Irresponsibility!! The NEW Vision for government.

[Care4all]

Care I think if you read some of my other posts you will see I am not saying the banks don't have an equal part in this mess. However, as a homeowner, which by rights will be or should be one of the largest purchases in your entire life, there should be some room there for people to have a little knowledge about what they are doing in the process. I too have a VA loan , so know how the process works. However, I still knew that the home I purchased as to the amount of income I made i.e. monthly would fit in my budget. I will give you an example, lets say a couple looks at a home that was 300,000.00 and they make 35,000.00 a year. They got a 3 year ARM to get in and were happy because they were paying 650.00 a month for three years , then in the 4th year their payments went up to 1917.00 a month. Which is the actual reflection of what the homes original value was., so as a buyer, hey were responsible for knowing that the income they brought in could afford the home they purchased. Now while it's a given that from a marketing standpoint and lending standpoint these lenders were out there handing these things out like popcorn. However, in the end, its the buyer that is the one should be aware of what that are doing.

Caveat emptor is Latin for "Let the buyer beware".[1] Generally caveat emptor is the property law doctrine that controls the sale of real property after the date of closing.

I'm telling you that they WERE MOST CERTAINLY TOLD by the mortgage brokers that when the adjustable rate was to go up, that they could refinance in to a conventional mortgage that they could afford and without PMI too.....

I SAW IT, on the show house hunters, where the mortgage lenders would sit down with naive white couples telling them that this is what they could do 3 years down the road.... all of these couples went the way of what they were advised by the banks....

I sit and wonder now, if all of those couples are not sitting in a situation of foreclosure and bankruptcy and very high credit card interest because of it or without anything because of it....

and look at my user id....hahahahaha...CARE 4 ALL.....I just can't help it ....i feel sorry for them....and the next 7 years of their life that it will take to clean up their credit rating....all because they were duped, by those they trusted to be good business people, their banks...

 

[WillowTree]

I'm telling you that they WERE MOST CERTAINLY TOLD by the mortgage brokers that when the adjustable rate was to go up, that they could refinance in to a conventional mortgage that they could afford and without PMI too.....

I SAW IT, on the show house hunters, where the mortgage lenders would sit down with naive white couples telling them that this is what they could do 3 years down the road.... all of these couples went the way of what they were advised by the banks....

I sit and wonder now, if all of those couples are not sitting in a situation of foreclosure and bankruptcy and very high credit card interest because of it or without anything because of it....

and look at my user id....hahahahaha...CARE 4 ALL.....I just can't help it ....i feel sorry for them....and the next 7 years of their life that it will take to clean up their credit rating....all because they were duped, by those they trusted to be good business people, their banks...

I watched those shows too, and ya know what??? almost every single time the buyers opted to buy homes way out of their budgets.

 

[doeton]

I was listening to O'Reilly on the radio today and he said something that I think is absolutely true...the entire 1st term of the next president will be entirely dedicated to cleaning up this mess. There will be no tax cuts or healthcare or entitlement spending or new weapon devolopement. Whether it be Obama or McCain all they will be able to fund is the WOT and these bailouts.

no offense but no kidding.

hello.

it hardly takes bill olielly to figure that one.

 

[Navy1960]

I'm telling you that they WERE MOST CERTAINLY TOLD by the mortgage brokers that when the adjustable rate was to go up, that they could refinance in to a conventional mortgage that they could afford and without PMI too.....

I SAW IT, on the show house hunters, where the mortgage lenders would sit down with naive white couples telling them that this is what they could do 3 years down the road.... all of these couples went the way of what they were advised by the banks....

I sit and wonder now, if all of those couples are not sitting in a situation of foreclosure and bankruptcy and very high credit card interest because of it or without anything because of it....

and look at my user id....hahahahaha...CARE 4 ALL.....I just can't help it ....i feel sorry for them....and the next 7 years of their life that it will take to clean up their credit rating....all because they were duped, by those they trusted to be good business people, their banks...

Well of course , I feel bad for those people that are no longer able to afford their homes, it's never a pretty situation to see anyone lose their home not at all. However, we pay our mortgages each month so that eventually the home we buy will be ours, is that not the reason why you purchase one in the first place? otherwise, why not just rent it. I wonder if it might not be a better idea for the government to buy all the foreclosed properties and rent them back to the former owners on a rent to own program so to speak and tell the people on Wall Street to take a hike. Hell even thats got to be cheaper than a trillion dollars.

 

[Care4all]

honestly though, WHY would anyone think any bank would loan them money that the bank KNEW they could not afford and would default on?

no one that i know of would have thought such...because it just wasn't in the best interest of a bank to do such....

only now, do i actually know better, with all of these strange and irresponsible methods that banks CREATED to sucker them in...

come on no money down, two mortgages at a time, one for 80% of the amount and another for the 20% down payment to skip the PMI payments...not requiring the person to supply their income or their debt...WHAT THE HELL CHANGED, it was not like this AT ALL when we got our morgage...we had to give them so much stuff to qualify it was almost not worth going through it....

WHY did banks change and what allowed them to change and the answer is deregulation, lack of oversight too...

but why the banks chose to go this route is still puzzling, it was such an UNSOUND BUSINESS decision of theirs and as i said neglegent to their beholders, the stock owners.

 

[Care4all]

Well of course , I feel bad for those people that are no longer able to afford their homes, it's never a pretty situation to see anyone lose their home not at all. However, we pay our mortgages each month so that eventually the home we buy will be ours, is that not the reason why you purchase one in the first place? otherwise, why not just rent it. I wonder if it might not be a better idea for the government to buy all the foreclosed properties and rent them back to the former owners on a rent to own program so to speak and tell the people on Wall Street to take a hike. Hell even thats got to be cheaper than a trillion dollars.

NOW, you are beseeching my heart....!!!!

i think renting the homes to them is a good idea

 

[Epsilon Delta]

I think what you had before in this country was something called "financial regulation".

 

[Navy1960]

NOW, you are beseeching my heart....!!!!

i think renting the homes to them is a good idea

Well you know, now i'm no real estate person, but I would venture to say that a solution like that has to be somewhat cheaper. In the long run even if half the people pay rent on the properties to own to the federal government on sort of like an FHA Rent to own program, at the very least it would remove some of the glut of homes on the market and help out the people that the democrats want to help out and make mean old nasty republicans like me happy in the tax department. lol

 

[editec]

I think it is in our best interest to let this fcuking country tank. Fuck every last one of them..

My honest to god laugh out loud moment of the day, Willow. I sometimes think starting over from anarchy has merit, too.

The editecian solution to the real estate problem​

So the USA owns the paper on many houses, where people cannot pay the full post VAR mortgage, right?

So what?

Aren't most of these houses still occupied? Isn't the whole problem the fact that the rates jump for these people?

Let the occupants pay off their pre VAR mortgage payment.

That way there aren't 3,000,000 homes dumped on the market, and the REST of us who own our homes and who DID NOTHING, don't get screwed!

The bond holders who were expecting better rates (because they were buying junkier bonds, remember) can take a lower rate than they'd expected. let the government and them work out what's fair.

BUT, at least they don't lose everything....which they might have, had not the government stepped in to take over that paper.

 

[Missourian]

WHAT THE HELL CHANGED

Honor and reputation and honesty and integrity used to be the cornerstone of American business. Heck, they were the cornerstone of American life. Today even decent people rationalize things like these dishonest lending practices with things like "everyone else is doing it" or "if I don't make this deal, the next guy will" or "I have kids to feed, it's not my fault these folks didn't do their homework" or "it's not like I'm twisting their arm".

 

[Navy1960]

Honor and reputation and honesty and integrity used to be the cornerstone of American business. Heck, they were the cornerstone of American life. Today even decent people rationalize things like these dishonest lending practices with things like "everyone else is doing it" or "if I don't make this deal, the next guy will" or "I have kids to feed, it's not my fault these folks didn't do their homework" or "it's not like I'm twisting their arm".

I wonder, how people are going to feel when the government says. sorry folks the deficit is getting out of control now with all these bailouts and we simply can't say no to the Airlines, the Auto Industry, the Retail Industry, so we are raising taxes and it's your duty to pay in order to help out in these troubled times.

 

[Care4all]

this is rotten to the core and is fleecing us tax payers that have already been fleeced.

We bought our home in late 2006 and it has depreciated 45k since we bought it because of this mess.....

now, I gotta pay to bail out the bastards that took thier intentional risks for immediate dollar in hand, whose hands are dirty as they come?

this is just plain wrong.


Care

 

[Navy1960]

this is rotten to the core and is fleecing us tax payers that have already been fleeced.

We bought our home in late 2006 and it has depreciated 45k since we bought it because of this mess.....

now, I gotta pay to bail out the bastards that took thier intentional risks for immediate dollar in hand, whose hands are dirty as they come?

this is just plain wrong.


Care

Another reason why I had said in an earlier post Care, that the real sad part about all this is and this is the tragic part. Even after we bail all these people out, the people who made millions making bad business decisions, people who made bad home buying decisions, etc etc,. The funny thing is. even after all that until such time as that glut of foreclosed homes is off the market you will NOT see your home value rise or the credit crisis ease. So basically all I see is a big come to the rescue of irresponsibility here. As I had eluded to earlier, if the government wanted this housing crunch to end, they would have taken the trillion dollars and offered to buy back ALL those distressed properties and and them rented them back to buy to the people who couldn't afford them in the first place. Hell even I could out up with that, because at the very least, the housing market would ease up a little and home values might come back up some. It's a whole new ballgame now. !!