Bankers win another one..homeowner bankruptcy bill defeated (loans, 2009, real estate)

[HappyTexan]

Bankers: 4,999,888,777
Homeowners: 0

Chalk another one up to the bankers. They sucessfully lobbied against the loan modification in bankruptcy court and it was defeated in the Senate.

No bankruptcy help for homeowners - Apr. 30, 2009

I'm posting this here from the business and financial aspect of this.
Allowing the modification would have put some homes in check and brought mortgages in line with current RE values. There's alot of homes out there where this applies. The trickle effect would bring home values down even for those not in bankruptcy due to supply and demand.

Yeah..plenty of angry people but I can see the benefit here of some stabilization on the RE market and letting people stay in their homes.

Guess it's a tough call depending on how you feel but at this point there are a number of homeless and they are growing.

[user_id]

Oh c'mon. This has nothing to do with being homeless. If they have the money to pay the mortgage then they have the money to not be homeless!

Let them get the boot. Real estate is still ridiculously priced in many areas of the country.

[floridasandy]

i can't imagine why anyone would support a bill that allows judges free reign in determining the value of a house....

[Robhu]

The rich get richer and the poor get poorer.
That is America these days.
The rich don't give a damn about the poor as long as the poor still has a few pennys that the rich can squeese out of them.

[chuck22b]

Originally Posted by floridasandy

i can't imagine why anyone would support a bill that allows judges free reign in determining the value of a house....

Isn't being able to negotiate with lenders/creditors the point of bankruptcy? Aren't GM and Chrysler bondholders and other insolvent corporate debt holders marking down principal or losing principal all together for the viability of the "corporation"?

Apparently the rules of the game are different for households. Corporations love to feign being an independent legal "entity" and take all the equal rights thereof of being such, but then the rules change if your a household.

In essence, a household is a corporation with like assets, liabilities, and equity. The labor capital provided by households generates the incomes, while homes, cars, etc. are productive capital (base of operations, transportation). Both households and corporations have unproductive capital.

Anyhow, strike another one for the banks. If a homeowner can't pay, really, they can't pay.... so, they'll just foreclose/default and hand that house to the lender. No Biggy. The Corps do it all the time hand that bill to somebody else. If the banks wants foreclosures, then that's what they'll get.

-chuck22b

[annerk]

You buy a house, you sign a note saying you'll pay back the money the bank loaned you. Why on earth does anyone think that the bank should take less if the house declines in value?

If you buy a car and the value goes down, should you tell the bank you won't pay the entire car note? What about ski equipment paid for on your Visa card? try calling Visa and saying "My ski equipment isn't worth what I paid for it, so I'm not going to pay you."

People signed contracts. There was no duress. No one had to buy a home. They made stupid mistakes, and now expect every other US taxpayer to bail them out. Why should I pay my neighbors mortgage?

[texdav]

Basically that bill woud have been a disaster and just make more people in trouble work towards bankrupsy.It also would have driven up and tightened up financing for everyone else.

[HappyTexan]

If you step back and look at it from how chuck22b did then you have to ask:
Why are corporations getting bailouts but not the normal joe ?

Treat all fairly. Why bailout GM/Chrysler just to have them go bankrupt and yet don't even attempt to help homeowners ?

I'm not for bailouts either way..but if the government is going to bailout, at least bailout both corporations and citizens. The deck is stacked in favor of banks/corporations.
The banks seem to want all or none..they won't settle for $.50 on the $1.00 from homeowners yet they gladly took taxpayer dollars to offset their gambling loses ?

Corruption should be fairly distributed

[cdelena]

Originally Posted by HappyTexan

If you step back and look at it from how chuck22b did then you have to ask:
Why are corporations getting bailouts but not the normal joe ?

Treat all fairly. Why bailout GM/Chrysler just to have them go bankrupt and yet don't even attempt to help homeowners ?

I'm not for bailouts either way..but if the government is going to bailout, at least bailout both corporations and citizens. The deck is stacked in favor of banks/corporations.
The banks seem to want all or none..they won't settle for $.50 on the $1.00 from homeowners yet they gladly took taxpayer dollars to offset their gambling loses ?

Corruption should be fairly distributed

There should be NO bailouts... for banks, individuals, etc. I pay taxes for public works and defense, not to equalize results for the population.

[texdav]

Originally Posted by HappyTexan

If you step back and look at it from how chuck22b did then you have to ask:
Why are corporations getting bailouts but not the normal joe ?

Treat all fairly. Why bailout GM/Chrysler just to have them go bankrupt and yet don't even attempt to help homeowners ?

I'm not for bailouts either way..but if the government is going to bailout, at least bailout both corporations and citizens. The deck is stacked in favor of banks/corporations.
The banks seem to want all or none..they won't settle for $.50 on the $1.00 from homeowners yet they gladly took taxpayer dollars to offset their gambling loses ?

Corruption should be fairly distributed

I disagree witrh bailing out the banks;but those were loans not revaluating the value of homes and changing the terms of loans. That is a very different thing. But the stilnulus does in fact have free money being given to speaial interest groups which is wrong. How we have a governament not allowing banks to pay back loans they in fact want to.The taxpyers will in fact make money on these loans and many were in fact forced by government to take them.Anty corrupion is bad and one case doesn't justify another. Corrpution should be prosecuted.But it seems that violation by government of the laws is getting to be back to the Nixon doctrine in the Chrysler deal as reported.To say that eqaul corruption is good or fair is just plain ignorant IMO.