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Thread summary:

Home foreclosure gloom, ARMs or people just walking away, buyer responsibility, no blame placed on realtors, lender fault, lender secured by asset, overextending budget

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Old 07-30-2008, 12:14 PM
 
25,367 posts, read 37,625,571 times
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Quote:
Originally Posted by Va-Cat View Post
I agree - but how to you track down and punish ALL the offenders? This was one very obvious case of fraud. Do we start a witch hunt to root out every single case out there? What about the ones that stated their income as higher to qualify? They are just as guilty. I wouldn't even know where one would start with the amount of documents that would have to be reviewed to succussfully take this approach. The cost of this would do more to hurt the situation than help it. On theory I agree that it would be great to punish all that had a hand in bringing the real estate market to where it is now. But how and what greater good would be achieved other than a sense of satisfaction? It wouldn't do anything to make the situation any better
Yes they should, IMO.
I have proof that a sales rep. tried to get a ARM for a person who didn't have a job and after being denied bu Countrywide, to get a mortgage so the deal could be closed. There was so much proof against this builder that people got fired at the builder and the person who had a deposit were paid back....that isn't just one case that just happened, and many people who act like nothing like this happened know better.

When the government will go after the mortgage brokers, than the appraisers and the realtors and buyers and who else is also involved will come out with who are all to blame...that might be intersting to watch. If nothing will be done than many more people will walk away soon or will default so they will be able to get a lower mortgage rate and who will end up paying for that?
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Old 07-30-2008, 12:56 PM
 
3,583 posts, read 10,280,748 times
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Originally Posted by bentlebee View Post
Yes they should, IMO.
I have proof that a sales rep. tried to get a ARM for a person who didn't have a job and after being denied bu Countrywide, to get a mortgage so the deal could be closed. There was so much proof against this builder that people got fired at the builder and the person who had a deposit were paid back....that isn't just one case that just happened, and many people who act like nothing like this happened know better.

When the government will go after the mortgage brokers, than the appraisers and the realtors and buyers and who else is also involved will come out with who are all to blame...that might be intersting to watch. If nothing will be done than many more people will walk away soon or will default so they will be able to get a lower mortgage rate and who will end up paying for that?
Yes I agree it would be interesting to watch but I'll ask again - to what end? How will that help with the real estate crisis as it is today? Wouldn't putting laws and regulations in place that will keep it from being so easy to do work better? I understand your belief that "Some ones got to pay!" but what does it achieve over the long run and for the big picture? There will always be con artists. When you shut them down in one area they just pop up somewhere else. Sort of like the arcade game "Wack a mole".
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Old 07-30-2008, 02:10 PM
 
25,367 posts, read 37,625,571 times
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Quote:
Originally Posted by Va-Cat View Post
Yes I agree it would be interesting to watch but I'll ask again - to what end? How will that help with the real estate crisis as it is today? Wouldn't putting laws and regulations in place that will keep it from being so easy to do work better? I understand your belief that "Some ones got to pay!" but what does it achieve over the long run and for the big picture? There will always be con artists. When you shut them down in one area they just pop up somewhere else. Sort of like the arcade game "Wack a mole".
I agree new laws to make the things that have happened no longer possible and you know as well as I do, there will always people who find loop holes or are smarter than us and try to scam others, but meanwhile IMO they should go after the pro's and buyers and trial them in a court of law and decide who is guilty and who is not, just to show to others thinking of just walking away with no reason other than that the value is down, .. to think twice otherwise we will get more and more walking away.
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Old 07-30-2008, 02:11 PM
 
Location: Charlotte, NC
2,193 posts, read 4,456,825 times
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Quote:
Originally Posted by bentlebee View Post
Yes they should, IMO.
I have proof that a sales rep. tried to get a ARM for a person who didn't have a job and after being denied bu Countrywide, to get a mortgage so the deal could be closed. There was so much proof against this builder that people got fired at the builder and the person who had a deposit were paid back....that isn't just one case that just happened, and many people who act like nothing like this happened know better.

When the government will go after the mortgage brokers, than the appraisers and the realtors and buyers and who else is also involved will come out with who are all to blame...that might be intersting to watch. If nothing will be done than many more people will walk away soon or will default so they will be able to get a lower mortgage rate and who will end up paying for that?

One issue is though is even if a person doesn't have a job suppose they saved up 300K and are just buying a 100K home. They should be able to qualify for a mortgage. It's really up to the buyer to know their own financial situation. Other people don't know how much money they have in all their bank accounts.

Who is responsible for knowing their own money? Why should all the blame lie on a broker who is filling out documents or a person showing them the house. Only the buyer will know his/her own financial situation. He knows if he just inherited a million dollars or if he saved 500K. Doesn't matter whether he has a job or not. A person could have a job today and close and tomorrow not have a job.
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Old 07-30-2008, 02:39 PM
 
25,367 posts, read 37,625,571 times
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Originally Posted by sheenie2000 View Post
One issue is though is even if a person doesn't have a job suppose they saved up 300K and are just buying a 100K home. They should be able to qualify for a mortgage. It's really up to the buyer to know their own financial situation. Other people don't know how much money they have in all their bank accounts.

Who is responsible for knowing their own money? Why should all the blame lie on a broker who is filling out documents or a person showing them the house. Only the buyer will know his/her own financial situation. He knows if he just inherited a million dollars or if he saved 500K. Doesn't matter whether he has a job or not. A person could have a job today and close and tomorrow not have a job.
You and I know that but there are first time buyers who have not much knowledge about the process of buying a home and maybe didn't have any close once who own their own home and just listened to what the professionals told them and if some one explains craps in a very well way, people may fall for that, not you and me.... but shouldn't it be the responsibility of the pro's to give responsible advise, which we all know didn't happen all the time.
Still I agree you are responsible for signing papers with wrong info and should be held accountable for that.
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Old 07-30-2008, 05:13 PM
 
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There will be a lot of people that have had their homes foreclosed who will be surprised to get a big tax bill from the I.R.S.
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Old 07-30-2008, 05:32 PM
 
3,583 posts, read 10,280,748 times
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Originally Posted by Wendell Phillips View Post
There will be a lot of people that have had their homes foreclosed who will be surprised to get a big tax bill from the I.R.S.
I wish the news media would advertise that fact. It would make some that are just in the negative on their equity to work a little harder to resolve their issues before walking away.
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Old 07-30-2008, 05:39 PM
 
Location: Pennsylvania, USA
5,217 posts, read 4,124,044 times
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Quote:
Originally Posted by Va-Cat View Post
I wish the news media would advertise that fact. It would make some that are just in the negative on their equity to work a little harder to resolve their issues before walking away.
The reason they don't advertise that fact is because it's not true. Earlier this year Bush passed a law called the Mortgage Debt Forgiveness Relief Act of 2007 which simply states that the difference from a short sale/foreclosure is forgiven by the IRS and is not counted as income.

Seems kind of silly anyway to have to report the difference and pay income tax on money you don't have and never did have to begin with. But alas this Bill applies to the years 2007-2009.

I also checked with my attorney when going over my options.
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Old 07-30-2008, 07:10 PM
 
Location: Southeast Georgia
65 posts, read 216,328 times
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Quote:
Originally Posted by TristansMommy View Post
First off.. the homeowners are NOT getting a bail out.. THE BANKS AND INVESTORS ARE
How do you figure if the government it moving people into a fixed rate gov. backed loan?
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Old 07-30-2008, 07:15 PM
 
Location: Pennsylvania, USA
5,217 posts, read 4,124,044 times
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Originally Posted by phantoms View Post
How do you figure if the government it moving people into a fixed rate gov. backed loan?

Oh please.. the gov't has been giving the banks handouts for months.. and there are provisions of the bill that does just that.. and this is voluntary.. the banks /investors have to agree to it. if they don't, it won't work.. if it doesn't work what do you think the gov't will do then.. give the banks more handouts..

We're a corporate welfare nation lately at the expense of the people... and if the banks wuold have just worked things out with their homeowners on their on to begin with..t he gov't wouldn't have had to step in with the FHA securing to begin with.. it was done so that the banks can minimize their losses while also minimizing their risk at the expense of the taxpayers..
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