[Wild Style]

Originally Posted by Mike Peterson

I have an adjustable rate loan where I can choose to pay a minimum payment which is less than the interest, interest only, 30 yr amort. or 15 year amort.

Does this mean I could not afford the home? Absolutely not but my business does not provide a regular paycheck and the ability to pay a different amount each month is useful for me.

We are not talking about luxury items here so the Ferrari example just doesn't play. But if we take your thoughts out a little further, why not tell people that can not pay cash for their car that they need to walk or take the bus.

thats exactly right, if you can not afford a car then take a bus/mass transit. Its that simple, you can't afford it then don't buy it. This mentality where people think they are owed something or that they should spend outside their means is what has placed us in this curious position.

I live in south florida right. Some places here don't have good bus coverage. If I couldn't afford a car then I would make sure I lived in a area of town that did have good coverage. Its called sensible living, people should try it.

[SANDYHAIR]

IN all reality your really not a homeowner until it's paided for.

[Mike1306]

Originally Posted by SANDYHAIR

IN all reality your really not a homeowner until it's paid (fixed) for.

If you get a car loan do you tell people. "It's the banks car but it will be mine in 4 years". If you buy a stove on a credit card do you tell people, "That is Home Depots stove but it will be mine in 12 months".

In all probability, no. People understand that they owe on their homes but it is their home.

[lostbuyer]

all I would like to know is, where are all the people that were saying there was no bubble just a year ago,I agree with you mike not just subprime is in trouble ,all kinds of loans are defaulting,but we all know why that is? prices were (are still) to darn high.

[SANDYHAIR]

You our not a home owner until it's paided for. until then you a home debtor. If you our a homeowner you have no troubles . Don't need bail out Until things like car's , stoves our paided in full you don't own then . imho

[Mike1306]

Originally Posted by lostbuyer

all I would like to know is, where are all the people that were saying there was no bubble just a year ago,I agree with you mike not just subprime is in trouble ,all kinds of loans are defaulting,but we all know why that is? prices were (are still) to darn high.

Yes, there was a bubble but as I have said before, some areas were not affected as bad and thus have hit bottom already. It may not start going up for a few years but some people talk as if every house in the country is going to drop by another 50%.

Take my area for example.
Hernando County was not a major destination of the investors though we did have quite a few. We have burned through a bit of inventory since the beginning of the year, we are down about 10% in homes on the market. This has helped the area to stablize.

Of course there is not some magic pill that is going to turn things right around but it is on it's way in some locales.

[Mike1306]

Originally Posted by SANDYHAIR

You our not a home owner until it's paided for. until then you a home debtor. If you our a homeowner you have no troubles . Don't need bail out Until things like car's , stoves our paided in full you don't own then . imho

If you want to get technical the owner is whom evers name is on the deed. The lender would be the lein holder.

[sunrico90]

Originally Posted by SANDYHAIR

There enough blame to go around . Lenders, Realtors and the Borrowers. But as far as helping them out I don't feel it's right .imho YOU SIGNED THE LOAN IF YOU DIDN'T UNDERSTAND YOUR LOAN YOU SHOULD NOT HAVE SIGNED . It's just not fair to the people who did the right thing. imho.

This hits the nail on the head and drives it down all the way. Individuals fail to evaluate the risks and neglected to ask for advise or analyze the loan agreement. This by far is the biggest investment that we ALL will make in our life's, we must know our limits.

Yes, not all the loans are in danger, but WE failed to see our limits. This is like a real back case of the flu, all will get it.

Something will happen, Yes the GOV will make it happen regarless of right or wrong. Regardless of the results WE are the ones that will pay the bill for others to get out of trouble.

But what we must remember is that a lesson in life was presented and hopefully we learned and we will think about our financial position before we decide to blow money away...

What are we doing to be in a better position tomorrow?

[Hero]

Originally Posted by Mike Peterson

If you want to get technical the owner is whom evers name is on the deed. The lender would be the lein holder.

Who is the owner? Sell the house. Whoever gets the most money was the "owner."

[hiknapster]

Originally Posted by sunrico90

This hits the nail on the head and drives it down all the way. Individuals fail to evaluate the risks and neglected to ask for advise or analyze the loan agreement. This by far is the biggest investment that we ALL will make in our life's, we must know our limits.

Yes, not all the loans are in danger, but WE failed to see our limits. This is like a real back case of the flu, all will get it.

Something will happen, Yes the GOV will make it happen regarless of right or wrong. Regardless of the results WE are the ones that will pay the bill for others to get out of trouble.

But what we must remember is that a lesson in life was presented and hopefully we learned and we will think about our financial position before we decide to blow money away...

What are we doing to be in a better position tomorrow?

But what kind of lesson did it teach the people that thought the were being smart and frugal. Heck, do whatever you want and Uncle Sam will bail you out? And who is Uncle Sam? Me and you! So we have to pay for them?

I think it is crazy!