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Old 09-25-2009, 01:41 AM
 
110 posts, read 232,381 times
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Why isn`t the government program being implemented?There are millions of homeowners overpaying in mortgage.Why isn`t the government enforcing anything?Anyone contemplating class action lawsuit against these banks?What can we do?
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Old 09-25-2009, 01:59 AM
 
29,489 posts, read 32,520,653 times
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Quote:
Originally Posted by preferentialtreatment View Post
Why isn`t the government program being implemented?There are millions of homeowners overpaying in mortgage.Why isn`t the government enforcing anything?Anyone contemplating class action lawsuit against these banks?What can we do?
Thank goodness. I hope it isn't. The best thing that can happen is that people who can't afford their homes will lose them. That sounds harsh but it is the best option in a bad situation.

Almost all of the financial analysts will tell you that the majority of people who are going to default will still do so regardless of any government program. Much of this assistance will just keep people in their homes a little longer before they eventually default anyway. But then we the taxpayers will be stuck with a larger bill for nothing.
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Old 09-25-2009, 02:19 PM
 
Location: Heartland Florida
9,324 posts, read 25,106,486 times
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Because if banks have to write down mortgages it will expose how weak they really are. Much easier to just support overinflated prices and keep the smoke and mirrors going, even if those homes end up empty and full of squatters.
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Old 09-25-2009, 02:32 PM
 
Location: Great State of Texas
86,067 posts, read 78,529,358 times
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What will government subsidization do in the long run ?
The government does not have endless money (although they think they do).
How many people, how many industries can the government bail out and subsidize ?
How long do you think they can keep it up ?
What will that do for the US in the long run ?
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Old 09-25-2009, 02:52 PM
 
975 posts, read 1,653,223 times
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Who are these homeowners that are over paying their mortgage? Or do you mean the millions of idiots who over paid for homes?

Let them lose the homes they can't afford....that is the only answer and actually the best solution for the people you're concerned about.
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Old 09-25-2009, 03:52 PM
 
Location: Great State of Texas
86,067 posts, read 78,529,358 times
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I know there are some option ARMs coming due soon. These were the "interest only" payment type of mortgages.
When they readjust they will then include principle payments besides the interest. You just know there's trouble here.
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Old 09-25-2009, 04:04 PM
 
11,977 posts, read 9,650,097 times
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According to Sheila Bair, 70 percent of the workouts are going back into default anyways. They're not giving principal reductions in most cases. If they're going to reduce the principal on the loan, the banks is probably better off doing a short sale and cutting their losses.
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Old 09-25-2009, 04:40 PM
 
Location: Warwick, RI
4,011 posts, read 4,779,812 times
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Quote:
Because if banks have to write down mortgages it will expose how weak they really are. Much easier to just support overinflated prices and keep the smoke and mirrors going, even if those homes end up empty and full of squatters.
Are you people really this arrogant? Quit blaming the banks for all the ills of the world. What business could possibly hope to survive if a large percentage of it's customer just stopped paying? Would your local grocery store chain survive long if 10% or 20% of it's customer just walked out the door with full shopping carts without paying? Do you consider your grocery store to be evil and greedy because they expect you to actually pay for your food? How arrogant is it to say that the banks are any different than any other business? If you borrow money on a personal loan, credit card or mortgage, the deal is that YOU HAVE TO PAY IT BACK! When too many people stop paying back, then yes, the banks will show weakness - just like any other business would.

On second thought, maybe it's not arrogance but ignorance. All I know is that I am SOOOO sick of hearing people whine about how bad things are and blaming everyone else for all their problems, and expecting our incompetent and insolvent government to fix everything. GROW UP PEOPLE!!!
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Old 09-25-2009, 05:09 PM
 
Location: Mid-Atlantic
1,820 posts, read 4,230,420 times
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This entire thing makes me sick. I don't believe that anyone (unless it is due to a sickness or loss of job,something that is life altering) should be helped.... they bought a home they couldn't afford,they are choosing to walk away, some type of punishment needs to happen.
I have a question though and have posted this several times...
I am curious to know if anyone feels that those that have HAD to try to sell their homes and cannot,should be helped?
For those that haven't seen my previous posts... here it goes ...

We are a couple in our 40's... established, well educated(not that that means anything,but....) husband has great job... we built a home in an area that we intended on making our home for a very long time... at least until our children (who are very young right now-youngest is 3) graduated from high school. Loved the area,job going great... or so we thought....
Finds out that husband's company is going through restructuring, but then eventually,just shutting down .
He tried to find employment in our area, with no such luck,at all.
Offered a great job finally,but out of state. Myself and our children stayed back for approx 4 mos while husband went to work new job, living in corporate housing. Not even one showing on our brand new ,beautiful home,let alone an offer!
We had our house on the market for 7mos with absolutely no activity whatsoever,tons of foreclosures beginning to happen. We now have tenants,but they were not able to pay us enough in rent to cover the entire mortgage,so we are now paying for part of that mortgage in addition to rent (rent to own) home in our new area.
We felt it was best not to purchase yet as we had(have) no idea how long our home will be on the market...

We now have to use all of the foreclosures in our previous neighborhood as comps to our brand new house when we put it back on the market,after our tenants lease is up.
We are potentially going to loose thousands and thousands of dollars,all because there are so many people living in those homes that should have never,never bought them to begin with!
It is infuriating to us.
In addition,we have watched several people in our old area just walk away.. walk away,renting beautiful homes now and living life as though that home never even existed!
They walked away from their responsibility because they just didn't want to foot the bill anymore.
In the meantime, I am going to look for a pt job to try to keep us above water while paying for 2 homes and all of the other bills that come with life.... my husband works hard, we both went to college and thought that if you went to college,that meant you got a good job,you could pay your bills... well.. not really. Not if you choose the responsible route.

Let me be very clear here. We are responsible people ,we did not build a home we couldn't afford,we put down a decent down payment,we intended on being there for a very long time. We didn't have an ARM, we built a house well within our means. We DID NOT build our home with the intention to one day having to pay for it and another home as well!
I don't think there are many people who could say that paying for 2 homes wouldn't break them,eventually. Of course,there are those that own Summer homes,etc... we don't.
We are sick and we want someone to help "us" and those that are like us!
We were relocated due to a job loss and we are current on our mortgage and all of our other bills. We don't have a ton of charge cards. We.Are.Responsible.People.

Instead of helping those who chose to stop paying their mortgages just because they got into something they shouldn't have to begin with... what about those that got into something that they very well could afford and then were slapped in the face with a job loss and not able to sell their current homes because of the market out there right now?

It is sickening....
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Old 09-25-2009, 06:12 PM
 
Location: Orlando, Florida
43,856 posts, read 47,248,006 times
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NYMD67,
The sad part is that all these mortgage loan helps were designed to benefit people such as yourself and I don't believe there would be a person in America who would begrudge you getting help because you actually INVESTED savings into the house and are hard working people in a bad situation.

It is all the deadbeats out there who bought real estate at over blown prices without even making a down payment. If the government bailed them out today, they would turn around and do the same thing tomorrow. Until they live in a cheap rental for awhile....they won't realize you can't BUY beyond your MEANS.

I guess it is impossible for the government to weed all through these loans as to who should get help and who set their own self up for failure out of greed. To make it worse, the tax payers don't feel sympathy at all because they are being asked to assume a debt they didn't incur.

I have no way of knowing how this will all end, but at least some serious lessons may be learned.

I sure hope everything works out for you and your family.
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