Government Should Bail Out Homeowners

To prevent more foreclosures, unreasonable and "balloon" rates need to be looked at as well as the 30%+ on credit cards. The whole screw the consumer rates really need a much closer look. Defaulting is often caused because the rates went sky high and those in trouble were forced into bankruptcy often on purpose. A friend just defaulted . He had paid back the amount borrowed plus more and found thanks to a ballon he now owed more than he orginally borrowed. He like I though he was signing the fixed rate mortgage orginally presented to him only to find out later it was a balloon.

I wonder how many thought they were signing fixed rate mortgages and found the had really signed balloons?

reply to post by crimvelvet


This is one of the deceiving practices that brought the market bubble crashing, I believe that you friend may have been able to take one of the government options to try to save his home.

But onces the foreclosure is in gear is not help at all.

Originally posted by crimvelvet
I wonder how many thought they were signing fixed rate mortgages and found the had really signed balloons?

Those are not mutually exclusive. A loan can be a fixed interest rate for a specific time length with payments not totaling the loan amount. The balance is then due at term end.

The contract would have clearly stated the requirements for the payments. If it actually didn't, that would be a different story. If the payments look too good to be true then guess what....

ALERT!!!!!!!!!!!!!!!!!!!!!!!!!!

I can not believe my thread is one year old today!!!!!!!!!!!!!!!!!!!!!!

It seems like yesterday

Hindsight is 20-20, but this crisis was created out of stupidity and greed. If they want to help the borrowers and lenders, they can do so by getting gas and food costs back to normal. Instead of giving tax breaks to companies already making windfall profits, give those breaks to Joe Taxpayer so that he can afford his home. Lenders bit themselves by approving people who were not qualified to borrow in the first place.

I nearly jumped on that wagon, but I know what I can and cannot afford. It is far easier for me to rent and let my landlord cover the taxes, most of the maintenance and water bills. I will also not be financially scarred when I leave this dwelling.

Too many people think short term. "Fast food America" is one of the major sins we are creating against ourselves and it is starting to show.

Originally posted by wheresthetruth
I nearly jumped on that wagon, but I know what I can and cannot afford. It is far easier for me to rent and let my landlord cover the taxes, most of the maintenance and water bills. I will also not be financially scarred when I leave this dwelling.

Too many people think short term. "Fast food America" is one of the major sins we are creating against ourselves and it is starting to show.

Wise words. But let's remember for every person who knew they couldn't afford it, there were quite a few more who figured if the bank said they could (by giving approval of the loan), that they could. Many are just not educated enough to see beyond that.

That being said, the banks were not being regulated and they have to be taken to task for this, unfortunately they are getting bailouts instead, with the trickle down now into all other industries with any lobbying power sticking their hands out right now.

Should we bail out the homeowners? NO. Did we? Hardly, oh we got the bill, but how many people do you know tht are benefiting from it? I'm in Real Estate/Property Management and I'm just not seeing it. Meanwhile what I am seeing is more and more potential bailouts for Corporate America coming down the pike.

It simply has to stop.

A more extensive review of the Housing bill bail out.

Firs the Flexible Underwriting Criteria, this is to ensure that mortgagor have enough confidence of repaying the mortgage, this will take into consideration the income, liabilities, payment history and other.

It also be flexible enough for those mortgagor that have less than good credit will be able to be taking into consideration for insurance and credit scores will not be an issue.

Now if the person still default on their loans even with bail out we the tax payer will forward the bill.

Revenue recovery through home sale profits, Not according to section 257 of the bill If a troubled homeowner get a loan from the FHA and later sales his home, the FHA will collect all the profits.

Now on this one it’s a loop hole that will make possible for the seller to make the transaction look like no profits made and have the buyer give the seller cash in a for of a gift.

This one I don’t really understand why is even part of the bill.

Credit card and other payment processors must report transactions to the IRS, this will under mind the privacy of consumers.

More tax credits and deductions for homeowners, the bill have over 60 sections relating to tax incentives over the ones that already has been available, this one is an overkill.

This one is a good one.

The treasury gets a blank check to maintain Freddie Mac and fannie Mae, The treasury has been given authority to keep buying stocks and debt to keep this two afloat.

We all know the loses already as both of this companies are already in a lot of trouble.

Now this one is mind blowing.

This bill will raise the national debt by 800 billion dollars so actually we the tax payer are the ones doing the bail out so the treasury can keep putting money on the big Fredde and Fannie.

Incredible!!!!!!!!!!!!!!!!!!!!!!

Housing and Economic Recovery Act of 2008
www.opencongress.org...

So at the end this nothing more than more money for Fannie and Freddy at the expenses of tax payer money.

Should The US government bail out American corporations?

Does corporate America share its profits with the tax payers? The answer is absolutely not.
Do they share the profits with their employees? The executives are paid millions.
The US Government should bail out all corporations large and small is that right? The answer is no. If it is a viable business, they can raise the money from investors, if not, let them close shop.
If the government decides to bail them out if should be at a cost (like shares in the company) where the government will make money and have a say in running the company. Even better have a public referendum where the voters decide.
Carmakers want money from the government; the financial institutions want money - where does it stop?
It is about time corporate America should learn they have to stand on their own feet. Where is corporate America financial responsibility?
They claim the government is abusing its financial responsibility; it seems Corporate America is no better. They also go to their workers to take a pay cut, is that fair? It seems the little guys are the ones that always pay the price for corporate financial abuse and miss-management.
Other corporations in the world are not asking to be bailed out - they go out of business.
Jay Draiman
PS
The corporate barracudas have no conscience they will step on anyone, stab anyone in the back and fudge the numbers to climb up the corporate ladder and receive the hefty bonuses.
As family values have declined in the last half a century so has corporate integrity and honesty, it seems that corporate America will do almost anything for the buck ($) no holes barred.
What a shame that corporate America has sunk so low.
The government is no different, honesty and integrity is a foreign language, they only serve the special interest groups. (We all know why).
What happened to the American people who placed their trust in the government? (The public officials they voted for).
We are faced constantly with another corporate or governmental scandal of wrongdoing. When is the American public going to wake up and demand an honest government and honest corporate America? Americans wake up before it is too late.
Jay Draiman

If the bill gives the government the authority to buy any mortgage paper from any bank that offers to sell it then it can be used to decrease the principal of a loan. Lets say that a bank sells a performing mortgage for 60 cents on the dollar to the government. They can turn around and offer it back to the homeowner at 70 cents on the dollar and still make money. The loss of the bank would be the homeowner's and the government's gain. This has the same effect as lowering the rate to keep the homeowner in the home. Nice way to transfer wall street losses to main street and the government make money!!!

reply to post by Anonymous ATS


Is one littler problem, the causes that has brought the American consumer into the foreclosure mess is still there and the government has not addressed that problem.

The bail out should have been directly to the homeowners not wall street.

Americas workers are still facing unemployment, lowered wages, outsourcing, still they will be getting loans and getting credit to live by with no means to pay back.

And they will still be losing their homes.

The mortgage crisis will be alleviated on Wall street but for the regular Joe they will still be in the crisis.

BAILOUT HOMEOWNERS - BEFORE they are late on a mortgage payment. Government needs to make it so that when a homeowner asks the mortgage company for a lower monthly payment the mortgage company unconditionally has to adjust the monthly mortgage payments to be a reasonable monthly payment - no more than 1/3 of household income or lower current interest rate - whichever is lowest and without the requirement of being late on a mortgage payment,without fees, without additional costs and no matter what the terms are.

reply to post by Boondock78


im one of these people who got flooded in august by some major down pours, my house has mold in the floors, walls, roof needs repaired, app. 2 ft of black mold in half of the house we had in house insurance with our lender app. 10,000 dollars in damage we ask for help with thisfrom our lender they sent us a check for 280.00 for this said it was nothing but surface water they could not cover the damage,and fema couldnt help cause we was in a no flood zone area it was just a freak mishap,its never did this ever in the six years we lived their, we didnt have the monry to fixand im disabled and kids and us couldnt continue to live their our building inspector said to move for health reasons so we did and rented a plase cant make 2 payments so now our house is due to sell on court house steps soon does anyone have any ideals on how to handle this i cant seem to get any where with this cotact me if you have any suggestions at [email protected]

Tuesday 24 February 2009, 02:16pm Pacific, Glen you are 1000 % right, the backbone of our country is not financial institutions but the people. The backbone of our country is the family unit. The backbone of society is the family unit. Destroy the family unit and everything else will be destroyed, no more government, no more military, no more society, no more country. God bless you always and may God always continue to fill you with wisdom, leighthouse77.