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First how many of you know what the terms DTI, LTV are? Do you know how a prepay is calculated? What if you've never had a mortgage and the LO isn't truthful and tells you your rate is 1%... would you believe he meant your interest rate?
If you don't know those terms, or believe when someone says rate that they mean interest rate instead of pay rate does that make you ignorant to the point of deserving to be foreclosed on?
The government has never taken an interest in teaching kids in school about credit... nothing in depth about scoring, how to manage it, or anything in detail about mortgage. A huge percentage of people believe their loan officer when they tell them they qualify for their mortgage... even if it was stated. They could afford the payments, at least in the short term...so they were able to realize their dream of home ownership. They now live in a nightmare, are completely stressed, and will lose their house.
Now, I'm not saying blame the government, and the lending industry completely... it's ultimately up to you to protect yourself. The problem is that many people in this situation thought they had protected themselves. They trusted bad information...
As far as the government bailing people out, or making changes to allow rates to become affordable in order to facilitate bail outs... something will happen to protect the people as a whole. They will protect the economy to protect the country.
Yes it's not fair that the ignorant can end up getting something they never should have in the first place... but there's a lot of good folk who didn't know any better and are now in a bad place. There's a large percentage of people who are just ignorant in general, but they still generate a huge amount of money as a whole for the economy, and they will likely be protected.
I still think one of the only solutions is the preventative one where people learn about money and how to manage it in school... I mean really, why do people go to school? To get a job...and why do they need a job?...
Location: Ohio, but moving to El Paso, TX August/September
434 posts, read 1,653,500 times
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Quote:
Originally Posted by UseJeff
Yes it's not fair that the ignorant can end up getting something they never should have in the first place... but there's a lot of good folk who didn't know any better and are now in a bad place. There's a large percentage of people who are just ignorant in general, but they still generate a huge amount of money as a whole for the economy, and they will likely be protected.
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You're right, it's not fair. I am not going to curtail buying things for myself so people who bought a bigger house than I have can continue to live there with no personal responsibility. For the people who were good folk who didn't know any better, O.P.P.
I'm tired of the government bailing out people who do stupid things. I don't care if they're individuals who bought too much house or large corporations that mismanage their businesses. How can we ever communicate that 'responsibility' is an important value, if we don't have some requirements for accountability.
I'm one of these people who buys a little less house, a little less car... so that I have some padding if there are unexpected things that come up. But I have next door neighbors who are moving right now because they just discovered that when you buy a house, there's this thing called 'maintenance' and they hadn't calculated that into their budget. I see this all over the area where I live. There are also a lot of people in my area who buy more expensive homes because they assume that the homes will jump in value within a short period of time and they can make money off them. As a taxpayer, I do not want to be paying for these idiots who over-extend themselves.
I completely agree with the majority of you who feel the government should not be bailing out people who overmortgaged themselves. It's just another case of consumer greed, and I don't want my tax dollars financing it.
So, what's your take on our gov't wanting to step in and use taxpayer's money to help those who are in trouble and about ready to have their house foreclosed?
I don't agree with it at all. I am sorry that people jumped on the bandwagon to take advantage of lower interest rates; however, that does not mean that now I need to help bail them out! No one held a gun to their head when they signed the papers. They knew upfront they were in over their head.
I will share my displeasure with you on this. Do not touch my tax money and use it to bail out people facing foreclosures when my partner and I can not even get a house or mortgage ourselves because of the costs associated with it.
The good news is... the government doesn't just waste tax money on bailing people out of foreclosures. I think the average American would faint or have a fit of laughter if they could see everything that is paid in the yearly tax budget, and the cost of such items. I wonder how much our yearly income tax would drop if people actually used logic when allocating tax dollars? 20%? 50%?
but there's a lot of good folk who didn't know any better and are now in a bad place. There's a large percentage of people who are just ignorant in general
Ignorance is not an excuse- good people or not. My wife signed loan documents at the age of 18 to get student loans. She locked in to insane interest rates and we can barely afford to pay them back years and years later. I think it is a shame that she was allowed to sign something that she didn't fully comprehend as a kid that would have tremendous impact on her financial life for the rest of her life. Despite her ignorance, no government official has bailed me out yet. I am still waiting. Sometimes you just gotta take it on the chin and own up to making a mistake.
Maybe I'll go finance a BMW tomorrow. When the loan comes due, I'll just plead "I didn't know any better! I am a good person!"
The US Gov't does NOT HAVE enough Real money (without doing Stupid stuff that will take the entire economy down) to bail out TRILLIONS in bad debt. But here is the thing: MANY who are in a mess, put Nothing Down or Bailed Out equity. So they spent it or whatever.... Bad decision as they now see it. They lived in a Bigger Better house than they could really afford. It was fun, now get real. There are SO many options now.
When a realtor says, "why pay your landlord's mortgage?" Say, No! I'm paying HALF of it!
No bailout - it won't work and Can't be Done!
I'm about the last Honest & Experienced appraiser in south FL and I've been saying this for over a year. Now everyone's saying it's a mess......
By the way the Pols are at fault here (and everywhere else they got greedy due to big increase in values/prices) and need told that if the Public must tighten Our belts, SO MUST they! Call out Daily for Tax relief and for them to Cut the pork barrel and stealing and do it now.
State of Florida.com - Florida Elected Officials is the place to find Florida gov't to tell them what you think. NOT only homeowners - don't forget taxes & insurance play a huge part in Landlord's lives too! Every state should be Similar. But here's the thing: the Local/City and County people will dummy up & say it's not them. Send them email and call them ANYWAY cos it IS them. If they didn't steal so much & Waste it, the state wouldn't be facing stiff resistance from those same fools with Our money in their pockets.
Contact me for help in FL at CampbellAppraisal.com - Also on bailout issues and Mtgs etc. See housingbubblecasualty.com GREAT blog on the subject(s)
I do know whereof I speak - check the Daily Business Review pg 1 on 8/21 (or 22) and Miami Herald Pg 1 and 1 (Money) E, for July 1, 2007. After more than 26 years, I have No 'axe to grind' with regard to property value & taxes, mortgages, etc. Lie to Anyone for $350? I just won't. Lie to you for Several Thousand? Yeah, Maybe the realtors & Mtg brokers Might do that.
The very Experienced and ethical appraiser is your Best Ally. Doreen Campbell
The only people that should get bailed out are those who have, in the face of losing their home, have sacraficed and somehow kept their mortgage current. Those who are already in default need to get NO HELP whatsoever! Its proven that people who have good credit and make good decisions seem to find a way to keep their bills (Mortgage) current. These people sell other luxury items in order to keep their home.
I am not in favor of bailing out some idiot, who over extended him/herself, by refinancing to fund his/her BOAT/RV/HARLEY/TIME SHARE etc. Most, and I mean MOST of these situations exist because of RE-FINANCING in order to make future payments or buying a higher style of living.
Good Luck to all, and GOD BLESS..
Mike, Sacramento, California
Last edited by consulo64; 01-22-2008 at 10:16 AM..
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Only bail out those who have sacraficed!
