PKMet
Posts:249
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thick
Posts:615
| | 07/21/2008 4:15 PM |
 Alert | | I really resent the possibility that my tax dollars will be used to bail out unscrupulous folks & lending institutions in order to better our economy, but we'll be paying for these folks one way or another. I guess it's a relatively small price to pay to boost the economy which longterm is good for me, but this doesn't sit well with me at all. | | | |
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PKMet
Posts:249
| | 07/21/2008 5:39 PM |
Alert | | Not everyone who actually might be helped out by this is unscrupulous. The government needs to do something, this at least seems like a start. Our tax dollars are being wasted in a lot worse ways than this and have been for years. This actually may help people if they do it right. | |
They are who we thought they were! | |
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LeonPotter
Posts:622
| | 07/21/2008 6:06 PM |
Alert | Do I think it will pass, yes. Will it help? I doubt it. Lender's already have the option to voluntarily eating losses. I don't think the borrower will be better off with HOPE. I'm sure the viewpoint is 50% gain is better than a 100% loss to foreclosure. On the surface it appears that way, but it really is more expensive for the borrower, too.
The borrow will still be required to pay a 3% insurance fee upfront to FHA and they'll forfeit 50% of any gains in the future. That in itself is an expensive "loan" on the "new equity" created.
It may seem to help the borrower, but I think it, at best, prolongs the inevitable. That is assuming lenders/investors take the deal.
If anything, it will create a worse situation. The new system will have its holes,too. Borrowers will still be in trouble. The taxpayer will end up holding a larger bag than if things were left to take its own course. There will be unintended consequences.
The "quickest fix" isn't always the easiest or cheapest. Especially, when it comes to government intervention. | |
My answer WAS "NO" to Q#5 and Q#1.
Proverbs 22:7
The rich ruleth over the poor and the borrower is servant to the lender. | |
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R/E Appraiser
Posts:53
| | 07/21/2008 11:21 PM |
Alert | You got that right Leon!
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RichTig
Posts:0
| | 07/22/2008 5:47 AM |
Alert | Posted By PKMet on 07/21/2008 5:39 PM
Not everyone who actually might be helped out by this is unscrupulous. The government needs to do something, this at least seems like a start. Our tax dollars are being wasted in a lot worse ways than this and have been for years. This actually may help people if they do it right. You are correct. Half the people were unscrupulous and the other half were/are STUPID. Unless the stupid people had a gun to their head at closing, I really have no compassion for them. They signed the documents and took responsibility and now they run to the government for help. Its a sad state of affairs when the government bails out the stupids and leaves the people who planned well out in the cold. | | | |
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Colgate
Posts:642
| | 07/23/2008 12:56 AM |
Alert | | I wouldn't call all of those person's stupid that is harsh, however, nieve may be a better term to use. They were listening to supposedly professionals who were blowing smoke up their butts and they bit off more than they can chew due to lack of experience in home purchasing!!!!!!! They got all caught up in the fact that the lender told them it was affordable and they qualify, when really it was not the case at all. That is the key word they were told QUALIFY!!!! So wrong. | |
Live every day as if it were your last and smile! | |
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LeonPotter
Posts:622
| | 07/23/2008 2:12 AM |
Alert | I believe Colgate has a good point. "We" are told to search expert advise on many issues. Unfortunately, this can leave "us" vulnerable. How can we be sure we are told the right answers if we don't know the right questions?
The idea is the pro knows more, so they can explain our options. Hopefully, they give potential pitfalls,too. Oftentimes, that is left out of the equation. Most pros are honest, however. The risk comes when the pro is repeating what they were trained or obtained from a "reliable source".
To be fair, my experience is that people tended NOT to want to hear the potential negatives. They heard what they wanted to hear. If one person didn't tell them, they would go to the next who would.
This could be frustrating to the pros that believed their was trouble looming. They could continue and miss potential business, betray values and obtain business, or leave business because they wanted to stay true and earn a living.
It wasn't any one thing or person. There were many variables involved. | |
My answer WAS "NO" to Q#5 and Q#1.
Proverbs 22:7
The rich ruleth over the poor and the borrower is servant to the lender. | |
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LeonPotter
Posts:622
| | 07/23/2008 3:10 PM |
Alert | It's one step closer to becoming law. The house passed it. The Senate takes it next. The President has wihdrawn the veto threat per recommendation of Treasury Secretary Paulson.
http://news.moneycentral.msn.com/provider/providerarticle.aspx?feed=OBR&date=20080723&id=8923334
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My answer WAS "NO" to Q#5 and Q#1.
Proverbs 22:7
The rich ruleth over the poor and the borrower is servant to the lender. | |
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RichTig
Posts:0
| | 07/23/2008 5:09 PM |
Alert | Yay! All the idiots who bought a 4000 sq ft house on a 32k yearly income can rejoice! | | | |
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Marni
Posts:538
| | 07/23/2008 6:42 PM |
Alert | wouldn't call all of those person's stupid that is harsh, however, nieve may be a better term to use. They were listening to supposedly professionals who were blowing smoke up their butts and they bit off more than they can chew due to lack of experience in home purchasing!!!!!!! They got all caught up in the fact that the lender told them it was affordable and they qualify, when really it was not the case at all. That is the key word they were told QUALIFY!!!! So wrong.
That is such crap. We were first time home buyers. We knew what we could afford. We knew our credit scores. We knew not to get in and over our heads. It is really simple math to know debt to income values and knowing what you can afford.
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Vote NO on Prop 102 | |
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R/E Appraiser
Posts:53
| | 07/23/2008 8:48 PM |
Alert | All the so called “idiots” may not be rejoicing. The bill is being passed into law mostly for the benefit of Wall Street Investors and Fannie Mae/Freddie Mac. It will allow the GSEs and FHA higher limits for refinancing mortgages facing foreclosure, but that will only happen IF the banks that hold the paper on them are willing to take a loss on those notes. With what has happened with Bear Sterns, Country Wide, Indymac, Wamu, Fannie, Freddie, and with several other major banks on shakey ground, taking additional losses on refis as opposed to short sales and/or sales of REOs is a BIG IF. A bigger concern is many fail to look beyond the $25 billion so called “backstop” which is only an estimate and the actual cap amount is unlimited. I know this is somewhat too late, but there has been a petition circulating for a while (obviously ineffectively) regarding the bailout and a video overview of what has occured within the housing industry, and what might happen if our tax money bails out the Mortgage Industry. http://www.fedupusa.org/ | | | |
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LeonPotter
Posts:622
| | 07/23/2008 9:24 PM |
Alert | | The 800 billion estimate is a huge factor that won't get front press until down the road. Like most estimates of expenses, this will probably prove to be a low number as well. It will be hard to stop once it is created. Frankenstein's Monster will live without the creator. | |
My answer WAS "NO" to Q#5 and Q#1.
Proverbs 22:7
The rich ruleth over the poor and the borrower is servant to the lender. | |
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Marni
Posts:538
| | 07/24/2008 7:45 AM |
Alert | Yay! All the idiots who bought a 4000 sq ft house on a 32k yearly income can rejoice!
And those who bought what we could afford will pay for it. Yay. | |
Vote NO on Prop 102 | |
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RichTig
Posts:0
| | 07/24/2008 8:43 AM |
Alert | Live and learn. Next time I will get a stated income mortgage (interest only) and get some 2.5M house in Scottsdale. Then I won't make my payments and expect the government to bail me out, because I was tricked by my bad lender. | | | |
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LeonPotter
Posts:622
| | 07/26/2008 1:20 PM |
Alert | Passed the Senate today. It's on to be signed by the President. | |
My answer WAS "NO" to Q#5 and Q#1.
Proverbs 22:7
The rich ruleth over the poor and the borrower is servant to the lender. | |
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mrwonderful
Posts:279
| | 07/30/2008 8:06 PM |
Alert | Leon should we apply for the city of Maricopa and it's screw up on the Peed Property and the Honeycutt storage lot for 800,000.00 ......what kind of brains are left in city hall? | | | |
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pissedparent
Posts:334
| | 07/31/2008 2:30 PM |
Alert | | I think if anything it screws the people who got a 30 year arm and paid it on time. All those people who had reduced payments on interest only loans and getting to refinance are getting off to easy in my book. | | | |
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LeonPotter
Posts:622
| | 07/31/2008 3:40 PM |
Alert | Posted By pissedparent on 07/31/2008 2:30 PM
I think if anything it screws the people who got a 30 year arm and paid it on time. All those people who had reduced payments on interest only loans and getting to refinance are getting off to easy in my book.
I'm interested in your reasoning that those with ARM's get a bad deal with this law. The common perception is that ARM were resetting making the payment unaffordable(exceeding 31% guideling) and refinancing isn't an option due to declining home values.
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My answer WAS "NO" to Q#5 and Q#1.
Proverbs 22:7
The rich ruleth over the poor and the borrower is servant to the lender. | |
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pissedparent
Posts:334
| | 07/31/2008 9:48 PM |
Alert | Sorry, I should have said those with fixed mortgages get screwed. It should have read...
| I think if anything it screws the people who got a 30 year fixed and paid it on time. All those people who had reduced payments on interest only loans and getting to refinance are getting off to easy in my book. |
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