Mortgage Bailout

Chris Austin

leckey wrote:

She's a PhD candidate in MATH and she could not figure out this one.

I don't mean to say you are embellishing the truth but I find that really hard to believe. The equations and indices that are used to calculate these payments and rates are not that complicated and pretty easy to find via google. My guess is that she was just emotional about it.

Sovereign ingredient for a happy marriage: Pay cash or do without. Interest charges not only eat up a household budget; awareness of debt eats up domestic felicity. --Lazarus Long Avoid the crowd. Do your own thinking independently. Be the chess player, not the chess piece. --?

Chris Austin

This is something we can agree on. I would have preferred to see the government just send every citizen a check.

Sovereign ingredient for a happy marriage: Pay cash or do without. Interest charges not only eat up a household budget; awareness of debt eats up domestic felicity. --Lazarus Long Avoid the crowd. Do your own thinking independently. Be the chess player, not the chess piece. --?

73Zeppelin

Yeah, I don't buy that either. If an MBA can understand it....

73Zeppelin

If you're going to sign something like a mortgage, you would think one would understand what one was signing. You would think they would be most interested in the fine print. I mean, you put your signature on there and it's binding. For that reason, I too have no sympathy for these people.

73Zeppelin

I'm sorry Ed, but this doesn't quite wash with me. I worked in the industry that securitized these loans. I agree that the banking system is partly to blame for marketing unsecure products as AAA rated. However, this is securitization after the fact. That means that in order to securitize these products, the mortgages had to exist. That means Mr. Smith and his wife signed the dotted line on their mortgage agreement. By signing that agreement, they agreed to all terms and conditions contained therein. Ignorance isn't a defense in this case, and it's really easy to want to pin the blame on a third party. That's just a convenient way to absolve the mortgage holder from any responsibility. If you want to look for the root of the problem, then the chain of causality doesn't start with securitized mortgage products.

Ilion

Chris Austin wrote:

Not to turn this into another rant in it's own. But, if people could just understand what they can afford versus having someone else tell them what they could afford we'd be much better off.

People understand quote well what they can and cannot afford ... but people also love to engage in magical thinking.

Marc Clifton

Oakman wrote:

All of the homes on the same block are in danger of losing their value if one or two homes there are foreclosed on

Aye, and that's another issue, the corruption in the appraisal business. I knew someone who was an appraiser, and appraisals were always moved up or down depending on the clout of the buyer, seller, or lender. The whole housing industry is corrupt, and to think things like appraisals were put into place as an attempt to reduce corruption. What a joke. When will people realize that corruption can't be legislated out of a system, it merely finds new ways to corrupt? Marc

Available for consulting and full time employment. Contact me. Interacx

Synaptrik

Marc Clifton wrote:

The cost of the subsidies would be paid by the government.

Marc Clifton wrote:

No, the cost of the subsidies would be paid by the American TAXPAYER!!!

Supposed to be the same thing. "We the People"

This statement is false

Synaptrik

While that's true, its hard to feel like it would be better spent by giving it to the banks. :doh:

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Synaptrik

OK, I'm curious. What has Jimmy Carter got to do with this current crisis? I'd say Clinton does more with the removal of the Glass-Steigal (sp?) act.

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Synaptrik

You're missing a key element here. Banks have programs available to restructure the loan and get these people through a crisis like losing a job. But loan modification departments are not being honest and fair. One example is Wells Fargo Home Mortgage. Quoted over the phone one plan, but then sent papers for a different plan with a balloon payment, when questioned about it, the response was: "Don't worry about that." Seriously. The loan-servicing people are not being responsible to the note holders or the customers. If a house has positive equity they have no reason to work with the people. Google Loan Modification Wells Fargo Home Mortgage Corruption and you'll see many stories of the banks messing with the people. In one case they were going to provide a moritorium and a modification, but since the customer got employed he didn't qualify for that and they demanded payment in full, instead of tacking the remaining owed on the back end of the loan, even when shown that the new job could afford the payments. So, I guess we really should just give all the money to the banks, then they'll have the money and the houses. Here's one story: I lost my house. I had a job and could afford it. They wouldn't work with me without a balloon payment of 14,000. We settled, I don't owe any taxes as they made 15,000 from the available equity in my house and that was after calculating what was late. I lost my job without warning. Savings didn't make it that long. Got a good job again, and they wouldn't work with me. They took my house. I had a 30 year fixed with a good interest rate as well. But due to my mother needing support all the time I couldn't maintain enough savings to cover the 6 months of no work and my mortgage payment. I was self employed when the contract was cancelled, and had no unemployment either. Such is life when you are at the mercy of the loan modification department. They stole my house. So, enjoy the comfort of your assumptions. There are more stories like this. Easily found on the net.

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Synaptrik

But letting all of those houses collapse just exacerbates the problem. The issue is how to keep the economy from caving in. The money goes to the banks or the people. More foreclosures means more property values fall, which leads to...

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CSS_Shadow

Thats because you are a nigger, don't pay taxes, and collect welfare handouts from us whities.

bulg

Do you live in this country? Do you believe a government is necessary part of human civilization? Then you (tacitly) give your money to the government. If you truly didn't believe the government was necessary, you wouldn't. Every modern democracy has taxes. Taxes mean government. If you don't like it, go live somewhere you don't need government. I'm not going to define what government encompasses, suffice it to say that a lot of people who argue and make rules that you may not necessarily agree with go into it. But you take what you can get, because this is not a theoretical world.

bulg

have you driven through (AZ | NV)? There's a reason land is cheap there. I'm sure you could build a mansion in Lone Pine or Mojave, if you wanted. Fresno, too.

Ed Gadziemski

BoneSoft wrote:

Did that really deserve a 1?

I didn't think so. I didn't vote on it.

Ed Gadziemski

Chris Austin wrote:

I (and my son) will be paying for the guy next door's house that is bigger and fancier than mine yet they have always made less than us and bragged about their credit card debt. It's not right.

No, it's not. Many things in life are not right.

Chris Austin wrote:

I pay taxes in six states and what does it have to do with the price of tea in china?

It gives you the right to complain about taxes if you want to. However, people in states Alabama that get Federal welfare by receiving more than they pay need to STFU. That includes Sen. Shelby and other jerks like him.

Ed Gadziemski

73Zeppelin wrote:

If you want to look for the root of the problem, then the chain of causality doesn't start with securitized mortgage products.

I have no idea what you are talking about. I made no such claim. :confused:

Chris Austin

bulg wrote:

have you driven through (AZ | NV)? There's a reason land is cheap there. I'm sure you could build a mansion in Lone Pine or Mojave, if you wanted. Fresno, too.

My goodness, you are not very bright. I am from Phoenix. I am also extremely aware that home values in the Phoenix metro area and many metro areas in Nevada skyrocketed over the last eight years in comparison to the rest of the country along with California and Florida. But, presently home values in Phoenix and Vegas have taken a substantial beating in comparison to those in the People's Republic of Cali. That was the point that Jon and I were discussing. Simply how Cali's prices are versus a few of it's neighboring states.

Sovereign ingredient for a happy marriage: Pay cash or do without. Interest charges not only eat up a household budget; awareness of debt eats up domestic felicity. --Lazarus Long Avoid the crowd. Do your own thinking independently. Be the chess player, not the chess piece. --?

Chris Austin

Please. As you stated you know this is not a theoretical world. I made no value statement about the merit of taxes or government, just simply that we do not freely give it to the government; it is taken from us and with force if we object.

Sovereign ingredient for a happy marriage: Pay cash or do without. Interest charges not only eat up a household budget; awareness of debt eats up domestic felicity. --Lazarus Long Avoid the crowd. Do your own thinking independently. Be the chess player, not the chess piece. --?