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Whats going to happen to Foreclosures?

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posted on Sep, 20 2008 @ 01:19 AM
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reply to post by dgtempe
 


First: Alex Jones is the biggest idiot, lier, war profiteering dush on the planet.

Second: If you are not behind on your payments nothing will happen, besides the normal tax variations on your loan.

Third: If you are behind on your payments, maybe you shouldn't have borrowed money you couldn't pay back.

The government, or the agency that takes over the Bank's business, will act just like the bank would. A person, who can't pay his/her debts, could possibly have more time, under government control, if the property can't be sold...




posted on Sep, 20 2008 @ 01:54 AM
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Hahahahaaha darlin' don't hold back. Tell us how you really feel. Cough laugh cough laugh.
That was good.



posted on Sep, 20 2008 @ 10:09 AM
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reply to post by NorthWolfe CND
 


Well I find your statement to be foolish to say the least, I HAD a good job when I refinanced and had no problem paying my mortgage. Thanks to the economy and the fact that cheap labor not here legally have put me out of work, I'm struggling to make ends meet. So stop blaming home owners. Though I am sure there are some home owners who your statements apply to. Thank you



posted on Sep, 20 2008 @ 10:35 AM
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Originally posted by NorthWolfe CND

Third: If you are behind on your payments, maybe you shouldn't have borrowed money you couldn't pay back.



I am not someone who is stuck with one of the home loans that I cant pay back. I bought my home years and years ago before they did all this weird financing stuff.

However I had to sell my home for a very sinister reason. I had to move to another geographic location. So I was caught up in this mess through no fault of my own. This mess isnt just affecting people who cant pay their mortgages. It is affecting ANYONE who has to sell a home right now, and it is going to affect ALL of us in the long run as we struggle to pay off what it is going to cost us to bail out these banks, etc.

I have to tell you I really resent all the people who put the blame for this mess on the borrowers. MOST people rely on the professionals, the lenders, to tell them how much they can afford. Before I changed my major to philosophy, it was in finance and accounting, and you know what? Even with a slightly above average understanding of the formulas, it is still a headache to figure all this crap out.

MOST people do not knowingly take out home loans knowing they will default.

This whole mess was caused not by unscrupulous borrowers but by unscrupulous lenders, who hoped to get people who couldnt afford the loans into them with low rates, and quickly sell the loans to others less aware of the whole financial situation of the borrower, and used the fact that the interest would step up and thus make the loan more profitable to the buyer of the loan, to get a good price for the loan. They knew what they were doing, some of these people fudged the numbers to make the borrower qualify. They were after volume, not quality, and this practice of playing hot potato with bad or highly risky loans is at fault, not the borrower who generally speaking doesnt know what they hell the formula is to determine if they can afford the loan. They just know that if the payment is "x" they can afford it.

So in answer to your "maybe if they are behind on their payments they shouldnt have borrowed money they couldnt pay back" I would say, if the banks could not afford to lose that money, maybe they shouldnt have been getting people into loans that they had a good chance of defaulting on. I put the blame for this mess firmly and completely on the shoulders of the lenders. I know I wouldnt lend my entire life savings to someone or many someones who were not able to pay it back. But thats because I would not be going around trying to sell the loan at a profit to some other poor sucker. I know I would be stuck with the repercussions of that loan. Nor would I assume that the government was going to bail me out if my crappy loans didnt pay off.

I dont believe for one second that a mess this size is the result of some miracle change in the behavior of borrowers who all of a sudden started knowingly buying homes they cant afford so that they could struggle and have their credit ruined and live in a tent somewhere.

Get a clue.



posted on Sep, 20 2008 @ 11:10 AM
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This is a much more complicated issue than it seems. Not only from the standpoint of business's folding...awww poor f'ing things...but people losing their jobs, investors losing their money, that could mean "you" depending on where your money is, and a total cluster f... of the mortgage industry.

Owning a "HOME" not a house IS the American dream. We, mostly all of us, want to own a home in which to raise our family and in our senior years have somewhere to rest our bones while waiting for the big "earth nap" day, then leaving the "family" home to our children.
This dream, while still true for many of us, has changed to buy a "house", live in it for a few years and sell it for a fortune...One small reason for the collapse...artificially high selling prices.

Greed became the driving force in our current situation. Mortgage writers get paid for the mortgages they write. They want to get you in the biggest mortgage possible. The bad thing is if there is a big change in your earnings ability, loss of job, illness, etc., you are quickly screwed.
Mortgage companies just kept writing mortgages with no or little regard whether the applicant could pay or not. The debt to income formula was tossed out the window.

Many people got suckered into ARM's, adjustable rate mortgages, and lost their shirts when the rates sky rocketed. Again the mortgage writers convinced people that they could afford a house they really couldn't because of the ARM. Once the rates went up...POW ! they were screwed.
Mortgage writers also convinced people they could buy a house with no or little down payment. While this is a good method for first time home buyers it failed miserably when people were using this system to try to make a fortune in a day and crapped out when the bubble burst and homes stopped selling for trice what they were worth...collapsing the system.

Personal Responsibility: Ultimately it is up to the borrower to know what they can safely afford and stick to their guns. That is the American Dream in action. Too many people bought houses they could not safely afford is the s... hit the fan and when it did they were screwed.

What is likely to happen:
Money loaning practices will have to change...we will have to return to a system where money is loaned based on the real ability to repay the loan using old school tried and true debt to income formulas...it is going to become more difficult for many people to get a mortgage...good thing will be house prices will, and have been, dropping dramatically in some areas.

All loans will be reviewed and restructured. I would presume the government, working with these companies, will do their best to get people to rewrite their mortgages and has been stated in the news forgiving some/all of the late fees, etc...we, the people, along with the mortgage companies will absorb these forgiven fees.
The government will/should do its' best to make sure that first time "home", not investment scheme, buyers are given the best shot to retain their home...especially in this election year LOL.
People are going to lose their homes. It is just not realistic for someone making 40K per year to be able to pay for a 500K home that is also overpriced by 200K...A fool and his/her money is and should be parted.



posted on Sep, 20 2008 @ 11:19 AM
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Part II...lol

Future home buyers are going to get some great deals. There will be many homes on the market whose mortgages are going to be held by our government. They will want to sell these homes fast and at greatly reduced prices...the longer a home is vacant the faster is degrades and loses its' value...My wife and I bought our first home in this way back in '93...this problem has been going on for a long time not just this week lol...We bought a home that was foreclosed on by Fannie Mae and had been abandoned for 2 years. The house had a value of $175K and we bought it for $95K...the gov' took the hit for $80K...We lived and raised our children in it for the next 13 years before we sold it and moved out of state to be with my wife's family.
It was the same story as today. The original owners bought a house they could not afford...in '91 their mortgage was $2100.00 per month YIPES !!!. No way could they, blue collar folks, afford that and they walked away.

Mortgage companies that wrote these crazy loans are going to take a loss, and hopefully some bonehead loan officers are going to lose their jobs. The government is going to absorb a lot of these mortgages and resell the properties taking a hit for the discounted selling prices over the value of the mortgage...Americans will pay for this out of their taxes.

Hopefully we will return to a more sensible method of mortgage writing and people will buy a house they can actually afford. The trickle down of this will hit many businesses including such businesses as Home Depot, Lowes, etc. meaning some loss of jobs their as well. New home builders and renovation companies will also take a hit as they see their work slow down dramatically...except in ravages areas from storms, etc.
This is going to hurt us all and hopefully the morons responsible take the biggest hit but that is unlikely. But some will prosper from this situation...especially first time home buyers so good luck to you all.

Sorry so lengthy...



posted on Sep, 20 2008 @ 12:49 PM
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Originally posted by disgustedbyhumanity
I don't think it is dire. I have reason for new optimism. This will not be a bailout for banks, but it will allow the insolvent banks to go out of business without seriously affecting the rest of the economy..

The way i see it the goverment will buy the bad loans but will not give the banks a good price for them say 25-50% of the loan value. Then the banks will have to write off the losses. Depending on the losses they will stay in business or not.

So now the goverment has these mortgages and in most cases will have paid less than they are worth. I think the most likely scenario is that refinance with the delinquent/upside homeowner lowering the amount of the mortgage to reflect current values. At that point the mortgage will be much more secure and can then be sold into the market for probably 60-70% on the dollar. Everyone wins execpt the banks that issued the mortgage in the first place. Even they win in a way because no one else is willing to pay much of anything for these mortgages even though they have underlying value.

Follow this plan and goverment makes money and leads America into a new decade of prosperity.

Chances are they though that they will let vulture investors buy them instead of helping out the homeowner. We need to make sure that we let our congressmen and women know that this is not acceptable. We can fix this economy for everyone by just adjusting our view on bailing out dumb homeowners.


This is ridiculous - the government buying the bad loans does not make them disappear in fact it will make matters worse because now the banks will not eat any of the bad debt and will continue to do business as usual because there is no real consequences for their reckless behavior.

Nothing has changed other than the taxpayers are now going to take the hit instead of the banks that caused this mess. What's worse is nobody - literally nobody - knows yet how much this will cost the taxpayers because no one knows the extent of the problem due to every bank intentionally trying to hide their problems by cooking their books.

The government is not buying this crap at a discount - if it was at a discount - the market would want to buy it and they would not need to step in. They will be paying more than it is worth to keep the banks from collapsing by definition. This bailout is not a good thing at all - It will cause inflation and hurt the whole economy - and in all likelihood make the problem bigger than ever.

You should be absolutely furious not optimistic - the government just screwed the citizens again for the benefit of the banks.



posted on Sep, 20 2008 @ 12:53 PM
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reply to post by NorthWolfe CND
 
yOU must be joking!

Alex Jones is a God. Were it not for him i would not be aware of whats really going on.

I suggest you look around you?



posted on Sep, 20 2008 @ 01:20 PM
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reply to post by Illusionsaregrander
 


Exactly people with good jobs find themselves 10 or 15 years later with their jobs outsourced and their live savings down the drain.

My husband and me did very well during the 90s the Clinton years we prospered with the markets, but now everything is getting harder to sustain.

Even when my husband still have a great pay job.

I live everyday in fear that if he loses his job due to government cuts we are going to find ourselves in that foreclosure list, or lose everything just to be able to keep our home with his retirement alone.

Many people doesn't understand that is more than just irresponsibility what is hitting hard working Americans this days.

It was a time when a mortgage was taken with a local bank that you knew and you had to have a down payment for it, you could pay your loan in 10 years or so and be the sole owner of your home.

My parents did it, and so my in laws.

Today the mortgage business became a mulitbillion dollar empire on nothing than paper with not backing at all and everybody made money from it.

A vicious cycle and a merry go around.



posted on Sep, 20 2008 @ 02:23 PM
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I think every failed or bailed bank CEO/Board member should forfeit all dividend, bonus and severence dollars to the Gov, Fed or absorbing entity.

If the purchaser loses say by ARM loan, and had put trust in broker/agent
who is making commission quite often extremely large, as payment for their expertise and sends a high risk loan through that somehow seems properly documented therefor accepted by a lender, they too should be accountable for failed loans. I would like to see the 1099's for write-offs go directly to them as well.

The tax payers are taxed out. With borrowing to support the ongoing
war(s) on terror, drugs, etc...
bailing Airlines, Insurance companies, Medi-(care and aid), disaster stricken areas, still paying off the S & L's that fattened the calfs for many a elite/arabian/bush/bin laden/ dinners, as well as the Enron, Global Crossing (I lost plenty myself on that..lesson learned...should've sold when the bushes dumped their stock), Ernst, Tyco, Global aid, black projects, etc...,

where will SS baby-boomer benefits come from? all the other monitary interest and principal payments owed to countries/bankers? Yet, we outsource labor to and borrow from these same people. This all will come from where?

We owe 2-1/2 times what the entire country would bring should it be sold to global lenders. Would the presses keep printing sheets of $100's?

Maybe it's time to start printing more $100,000.00 reserve notes eh? It would take less time to count all the trillions.

Would they barter majik beans in lieu of monitary debt? Jack's Beanstock
and Alice's rabbit hole sound less speculative.

When this is all over, I am going to pull a rabbit right out of my ass.



posted on Sep, 20 2008 @ 02:34 PM
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There was some news the CEO's were defending there bonus's.
Yes BONUSES! They are still getting bonus's for losing everyone's money.
Id sure like to know how to get that job.



posted on Sep, 20 2008 @ 02:39 PM
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reply to post by wutone
 


He moved back to California, haven't had any contact with him since. Hard to say if the banks can afford to prosecute him (and all the others) for the deficiency. My guess is the banks will write off a certain amount of bad debt and go after the people they think they can actually collect the money from. With so many people in the same situation and the courts already being clogged, my guess is the statute of limitations will expire on quite a few bad loans and the banks will never recapture the money lost. And why should they care, it appears you and I just guaranteed it anyway!



posted on Sep, 20 2008 @ 03:22 PM
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reply to post by disgustedbyhumanity
 


If the government gives the banks less than what the toxic paper is worth.. than all the banks will be insolvent..

the government will have to give what ever the banks have it rated at on there books..

other wise the banks will just say no... keep it on there books.. as is... and not make any loans to anyone....



posted on Sep, 20 2008 @ 03:29 PM
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I think some people have forgotten about loans most people take on besides a house. I'm talking about Car loans, If a person could not afford their home payment, it is safe to say that a lot of people are not only skipping thier house payment but also skipping their car payment as well. Since gas is pretty darn high, those people that had to beat the Jones' with a fancy house, fancy SUV, can no longer pay the fancy gas bill, most likely in the form of a gas credit card........Who gets the fancy cars?



posted on Sep, 20 2008 @ 05:41 PM
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reply to post by wutone
 


Your comment on banks getting stuck with bad loans, seems to make sense. But times have changed. Banks bundle up loans and repackage them and sell them off. They make most of their money that way now. Unless you are in the middle of foreclosure,(and every story is different), like I am....it is really difficult to understand behaviors that seem deplorable. Before I was in this mess, I saw an ad on craigslist. This guy was selling EVERYTHING in the house. Doors, faucets, light fixtures, kitchen cabinets. I was appalled. Now I get it. Boy, do I get it. I won't go on some long story...blah, blah, blah. But I will say this, we made every attempt to make things right. The mortgage company attempted to deceive us, trick us, and literally force us into foreclosure. Honestly, we are relieved, and ready to move on. Yes, we will have to live with the consequences. We are staying in OUR home until the very last day, We are paying off our credit card, car payments, etc with the 'extra' money.

As far as the IRS is concerned, we have contacted many different professionals...they have all said the same thing. "It's a crap shoot." You'll either get a tax bill, or you won't. Let's hope for won't.



posted on Sep, 20 2008 @ 06:10 PM
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With the wording of the bailout bill, who knows what will happen to everything that's going to work it's way into the loss column. The term cascading failure strikes me as an accurate descriptor of what we're seeing right now... And to me this bailout bill stinks of enronesque maneuvering where the guys at the top are getting out before people realize how bad it really is.



posted on Sep, 20 2008 @ 06:32 PM
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Originally posted by dgtempe
reply to post by NorthWolfe CND
 
yOU must be joking!

Alex Jones is a God. Were it not for him i would not be aware of whats really going on.

I suggest you look around you?



Alex Jones is a fear monger. Alex Jones is a CIA disinformation agent. Alex Jones will deceive you all. I started out the same way. Finding out about 9/11 and there on down the ladder learning about everything. Finally figured out his websites and his movies have some truth but most of it is there to scare the # out of us. What i believe alex jones will do is deceive his followers to cause a situation to issue martial law. I suggest you read up on William Cooper and listen to him very very carefully. Alex Jones is not a god, he is a deceiver. Many people will disagree with me, i know this. But for a while i went to his websites and read his articles. I finally came to the conclusion after many things he said were untruthful. Fear will only lead you to darkness.

Do not trust him.



posted on Sep, 20 2008 @ 07:02 PM
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Bush's 7.5 years of "prosperity and a strong economy" were financed by this whole escapade. The truth is, we never got out of the recession of 2001. The real estate collapse is Bush's way of letting McCain (who WILL STEAL THIS ELECTION) institute his shock doctrine. That is, bankrupt Social Security, Medicare, etc.



posted on Sep, 21 2008 @ 04:00 AM
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Does anyone know whats going to happen to all the foreclosure listings? My family and I along with seven other people, manage and help the banks sell the foreclosure listings. If they go to the govt and we lose them all at once, 12 people will be unemployed instantly, and it will be like that around the country. A new job market has come with foreclosures. For every home that goes into foreclosure, 10-15 people get work. From the lock change, to the clean out to the repairs. The agent that sells it, the agent that took the listing, and their 3-6 assistants. Not to mention the asset managers the bank hired to deal with the agents in every state. Thousands of people around the country do this. Theirs even a convention and group meetings my dad goes to for REO properties. He pays $375 in yearly dues to be a member, plus the convention and seminar fees. This is big business, if the govt takes over, like I said before, one person might save their house but 12 people will be out of work, my family! Its all we know, we've been dealing in foreclosures since 1995. If anyone knows anything please help by giving me info!



posted on Sep, 21 2008 @ 08:45 AM
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Originally posted by wutone
There are people that stay in their homes up to 2 years here in California after declining to pay their monthly mortgage bill.


THat's awesome.

You can live in the banks house for 2 years after you stop paying.




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