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Old 02-25-2008, 04:05 PM
 
Location: Georgia, on the Florida line, right above Tallahassee
10,474 posts, read 14,813,800 times
Reputation: 6381

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Interesting article. Apparently Bank of America wants America to give it 739 billion dollars, to help the economy or something.

I liked the last blurb. I think it is a huge load of bullspit. Why? Because I'm not broke, I don't have any credit card debt. I don't owe a dime to any creditor at all, actually. And I didn't buy a home I couldn't afford. So, why in God's name, should I pay for someone's greed/stupidity/inability to read a contract. I didn't sign the ******** contract.

WHY SHOULD I PAY FOR IT>>>> ARGH>>>>

Its like walking by and someone is on fire and you're all like "Dude, you're on fire." and he's all like "Well, there was this guy selling gas and matches here, so I bought some and poured it on me and set myself on fire and "OH! GOD! It burns! OH, GOD! THE PAIN!" ..."Ermm.....can you can you help pay for my medical bills 'cuz I'm too stupid to know better than to set myself on fire?".......and while he's saying all THAT.......there's the guy standing there......who's counting the money the idiot just paid......and he's looking at you and saying "Yo. I know you didn't buy any gas, but I need some money to pay for being sued for what I just did."

And then this dude in a suit waltzes over, hits you with a Tazer - and takes your wallet.
"Thanks for the support, chum." he says, as he walks away whistling.


“Every citizen has a dog in this hunt,” said John Taylor, president of the National Community Reinvestment Coalition, a community advocacy group that has developed its own mortgage buyout plan. “The cost of spending our way out of a recession is something that everybody would have to bear for a very long time.”

I see this from the opposite side. The side that says "If you screw up, we'll make non-screw ups pay for your screw ups."

Why is bad behavior being rewarded? Why is good behavior not being rewarded?

If I buy a car, and I can't pay for a car, that car gets repossessed. If I overspend on credit and I can't pay it back, then I have to declare bankruptcy and suffer the consequences.

A home is a THING. It is WOOD and DRYWALL and all sorts of other THINGS that are slapped together to make a CAVE with lights. What the heck is the difference? Why should I have to pay for this THING that they bought?

IT IS NOT MY FAULT> It's THEIR FAULT. THEY SHOULD DEAL WITH IT> Not ME! I've been RESPONSIBLE> ARGH!!!!!!!!!!!

http://www.nytimes.com/2008/02/23/bu...23housing.html
Federal Homeowner Preservation Corporation
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Old 02-25-2008, 04:18 PM
 
Location: Marietta, GA
857 posts, read 4,685,826 times
Reputation: 837
Man... I am so jealous. I have an affordable mortgage because I made a hefty downpayment and made sure the monthly payments fit my budget.
Is it too late for me to get one of these idiotic loans so that I can get the bank, and ultimately the taxpayer, to pay for my poor judgment???
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Old 02-25-2008, 08:37 PM
 
Location: WA
5,560 posts, read 23,110,910 times
Reputation: 6354
BOA is not asking for a bail out. If the rumor is true it is simply floating a proposal that quantifies the mortgage problems in the country.

"The proposal warns that up to $739 billion in mortgages are at “moderate to high risk” of defaulting over the next five years and that millions of families could lose their homes.

To prevent that, Bank of America suggested creating a Federal Homeowner Preservation Corporation that would buy up billions of dollars in troubled mortgages at a deep discount, forgive debt above the current market value of the homes and use federal loan guarantees to refinance the borrowers at lower rates."
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Old 02-25-2008, 09:06 PM
 
Location: South Central PA
1,563 posts, read 4,074,866 times
Reputation: 372
Quote:
Originally Posted by cdelena View Post
To prevent that, Bank of America suggested creating a Federal Homeowner Preservation Corporation that would buy up billions of dollars in troubled mortgages at a deep discount, forgive debt above the current market value of the homes and use federal loan guarantees to refinance the borrowers at lower rates."
aka moving away from capitalism towards more communistic policies.
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Old 02-25-2008, 09:54 PM
 
Location: Boise, ID
1,356 posts, read 5,777,020 times
Reputation: 927
I bet that a lot of people who think we should bail out homeowners would be some of the first to cry foul about bailing out corporations. We are either going to bail out both or neither, hopefully neither.
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Old 02-25-2008, 10:20 PM
 
5,582 posts, read 10,591,110 times
Reputation: 4725
Quote:
Originally Posted by cdelena View Post
. . . . a Federal Homeowner Preservation Corporation that would buy up billions of dollars in troubled mortgages at a deep discount, forgive debt above the current market value of the homes and use federal loan guarantees to refinance the borrowers at lower rates."
In any other words this would be called a stop loss. As they have looked ahead and are aware the losses ahead are even greater than the ones already experienced in the current market. They wish to throw the US Treasury under the bus for those deeper losses into the future and "refinance" (fresh money back in to their own pockets) the whole mess into federal loan guarantees.

As the losses continue to pile on for the next four years, the US Treasury would be on the hook for it, and banks will have escaped the full crash of the run-up they helped create.

Typical Corporate Scum. Want to keep the profits private, but dump the losses, expenses and risk on to everyone else.
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Old 02-26-2008, 04:53 AM
 
893 posts, read 604,232 times
Reputation: 441
Quote:
Originally Posted by 70Ford View Post
Interesting article. Apparently Bank of America wants America to give it 739 billion dollars, to help the economy or something.

I liked the last blurb. I think it is a huge load of bullspit. Why? Because I'm not broke, I don't have any credit card debt. I don't owe a dime to any creditor at all, actually. And I didn't buy a home I couldn't afford. So, why in God's name, should I pay for someone's greed/stupidity/inability to read a contract. I didn't sign the ******** contract.

WHY SHOULD I PAY FOR IT>>>> ARGH>>>>

Its like walking by and someone is on fire and you're all like "Dude, you're on fire." and he's all like "Well, there was this guy selling gas and matches here, so I bought some and poured it on me and set myself on fire and "OH! GOD! It burns! OH, GOD! THE PAIN!" ..."Ermm.....can you can you help pay for my medical bills 'cuz I'm too stupid to know better than to set myself on fire?".......and while he's saying all THAT.......there's the guy standing there......who's counting the money the idiot just paid......and he's looking at you and saying "Yo. I know you didn't buy any gas, but I need some money to pay for being sued for what I just did."

And then this dude in a suit waltzes over, hits you with a Tazer - and takes your wallet.
"Thanks for the support, chum." he says, as he walks away whistling.


“Every citizen has a dog in this hunt,” said John Taylor, president of the National Community Reinvestment Coalition, a community advocacy group that has developed its own mortgage buyout plan. “The cost of spending our way out of a recession is something that everybody would have to bear for a very long time.”

I see this from the opposite side. The side that says "If you screw up, we'll make non-screw ups pay for your screw ups."

Why is bad behavior being rewarded? Why is good behavior not being rewarded?

If I buy a car, and I can't pay for a car, that car gets repossessed. If I overspend on credit and I can't pay it back, then I have to declare bankruptcy and suffer the consequences.

A home is a THING. It is WOOD and DRYWALL and all sorts of other THINGS that are slapped together to make a CAVE with lights. What the heck is the difference? Why should I have to pay for this THING that they bought?

IT IS NOT MY FAULT> It's THEIR FAULT. THEY SHOULD DEAL WITH IT> Not ME! I've been RESPONSIBLE> ARGH!!!!!!!!!!!

http://www.nytimes.com/2008/02/23/bu...23housing.html
Federal Homeowner Preservation Corporation
That is so funny and sadly true. I wish I had written it.
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Old 02-26-2008, 05:17 AM
 
Location: Atlanta
281 posts, read 999,618 times
Reputation: 205
Quote:
Originally Posted by NorthmeetsSouth View Post
Man... I am so jealous. I have an affordable mortgage because I made a hefty downpayment and made sure the monthly payments fit my budget.
Is it too late for me to get one of these idiotic loans so that I can get the bank, and ultimately the taxpayer, to pay for my poor judgment???
WOOT! Same here
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Old 02-26-2008, 08:01 AM
 
20,194 posts, read 22,073,729 times
Reputation: 9258
If they are getting a bailout, can I get more money since I was responsible? After all, we award people who chose a more sensible and intelligent path with more money, so I assume all of us who are responsible in our lives should get a better deal too? Force mortgage companies to lower OUR mortgage rates if you are going to lower subprime mortgage rates. Fair is FAIR. Its funny that we say lets lower mortgage rates and lower the principal with some refinancing but leave out the rest of the people that we can still screw over and get money from... you cannot have it both ways... especially when both ways hands profits to the companies... they want a bailout? Fine, there is a cost, and it means EVERYONE's mortgage rates goes down an equal percent and EVERYONE's prinicpal goes down an equal percent... you will see mortgage companies say, "Oh well, we can stand to take the loss from subprime mortgages then, its okay". After all it was THEIR bad decisions to make these mortgages..
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Old 02-26-2008, 01:21 PM
 
2,197 posts, read 7,017,422 times
Reputation: 1698
Default It's a Johnny Fairplay World

70Ford's priceless post reminds me of a similar situation that I just encountered. To quote Dave Barry, "I am not making this up."

I have friends who took out an idiot loan, liar loan, call it what you will. They pull in a respectable $150K a year, and they wanted a million dollar property in coastal CA. So the bank glances at their stated income, with which they took creative license, and gives them a 95% loan with a teaser rate of 1.95. It adjusts monthly, negatively amortizes and quickly gets them in the hole. So they go to the bank and say, "You know, this increased payment thing is way harsh, man. We can afford to pay this much max every month and if you'll give us a rate that lets us do that, then we won't make you take our house. Oh, and we need this rate to be fixed, because all this uncertainty is too stressful and frankly, we don't like it. Oh, and could you not charge us any points, because hey, we're not paying them, and just tack all the closing costs onto the loan 'cause we just bought a new hot tub and are way broke. And forget qualifying, because well, we all know, we can't." And the bank, not wanting their overpriced, crappy little cottage does all these things, and their new fixed rate is now 6%. Everybody's happy.

Except me. I'm paying 6.25% on a 30-yr fixed in good standing, with equity far north of 20% and zero chance of default. So I go to the same bank and ask for the same deal, only I'm willing to qualify the old-fashioned way with tax returns and conforming ratios. The bank-- the same bank-- says "Sure, no problem, welcome to Going Bankrupt Bank, we'd love to have your business, your new rate will be 6.5%, with one point. And could you give us three years of tax returns, instead of two, and we're gonna need a P&L."

Now I ask you: who's the idiot in this scenario? I sure know who it feels like.
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