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Location: Democratic Peoples Republic of Redneckistan
11,078 posts, read 15,074,986 times
Reputation: 3937
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Quote:
Originally Posted by donsabi
Many years ago people were loyal to their banks and their banks were good to them. They felt like it was more than a responsibility to pay their mortgage, it was their duty. Today banks have thrown out the idea of neighborly business in favor of profit by any means. Entrapment, hidden costs, exorbitant late fees, jacking up minimum payments, and doubling and tripling interest rates has given the public a new attitude towards banks.
Many people are now trapped in a upside down mortgage with no way out except to walk out. This has lead to massive foreclosures which in turn devalue even more homes creating an even deeper loss. It is a never ending spiral caused by the greed of banks. The banks brought this on themselves and the public and there is no end in sight. The real estate cycle is broken and until the first time home buyer is back in numbers there will be no recovery. Without decent jobs recovery is impossible.
One poster said, "bad credit." Do you think a person with an upside down mortgage has got good credit? When a person needs food or medical care, heat, or gas to get to work, credit rating is their last concern.
A LOT of folks around here are now in that situation.Horrible.
To have a roof over your head.
To have a credit rating that allows to you to, uh, get credit when needed, get a job when needed, buy another house in the future, rent if necessary.
To stay out of court, possibly jail.
To be able to get some return on your investment when the market eventually comes back.
Of course, there are people that are in a horrible situation, and bailing out is an option, maybe a good one for them. All the more reason for government intervention to shore this thing up for the rest of us "responsible" ones.
I'm still a bit fuzzy on the Obama mortgage package, but unless it includes forgiving some mortgage balance amounts then you still need to make the payments to keep your house. This may not be what some folks want to do, given the current housing market, but losing it also gives you a black eye for subsequent credit.
That being stated, the way things are today, this could be entirely incorrect.
Very sad and difficult situation for folks who are caught up in the economic problems through no fault of their own, and those who continue to honor their financial obligations but see others getting away with bad behavior.
I'm still a bit fuzzy on the Obama mortgage package, but unless it includes forgiving some mortgage balance amounts then you still need to make the payments to keep your house. This may not be what some folks want to do, given the current housing market, but losing it also gives you a black eye for subsequent credit.
That being stated, the way things are today, this could be entirely incorrect.
Very sad and difficult situation for folks who are caught up in the economic problems through no fault of their own, and those who continue to honor their financial obligations but see others getting away with bad behavior.
The way I heard it described this morning (NPR) it would require the banks that recieve bailout money to negotiate with the homeowner to reduce balances and monthly payments. The main goal is reducing the mortgages down in the range of 30% of the homeowners income, with the bailout money making up the difference, or part of it.
Many years ago people were loyal to their banks and their banks were good to them. They felt like it was more than a responsibility to pay their mortgage, it was their duty. Today banks have thrown out the idea of neighborly business in favor of profit by any means.
When we got our mortgage last year, we went with a local bank, who had no intention of selling the mortgage. When our appraisal came in much lower than the price of the house, our mortgage company refused the mortgage until the price was reduced (no funny business with this bank). The sellers reduced the price and we moved forward with it. Do I feel a sense of responsibility to this bank? You betcha.
The way I heard it described this morning (NPR) it would require the banks that recieve bailout money to negotiate with the homeowner to reduce balances and monthly payments. The main goal is reducing the mortgages down in the range of 30% of the homeowners income, with the bailout money making up the difference, or part of it.
If true, my concern is how the "forgiven" part of the mortgage is handled. If ultimately a gift to the borrower, then I strenuously object to this concept.
You beat me to it, but sadly today people seem to take pride on being a leach on our society instead of a contributing responsible member of that society.
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