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Thread summary:

Government offering distressed mortgage holders 2% interest rates, historically low interest rates, five year 2% interest rate period, adjustable rates after 5 year mark

 
 
Old 03-05-2009, 06:25 PM
 
706 posts, read 574,419 times
Reputation: 133
Quote:
Originally Posted by theoakman View Post
rofl, I don't want them to go to section 8. I don't want section 8 to exist. They should sell their house, take the equity, rent some place small until they get employed again, and then, maybe they can buy something again at a lower price! And the beauty of it is, they can do it with all their own money! Instead, you are advocating policies that will hurt people who rent and possibly put them out on the street in the process. Why should people less fortunate than your parents be forced to support their lifestyle which is possibly HIGHER than their own?

again, i NEVER suggested or advocated. and what is "rofl"?
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Old 03-05-2009, 06:34 PM
 
706 posts, read 574,419 times
Reputation: 133
Quote:
Originally Posted by theoakman View Post
First off, I'm not in support of any bailout. No one is getting their money back on these bailouts. If you believe that, you are being naive.

I don't disagree that property taxes are beyond ridiculous in this state, but the solution to that isn't to send homeowners money at the expense of other taxpayers, some of whom, already pay property taxes themselves. I would encourage you to lobby as many people to vote for a candidate who truly understands why property taxes are so high and plans to actually take action to lower them.

This does not change the fact that this particular bailout bill sends money to homeowners at the expense of those who don't. You are giving to the haves from the have nots. This is completely immoral.

You specifically said "why should they pay someone elses mortgage?". I'm glad you see it our way. Why should we pay your parents mortgage? At least your parents would get a place to live in with those rental payments. We get nothing when our money is sent to your parents.
No i don't see it your way. Maybe there's different versions of the mortgage bailout, not sure because all of the information hasnt been release. But what seems to be suggested is, the government should do nothing, allow the banks to fail, allow surplus of homes to just sit on the market. Just imagine 6-10 months from now, we'll be that much closer to the "depression" era.

Not advocating Big Government, but they dropped the ball, they need to find a better way.
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Old 03-05-2009, 06:54 PM
 
174 posts, read 267,743 times
Reputation: 82
I've read comments here about people being "stuffed" into Subprime loans when they qualified for conforming loans. Did some of that happen? Sure. Was it extensive?

When I did loans I dealt with alot of independent contractors; painters, plumbers, contractors. Savvy guys that had just a high school diploma. I think the number of people that truly qualified for a conforming loan that did not know it is vastly overstated.

No one is ever guaranteed a re-fi except by a crook. Anyone who believed is an unfortunate simpleton. I may feel sorry for them, but I wonder how they earn enough to own a Yugo, let alone a home. Did their income plunge, go Bankrupt, lose their credit rating? If they qualified and had equity, why would a bank say no?

I had numerous clients that had already done one or more "cash out re-fi". They got money, sure, but this raised their principal. Whatever happened to buying a home then making payments until you owned it? I wonder how bad the current situation would be if even only half of those who re-ed had not done so?

BTW, does anyone have accurate figures on how many in foreclosure are because of layoff? It's often cited as the main reason, but I'd prefer to see actual facts on this rather than speculation. That's fair, isn't it?
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Old 03-05-2009, 06:58 PM
 
Location: NJ
383 posts, read 465,758 times
Reputation: 178
Quote:
Originally Posted by proudmama View Post
No i don't see it your way. Maybe there's different versions of the mortgage bailout, not sure because all of the information hasnt been release. But what seems to be suggested is, the government should do nothing, allow the banks to fail, allow surplus of homes to just sit on the market. Just imagine 6-10 months from now, we'll be that much closer to the "depression" era.

Not advocating Big Government, but they dropped the ball, they need to find a better way.
Obviously, I'm not a hardliner on this bailout because I understand not all situations are the same. That is why I hope this program works for your family. However, personally, my frustration in part lies with the belief that as in any big government program like this there will be many abuses.

There will be plenty of younger folk who bought too much home with little down and lied about their income to "keep up with the Jones".

There will be flippers who got caught and are sitting on a property.

There will be those that can afford to pay their current mortgages but will still game the system to qualify for relief.

There will be those who lived like celebrities by cash out refi'ing and now get relief.

And many other scenarios.

I'd like to see the final guidelines, and even though I don't believe in the concept, I hope the money goes to the most responsible. But I have an inherent distrust that the gov't can or will do anything right.
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Old 03-05-2009, 07:07 PM
 
706 posts, read 574,419 times
Reputation: 133
Quote:
Originally Posted by xmonger View Post
Obviously, I'm not a hardliner on this bailout because I understand not all situations are the same. That is why I hope this program works for your family. However, personally, my frustration in part lies with the belief that as in any big government program like this there will be many abuses.

There will be plenty of younger folk who bought too much home with little down and lied about their income to "keep up with the Jones".

There will be flippers who got caught and are sitting on a property.

There will be those that can afford to pay their current mortgages but will still game the system to qualify for relief.

There will be those who lived like celebrities by cash out refi'ing and not get relief.

And many other scenarios.

I'd like to see the final guidelines, and even though I don't believe in the concept, I hope the money goes to the most responsible. But I have an inherent distrust that the gov't can or will do anything right.


Xmonger, i agree. Not only folks purchasing homes that couldn't afford without thought, but those who refinanced their homes, then took out some of the equity. I've been saving up for years to purchase a home, right now i'm paying what some currently pay for mortgage. Everyone says, "now is the time to buy", that may be so, but the job market is tied to the economy and until that picks up, i just can't see myself going ino that type of debt.
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Old 03-05-2009, 07:08 PM
 
174 posts, read 267,743 times
Reputation: 82
Quote:
Originally Posted by xmonger View Post
Obviously, I'm not a hardliner on this bailout because I understand not all situations are the same. That is why I hope this program works for your family. However, personally, my frustration in part lies with the belief that as in any big government program like this there will be many abuses.

There will be plenty of younger folk who bought too much home with little down and lied about their income to "keep up with the Jones".

There will be flippers who got caught and are sitting on a property.

There will be those that can afford to pay their current mortgages but will still game the system to qualify for relief.

There will be those who lived like celebrities by cash out refi'ing and now get relief.

And many other scenarios.

I'd like to see the final guidelines, and even though I don't believe in the concept, I hope the money goes to the most responsible. But I have an inherent distrust that the gov't can or will do anything right.
I understand your "inherent distrust". Sounds like you recently had to visit DMV!
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Old 03-05-2009, 07:13 PM
 
174 posts, read 267,743 times
Reputation: 82
Quote:
Originally Posted by proudmama View Post
Xmonger, i agree. Not only folks purchasing homes that couldn't afford without thought, but those who refinanced their homes, then took out some of the equity. I've been saving up for years to purchase a home, right now i'm paying what some currently pay for mortgage. Everyone says, "now is the time to buy", that may be so, but the job market is tied to the economy and until that picks up, i just can't see myself going ino that type of debt.
If they couldn't afford it, they wouldn't have been approved. You know, like a 21 year old making $25,000.00 doesn't get approved for a BMW. At the time of purchase, wage statements said you COULD afford the loan.

It's math, not magic.
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Old 03-05-2009, 07:26 PM
 
Location: NJ
383 posts, read 465,758 times
Reputation: 178
Quote:
Originally Posted by topster7 View Post
If they couldn't afford it, they wouldn't have been approved. You know, like a 21 year old making $25,000.00 doesn't get approved for a BMW. At the time of purchase, wage statements said you COULD afford the loan.

It's math, not magic.
To be fair. As I understand it, lenders were making loans based on the adjustment period on ARMS. Upon reset many people found out they could no longer afford the payments. Now the standard is to approve the loan based on the period after reset.

For the record, I wouldn't go with anything other than a 15 or 30 yr fixed. Especially now.
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Old 03-05-2009, 07:27 PM
 
Location: NJ
383 posts, read 465,758 times
Reputation: 178
Quote:
Originally Posted by topster7 View Post
I understand your "inherent distrust". Sounds like you recently had to visit DMV!
lol. If you think NJ DMV is bad, NY DMV will have you wishing you were never born.
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Old 03-05-2009, 07:30 PM
 
706 posts, read 574,419 times
Reputation: 133
Quote:
Originally Posted by xmonger View Post
lol. If you think NJ DMV is bad, NY DMV will have you wishing you were never born.


aww, come on, the DMV has gotten better. I was in and out within 10 minutes when i had to renew my license. lol.
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