DUH!!..69% Say Those Struggling With Mortgage Should Sell, Buy Cheaper Home

[OohPooPahDoo]

If you bought a house and now its worth less than what you paid for it.... TOUGH SHIT.

You can continue to pay the note and wait for the prices to recover (or pay off the loan) , arrange a short sale, or walk away and face foreclosure. Whatever happens, you need to buy a mirror and take a long gander at the person looking back at you....that is the person to blame.

Government is not your mommy.

For the most part, I agree with this post.

But I felt it necessary to point out the folly behind the thinking of the 69% in the Rasmussen poll who feel underwater homeowners should toss their keys and default. They are suggesting something that would be cutting their own throats.

Their retirement funds would suffer catastrophic losses if underwater homeowners all defaulted. Just like they did in 2008.

Not to mention that doing so would cause home prices to drop further - putting even more people underwater.


Homeowners with mortgages hould really be advised to hedge against deflation. If they had bought some cheap options on long term treasuries, they might have had a bit extra money to cushion the blow.

 

[The Rabbi]

If you bought a house and now its worth less than what you paid for it.... TOUGH SHIT.

You can continue to pay the note and wait for the prices to recover (or pay off the loan) , arrange a short sale, or walk away and face foreclosure. Whatever happens, you need to buy a mirror and take a long gander at the person looking back at you....that is the person to blame.

Government is not your mommy.

The banking industry is mostly to blame for the boom and consequent drop in home values.

No, it isn't. The Fed is largely to blame.

 

[Zander]

If you bought a house and now its worth less than what you paid for it.... TOUGH SHIT.

You can continue to pay the note and wait for the prices to recover (or pay off the loan) , arrange a short sale, or walk away and face foreclosure. Whatever happens, you need to buy a mirror and take a long gander at the person looking back at you....that is the person to blame.

Government is not your mommy.

The banking industry is mostly to blame for the boom and consequent drop in home values.

Big fucking deal. Did they force you or anyone else to buy a house? You are responsible for your own life and decisions. It's a shame that so many people refuse to accept personal responsibility for their lives.

 

[OohPooPahDoo]

All the banks were not going to fail. Try again.

Name a single major U.S. investment bank that did not receive a "bailout" and that did not fail.

Thanks.


"All the banks were not going to fail. " Famous last words. Do you know how banking works? The money in your checking account mostly isn't really there. Its merely a promise to repay you money on demand, and most of it has been loaned out. If the folks the money is loaned to can't pay it back - and the FDIC runs out of funds - then you just lose your money, plain and simple.

None of the banks failed except Goldman. So what?

Goldman did not fail. It received a bailout. ALL major U.S. investment banks got bailed out - except Lehman, which failed. Many depository institutions also received funds.

Not all bank loans are real estate loans. Not all real estate loans are residential loans. Not all residential loans went bad.
Other than not knowing what the hell you're talking about, is there a point you're trying to make here?

A highly leveraged company doesn't need all of its loans to go bad to go belly up.

here's a list of TARP companies
Troubled Asset Relief Program - Wikipedia, the free encyclopedia
If you can't figure out how bad it would have been for all those major financial companies to fail nearly simultaneously, then you're just stupid. You'll also note that nearly ALL companies receiving tarp funds have paid them back.

 

[OohPooPahDoo]

If you bought a house and now its worth less than what you paid for it.... TOUGH SHIT.

You can continue to pay the note and wait for the prices to recover (or pay off the loan) , arrange a short sale, or walk away and face foreclosure. Whatever happens, you need to buy a mirror and take a long gander at the person looking back at you....that is the person to blame.

Government is not your mommy.

The banking industry is mostly to blame for the boom and consequent drop in home values.

No, it isn't. The Fed is largely to blame.

The Federal Reserve has hardly anything to do with it. The housing boom and consequent bust was caused by mostly by greedy loan agents and to a lesser extent, stupid real estate agents.

 

[OohPooPahDoo]

If you bought a house and now its worth less than what you paid for it.... TOUGH SHIT.

You can continue to pay the note and wait for the prices to recover (or pay off the loan) , arrange a short sale, or walk away and face foreclosure. Whatever happens, you need to buy a mirror and take a long gander at the person looking back at you....that is the person to blame.

Government is not your mommy.

The banking industry is mostly to blame for the boom and consequent drop in home values.

Big fucking deal. Did they force you or anyone else to buy a house? You are responsible for your own life and decisions. It's a shame that so many people refuse to accept personal responsibility for their lives.

Why aren't loan agents responsible for their decisions?

Who should know more about home mortgages - loan agents, or ordinary joe?

 

[Unknown_Soldier]

If you bought a house and now its worth less than what you paid for it.... TOUGH SHIT.

You can continue to pay the note and wait for the prices to recover (or pay off the loan) , arrange a short sale, or walk away and face foreclosure. Whatever happens, you need to buy a mirror and take a long gander at the person looking back at you....that is the person to blame.

Government is not your mommy.

The banking industry is mostly to blame for the boom and consequent drop in home values.

Big fucking deal. Did they force you or anyone else to buy a house? You are responsible for your own life and decisions. It's a shame that so many people refuse to accept personal responsibility for their lives.

Look dude, forget about the investment issue, because that's not what we're talking about here. If someone bought ten houses on mortgage to try to flip them for a profit. tough shit for them, I agree, but that's not what were talking about.

We're talking about regular people who bought a modestly priced home well within their budget when the economy was good and they had stable income(s) to pay their mortgage who have suddenly found themselves working jobs that don't pay nearly as well, or on unemployment, due to a near collapse of the world economy and are now struggling to make ends meet but deserve a chance to not lose out on the equity they DO have in their homes due to something largely out of their control.

Now if you can focus and just discuss THAT situation, let's talk. But if you'd rather be a monkey who doesn't have a clue, then I'll just move on.

Not everyone who's in trouble bought a house that they couldn't afford and lived the high life while things came crashing down. Only a simpleton would believe otherwise.

 

[eflatminor]

If the government can't help the people, then why bother having a government?

To ensure contracts are enforced and the people remain free. Not that difficult to understand as it worked beautifully until the progressive came to power.

 

[eflatminor]

...ALL people who are underwater on their mortgage are deadbeats.

No but that doesn't mean they're entitled to my money. Big frickin' difference.

 

[Unknown_Soldier]

If the government can't help the people, then why bother having a government?

To ensure contracts are enforced and the people remain free. Not that difficult to understand as it worked beautifully until the progressive came to power.

Mayhaps you read the COTUS, perhaps for the first time ever, and realize that the government serves other purposes.

 

[Unknown_Soldier]

...ALL people who are underwater on their mortgage are deadbeats.

No but that doesn't mean they're entitled to my money. Big frickin' difference.

Who's talking about giving them YOUR money?

 

[eflatminor]

So everyone who is underwater made a bad decision?

Only if they're trying to sell a home for less than it's worth of if they are unable to make the payments. For those, it was clearly a bad decision. Regarding "everyone", I don't know, don't care. Not my problem. It's between the bank and the borrower.

 

[eflatminor]

If the government can't help the people, then why bother having a government?

To ensure contracts are enforced and the people remain free. Not that difficult to understand as it worked beautifully until the progressive came to power.

Mayhaps you read the COTUS, perhaps for the first time ever, and realize that the government serves other purposes.

Please point to the enumerated power in the Constitution requiring the federal government to back mortgages.

 

[eflatminor]

...ALL people who are underwater on their mortgage are deadbeats.

No but that doesn't mean they're entitled to my money. Big frickin' difference.

Who's talking about giving them YOUR money?

As one of the half of Americans that actually pay federal income tax, it's my money we're talking about.

 

[Katiegrrl0]

So rent!

Rental's check credit as well. They also charge deposits and extra rent. When you have three kids it's hard to find something that in this situation is affordable.

Is there anything you don't have an excuse for?

Are any of my posts excuses? I am pointing out realities that can occur. You should learn what and excuse is. I pointed out someones situation. That is not an excuse. I offered other problems that can pop up when someone is in an unfortunate situation that make chooses less easy than some suggest. Where is the excuse?

 

[Unknown_Soldier]

To ensure contracts are enforced and the people remain free. Not that difficult to understand as it worked beautifully until the progressive came to power.

Mayhaps you read the COTUS, perhaps for the first time ever, and realize that the government serves other purposes.

Please point to the enumerated power in the Constitution requiring the federal government to back mortgages.

That's not what I said, so nothing for me to show you.

No but that doesn't mean they're entitled to my money. Big frickin' difference.

Who's talking about giving them YOUR money?

As one of the half of Americans that actually pay federal income tax, it's my money we're talking about.

First of all, I don't advocate giving anyone any money. I advocate laws which prevent banks from foreclosing on people who are making an honest effort, including laws setting affordable payments.

Second of all, once paid those taxes are no longer your money. No different than when you spend money at Wal Mart, that money is no longer yours. Well, slightly different in that you are able to elect leaders who spend that money, but under our government you do not have a direct say in how those dollars are spent.

 

[Katiegrrl0]

So rent!

Rental's check credit as well. They also charge deposits and extra rent. When you have three kids it's hard to find something that in this situation is affordable.

Utter bullshit. It may be hard to find something that's affordable and desirable but no one is entitled to any particular standard of living. If you earn enough to have bought a home with a mortgage, you can rent. Move where you can afford to live, just like everyone throughout history has done.

Did I not point out that these folks were in this predicament because a very good job was lost? I think I did. That puts a dent into someones income. Now they also would have a foreclosure and a bankruptcy plus the added attraction of a lower income and the added debt of selling a home for less than the amount owed. Seems like everyone on this board thinks that everyone is in that top two percent of earners. They are not. How many millions do you make every year. I am impressed so many of you top two percenters post on USMB.

 

[eflatminor]

Mayhaps you read the COTUS, perhaps for the first time ever, and realize that the government serves other purposes.

Please point to the enumerated power in the Constitution requiring the federal government to back mortgages.

Who's talking about giving them YOUR money?

As one of the half of Americans that actually pay federal income tax, it's my money we're talking about.

First of all, I don't advocate giving anyone any money. I advocate laws which prevent banks from foreclosing on people who are making an honest effort, including laws setting affordable payments.

Second of all, once paid those taxes are no longer your money. No different than when you spend money at Wal Mart, that money is no longer yours. Well, slightly different in that you are able to elect leaders who spend that money, but under our government you do not have a direct say in how those dollars are spent.

Okay then, please point to an enumerated power in the Constitution that requires the federal government to "prevent banks from foreclosing on people who are making an honest effort".

 

[Unknown_Soldier]

Please point to the enumerated power in the Constitution requiring the federal government to back mortgages.

As one of the half of Americans that actually pay federal income tax, it's my money we're talking about.

First of all, I don't advocate giving anyone any money. I advocate laws which prevent banks from foreclosing on people who are making an honest effort, including laws setting affordable payments.

Second of all, once paid those taxes are no longer your money. No different than when you spend money at Wal Mart, that money is no longer yours. Well, slightly different in that you are able to elect leaders who spend that money, but under our government you do not have a direct say in how those dollars are spent.

Okay then, please point to an enumerated power in the Constitution that requires the federal government to "prevent banks from foreclosing on people who are making an honest effort".

That isn't what I said either friend. Although I DO think I could make a case that preventing thousands of people from being foreclosed on is in the best interest of the welfare of this nation.

 

[eflatminor]

Did I not point out that these folks were in this predicament because a very good job was lost? I think I did. That puts a dent into someones income.

And? So fucking move! No one has a "right" to a particular house. You're free to move where you can afford to live. Stop with the disingenuous bullshit. You know damn well you wouldn't support bailing out someone that made a bad call on stocks, bonds, or precious metals, even if they lost their job, even if the market for said asset had tanked. Buying an asset is a risk, more so if you must borrow money to make that purchase. If you don't want to accept the risks involved, RENT!