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foreclosed homes

Steve

Well-known member
OldTimer
If your going to bail them out- then you better do it for all-- the little guy who can't afford his house payment

this is a topic that has been bothering me for a while..

How would saving the little guys ass, by bailing him out help him?

If a person bought a home he can't afford, and hasn't saved for a rainy day.. how is giving him more time or more money going to help?

I can't see any reasonable reason to keep a person in a house they can't afford...

If a person has a home they can't afford to pay the mortgage on now, Then they often can't afford the other cost associated with home ownership, such as taxes, insurance, and upkeep and repairs..

What going to happen to these same cash strapped people when the water heater goes,.. or the roof needs replacing? or the taxes they already can't afford goes up? let alone the easy stuff like a lawn mower or a screen door and paint...

If they can't afford it now, then no measure the government can come up with short of forgiving the loan will help...
 
A

Anonymous

Guest
Steve said:
OldTimer
If your going to bail them out- then you better do it for all-- the little guy who can't afford his house payment

this is a topic that has been bothering me for a while..

How would saving the little guys ass, by bailing him out help him?

If a person bought a home he can't afford, and hasn't saved for a rainy day.. how is giving him more time or more money going to help?

I can't see any reasonable reason to keep a person in a house they can't afford...

If a person has a home they can't afford to pay the mortgage on now, Then they often can't afford the other cost associated with home ownership, such as taxes, insurance, and upkeep and repairs..

What going to happen to these same cash strapped people when the water heater goes,.. or the roof needs replacing? or the taxes they already can't afford goes up? let alone the easy stuff like a lawn mower or a screen door and paint...

If they can't afford it now, then no measure the government can come up with short of forgiving the loan will help...

Steve- you apparently didn't look at this post- or listen to the Congressional hearings where it came out that while the CEO's/Administrators of all these companies like Countrywide were making hundreds of MILLIONS in dollars in salaries- along with huge MILLIONS of dollars golden parachute retirement/firing plans and that sold MILLIONS of dollars worth of shares when they had inside info of the SH*t they had run their companies into- even tho they still allowed their companies to go wild, with much of which, was fraudulent overevaluation of property, misleading of buyers, and lending to those that they knew had no way to meet the obligations if the rates raised...
But these CEO's got their millions, and now the government is going to bail out their corporate entities and shareholders- but the little guy at the bottom is again sucking hind teat- many broke and homeless because their interests rates have went out of sight.....


FBI Mortgage Probe Eyes 17 Large Firms

MoneyNews
Tuesday, March 18, 2008


WASHINGTON -- The FBI's criminal probe of the mortgage lending industry has grown to 17 firms, involves large companies, and could take years to conclude, bureau officials said on Tuesday in a Reuters interview.

The investigation now involves 17 firms, up from 16 previously acknowledged, the officials said.

"The corporate fraud cases are pretty large entities," said Neil Power, economic crimes unit chief of the Federal Bureau of Investigation's financial crimes section. "The majority I would think we're looking at years."

Power declined to comment when asked if the FBI was looking into the collapse of Bear Stearns, which led to an emergency sale to JPMorgan Chase last weekend. However, he said, "common sense would indicate that we would look at something that big."

The hundreds of FBI agents taking part in the probe are looking at issues including all phases of the process of securitizing loans, insider trading and whether firms properly disclosed the value of their assets.


Corporate employees ranging from senior executives to lower-level management were under scrutiny, an official said.

The officials described widespread opportunities for fraud in the industry, which can all be traced back to human greed, and to lax documentation in loan applications, which allowed for loans based on false values or income.

"The problem is that banks weren't doing their due diligence," Power said.

http://moneynews.newsmax.com/money/archives/articles/2008/3/18/152310.cfm?s=mnm
 

Sandhusker

Well-known member
All the talk has been about the greed of the lenders, but what about the greed of the homeowners? Look at the reasons why people mortgaged themselves to the hilt and I think you'll see that many of those reasons are rooted in greed as well. They wanted a bigger, fancier house than they could afford - they used all the equity in their home so they could buy a new car, new boat, etc....

In my opinion, the blame needs to be shared equally between the home owners, the lenders, and the mortgage buyers and they should all take the losses equally. While I'm not against the Feds stepping in to facilitate the cleanup, it shouldn't cost taxpayers a red cent.
 

Steve

Well-known member
OldTimer
Steve- you apparently didn't look at this post-

you apparently didn't look at this post-!
This post wasn't about the corporations,... it was about the little guy..

OldTimer
but the little guy at the bottom is again sucking hind teat- many broke and homeless because their interests rates have went out of sight.....

the interest rate is now at about 5.25% and going lower.. to about 4.5%

it is now lower then when the home mortgage crap started..

if the little guy couldn't afford the loan when it peaked at about 8.25% that it raised to,.. he is now paying less.. and should lock in..

but the problem is that most of these little guys you feel sorry for can't afford the houses they bought, even if the rate was zero..

If a person has a home they can't afford to pay the mortgage on now, When the interest rate is actually lower Then they often can't afford the other cost associated with home ownership, such as taxes, insurance, and upkeep and repairs..

What is going to happen to these same cash strapped people when the water heater goes,.. or the roof needs replacing? or the taxes they already can't afford goes up? let alone the easy stuff like a lawn mower or a screen door and paint...

If they can't afford it now, then no measure the government can come up with short of forgiving the loan will help...

so how can bailing them out help?
 
A

Anonymous

Guest
So then Steve your saying the government (US taxpayer) is going to back up the buying out of all these lending institutions- since BearStearns is only the first of possibly many that may find themselves insolvent (let alone those from foreign countries)- and BearStearns didn't hold all the mortgages out there that are currently being foreclosed on at a record high rate......
 

Steve

Well-known member
Oldtimer said:
So then Steve your saying the government (US taxpayer) is going to back up the buying out of all these lending institutions- since BearStearns is only the first of possibly many that may find themselves insolvent (let alone those from foreign countries)- and BearStearns didn't hold all the mortgages out there that are currently being foreclosed on at a record high rate......

No, I usually answer your questions with honesty and in a straight forward manner.. I try to be polite.. and even respectfull.. I even moved it to a separate thread as to hopefully get a good debate and understand why you think the "little Guy" should be handed a big fancy house on the backs of the working class..

but if you're to EDITED, or to confused, that you think that I even mentioned BS in this thread, then I can't answer your questions.. and I won't waste my time responding

Try to read what I actually said.. Is that to much to ask?
 
A

Anonymous

Guest
Steve said:
Oldtimer said:
So then Steve your saying the government (US taxpayer) is going to back up the buying out of all these lending institutions- since BearStearns is only the first of possibly many that may find themselves insolvent (let alone those from foreign countries)- and BearStearns didn't hold all the mortgages out there that are currently being foreclosed on at a record high rate......

No, I usually answer your questions with honesty and in a straight forward manner.. I try to be polite.. and even respectfull.. I even moved it to a separate thread as to hopefully get a good debate and understand why you think the "little Guy" should be handed a big fancy house on the backs of the working class..

but if you're to EDITED, or to confused, that you think that I even mentioned BS in this thread, then I can't answer your questions.. and I won't waste my time responding

Try to read what I actually said.. Is that to much to ask?

Well you can hide your head to the Bearstearns deal, the Countrywides, and all the other corporates that hold paper- but thats whats happening....

And I doubt there is any 4.25% money out there being offered to those that got sold a bill of goods on the valuations of there previous house while getting the same on their new home that the appraisers/real estate agents/bankers were in cahoots on while all shamming people so they could get their higher percentage of the higher dollar profiteering....
 

Steve

Well-known member
Oldtimer said:
Steve said:
Oldtimer said:
So then Steve your saying the government (US taxpayer) is going to back up the buying out of all these lending institutions- since BearStearns is only the first of possibly many that may find themselves insolvent (let alone those from foreign countries)- and BearStearns didn't hold all the mortgages out there that are currently being foreclosed on at a record high rate......

No, I usually answer your questions with honesty and in a straight forward manner.. I try to be polite.. and even respectfull.. I even moved it to a separate thread as to hopefully get a good debate and understand why you think the "little Guy" should be handed a big fancy house on the backs of the working class..

but if you're to EDITED, or to confused, that you think that I even mentioned BS in this thread, then I can't answer your questions.. and I won't waste my time responding

Try to read what I actually said.. Is that to much to ask?

Well you can hide your head to the Bearstearns deal, the Countrywides, and all the other corporates that hold paper- but thats whats happening....

And I doubt there is any 4.25% money out there being offered to those that got sold a bill of goods on the valuations of there previous house while getting the same on their new home that the appraisers/real estate agents/bankers were in cahoots on while all shamming people so they could get their higher percentage of the higher dollar profiteering....

I guess it was to much to ask.. :roll:
 

Richard Doolittle

Well-known member
You got it right Steve. The big, evil banker/appraiser/real estate agent taking advantage of the poor little innocent family that is now going to be homeless makes for a good news story, but its a load of crap. Like Sandhusker said, there's plenty of blame to go around. There are crooks in the industry and they should be prosecuted. But as far as the bulk of the people with payments they cannot afford, it's their own fault. People know what they can afford and if they got an adjustable rate mortgage, they could have figured out how much their payment could go up with any rate increase.
 

BRG

Well-known member
I don't know, but I will be moving this fall and my wife and I went and got a loan approval and interest rate. I walked out of the bank shaking my head. They told me I could have X amount of $'s and this was about twice as much as I want or need, and i know that their is no way that we could afford a house at the amount they said we could have. I am sure I am not the only family out there that the bank tells them they can have more than they can afford. iIt is a little foolish for the banks to lend more than one can afford. I think alot of people will take the full amount too just because the bank said they can afford it. I can see how so many people got into trouble with all of this going on.
 

Steve

Well-known member
BRG
I think alot of people will take the full amount too just because the bank said they can afford it. I can see how so many people got into trouble with all of this going on.

I think their are several sides to this complex issue.. and you and OT and many others have pointed out the corporate greed, and the flawed Appraisal systems.. but...

I was trying to understand why every one is for bailing out the "little guy" when it is clear that even with every measure proposed most of the defaults loans will still end up in default unless the whole loan is forgiven...

if they can't afford them now when interest rates are near a historic low.. how will they afford them even if the rate is fixed?
 

BRG

Well-known member
I don't know what the answer is. But I think they(morgage companies) should look ahead and not give such crazy amounts of money out to someone, when they know that times do and will get tough for them. When we purchased our first home 5 years ago, they wanted us to use the variable interest rates, because at that time they were really cheap. But I knew they wouldn't last, so we locked ours in, and don't have to worry about interest jumps, which in turn means payment jumps.

But, I really don't think the gov should be baling anyone out. We need to take care of ourselves, and not trely on someone/thing else to do it for us.
 

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