But in the current market mayhem, many mortgages have been sold on. Now, with fractional reserve banking rules (allegedly) they make a loan but of course do not give the borrower the money — they’re selling him a debt to be repaid, with interest, compounded. But the mortgage becomes an asset. In the instance where it’s sold on, the bank has extricated itself from risk and suddenly has a return of real money, likely principle plus a premium.

OTOH, if the mortgage is retained, a foreclosure can work like the one of the poor bloke involved with Wells Fargo. He’d been a responsible borrower, since 1998 as I recall, the debt was down to $106,000 when he ran into a problem. I don’t recall whether it was loss of job, medical problem, whatever. WF didn’t want to re adjust so they foreclosed and held an auction. No one turned up. Curious, that.

So WF bought the mortgage for one dollar (and other valuable considerations, no doubt) and ‘foregave’ the debt. Not long after that, ex-home owner receives a tax bill from the IRS. Around $36,000 — calculated on the basis that he;d received income.

Then teh property was sold to someone … for the outstanding balance. Buyer promptly resold it for $140,000. So, to me, the lender manufactures virtual money and in the foreclosure has some overheads which would not be exorbitant, and ends up with real money as a handsome profit. Nice work if you can get it …

Kids future mortgage to be on same scale:
$113,600 per month

….pop

The leeches find a way.

What we need to be able to do is find ways for the middle class to protect their assets or to have community assets (like universal health care) which can’t be taken away by the leeches.

Free Enterprise is the wolf mugging the sheep. It doesn’t work out too well for the sheep.

I wonder which Republican dreamed up the concept of the “reverse mortgage?”

They “sell” a lot of crap ideas. In this case they conviced ‘the greatest generation’ that it was alright to sell out, cash out, use it all up and leave nothing for their kids because the kids were doing alright on their own. In other words, they convinced a whole generation to sell the American Dream for a handful of magic beans.

Ever see the bumper sticker that says, “Die broke!” or something along those lines? What they want you to do is give them your money instead of paying taxes which build better schools or roads.

A Republican today will complain about criminals being let out of jail ‘early’, but then also say we shouldn’t raise taxes to pay for jailing criminals. Only some truly warped minds can create those ideas and get people to accept them.

What kind of person thinks it’s good to hold back on taxes and then complains that nobody else will pay taxes for all the good things we share in?

We need a common commitment to building for a better future — for ALL of us.

A Pakistani armored police vehicle patrols a street under a campaign posters for the party of slain opposition leader Benazir Bhutto in a Karachi, Pakistan Monday, Dec. 31, 2007. Elections in Pakistan appeared set to be delayed by several weeks despite demands by Bhutto’s party and other politicians that they take place as scheduled on Jan. 8. (AP Photo/Fareed Khan)AP – The United States provided a steady stream of intelligence to Benazir Bhutto about threats against her before the former Pakistani prime minister was assassinated and advised her aides on how to boost security, although key suggestions appear to have gone unheeded, U.S. officials said Monday.

this is what my daughter did for all of us this christmas. One got a flock of geese that would eventually feed many families; another got the gift of having given honeybees to a group of people so they could make a living from that. And she gave me the adoption of a polar bear through Oceana. I can tell you, these were the most meaningful gifts under our tree this year. She makes me nuts, but she has a big heart, my girl.

I think you and I are on the same page. I have a lifestyle that fits my budget and I owe no one.

I noticed that, too. Bet we have a lot of good tips for people on how to live well on a stipend.

I worry about The Peanut growing up, because we are so much better off than either I was or Mr. ReddHedd was as a kid, and we’ve been talking about things we want to do to make certain she understands that with her own comfort comes a responsibility to help others who need a hand.

Maybe you could read some books about the Kennedy clan. Honestly, I’d like to know what they put in the kids water growing up to make them all seemingly so conscious of their responsibility to others. Listen to the “old lion,” Ted Kennedy speak. So many of that generation of the Kennedys had such a deep seated sense of service to their fellow man as a means of giving back for the gifts they were given in life. I think it’s quite astounding!

http://www.huffingtonpost.com/…..78982.html