It you know I've I haven't actually had to move but. My financial circumstances have gotten proper and all of a sudden you know the idea of whether I should really be making this. Mortgage payment becomes a tougher proposition and I think. The built the likelihood of those types of situations happening in larger numbers he is is a much greater possibility. In this environment."

" This as well -- they act. Yeah David there's two story lines here that that -- the lines cross and that's what's upsetting on. On a basic instinct of policy level I think we all agree it's a bad thing. To be helping people out for having made bad decisions because you're incentivizing bad decisions -- incentivizing bad behavior but. What as they did the argument you can make for any of these is we want to avoid melt down situations that would add to a Steve which way to come down on this."

" I think you have to do something right now in terms. Slowing down on the foreclosed property. That's coming onto the market to take. If you look at some of these places in the week Leo we all think that that the real estate meltdown is everywhere and it is to some degree. But there's specific areas where didn't it as -- say there's a reason that. The president -- Phoenix today Florida's another one of these things is. A terrific piece in in The Wall Street Journal -- talked about. Florida and is it because -- it is. But there's so much foreclosure going out of Florida and as a quirky law there at which a judge has to sign off on a -- each start. But they have something called rocket docket there where judges sometimes go to --"

" Now that's more important in order today. Our rot in dot I like that to get a leg and a right."

" You're an idea of some of the velocity of what's going on in and we've also talked about recently this seemed to be. Activity that's creating a war in real estate prices and that this has a lot to do with clearing foreclosed property that. Buyers -- stepping in at very reduced prices and listeners are are eating it in in just biting the bullet and saying okay you know it's. Sixty cents on the dollar fifty cents on the dollar but out clear and get out and I'm encouraged by that process but you can't overwhelm it with millions and millions. Of residential units have to put on the market and so. I agree in some limited agreed that the process of getting out of this. That's. To need some help but it but it just did I I would you would turns my stomach to think about this."

" Steve side a mention Florida you mentioned Arizona. We've also talked about two Nevada particularly concentrated around Las Vegas. Is there any. You know common thread to those three locations that really me I -- standout odd dollars."

" construction must make it there were tons of houses built."

" No less right as houses -- but in this matter rush and and insane. Ex sane -- insane expansions endless expansion of of housing. And in this. Well -- Steve give his opinion because I'll -- however mango and that's it."

" Well I think it is in terms of the -- and in California and other places left out particularly -- live from Los Angeles. Is an area where. There was just this huge rush. Decree. Housing -- and didn't you know it becomes. One of the things that happened here it is you beat it becomes a cycle -- realistic its bid up and there is essentially. A a more a different type of market frenzy just like there's a market for an in the stock market sometimes and it creates. More buyers to comment more speculation. That comes in an important particularly I had mentioned this court that that speed do these things lots of the cases. That the homeowners don't come at all because they're just speculators who have given up already. And it adds more and more money into the system and create more more product early -- I I think it's just. You know a market phenomenon to some degree that you see in in anything whether it's. Houses stocks or you know once upon a time --"

" there -- about every two irrational exuberance seems sire Boston Globe thank you several taxi and tomorrow are good job so though -- beyond and stuff. I I think. You know -- the the meltdown of mortgages. This all came about as it started a couple of years ago when property values started declining. People started getting -- close in their homes and is that -- grew faster faster faster and deeper that led to the meltdown of everything else right."

" Yup there's an acceleration of all of this. -- some of the mortgages system to go bad. The securities Delhi issued the mortgage backed securities that we issue right there's always people thought they are as good as gold to 44 karat gold that Federer was that rock solid then all of a sudden people learn on my god it's not rock solid has been leveraged 304050 times and Lehman. And AIG in this one on that one and everybody is test just going belly up. And Fannie Mae Freddie Mac pushed to the limit by -- in groups."

" So absurd policy are stately turn it weakened luggage Thomas Todd on double your -- I think we'll look at. The foreclosure situation say we need a change in the rules of foreclosures. To incentivize because it seems to me the banks have been stupid about four clothes and that they have this kind of pay headed. Knee jerk response to somebody inning trouble that is -- couple payments behind they start. The stick attitude I would like and he had a try to keep people live on the -- I would love."

" The F from bankers on this one in particular I know we can bankers who listen on this one don't hesitate to call as a fellow bankers in the country women I -- local once I want to know why did you do you just made a great point should be at this repeating why would a bank pushed to the limit. And end up with. -- are really have any how thanks they don't want to be ousted in a piece of real estate than try to sell it in going to distressed condition. As opposed to -- Yeah its atomic Donna -- okay trial when -- elected job you got to a tough time why don't we do this for the next two years and then we'll kind of regional. Well -- two years on the -- and then. All these bizarre ways to do what they would give anybody who could breathe. A mortgage but if you're behind one payment and they can't rewrite the market -- and what what is that if you're behind a couple payments why not take those payments take a third one Adam onto Malone. Give the people break can keep alive keep a key and keep data house occupied yeah in -- can really develop customer loyalty. The problem is I believe in this and where have what tech calls I want to be correct on this by -- that the problem is. The bank technically doesn't own that loan anymore. That put them into big bundle of big whatever the rules the only change old and out 617266860. Budgets are rules change but what we'll talk about that was -- in a moment on 680 WRKO well done."

" It's just -- await your view of every day and talk about macho world of the large. -- and thriller and on Boston's -- visionary -- security. Should I -- showing a lot of people feel this way about their homes unfortunately. Because very good that the value has dropped. End to the expenses god. And suddenly that dream home is looking like -- tell me about Elizabeth doesn't go right -- confidences. Odd 2 August -- veteran but you know and I would."

" Gasquet and his said dateline an article in the New York Times that Steve's I mentioned it in the name this retirement the clash just be quiet the name of the band at a -- all had to be an illegal Derrek Lee a lot of our conservatives are those here and a handful of metropolitan areas this and this including Phoenix. Prices have fallen home prices have fallen almost 50%. That's -- five all -- 1555%. From the at 2006 there a lot of communities originally out of the house and back in 2006 to hourly 2009. The messiah is in the White House -- in a 200000 ounces worth 100000 you probably he probably took a mortgage for a net 90% that's."

" For them aside devaluation -- and a parent and so it's going to get worse look at the stock market which is just in a tailspin you so the question is should every a change in the way bank's approach for closure they have this knee jerk mentality. Of the -- you get behind a little bit that they just want to -- now instead an hour and this rebuilding mode better if we look back with the benefit of hindsight. -- see you have two years ago. The role of banks had been to hold your hand and figure out how to keep you alive in your mortgage what's the big deal if they have to rewrite the thing. -- in net terms that will work better for your new your new circa."

" Stand works better for you -- you new circumstances and works benefit them over the long run it makes the point -- you know as we move to. These mega corporations in these national banks. They'll always be I think eight. Profitable very productive niche for the local bank what the real feel would they know you walk in and got a good morning to auto demonic mr. -- they know you use those them. They hold below all they don't sell it and try to play go go -- billionaire on Wall Street they don't fall for and that BS that would -- would -- right in front of."

" Good morning he bill -- good night PBS ran a show on Frontline investigative team. Called inside the meltdown and the wires except. And it highlighted that what started the SK one all on individual mortgages. Once that's started on the mortgage security packages became toxic banks started to try to shut them wanted not exactly. Okay so the problem lies the individual mortgage. Knowingly and intentionally to people who could not repay. And that was a direct result of Barney Frank response actions. And."

" I'm I'm curious I don't mean to interrupt they'll love the point it's continuing the but I want to make sure right I get our focus in did PBS point out. -- Chris Dodd Barney Frank and me at all did did nudging of the system to the brink."

" They interviewed dumb as part of the shelf now. Several times and."

" Did they taken the day of the day accept any responsibility."

" To confront directly -- fit but the yacht the underlying being led immediately hit back."

" But I think even though what you said is true bill that there it. The how ridiculous lending practices extended beyond just those who were under employed or who didn't make enough money to really be able for mortgages are plenty of people making tons of money in the suburbs who got over extended or who got into stupid -- simply because there was this attitude. That. Money grows on trees and we had just handed out --"

" And one money grows on trees in the secondary has corollary to that was that the property would be worth another 10% -- annually and following all afternoon was out on the bike and you're gonna have a good -- you would -- with reads Steve's site yesterday about what use are on Sunday night in this whistle -- inside out -- trying to save what would make in this step up this doesn't make any sense and was told that shot up. In keep engaging in fiction keep issuing gay younger you're funny though the dog."

" Museum this says that -- at all you have to do is get people to sign and then we get richer yup that needed to take anybody -- extended not just a poor people but all the way up to people already had a home by his second home speculate our property had real estate agents who were just grabbing things on our because. You'll see it was stupid it was like as soon as you signed. The paper to making it yours you can -- sound solid thirty your grandma why -- you don't mind six point 726 weeks ago he was it says America. -- was a -- go well whoever is capable why don't be so surprised isn't surprised that apparently shot eyes and call when my son was anonymous on the virus from giving moved out. He did yeah Jeff from the cape your NWR yeah --"

" I just want to our address our issues that you brought up before about. The banks spilling out people or not so are actually US government building up people up and promoted up. And out. Not only a week filling out the same people that are not. And the market is but we've already been providing money to the banks. That in writing now is that you -- And then in addition to that the same people that do have mortgages. Like yourself. Where the want to pay the taxes. That --"

" After all mania going its -- us and there you just pointed out the whole cavalcade of fools that arrest of us now we really it's actually mile Todd and -- listeners -- with a fools. We got taken by the bankers who penned themselves multimillion dollar bonuses for running their businesses and the groundswell where bail out mortgage geez who never should have been given even in a Penner a piece of tape a let -- a mortgage absolutely ridiculous -- bill and up the banks themselves with -- collective immediacy it is unbelievable and -- him."

" I think it will probably go you know what is they've described as being the redistribution. Of wealth wealth it is right here in the year 2009."

" Yeah -- what you're saying is that there's a revolution going on in people aren't really conscious of it. --"

" Well there's another revelation order and -- better sit down because I'm going to -- in -- financial crisis with a victory that Islam. There -- one bunch of people were buying up acres of property and I don't know reference Hannity is America with video and -- if you voted YouTube and look up. And grown. She got. Now this contest on the money because -- lot you look does not pay your bills. There that's thirty. Known terrorist training camps in America right now. They had video these guys training camp in combat. There are weapons of mass destruction that generally wouldn't collaborate on that in front of the guitar violin was -- CE who has the gold makes the rules. And they have plenty of money and I wish you guys really -- so."

" So it's a different topic but it's an interesting point nevertheless China I think it is good topic for us to get into at some point. And it could be in action goes back to the point that Steve made and I think humans as well there are opportunities out the -- people with cash currency to go and make an absolute and it it'll be a future school right now they're -- it'll take awhile for the problem to come back. -- I stated I still right there."

" I guess quietly -- if what if I get it straight last week we spend too much and that was sort of almost ever going to spend even more. And this week the government turned on the spec didn't do too much more the -- different -- the ball more mortgage money you know I think I'd like Kris -- Michelle Obama ministry upper deck -- it's like. I'll look at -- sort of fade. Click upside now welcome to know aren't that many thanks ideally are seeing their sister and."

" No actually the third -- built from Winthrop and Jerry Lewis thanks John well actually four -- John from Lowell and iPods Barry."

" We hold the election and I can't how we mostly."

" Here's why because honestly George Bush could not speak is coherently Steve from Braintree. Guy does that work out and that's when I heard John McCain should we as as a people we become tired quickly of acts you know a -- act as stage a movie whatever might be. Politics and pot being an act so that mostly and he'll be Obama -- the deal was always there already -- deal was bush exit it was beyond fatigue it was exhaustion chart it was adjusted then the economy hits the wall McCain was not particularly. Compelling anyway."

" No so -- you know I haven't seen a president who can keep that gone more than six years and it's pretty -- really AJ Burnett did you fall apart after that terms of their image you know as an act now people get tired of them excellent seven. 2666868. It would be interesting to. To do a study. And see Holler presidents can remain popular how long singer -- in popular on actors -- there may be some kind of formula to this you notice how actors -- kind of the new big thing. Discuss the big thing this year this girl's gonna thing this year and then they -- for a few years ago parts they win an Oscar bang you suddenly -- a movie in five years whatever happened to sell itself and I think the same thing's true. After six years of Bill Clinton they were impeaching him after six years of Richard Nixon he was -- after."

" The -- is the problem however any real leadership oft times does not lead to popularity -- times that leads to the opposite but I don't really -- particular problem that we got too much real leadership well -- but lo -- we can do a little bit of history in Truman was hideously unpopular yeah you know in hindsight after a period -- time he's one of the most -- and see him as one of the best presidents that would -- just absolutes you -- with you. What people come back and revisit and say Fenner was the best speak -- they are he says that clarity -- don't say in my house they get forty lashes."

" Market the -- here at WR Taylor I think that's what the -- were reasonable -- they get the day ago well the best speaker of the house in the history of the state of Massachusetts probably the country pop up you're on with a mark."

" Yeah I don't want to get him -- a black. Taylor we are to be a little bit of a different perspective I'm I'm gonna title there are not provoked obvious. And I -- specific. Scenario where I. Run across people that -- bought all the multiple properties at the same I'm never obviously bought property and realized. Multifamily and let's let -- But three multifamily houses and alarms. Her 130000 dollars each. -- years ago -- refinance each one of those 400000. Never made Hud mortgage payment on any of the house tomorrow. Never made a mortgage payment on any other houses the the complaints to one record maybe 77. Months later you know that they never had any intention whatsoever. Of making a --"

" There's this scam artists is to flip the stuff and take the money. Just want to follow -- from the refund. Money maybe grab a little -- rent for 45 months before you to -- you decide how you do that -- kind of mortgage we collect -- gambling like -- I tenant families -- the mortgage they don't have IBP could use the -- paid -- doesn't mean I am now going to give that money to the -- so they just want to go -- that gravity from the -- and and they and they talk and then -- letting things slip -- but it here's the question sorry we must -- the the -- the question -- who was foolish enough. To give them 400 grand -- they had just paid a 134. Usually you know that the that the the story line would be all of mr. -- I'm going to convert the -- this three director. To condos unit one unit to unit three while I mean let's let's stay with the baseline of the story in Florence yeah the bank doesn't honestly we're talking."

" Off foreclosures should there be a change in the way -- approach because it seems to me a big part of the reason we're in this crisis is -- banks were chasing people out of their homes. Rather trying to figure out a way to keep them there. More with you coming up with -- retirement and Tom and Todd on 680 WR yeah. First two -- the tone for us to stop him."