Financial Crisis Prevention . . .?
In the U.S. mortgage loans generally fall into two broad categories: Recourse loans, where the lender can sue for default for any money owed after foreclosure: and Non-Recourse loans, where the lender is only allowed to repossess the home.
In Europe most home loans are recourse loans while in the U.S. most loans are non-recourse. The default rates on mortgages that are higher than the value of the home (underwater) is substantially lower in Europe.
Do you think in the future, the U.S. should make all second home loans, no doc loans, or loans that exceed three times the borrowers annual income recourse loans and only allow non-recourse loans for primary homes within a feasible price range?
It would more evenly split the risk between borrower and lender . . . without having the Federal government dictate borrowing standards.
What do you think?
Financial control by Govt is very broad and at times must learn how to cover the loop-holes in the system as all system are not fool-proof. Just like now, the US will moderate the system on house mortgage loans, which is the best way. In South American countries, currently the financial problem is the pyramid sale system that cheated the investors similar to finance problem by chit-fund running by Indian in the 70s in Singapore.
Many must learn by the hard way…i.e. suffer first cure later & after.
She It I do
18 Dec, 2010
If I read you right
.
The two types of foreclosures are
.
The lender takes all that the home can give if foreclosed upon
With out any profit of the sale over the loan due to be kept in the lenders pocket so to say
.
And the foreclosure where the loan granter is to give any over payments to cover the outstanding balance of the loan
To the person defaulting on the loan
,
If this is the case then America does have such in place where as if the loan granter receives more than the outstanding balance it is given to the
.
Now X home owner only if that person in the forclosuer hearing has the court place in it the order of any additional monies to be paid to the mortgage holder that went default on the mortgage contract
.
But most people I don’t think they know that they have to emphasizee with their attorney
if they have one to have this note of ruling amendment
Stipulation ask to be placed in the foreclosure ruling of the court
,.
References :
Artoro, the Hat/Hdphone Spyman
18 Dec, 2010
Financial control by Govt is very broad and at times must learn how to cover the loop-holes in the system as all system are not fool-proof. Just like now, the US will moderate the system on house mortgage loans, which is the best way. In South American countries, currently the financial problem is the pyramid sale system that cheated the investors similar to finance problem by chit-fund running by Indian in the 70s in Singapore.
Many must learn by the hard way…i.e. suffer first cure later & after.
References :