Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Like what are the banks going to do? Many of these banks put themselves in impossible situations. They loaned money to people who did not have the means to pay it back. What's more, homes have sunk in value. Can you imagine? A family buys a home thinking it's an investment only to learn that one year later, they are tens of thousands of dollars in the hole. Now suddenly, the whole family is working day and night shifts to pay for a home that is worth $50K (or more) less than what they bought it for. What do you imagine happens in that situation? Let me tell you what happens. They walk away. They simply walk away. They were sold a pack of lies by the government, the real estate agent, the mortgage brokers, and the banks. Now they are working like donkeys to keep other people rich. And many of these poor donkeys are immigrants and poor people and other disadvantaged who really thought they had a shot at the American dream. Now they are overloaded. Their backs are breaking and their knees are buckling. They are pissed off and they are saying to the banks, "You deal with this, because I physically can't." So they walk away. And since they put almost no money down and have no actual equity in the home, what incentive is there for them to stay?
So tell me, what are the banks going to do?
The banks can do little, except , cut their losses. Thats what they do , all the time....... The only hope for the people , is the Government. When things get real bad , Government WILL try to stop the fall , but , I am afraid , the fix will be only temporary ......
A lot of people got into these loans because they believed that the housing market would continue to go up and up and up and never come down again. They were also sold adjustable rate mortgages (ARM) so their payments were very small. They also believed that when the ARM ran out, they could continue to refinance based on the rising value of their homes.
I agree.
When I was in college just a few years ago, there seemed to be this idea among my friends that real estate was some alternate reality where prices would ALWAYS keep going up, no matter what. An unusually large amount of them (many who were not bright at all) went into real estate, as agents, people who "flip" houses, etc., and are currently in their first few years of the biz.
I know little about real estate; I don't even own a home. But I do know that everyone and their mother was trying to cash in on what they thought was "easy money." At the time, I thought they were a bit naive, and right now I'm glad that I didn't follow the crowd. Right now, I hope the market DOES crash in my area (it hasn't yet) - maybe then I could afford a starter home.
You've got to be kidding me. Our Founding Fathers must be spinning in their graves.
I am sure they are.......... The only real fix , is for the whole thing to crash, and , that will come after run a way inflation , as , a result of the Government trying to prop things up. Just watch , Politics trumps most things , and , if you think otherwise ,.........follow the money.
I am sure they are.......... The only real fix , is for the whole thing to crash, and , that will come after run a way inflation , as , a result of the Government trying to prop things up. Just watch , Politics trumps most things , and , if you think otherwise ,.........follow the money.
I agree that the market should be allowed to correct itself. Government intervention will create much more harm than good.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
