So if the government buys these securities backed by mortgages, they have real ownership?

Deal Score0

You also believe that the government take toxic mortgage treasury? People are at home what is it? But I thought that these houses are already in Forclosure and they are doubtful books of these companies?
Because that is what could be the end result of this bailout. Why does the government make housing loans (locking to the test) for all, regardless of whether they can repay them? This should appeal to liberals, after all, the rich greedy CEOs who caused the financial crisis to the equation would be considered.

13 Comments
  1. Reply
    v b
    February 12, 2011 at 12:05 pm

    No, they will own the loans. The owners who borrowed the money will still own the homes and will continue to pay their mortgages.

    Profit? Squeak by, yes. Stabilize the economy so that people have jobs and pay taxes? Maybe.

  2. Reply
    src50
    February 12, 2011 at 12:44 pm

    No – they own the loans.

  3. Reply
    Taketwoasprin C
    February 12, 2011 at 12:55 pm

    YES

  4. Reply
    S D
    February 12, 2011 at 1:45 pm

    If this bailout fiasco goes through we the taxpayer are buying the loans the government has no money. With the jumbled mess of these loans we would only be buying about 5% of the loan anyway these criminals/bankers have the loans intertwined like a spider web.

  5. Reply
    Erie
    February 12, 2011 at 2:29 pm

    No. They never take the titles.

  6. Reply
    Dizzy_Lizzy
    February 12, 2011 at 3:25 pm

    The government isn’t buying foreclosed properties. They’re buying debt. When someone takes out a mortgage from a lender, that loan actually gets sold to another company.

    Example:
    I get a loan from Bank of America. After I close Bank Of America sells that loan to US Bank. This allows US Bank to make interest off me and gives Bank of America money to make more loans. US Bank can sell my loan to another lender later to free up more money…and so on.

    As long as the cycle of make loan, sell loan, make another loan keeps moving, we’re fine. The problem now is concern that mortgages won’t be paid. This makes the secondary buyers (US Bank in my example) hesitant to buy loans, meaning primary lenders (BOFA in my example) don’t have the funds to make new loans. What the government wants to do is be a secondary buyer this one time to pump some money back into the primary lenders.

    I’m not a huge fan of the idea because I don’t feel like it’s addressing the overriding issues that caused this, but I don’t have any better ideas right now and we do have to get the credit markets moving again.

  7. Reply
    don1862
    February 12, 2011 at 3:50 pm

    No, the government will own the loans, and the right to receive payments on them. However, since the government will be purchasing bad loans, they will probably have to foreclose and will eventually own many of the homes.

  8. Reply
    Framke
    February 12, 2011 at 4:44 pm

    NO, NO, NO!!! A THOUSAND TIMES NO!!!!!

  9. Reply
    ashley
    February 12, 2011 at 5:10 pm

    No It is not the Governments job to take care of people! Especially when its my tax money

  10. Reply
    Tha dude
    February 12, 2011 at 5:43 pm

    Sure why not, I enjoy a nice sum of money from my government. Helps me pay for school because my parents can’t afford it. See outside of certain bureaucracies, mainly Homeland Security, IRS, and EPA the other ones actually do their jobs. =)

  11. Reply
    OpenMind
    February 12, 2011 at 6:22 pm

    Nope! I don’t like the idea of a bailout. I moved for work 2 years ago and bought a home. I can pay my mortgage just fine. But I cannot leave or sell my house since it is worth less now. My tough luck, all do to greed on wallstreet. We need to take of the people not the corporations and banks.

  12. Reply
    Father Creepy
    February 12, 2011 at 6:27 pm

    Since you usually make money off of the interest on mortgages and the government can wait a REAL long time for payment, a system like this could possibly be used to supplant a lot of the tax system people whine about.

    I like it.

    The government could also garnish wages to make sure they are getting paid.

  13. Reply
    Leona P
    February 12, 2011 at 6:56 pm

    Father creepy…are you kidding?!?!?! America is a free market, democratic society. If you want to live in a comunist country, then buy a plane ticket and be my guest!

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