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Government Should Bail Out Homeowners

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posted on Aug, 27 2007 @ 09:18 PM
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Originally posted by IrishLass
But I want to reply to whether the Govt (meaning all of us) should help so people dont lose their homes. I do mortgages for a living and I knew this was coming for the last couple of years. You cannot do programs, allowing people to state their income and state their assets or even do loans where you verify no income or assets and base your approval on a credit report and appraisal.

Most of the homes going into foreclosure are loans where people have overstated their income so that they could buy a home they cannot afford. The do the pay option, where you can pay interest only or pay interest and principal which allows you to buy more home not realizing that these are adjustable rate loans where the payment changes every month.



And, so how did these people EVER qualify for mortgages in the FIRST place?
No down payment = no vested interest in the house.
No job, no credit history, no proof of ability to pay, what were the loan officers thinking?????

So sorry, but the greed of the lending institutions and the greed of the home owners who wanted something for nothing leaves a very bad taste in my mouth.

When I bought my homes, I had to prove I could make the payments, I had to provde equity for the home, there was a debt to income ratio, I had to show bank statements and net worth.
All of this disappeared five years ago ?????




posted on Aug, 27 2007 @ 09:29 PM
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reply to post by grover
 


Well believe it or not the only next thing for the feds to do is lower more the interest rates including the credit. That will help the dollar and will help the regular Americans.



posted on Aug, 27 2007 @ 10:14 PM
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Originally posted by Blaine91555

Originally posted by Valhall
No.

*I'm adding this for the sake of not being a one-liner.*


Well said!
*my second line.


Agreed!
*Exempt from rules



posted on Aug, 27 2007 @ 10:17 PM
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reply to post by DontTreadOnMe
 


I really have a hard time believing that actually happened. I would have to see verfiable sources for that.... sounds like some talk radio spin.... like something mush loosebowels would say.



posted on Aug, 27 2007 @ 10:19 PM
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The banks were handing out bad mortgages left and right. Homeowners were also lying about their income to get better mortgages, so they are at fault too.But the banks should of checked them out instead of just handing out mortgages. I think something like 60% of people lied about their income.

Since banks like to rip off people as much as they can, I don't feel sorry for them that they are experiencing problems from handing out awful mortgages like they did during the bubble.

I am sorry, I want a house as much as anyone. But I am not buying a house just because I can. And I don't think people should be bailed out for making themselves housepoor.

[edit on 27-8-2007 by nixie_nox]



posted on Aug, 27 2007 @ 11:06 PM
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Uh, yeah I make 30k a year, let me buy this 600k house! Oh youll let me, cool thanks! Guess what folks, this isnt the governments problem.. im so sick of people talking about 'oh the mortgage rates, oh my house payment'.. well its no ones fault but your own, buy something you can actually afford or RENT. Its common sense and a lot of people are just irresponsable. Some realtors are to blame also, 'oh im sure you can afford this house, *thinking (ill get a good commission off this baby)*



posted on Aug, 27 2007 @ 11:32 PM
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there is a rule on the books in new york city that makes the LOAN agreement NULL if it can be decided the lender had no reason to beleive the person taking the loan could pay it back in full at the scheduled pace.

the law is called fraudulant conveyance and certain people are lobbying to make it a national law


i'm afraid their is a home where all the foreclosed people will live. this will be containment camps. the FEMA camps. they will have slave labor in america, and it will be a definite HIT to the standard of living most american's perceive.



[edit on 27-8-2007 by cpdaman]



posted on Aug, 27 2007 @ 11:37 PM
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this web page may be useful to your for this discussion. It shows you which mortgage companies are going under.



posted on Aug, 28 2007 @ 09:08 AM
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The mortgage companies became fraudulent in order to make more money out of loans given to consumers.

This practices were not unknown by our politicians but nothing was done to help the consumer because many of them were making a buck out of the sweat of the public.

The Bush administration did many policies removing safeguards from the financial sector to benefit the corporate elite.

We know that Mr. Bush is the corporate men.

The housing Bubble has been used to support and keep afloat a sick economy like ours. This was not a surprised but many economist predicted for years that the housing unfair practices was going to catch with us.

I blame borrowers but no so much as I blame lenders.



posted on Aug, 28 2007 @ 12:00 PM
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Originally posted by mousmonke
Uh, yeah I make 30k a year, let me buy this 600k house! Oh youll let me, cool thanks! Guess what folks, this isnt the governments problem.. im so sick of people talking about 'oh the mortgage rates, oh my house payment'.. well its no ones fault but your own, buy something you can actually afford or RENT. Its common sense and a lot of people are just irresponsable. Some realtors are to blame also, 'oh im sure you can afford this house, *thinking (ill get a good commission off this baby)*


My job takes me into houses(a lot of newer homes) for a living.
And I work in one of the more affluent counties in the country.
But you would be surprised at how many huge homes there are that are basically empty because people bought all house but couldn't furnish them. They look like they barely moved in.

I don't understand this idea that people insist on buying big homes.
The homes I am most impressed with? The refitted barn, that still has a barn part but is a gorgeous home also.
And a gorgeous cabin that someone build themselves. They are homes that love is put into.



posted on Aug, 28 2007 @ 02:51 PM
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How about this...

Government should bail out homeowners who can't pay their mortgages becuase they have six credit cards limited out for Plasma TVs, DVD players, vacations.

or this...

Government should bail out Homeowners who loose their jobs because thier bosses are mean?

or..

Government should bail out Automobile Leasors who don't read their contracts and drive too many miles and can't afford to pay????

or...

Government should bail out poor people who have more kids than they can afford to take care of?

Get it?


[edit on 8/28/2007 by darkbluesky]



posted on Aug, 28 2007 @ 02:52 PM
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Originally posted by Mirthful Me
Help me out...

No, not with my mortgage... With the section of the U.S. Constitution that endows President Bush (the Executive Branch) with the power to bail out homeowners because of credit woes? The power of the purse lies squarely with the Legislative Branch... Congress... You know, Nancy, Harry, Hillary and their ilk... Why aren't they doing anything?

Hmmmm?

Founding Fathers Monkeys, not just for rolling over in their graves anymore...



Actually the idea that ANY entity withing our government holds the strings to any purse is a fallacy and a illusion. The "fed" owns America and it's government "lock, stock and barrel". If the government really wants to do something for America then they can abolish the "Fed" and it's fractional banking system and issue it's own currency based on a 1:1 ratio. The "Fed" and it's predatory practices are exactly the reason we are in this mess and have been since about 1913. The hunger of the "monster from Jeckyl Island" has a hunger for power and control that will never be satiated.

[edit on 28-8-2007 by GKHaley]



posted on Aug, 28 2007 @ 03:01 PM
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Originally posted by mousmonke
Uh, yeah I make 30k a year, let me buy this 600k house! Oh youll let me, cool thanks! Guess what folks, this isnt the governments problem.. im so sick of people talking about 'oh the mortgage rates, oh my house payment'.. well its no ones fault but your own, buy something you can actually afford or RENT. Its common sense and a lot of people are just irresponsable. Some realtors are to blame also, 'oh im sure you can afford this house, *thinking (ill get a good commission off this baby)*


I agree with what you are saying to a point. The problem is that the very same entities that own the banks and lending institutions also own the mass media outlets and the advertising firms. We are programmed to think that if we don't have all of the shiny new things we see on TV then we are losers and not worthy of respect. I'm not saying that there are not intelligent people out there that recognize this and don't fall for it but too many do. We need to stop finacing "debt as money". Only the userers win that shell game.



posted on Aug, 28 2007 @ 04:13 PM
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Originally posted by GKHaley

The "fed" owns America and it's government "lock, stock and barrel".


Here! Here! GKHaley. The Fed, as a for-profit-corporation distributes a percentage of it's annual earnings to it's mystery shareholders, and I understand that the Fed has never been audited...what I'm wondering is...does the Fed pay Federal Corporate and State Income Tax on it's earnings?



posted on Aug, 28 2007 @ 05:56 PM
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Originally posted by DontTreadOnMe

And, so how did these people EVER qualify for mortgages in the FIRST place?
No down payment = no vested interest in the house.
No job, no credit history, no proof of ability to pay, what were the loan officers thinking????? .....
.....
All of this disappeared five years ago ?????




The people did not qualify for the mortgage loans, most of them over stated their income and assets. Making it look like on paper that they do qualify for the mortgage loan. There is a credit report pulled as well as an appraisal on the property. The credit worthiness of the borrower is looked at based on the credit report. ie type of debts, credit scores, pays on time, etc. The type of loan I am describing required high credit scores, min of 5 tradelines, etc. You not talking about someone who did not pay there bills.

The news will have you believe that it is the subprime market doing this and only the subprime market. It is all of the market, subprime and prime loans.

As for the loan officer's thinking, they are thinking of a paycheck. The investors are the one's that put out these programs. Allowing people to state their income, state their assets, or in some cases provide no reference to any income or assets (which is called a true NO DOCUMENTATION).

Wall Street wanted more mortgage paper to sell, the banks in their infinite wisdom decided this is a way that could be done. Allow the borrower's to state information, in some cases, don't tell us anything, we can do the loan. Then turn arond sell it on Wall Street, which is what Wall Street wanted, ie more mortgage paper.

And yes, the industry has change significantly from the 5 yrs ago when you bought your home. It is changes significantly, from last week. Guess what that change is? It is extremely hard to do a stated income or a no documentation loan (if you can find a lender).

Hope this helps. I can rant about this all day long.



posted on Aug, 28 2007 @ 06:11 PM
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Let me get this right. The banks loan what is clearly predatory loans because they know the borrower does not have a down payment or the credit. They all of a sudden realize the homeowners can not pay for the adjusted interest?



posted on Aug, 28 2007 @ 06:49 PM
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I was watching Glenn Beck earlier and he had this issue, he made a very
good point. I believe it was 1958 that the law was passed to include home
insurance for floods, what did the people do? they moved near oceans.
Scientists predicted a hurricane in the category 5 range would hit New Orleans,
I mean Katrina was only a Cat. 3. Yet people still want to build a new house
over there? I hope the government tells people to get out of that area or else
they will rebuild just in time for a new hurricane.



posted on Aug, 28 2007 @ 07:15 PM
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What is going on today with the mortgage is that it has taken now a group of people rather than only one to negotiate a mortgage loan.

Because the system is now manipulated for many of the involved on the loan deal to benefit.

The mortgage broker is the one that made the loan, they manipulate the loan to get the borrower regardless of qualifications of not.

Because once the deal is done the mortgage goes into a bundle with others and sold to investment banks, that in turn sliced and diced the mortgages to produce assets that are not necessarily real.

It was a time when a borrower that could not meet the demands of the mortgage was able to talk to his lender and make some arrangements, today that is no possible because the merry go around has not beginning and not end.

In the 1980s it was a crisis in Latin America that cause the so call Brady deals to emerge, this force the creditors into reducing their countries debt to manageable levels. Both the debtors and creditors benefited.

If the federal government buy mortgages it will no be the securities but the original loans,

This will force the renegotiation of the loan terms the financial elite will not like this idea, because they want the feds to bail them out like they are doing now.

You may not be paying for the mortgage defaulters but we are paying to keep the financial elite afloat.



posted on Aug, 30 2007 @ 12:11 AM
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The danger from a possible subprime mortgage collapse has nothing to do with people losing their homes. Big multi-national corporations don't care if people lose their homes.

Do you know that most of the world is in poverty, with barely a hole to crawl into? Only 6% of the world lives like we do.

The danger of sub-prime mortgage collapse simply comes from interest payments not being paid and people foreclosing on their homes. A large part of the economy is based on interest payments. Most people don't know this. That's why there is a credit rating system. Lenders and banks want to know that you are responsible enough to pay back your debts, not so that you will give them back the money they lent you...it's so that you will give them back MORE than the money they lent you. It is only then that people will invest in you., and your mortgage.

Yes. Take that last sentence literally. Large corporations have invested in your mortgage. Do you think your mortgage is sitting in the drawer of the banker that gave it to you? You're wrong. It's been bought and sold, and grouped together with thousands of other mortgages, and turned into funds. There are billions of dollars invested in those funds, from companies, and coutries betting on us, like you would bet on a horse at the track...They are betting on the fact that you and I will pay our interest each month for the thirty years that we said we would. They've actually put money on this bet. If you deviate any little bit from the "plan", if you pay less than you should, or even more than you should...you hurt their profits, thus ruining their investment.

You are a piece of stock. You are part of a collective of debt, and if you have a mortgage, you've have been bought and sold. These funds that have been created out of our mortages and credit card debts have no real value, just like the piece of paper your mortgage is printed on, or the house that you live in. It's value is determined only by it's worth. If it becomes worthless, it has no value. Imagine if everyone stopped paying on their interest. Forget your house, made of wood and cement. The mortgage, that important piece of paper, would have no value. The funds that are based on the mortgages would have no value...And all of the billions invested in those funds, that were worth billions at the time of investment, are now worth squat! Billions of dollars can be lost if people don't pay their debts!

Now do you understand the danger? Our economy is based on the continuous movement, grouping, ungrouping and liquidation of money. It's the blood and lifeforce of our society. If you disrupt it's flow in any way, it could stop us at our heart.

I fear we are on the verge of an economic "heart attack."



posted on Aug, 30 2007 @ 02:47 AM
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The problem is a world wide one here in NZ a couple of finance company's have gone into receivership recently and many investors have lost hard earned savings. related article .

So I do feel for those who have lost out there hard earned money but I don't think that any government should step in and help those who simply haven't learnt to budget . Even if bringing in more regulations was the answer its to late now so I would only support the NZ government intervening if the major banks were in danger of closing.

I see the ads on TV that target low income earners and beneficiaries with overnight loans but I am smart to be wary of any lending company that targets such an audience. When interests rates are low and times are good people borrow without faceting these things in and that's why they one into trouble later on.

[edit on 30-8-2007 by xpert11]

[edit on 30-8-2007 by xpert11]

[edit on 30-8-2007 by xpert11]





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