Mama Bin Cranky

Screaming on the Inside

Posts Tagged ‘Cramdowns’

Asking for Help from Citi

Posted by madjillmom on March 8, 2009

One of my relatives spent part of last week talking with Citi about changing the terms of their car loan due to less income coming into their household.  Citi asked for much more paperwork than it took to get the original loan.  Ok, I can go along with that.  My relative should need to actually prove the downturn in their income.  The problem came with the service persons assertion that my relative needed a fax machine to work with Citi on this issue.  The only way Citi can send the paperwork is for the lendee to have a fax and or fax line.  It seems to me that the price of a fax and dedicated fax line would be an unnecessary monthly expense and initial outlay at a time when they are struggling to make the bills. 

The cheapest plain paper fax I could find is about $65.  My relative would have to take her car and drive 1 1/2 hrs round trip to buy the fax.  Another phone line would be about $20 a month.  I don’t really think using the only land line into your house works well for a fax machine.  The other option is to use your dialup modem software for a fax.  I haven’t done that in years, but we don’t have dail up.

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Posted in Pet Peeves, Strange Things | Tagged: , , | Leave a Comment »

Cramdowns will hurt the Banks

Posted by madjillmom on March 2, 2009

One part of the Dems plan to stabilize home values is to allow judges to have the power to alter contracts between homeowners and banks by reducing interest rates and possible principal write downs on mortgage loans (known as cramdowns).  Won’t the results of this be the banks making less money and becoming unstable or more unstable than they currently are.  If the government can’t value toxic assets now, how will there be investors for those toxic assets if they are subject to cramdowns. 

Should any judge be able to altar a binding contract?  Are contracts binding in this day and age?

Posted in Obama Administration, The Economy | Tagged: , , , | Leave a Comment »

 
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