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This has nothing to do with regulations. Or debt forgiveness.
Sure it does. My lender didn't try to give me more loan than I should have. It self-regulated I guess because I was required to pay a down payment, show proof of income, and a lot more in order to get the loan.
Eliminate regulations AND bank bailouts, stop rewarding irresponsibility and things will go to normal.
Banks that don't have Congress telling them they must give more loans out to people who aren't able to prove credit worthiness, tend not to recklessly handout money. Those that did recklessly handout money are now rewarded with huge bailouts.
The best thing would be for the government to step out of it and let the chips fall where they will. It's done enough damage.
Sure it does. My lender didn't try to give me more loan than I should have. It self-regulated I guess because I was required to pay a down payment, show proof of income, and a lot more in order to get the loan.
Eliminate regulations AND bank bailouts, stop rewarding irresponsibility and things will go to normal.
Banks that don't have Congress telling them they must give more loans out to people who aren't able to prove credit worthiness, tend not to recklessly handout money. Those that did recklessly handout money are now rewarded with huge bailouts.
The best thing would be for the government to step out of it and let the chips fall where they will. It's done enough damage.
But irresponsibility was being rewarded! IMHO you trust way too much. Much of this crisis could have been averted through tougher regulation. The banks didn't HAVE to lend money. The had the OPPORTUNITY to lend money because Wall Street provided a market for banks to sell their bad loans. Banks were not forced to make loans. They loved it! They could write fraudulent loans and sell them.
But irresponsibility was being rewarded! IMHO you trust way too much. Much of this crisis could have been averted through tougher regulation. The banks didn't HAVE to lend money. The had the OPPORTUNITY to lend money because Wall Street provided a market for banks to sell their bad loans. Banks were not forced to make loans. They loved it! They could write fraudulent loans and sell them.
I think less government interference would have prevented all this.
Congress and the White House back some time ago told the lenders they had to lend money to those people who otherwise cannot be given big loans.
Now the government bailouts out both the irresponsible banks and the irresponsible borrowers.
It's the responsible that aren't rewarded. What do I get for taking a modest loan and working two jobs as needed, and paying my mortgage?
I know there was a lot of fraud -- but if the banks lose when they lend out haphazardly, soon they will learn their lesson and stop throwing away their money.
The truth is most people care how much it will cost them a month and could care less about the interest over 30 years. I myself never had a car payment nor do I have a mortgage on my primary home.
Thats completely true. All I care about on my investment properties is
Monthly income - monthly expense - monthly mortgage = $x profit.
$x down payment / $x profit = yield..
Yes! Your mortgage should be forgiven. It's not your fault that you bought a home you couldn't afford. After all, banks are *gasp...making money. That's not fair! They should have to lend money for free!
Owning a home, like having health insurance, is your right as an American damnit! I'm pretty sure it's in the constitution...right next to the part about food stamps and welfare.
This is a hard issue for me. While I personally am not having problems with my mortgage or LTV (I've been in my house for 20 years) I know people who are. Having bought homes similar to mine (starter homes) at the height of the market, with a good down payment and traditional loan, only to see the value plunge is disheartning, especially if they have no choice but to move. The banks have already lost, they won't get the full value if they foreclose...so on the one hand I see people owing 1/3 more than their house is currently worth and they did nothing wrong.
On the other hand, I also know people who "moved up" into homes they could barely afford with creative financing, risking no money of their own, etc. They are in houses I would not have streatched myself to buy becasue it never made financial sense. The only way it was going to work is for their home values to contiue going up Up UP so they could refinance their way out of the mess they made. The bottom line is they couldn't afford it then so why should they afford it now? To see any of them have their principal cut down makes me a little ill. In those cases they actually would be rewarded for stupidity...and for happening to be stupid at just the right moment in time.
But honestly, I don't see any of them being helped by principal forgiveness. Some have tried but it's not a simple thing to do. And even if it was, some still won't be able to afford it.
A person, who bought a home, say 7 or more years ago, thru a mortgage, has in a sense, already completely paid off that mortgage, multiple times over. The initial holder of the mortgage, has sold them to Banks and other Financial companies, who have in turn bundled them and sold them to other Financial companies, who in turn kept selling these bundles, along with "insurance" to "guarantee" their asset value. Every time these companies made a sale, they made profit, and so on and so on. This profit has been collected year after year, invested in other things, gone to salaries, commissions, bonuses, dividends, etc. All those involved, except the home owner, have seen huge returns far exceeding that expected on the initial holder of the mortgage. The mortgage holder, has sold them to Banks and other Financial companies, who have in turn bundled them and sold them to other Financial companies, who in turn kept selling these bundles, along with "insurance" to "guarantee" their asset value. Every time these companies made a sale, they made profit, and so on and so on. This profit has been collected year after year, invested in other things, gone to salaries, commissions, bonuses, dividends, etc. All those involved, except the home owner, have seen huge returns far exceeding that expected on the original house sale. Should we not just forgive the debt of that original home buyer? Just a thought.
now wouldn't we all love that? Why not just wipe out everyones credit card debt while you are at it and how about fogiving those car loans, increase everyone income and double our SS checks..We would all live happily ever after...Actually no loans should be forgiven, not any, not anywhere. You know when you borrow you will be paying at a certain rate, if you didn't realize it, well too, too, bad..
Yes! Your mortgage should be forgiven. It's not your fault that you bought a home you couldn't afford. After all, banks are *gasp...making money. That's not fair! They should have to lend money for free!
Owning a home, like having health insurance, is your right as an American damnit! I'm pretty sure it's in the constitution...right next to the part about food stamps and welfare.
I hope and think you're being sarcastic. Owning a home isn't a right, it's a priveledge.
No one except the wealthy owned homes until the 1940/1950s. If everyone just bought homes they could afford and if the government (under the Republicans) didn't allow the sale of toxic mortgages, we probably wouldn't be in a recession right now.
Lets forgive all student debt while we're at it. Mine's as much as a mortgage. I could have bought a 3 bedroom/2 bath home in suburban new york for the cost of my education.
What sense would that make? Just GIVE people houses? All those who bought beyond their means just get handed a house they wouldn't be able to afford to buy? Leave those who rent to their own and hand over houses to those who are buying?
NO
I agree with you, i am sorry i was in real easte for over 10 years, there are those who buy beyond their means, and know it from the geko. I will not even be looking at a house i know we could not afford no way no how, and no lender would talk me into it. My answer is also NO.
What sense would that make? Just GIVE people houses? All those who bought beyond their means just get handed a house they wouldn't be able to afford to buy? Leave those who rent to their own and hand over houses to those who are buying?
NO
No kidding. Just pay the mortgage and stop complaining. If you bought beyond your means, the bank needs to foreclose. This is the consequence for spending money recklessly. What next? Let's have all student loans forgiven, all credit card debt forgiven, all car loans forgiven, and let's just let everyone have everything for free. Then the government will go broke and no one will have a job.
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Then the government will go broke and no one will have a job.
