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Old 03-22-2014, 11:58 PM
 
15,638 posts, read 16,306,696 times
Reputation: 21826

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Quote:
Originally Posted by james777 View Post
No, borrowers cannot be blamed because if the government regulators had not allowed all of these loans, there would not have been any borrowers. If the government regulators had not allowed HELOCs, you would not have been able to apply for and get a HELOC. So blame the government because that is where it started. Government regulators should never have allowed banks to give interest only mortgages to anyone, regardless of whether the applicant was an investor or owner occupant, and regardless of how high the applicant's income is. Interest only mortgages, variable rate mortgages, and mortgages where the payments do not even cover the interest accrued in the first couple of years are all a recipe for disaster. Those products helped greatly to create the disaster that was the Great Crash. All of those products, as did every other type of mortgage needed to be approved by government regulators. Why did the government regulators allow those types of mortgages? Were all of those high paid officials asleep at the wheel? They must have been because I knew people who never set foot in a college or university who could see that the housing market was headed for a crash. The countries whose governments did not allow those types of mortgages did not experience a crash. The countries whose governments required the banks to lend only to borrowers who had a substantial down payment did not experience a crash. Go figure.

People like to blame Wall Street and the bankers because it makes them feel good and they truly believe that their government can do no wrong. They are wrong because the government screwed the American people over big time by being asleep at the wheel and not enacting measures to stabilize the housing market. Yes, you would not have gotten your HELOCs, and many people would not have gotten their dream home or even their granite countertops (heaven forbid), but this disaster would not have happened.


Could of, would of, should of, well it's done, cats out of the bag. You can keep trying to blame one or all but it doesn't much matter whose to blame because there isn't crap we can do about it now.

And at what point did any buyer have a gun pointed at their head to either HELOC or buy something unaffordable? Just because you CAN do something it doesn't mean its a good idea to do it. A little bit of personal responsibility would of gone a long way. Nobody forced these people to do what they did. They willingly went to the slaughter.
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Old 03-23-2014, 01:12 AM
 
Location: Pac. NW
1,801 posts, read 1,253,410 times
Reputation: 2966
This kind of stuff is EXACTLY why the rich keep getting richer and the poor keep getting poorer. It's built into our multi-tiered socio-economic system and is unlikely to ever change.
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Old 03-23-2014, 01:22 AM
 
35,123 posts, read 36,510,785 times
Reputation: 61750
The exact reason we have no debt and our home will be paid for before it is even built but we are going to have a modest home because it is what we want and we have no need to try and impress anyone by owning a home that is too big for our needs.
We also do not believe in a mortgage payment.
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Old 03-23-2014, 02:11 AM
 
Location: Portland, OR
416 posts, read 684,772 times
Reputation: 494
Quote:
Originally Posted by Pfhtex View Post
Banks, borrowers, and realtors are all somewhat culpable, but each group is not 100% evil.

The cliche of The Mean Old Evil Bank is cute and helps people who want to blame one thing, but it lacks accuracy.
Let's not forget the government - from the 1995 revision to the CRA allowing securitization of subprime lending, to Congress' refusal to tighten lending standards on Fannie Mae and Freddie Mac because it would 'harm the dream of homeownership.'
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Old 03-23-2014, 03:10 AM
 
Location: North Carolina
1,764 posts, read 2,168,263 times
Reputation: 1866
I didn't read the quoted material all the way through. Basically, I believe that people should be aware of their own finances and make choices based on that. I have always qualified for more than I was willing to spend. I've lost count how many Realtors and bankers tried to talk us into getting something more expensive just because we "qualified" for it. I ignored them.

At one time provided financial advice to customers as part of a management position. I routinely had to help people figure out how to spend within their means and lost count how many people think credit is "free money." Quite honestly, I was surprised at how many professional people could not manage their income on a day-to-day basis. Given this, I can't say that I was terribly surprised about the banking crisis or the "housing bubble." It is a predictable outcome based on years and years of credit misuse.
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Old 03-23-2014, 05:32 AM
Status: "Oh Canada" (set 7 days ago)
 
Location: Manhattan, NY
882 posts, read 900,076 times
Reputation: 275
Quote:
Originally Posted by BOS2IAD View Post
Well...Anonymous725, since your family is wealthy, I'm sure that when your parents die they will leave you enough money to buy an expensive place outright. Good for you.

Having a mortgage means deductions for interest at tax time. That's nothing to sneeze at.

Unless you are renting a rent controlled or rent stabilized place, expect---and plan for---rent increases. Also, don't be surprised if one day, the place goes condo or the landlord sells to a developer who plans to tear it down.

To each his own. Consider yourself fortunate that you will have enough money to pay for a place outright. If you do that, be sure that you have other money set aside for emergencies.
Please stop the common misconception that my family is wealthy. -- Also, did you follow me here? --

A mortgage is a dangerous loan, and if you get sick or a next of kin dies you're going to lose the house.
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Old 03-23-2014, 06:09 AM
 
48,795 posts, read 48,463,226 times
Reputation: 55804
I've got an FHA loan on my condo and put 3.25% down. The payment including taxes and insurance is less than the rent I was paying previously, and I've made every payment on time for four years, so what is it to anyone else?

Bizarre statement--if my next of kin died, God forbid, why would I lose my house?
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Old 03-23-2014, 06:10 AM
 
4,439 posts, read 7,696,675 times
Reputation: 6331
Quote:
Originally Posted by tommy64 View Post
This kind of stuff is EXACTLY why the rich keep getting richer and the poor keep getting poorer. It's built into our multi-tiered socio-economic system and is unlikely to ever change.
The biggest reason the rich keep getting richer is because the rich invest their extra money, and the stock market is booming. But... they are only rich on paper. However..... one crash and it will be wiped out.
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Old 03-23-2014, 06:42 AM
Status: "Oh Canada" (set 7 days ago)
 
Location: Manhattan, NY
882 posts, read 900,076 times
Reputation: 275
Quote:
Originally Posted by Mightyqueen801 View Post
I've got an FHA loan on my condo and put 3.25% down. The payment including taxes and insurance is less than the rent I was paying previously, and I've made every payment on time for four years, so what is it to anyone else?

Bizarre statement--if my next of kin died, God forbid, why would I lose my house?
What if your next of kin, was your SO and primary income provider and without him/her your income would be decreased to a point it would be difficult to pay your monthly mortgage bill.
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Old 03-23-2014, 06:57 AM
 
Location: DFW - Coppell / Las Colinas
29,115 posts, read 33,455,080 times
Reputation: 34530
Quote:
Originally Posted by Anonymous725 View Post
What if your next of kin, was your SO and primary income provider and without him/her your income would be decreased to a point it would be difficult to pay your monthly mortgage bill.
That's what Life Insurance is for if you're in a tight position where this would happen.

The death of the main income earner could wipe out any family if they've not saved and prepared for these types of emergencies.
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