Comments on: Millions of Small Business Owners With Toxic Mortgages in Deep

By: Louise DeLucchi

Louise DeLucchi — Fri, 02 Jan 2009 20:13:44 +0000

Okay, so if you can’t refi then there are no options? Right!

By: Zamfire, Master of the Pan Flute

Zamfire, Master of the Pan Flute — Sat, 20 Dec 2008 16:58:53 +0000

Oooo yeah, 2009 gonna git ugly. People are going to walk when the realize they are not “homeowners” but instead are renters who are bankrupt.

By: Ditech Home Loans

Ditech Home Loans — Thu, 18 Dec 2008 19:41:41 +0000

An FHA Secure loan allows for late payments resulting from a reset, but the borrower still has to meet the income to debt ratio, which probably excludes many small business owners.

By: mark

mark — Thu, 18 Dec 2008 06:53:00 +0000

Stu I degress I want to give you a case in point I am looking to invest in RE here in Palm Spring and I think I know what I am doing. Being a vet I should RIGHT.http://www.redfin.com/CA/Desert-Hot-Springs/64223-Doral-Dr-92240/home/6035656 please look at this and give me your opinion. This is at 34% at peak of market how can you go wrong. Highest on the hill great views and on the golf course. Stu my point is drilling down does not always give you the truth you need to get into the field as I do and see it first hand. With respect Mark

By: mark

mark — Thu, 18 Dec 2008 06:11:39 +0000

Stu, with all due respect you have your head so far up your ass you don’t know if you are coming or going. I am 43 and free and clear with dough in the bank.You need to stop being a numbers driven guy. You are obviously very smart looking at the numbers and digesting that. I was in the game for a long time and I am not spitting this crap out for my health. Stop trying to point the finger and start trying get how bad this is!!! You can’t blame the guy that put his ass on the line using credit cards 401k or college savings to keep his biz going. That is what AMERICA was founded on. It is so obvious that you never ran your own show, you will never know what it is like to tell your staff you are done. I am not trying to preach but it is what it is. This thing is a shit sandwich and everybody needs to to take a bite. Hanson is a voice of reason in this whole mess. If we don’t do cram downs this will get very ugly…

By: Georgette

Georgette — Thu, 18 Dec 2008 02:35:09 +0000

NASE appears to be a scam operation:
http://www.businessweek.com/magazine/content/04_37/b3899076_mz021.htm

By: Prof. Samuel D. Bornstein

Prof. Samuel D. Bornstein — Thu, 18 Dec 2008 02:14:45 +0000

I want to thank Mr. Mortgage for running this blog. The fact is that the self-employed micro-businesses (16.2 million in 2007 according to the SBA) fell prey to these ALT-A mortgages that didn’t require income documentation. This appealed to these small business owners. These self-employed business owners were targeted for these loans. To make matters worse, they opted for Option ARMS and Interest-Only mortgages that allowed them to pay the minimum monthly payment thereby conserving cash for their business needs. Once the housing bubble burst, and home values dropped, they were denied any chance of refinancing. This left them with zero equity or negative amortization to the degree that their principle balance far exceeded their home value. The proposal to lower interest rates will not save them. Today, the problem is the principle balance and not the interest rate. According to some stats that I have read…a $600,000 mortgage can grow to $750,000 within a few years of Option ARMs or Interest-Only payments lacking sufficient payment of principle. One can effectively see the problem when the principle must be paid over the remaining term of the mortgage.

Finally, the second wave of foreclosures has hit the mainstream media in the 60 Minutes piece. But, they missed a very important fact that this NASE survey illustrated..the next wave of foreclosures at reset in 2009-2012 will take these small businesses and their employees. We need to bring this to the attention of the Powers-that-be in Washington ASAP. There is still time. I have researched this issue for the past 8 years and there is something that we can do to PROACTIVELY address this catastrophe.

By: Anti Spin

Anti Spin — Wed, 17 Dec 2008 22:32:18 +0000

93% of all Alt A loans go to small business owners. Hmm, small business owners do not have a paycheck – do not have easily verifyable income, can have extremely variable income. Alt A loans (as originially drafted) were meant for those who could not easily document their income. Why is this in any way surprising?

By: CompaJD

CompaJD — Wed, 17 Dec 2008 19:52:48 +0000

The sad truth is that most people which accept the mods are only thinking about the present and not the futre. They still think realestate will rise once again to the same levels that we saw this decade. .gov is trying to make Joe the Plumber a slave.

By: BertDilbert

BertDilbert — Wed, 17 Dec 2008 17:03:38 +0000

Odd, Calpers came out with a PR last month saying that they just had all the properties appraised and were down 30%. I guess that they forgot to mention that they were leveraged against some of those appraisals! Life Insurance companies which are heavy on assets are going to get it too… Let’s see what happens when commercial takes a hit. Insurance companies are pretty much in the same boat as pension funds.