Will the "bailout" ruin the loss mitigation business?

I would like nothing better than a government action to end the hardship of homeowners and let us move along to a growing, vibrant work life and home life.

But is that going to happen?

Let's see…

The bailouts have covered Lehman Brothers, Merrill Lynch, Goldman Sachs, JPMorganChase, Fannie Mae and Freddie Mac.

With barely a whimper from US Congress, the US government, the Federal Reserve and the Treasury have bailed out all the biggest disasters on Wall Street.

Where do they get their money? And will they bail out the homeowners?

And if so, is that the end of the real estate short sale business, the 9 Day House Sale, the loan modification business?

 

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Edited to add this:

Sept. 24 (Bloomberg) — Investors outside the U.S., who own more than half of all Treasuries outstanding, say the government's $700 billion plan to revive the banking system will diminish the appeal of the nation's bonds.

Treasury Secretary Henry Paulson's proposal, which seeks funds to rescue banks by purchasing devalued securities, would drive the country's debt to more than 70 percent of gross domestic product. The last time taxpayers owed as much was in 1954, when the U.S. was paying down costs from World War II.

"The image of U.S. Treasuries as a safe haven has been tainted by the ongoing financial debacle," said Kwag Dae Hwan, head of global investment in Seoul with South Korea's $220 billion National Pension Fund, which holds about $14 billion of U.S. government debt. "A big question mark hangs over whether the U.S. can deal with an unprecedented amount of debt. That is unnerving all the investors, including me."

This is why they aren't going to bail *YOU* out (or your clients out.) They do not have the money. And foreign financiers will not fund your bailout.

And this:

Asia Needs Deal to Prevent Panic Selling of U.S. Debt, Yu Says

By Kevin Hamlin

Sept. 25 (Bloomberg) — Japan, China and other holders of U.S. government debt must quickly reach an agreement to prevent panic sales leading to a global financial collapse, said Yu Yongding, a former adviser to the Chinese central bank.

"We are in the same boat, we must cooperate," Yu said in an interview in Beijing on Sept. 23. "If there's no selling in a panicked way, then China willingly can continue to provide our financial support by continuing to hold U.S. assets."

An agreement is needed so that no nation rushes to sell, "causing a collapse," Yu said. Japan is the biggest owner of U.S. Treasury bills, holding $593 billion, and China is second with $519 billion. Asian countries together hold half of the $2.67 trillion total held by foreign nations.

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warmly, 

 

 

P.S. The opportunity here is to put the bad news to work for you. The news can motivate people around you to let you buy their house, or work out a loan mod for them. There has never been a better time to try out my material for a full 365 days. At the old price (at least as of the time of this writing…the price may have gone up when you read this.)

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