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Old 06-14-2008, 01:13 PM
 
Location: America
6,993 posts, read 16,025,080 times
Reputation: 2083

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Quote:
Originally Posted by goodbyehollywood View Post
So the key assumptions that some of you are using is that all ARMs are "crooked" and every person who took an ARM got screwed? How do you figure?

I have taken out numerous ARMS over the years, and I always got exactly what I signed up for. ARMS were very useful tools for the self-employed and those who wanted maximum leverage in an appreciating market environment. The terms were fully disclosed, nobody made it a secret that the loans would be resetting and by how much and the index was clearly specified. In fact, the "spread" was a negotiating point and an easy way to evaluate competing loan products. I had to initial each of these points to confirm that this had been disclosed to me and that I understood all these things. Then I had to sign and date at the bottom. So anybody who DIDN't understand and signed and initialled anyway is getting exactly what they agreed to. They screwed themselves. Making bad decisions and poor choices generally gets you burned.

If the terms weren't disclosed, then it's a different story and, yes, the bank deserves to take the hit. But saying that all ARMS were crooked and all borrowers got duped is just plain wrong. If most people would simply READ their loan docs, they'd find that they're heaping their blame on the wrong doorstep. And if they're not, then few would dispute that they be given recourse.
I agree, might heart doesn't bleed for many of the people who took out exotic loans
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Old 06-14-2008, 03:33 PM
 
186 posts, read 515,566 times
Reputation: 71
This will just add more regulation to the banks. Banks never lose money they will just pass it on to us.

your house will have to adjust from 5% to maybe 8% in 2 years. Your home is now worth 30% less and there is no way possible that you can afford that much less have the bank refinance a home 160%. So you buy another home a crossed the street at about 30% less than yours. Now you got a fixed, low rate, and affordable mortgage, and a roof for your family. Oh that other house no big deal you can have it back MR. Bank if that house does not sell.

Here I thought those people that bought houses they can't afford were stupid. I guess they are smarter than I thought. Government is what failed us. It didn't take a rocket scientist to see this bubble coming.

You have to do what you need to do to survive.
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Old 06-14-2008, 05:12 PM
 
Location: Oxygen Ln. AZ
9,320 posts, read 17,278,048 times
Reputation: 5740
Quote:
Originally Posted by mach View Post
This will just add more regulation to the banks. Banks never lose money they will just pass it on to us.

your house will have to adjust from 5% to maybe 8% in 2 years. Your home is now worth 30% less and there is no way possible that you can afford that much less have the bank refinance a home 160%. So you buy another home a crossed the street at about 30% less than yours. Now you got a fixed, low rate, and affordable mortgage, and a roof for your family. Oh that other house no big deal you can have it back MR. Bank if that house does not sell.

Here I thought those people that bought houses they can't afford were stupid. I guess they are smarter than I thought. Government is what failed us. It didn't take a rocket scientist to see this bubble coming.

You have to do what you need to do to survive.
How is it that government failed us? Governments job is to protect our boundaries, at least it used to be, and they cant seem to do that. If you rely on the gov to protect you from yourself then you have some big surprises coming.

If it did not take rocket scientists to see this coming then were were the warnings? Why did so many people who really could not afford a home jump in the mix to buy one in upper scale communities. I think it is more important to look rich than be rich and younger people cant seem to start at the bottom and work their way up, they want it all now.
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Old 06-14-2008, 05:52 PM
 
186 posts, read 515,566 times
Reputation: 71
Quote:
Originally Posted by MotleyCrew View Post
How is it that government failed us? Governments job is to protect our boundaries, at least it used to be, and they cant seem to do that. If you rely on the gov to protect you from yourself then you have some big surprises coming.
I think you just answered how the government failed us. Protecting our boundaries. Local, State, and Federal governments regulate stuff to protect us from abuse. What if the Nuclear plants were not regulated? Electricians, plumbers, builders are regulated. Lending practices should have been regulated more sooner as the this bubble started.

People bought homes because they could. Now some of those people can't. Because of uneducated people trying to make an educated decision hurts everyone. That is why big brother does have to watch us.

If you would read my post I called those people "stupid" for buying what they could not afford.
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Old 04-22-2010, 12:49 AM
 
2 posts, read 5,017 times
Reputation: 10
I think that happened in the middle of the night with just a few congressman present. Like the bush v gore supreme court rip off--it's just the rich power elite taking over. the supposed "liberal media" have been taken over. but the banks got bailed out by their government friends so the world knows now that the U.S. is nothing more than chrony capitalism.
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