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.
The democrats are trying to introduce a bill that does two things:
1) Provide BILLIONS and BILLIONS of dollars to restructure all mortgage loans at risk for bankrupcty to a LOWER principal amount and interest rate. I would love to be able to say my 300k home is now worth only 200k so banks have to lower my principal. This would NEVER happen... that is unless I am a subprime borrower. Not only that irresponsible people with low credit scores getting better interest rates than me? Does anyone see anything wrong with that?
2) Provide 4 BILLION dollars to "local communities" to buy foreclosed homes? Aren't foreclosed homes already CHEAP? Do you need to throw money at them to buy? It is basically trying to throw money at speculators and investors... people who caused this whole mess.
3) 200 M for counseling (big business) and home builders (big business)... If I wanted to give money to big business, I would of done so already. No thanks!
The democrats are trying to introduce a bill that does two things:
1) Provide BILLIONS and BILLIONS of dollars to restructure all mortgage loans at risk for bankrupcty to a LOWER principal amount and interest rate. I would love to be able to say my 300k home is now worth only 200k so banks have to lower my principal. This would NEVER happen... that is unless I am a subprime borrower. Not only that irresponsible people with low credit scores getting better interest rates than me? Does anyone see anything wrong with that?
2) Provide 4 BILLION dollars to "local communities" to buy foreclosed homes? Aren't foreclosed homes already CHEAP? Do you need to throw money at them to buy? It is basically trying to throw money at speculators and investors... people who caused this whole mess.
3) 200 M for counseling (big business) and home builders (big business)... If I wanted to give money to big business, I would of done so already. No thanks!
I cant figure it out myself. Next you'll hear all kinds of stories about appraisal fraud going rampid because people will find appraisers to say that their house values have fallen so they can take advantage of yet another government program that didnt need to be put into place.
Add to this the domino affect, I lower my home value to get a free handout from the government, then this also lowers the amount of school taxes I pay, which then will start a want to nationalize and socialize the school taxes.
And for those who think appraisers would never do such a think, I just ordered 3 appraisals on a property, one came back $141,000, 2nd one $195,000, 3rd one I'm waiting for.. Guess what appraisal I would use?
The democrats are trying to introduce a bill that does two things:
1) Provide BILLIONS and BILLIONS of dollars to restructure all mortgage loans at risk for bankrupcty to a LOWER principal amount and interest rate. I would love to be able to say my 300k home is now worth only 200k so banks have to lower my principal. This would NEVER happen... that is unless I am a subprime borrower. Not only that irresponsible people with low credit scores getting better interest rates than me? Does anyone see anything wrong with that?
The BK courts have actually been doing this very thing for years - we call it a "cram down" - the Senate bill merely codifies it. It started in the 80's and the S+L failures -
The concept is bascially; if a borrower owes 300K on their home and it is foreclosed - and the lender resells it - what would the lender get? 250k???
Well, if that is all the lender would get anyway - it is better to try to keep the homeowner in their home - reduce the loan. As for the interest rate: Many of these ARM's have gone into double digit interest rates - reduce the interest rate to market - again, keeping the homeowner in the property.
The BK courts have actually been doing this very thing for years - we call it a "cram down" - the Senate bill merely codifies it. It started in the 80's and the S+L failures
There is a huge difference between what the BK courts do, and whats being proposed.
Under BK, the creditor is not taking tax money to fund their losses, they get either payments, or a house back.. no check for the losses from me
Quote:
Originally Posted by Greatday
Well, if that is all the lender would get anyway - it is better to try to keep the homeowner in their home
And who is the government to decide by matter of law, that the bank will be forced to take less?
The government needs to back out of this. Home mortgages are for 30 years, and to start bailing people out because we've had 1 down year is one of the stupidest ideas I've ever heard of.
What, we bail people out now, and in 5 years when the home appreciates again do we then re-write the laws to allow banks to take a percentage of the profits on homes that have appreciated, in order to help bail out the banks that were profitable, and now losing money because of federal mandates?
Hey, why stop at housing.. I lost money in stock market last year, I WANT MY BAILOUT!
The homeowners are irrelevant to this situation. The point is to bail out the banks and the bank's investors by keeping some value in the home and someone in it to protect that value.
I think we should just let the entire system collapse and let the foreclosures happen without restraint. The only way to chastise speculators is to let the market collapse and let the dominoes fall where they may. The prudent homeowners will not be damaged because they will still have a place to live and, even if they cannot realize a speculative gain, they will not loose any of the real value of their house.
The fools the speculators enticed into buying more than they could sustain will loose their initial investment and the banks most of the money they risked. The people that invested in the banks insured savings accounts would be protected from the inevitable bank and brokerage company failures and the resulting stock market crash. The speculators that have kept their ill-gotten gains in the housing market will be ruined. The ones that got out while the getting was good will probably be ruined in the stock market crash. The rest of us that have invested in uninsured accounts had better bail out ASAP.
they are trying to win an election (all of them, not just democrats)
sadly, individual responsibility is off the policital radar
we just sit back and listen about how "they" are going to "help" us with our own money (or, depending on your income, money taken from you and given to others who made bad decisions)
they are trying to win an election (all of them, not just democrats)
sadly, individual responsibility is off the policital radar
we just sit back and listen about how "they" are going to "help" us with our own money (or, depending on your income, money taken from you and given to others who made bad decisions)
Anyone who starts to talk about helping me, with my money.. does not get my vote.
yes, this election will be about who's talking about taking less of my money then anyone else because they are all talking about taking it..
GregW wise words.....let the mortgage markets collapse and everything else according to the GOP plan...somebody will make money but it won't be homeowners.
GregW wise words.....let the mortgage markets collapse and everything else according to the GOP plan...somebody will make money but it won't be homeowners.
GOP "plan"? care to provide a source for such valuable information?
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.
