Ok, very simple questions about the Federal Bailout of the US Banking System...

[RollWithIt]

if I have a mortgage with Washington Mutual, with up to date payments, who will own my mortgage after this federal bailout? That's my personal question but I have two other other questions.

If another person has a mortgage in default, but not yet foreclosed, does that person have any recourse to correct the price of their original purchase before foreclosure is finalized?

My personal checking and savings account are currently with some of these "failing" banks who are now getting a bailout from the Federal Government. If the Federal Government is stepping in to save those banks, does the Federal Government retain any ownership in those banks? Are Government investments going to be made available to everyday Americans? For example, in the future can I invest in Federal programs via expanded bonds?

[EmilyAnne]

1. I don't know, but I'd love to see someone answer your question. n/t

[YellowRubberDuckie]

2. As for the first question...

...the answer is whoever buys it.
The second question is a little more convoluted. You have to get it refinanced in order to renegotiate the terms of a mortgage. Other than that, you have to work with the Loss Mitigation department of your mortgage company to try to bring it current and keep it that way.
Can you move your cash from a failing bank to a bank that isn't failing? I don't know the answer to the rest of your questions. I work in the mortgage industry so I can answer those.
Duckie

[Motown_Johnny]

3. I am no expert, but as I understand it

"good" mortgages will still be held by the same companies, they are just sticking the government/taxpayers with the bad paper


there is speculation that once the government owns mortgages in default they may give people another chance to refinance. But people who have already moved out of their homes are screwed.. Again, only speculation at this point.


As long as you have $100,00 or less in your accounts you should be fine. If you have more than 100K you need to get some into bonds or gold or something.



Again.. I am no expert

[MercutioATC]

4. Mongoose

That's as descriptive an answer as exists right now. No specifics have been set and, if the Paulson plan is passed as legislation, they never will be. A minimum of $700B will be placed at Paulson's disposal to do with whatever he likes with absolutely no oversight or restriction.

[RollWithIt]

5. That is completely ridiculous...

700 billion dollars with no regulation or oversight?

[MercutioATC]

6. ...and that's not "liberal spin", it's Paulson's own words (link included)

"Sec. 8. Review.

Decisions by the Secretary pursuant to the authority of this Act are non-reviewable and committed to agency discretion, and may not be reviewed by any court of law or any administrative agency."


http://www.foxnews.com/story/0,2933,425672,00.html

[RollWithIt]

7. Wow, it's a complete blank check with no recourse....

Just buy anything, regardless of value or risk, and no one is even responsible for the purchases.

[MercutioATC]

8. Yes, anything...mortgages, credit card debt, absolutely anything.

Look at Section 6. This isn't a $700B spending spree, it's $700B "outstanding at any given time". Buy $700B, sell it for pennies on the dollar, buy another $700B because the original $700B is no longer "outstanding".

Oh, this "plan" is just full of gems. It's a wholesale license to do whatever Paulson wants with our entire money supply....even the money we haven't printed yet.