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.
No loan might be the right answer for folks who really can't afford the expenses.
In my opinion, the immoral scum that set these loans up ought to lose their investment. The mortgages should be released as unconscionable giving the homes free and clear to the borrowers.
A kick below the belt like that might restore credibility to the financial services industry and the investors that buy their tainted instruments.
In my opinion, the immoral scum that set these loans up ought to lose their investment. The mortgages should be released as unconscionable giving the homes free and clear to the borrowers.
This is equivalent to saying that people should not take responsibility for their decisions. Lenders might have allowed some people to borrow more money than they could afford, but the borrowers are ultimately responsible for borrowing the money. No one gave them money volunteerly. They had to initiate the whole process.
People have brains and know how to read and write. Most people who are loosing their homes are loosing it because of the adjustable rate, and they knew very well that they cannot afford to pay what they borrowed. Others who borrowed equities to buy luxury cars or take a lavish vacation are also responsible and should not be bailed out
Also, I disagree with the calls - from high profile people in the news- on the FED to bail out the mortgage companies and home owners.
Mortgage companies were greedy and they made a lot of money in the past 8 years. Now it is the time to pay for their flowed business practice.
Most people who are going for foreclosure should learn from their mistake and not bite on more than what they can chow on.
I partially agree with you, John. However, there wasn't a level playing field in many of these cases.
As an ex banker, I assure you that many borrowers were totally misled and got into some very exotic loan products because they trusted the mortgage brokers. Especially the seniors who were fleeced in refi scams, these people ought to be able to get out whole and without ruining their credit profile for 7-10 years.
Things such as option mortgages are for sophisticated investors who understand the implications of negative amortization and APR resets, not the average bear being promised entry into homeownership and not wanting to doubt the dream being proposed to them.
By unconscionable, I mean that the court decides the mortgagor was hoodwinked. If so, the loan needs to be discharged to the loss of the investor and/or originator.
Those who sin must pay the price. Bailing these lowlives out will only reassure them and their investor cohorts that there will be no price to pay for these misdeeds in the future.
[quote=saturnfan;1349172]By unconscionable, I mean that the court decides the mortgagor was hoodwinked. If so, the loan needs to be discharged to the loss of the investor and/or originator.[quote]
That presents a whole new issue of those people going into already overburdened courts crying "poor me I need my house free and clear" even if they knew EXACTLY what they were getting themselves into. Then average guy taxpayer gets stuck with yet another bill. Nope, not on my dollar thank you very much. Yes, there were many people scammed by the exotic loan programs that were available, but many, many more KNEW what they were doing and were banking on houses continuing to increase in value or new, better paying jobs or an inheiritance, etc. Basically chasing the golden carrot while living a lavish lifestyle they couldn't support to keep up with the Joneses.
Does anybody remember how we bailed out the banks in Texas in the 80's? If we can bail out banks and airlines and every other corporation under the sun we can help homeowners. Enough said. It's the lender's responsibility to check credit, employment history, etc.
I still feel that the customers were deceived by the complex mortgage products being foisted on unsophisticated customers.
Just as stockbrokers are being held accountable to suggest suitable investments, mortgage brokers need to be responsible for properly guiding their customers.
If the buyer is well versed in finance, caveat emptor. If not, the broker's duty is to properly guide the customer into a suitable loan product.
That's how we used to behave in banking years ago.
You can never assume the person/company that you are doing business with is trustworthy. "Caveat emptor" even if you are not financially savvy. And if you are not, hire someone who is to review that papers on your behalf.
I am sorry for the people who truly were taken advantage of. I have been there myself. But I resent the government's "big brother must protect you" attitude. Every time something goes wrong with anything, people/congress want legislation enacted. Good grief, we're going to be so regulated that we're going to need congress' permission to use the bathroom, and I am going to be able to sue my son when he "misses".
Sorry folks, but this one gets under my skin. Save the regulation for pharmaceutical companies or tobacco companies where there is PROOF of illegal and, more importantly, unethical practices. If a bunch of people went out and bought houses they couldn't afford and it messed up the whole economy, more government regualtion is not necessarily the answer.
If we really want to help, let's add finances and budgeting to highschool curriculums. And let's all chuck our TV's out the window so we don't have to watch the commercials that make us believe we need all this junk. Oh! and we definitely need to teach folks how credit card works. I got my first one in college and paid for that one for years. Hmm, let's see, we could require that our highschoolers (and some adults, for that matter) visit third world countries so they can see that a 2000 sq ft house here is America is a mansion compared to how the rest of the world lives.
Whew....that was a bit of a rant wasn't it. oh well, sorry, it just reminded me of the kid who blames his misfortune on someone else, never able to take accountability for his own actions. It's always someone else's fault....and dang it, life just isn't fair
If a bunch of people went out and bought houses they couldn't afford and it messed up the whole economy, more government regualtion is not necessarily the answer.
..
If we really want to help, let's add finances and budgeting to highschool curriculums. And let's all chuck our TV's out the window so we don't have to watch the commercials that make us believe we need all this junk.
..
Whew....that was a bit of a rant wasn't it.
But a good one, you should get flooded with green dots
There's an unspoken group affected by this, though we aren't the cause: folks nearing retirement who were responsible with credit; not getting themselves into jams borrowing for a lifestyle they knew they couldn't afford; who also were thrifty in building a retirement fund. We're seeing our 401k balances and investments bouncing all over the place. We're a bit scared and a lot p*ssed by the way the stock market is being affected by the housing mess and can only pray it settles by the time we think of quitting our corporate/full-time/main income jobs and have a chance to rest after 40-45 years of employment.
We didn't have; even need; budget classes in school - plain math sufficed: you earn X dollars=you can afford X dollars for a mortgage/car/credit card payments. Going over that meant living on ramen noodles for a loonnnng time, or sheepishly approaching your parents for help and having to listen to them lecture you like you are twelve again and overspent your allowance. Most of the time, you'd rather just live on the noodles
I think those who've gotten in over their heads should just suffer burnt fingers. As my grandfather would say "that'll learn 'em". One generation of people who are used to being rescued will only breed another generation even worse. It's a bad thing for the economy overall for people to think they can have what they can't afford. It also affects those of us who have, basically, practiced a more frugal lifestyle.
There is a pretty good article in today's N&O regarding the current mortgage climate.
Page 4G of the Real Estate section. I can't find it in the online issue, so no link.
Discusses how the liquidity issue developed, gives an opinion where we are headed, and makes my favorite current point: if you want a new mortgage, forget about spinning your wheels trying to save a few bucks with shady internet lenders, but stay local.
I strongly prefer to work with buyers who are talking to brick and mortar lenders with a local presence.
I tend to agree with the article author's approach that things will shake out over the next year and stabilize.
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.
by the way the stock market is being affected by the housing mess and can only pray it settles by the time we think of quitting our corporate/full-time/main income jobs and have a chance to rest after 40-45 years of employment.
