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Question: Why don't the banks just rewrite the mortgages?

with fixed interest rate and affordable payments. would that take pressure off everyone?

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Because they intend to have it all

The get money to cover the bad loans. They continue foreclosures. In the end they have a trillion in the bank and the deeds to a trillion in real estate.

---"Christianity has not been weighed in the balances and found wanting. It’s being tried, found difficult, and rejected!" - Leonard Ravenhill---

I'm not so sure the home loans are the real problem

I think they're using that as a scapegoat to scare people. Most home loans are performing quite well, so why the urgent crisis all of a sudden? There has always been a default level of 2 or 3 percent. It's the stark reality that all these derivatives are unwinding, way more than any one bank can absorb, so they all go crying together. If the public had to digest the sorry business of the fraudulent banking practices, they might really call for their heads. The Fed boys see another way to seize power, and actually take ownership of real assets (again, with taxpayer monies). So, all they are doing is creating a "real crisis" with so much urgency that we'll all buy their pitch. Which our esteemed lawmakers will, on our behalf, of course.

alan laney

The problem is in the credit

The problem is in the credit default swap market not the mortgages themselves. Subrime shakiness quickly changed the odds in the betting parlor and all the gamblers who on average had 30 dollars worth of bets and only one dollar in their pocket were in trouble. They were also laying off bets with each other when it became apparent that there were welchers in the parlor. Even one welcher exposes all the other gamblers because they were counting on cancelling losing bets with winning ones. If we magically brought all delinquent suprime mortgages current there would still be chaos in the betting parlor because they drastically undervalued these insurance policies and cant cover or buy their way out from under the newly appreciated risk.

How bout the knock off 20%

How bout the knock off 20% off of everyones loan and then give them 5% fixed rate mortages. The problem is these FED assholes do not want to loose money instead they want to steal our money. If everyone readjusted their balance sheets and worked on keeping the people in their homes we wouldn't be in this mess... We all know its just numbers on a spread sheet so its actually feasible if everyone involved agreed to the terms. The only problem with this is they have to find people willing to move in to the foreclosed houses. They created this mess so they should fix it.

Exactly , it`s easier to use your money ( future money).

HYDROMAN

It is hard to imagine a more stupid or more dangerous way of making decisions than by putting those decisions in the hands of people that pay no price for being wrong.
Thomas Sowell

BECAUSE THEY SOLD THEM

They don't control them any longer. They lost control.
They wrote them KNOWING most would blow up.
They got FED money for writing them.
The brokers made outrageous commissions for writing them.
They piled it high and deep. And now its falling apart.

~~~~~~~~~~~~~
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"The Number one reason people lose money is the FEAR of losing money." Sir John Templeton

"Committed To The Eradication Of Poverty Among Patriots"

Anyone stuck in one of these

Anyone stuck in one of these loans SHOULD contact their lender and attempt to re-negotiate their loan before anything else.

..................
"The main thing that I learned about conspiracy theory is that conspiracy theorists actually believe in a conspiracy because that is more comforting. The truth of the world is that it is chaotic..." —Alan Moore

Good Point...my theory is...

If you had an interest only loan 5% of $300k, you would be paying $1250 per month on your mortgage. A fixed rate even at 6% (principal & interest) would be much higher..about $1800 a month. Some of these "owners" could barely afford the $1250, so $1800 is not an option for them.

Another reason might be that the owners just can't refinance at all because the home has lost so much value.

But you're right, why would the banks not just let the customer keep paying the interest only simply to avoid foreclosure, then they could refi once values begin to rise again?