Rescues for Homeowners in Debt Weighed
- Thread starter blessednxs65
- Start date
Quote.....Administration officials say they still oppose any taxpayer bailout for either people who borrowed more than they could afford or banks that made foolish loans during the height of the speculative bubble in housing....end quote
This is my problem as well. I did not buy a house here even though I could have gotten the loan, and that loan could have had monthly payments I could have afforded. There were a bunch of idiots out there buying houses that were way over thier heads or didn't read the documents they signed at closing and got into negative Amoratizing loans that are now putting them upside down. Sure there were some crooks in the MTG industry, but the idiot consumer is the problem here. I don't think they should get bailed out. I know when I decide to make, probably the biggest financial move of my life, I will read the documents I'm signing. I kow there is another side to this, where Banks go out of business because of the losses they are taking. And that hurts the economy as well. Guess what...not my fault either, they decided to buy those Neg Am 100% loans and are now paying the price for it.
Make a bed...that's where you sleep. my .02
This is my problem as well. I did not buy a house here even though I could have gotten the loan, and that loan could have had monthly payments I could have afforded. There were a bunch of idiots out there buying houses that were way over thier heads or didn't read the documents they signed at closing and got into negative Amoratizing loans that are now putting them upside down. Sure there were some crooks in the MTG industry, but the idiot consumer is the problem here. I don't think they should get bailed out. I know when I decide to make, probably the biggest financial move of my life, I will read the documents I'm signing. I kow there is another side to this, where Banks go out of business because of the losses they are taking. And that hurts the economy as well. Guess what...not my fault either, they decided to buy those Neg Am 100% loans and are now paying the price for it.
Make a bed...that's where you sleep. my .02
I agree. I know, the economy is lousy now. But folks use their credit cards like ice, they buy too big of house, which they can't afford and then file BK... Sorry, even when I got divorced and got left holding all the debt, I never considered taking the easy way out.. I stood by and paid my debts, even though I didn't even cause them.
Out government needs to stop the entitlement problems. Folks are too used to a free handout!!
Just my 2 cents worth.
Out government needs to stop the entitlement problems. Folks are too used to a free handout!!
Just my 2 cents worth.
Bravo :clap:
Check out this article, posted by my Economics Prof earlier this week in our threaded discussions (yes, that's right, I am REQUIRED to do this exact kind of thing for SCHOOL! lol):
Link
Sorry, I want no part of bailing out people like this. I feel bad that they've made the decisions they've made, but why in the hell should it be my problem. Pay particular attention to the reason they had to pull from their 401K and the lease he is looking to have taken over towards the end of the story.
Link
Sorry, I want no part of bailing out people like this. I feel bad that they've made the decisions they've made, but why in the hell should it be my problem. Pay particular attention to the reason they had to pull from their 401K and the lease he is looking to have taken over towards the end of the story.
Yep Credit card debt and a car that they shouldn't have purchased. I work in Irvine, right smack in the middle of Orange County CA. The cliche of "Keeping up with the Jone's" is in full affect here. BMW, Jag, Audi, Benz are starter cars here. If you don't have one, you have to leave the city. Ok an exageration, but that's the attitude here. The biggest problem with this guy is once his CC's are paid off he will need to use them again in order to pay for Gas and bills, while he's paying back his 401K loan. It's a revolving door for him and untill the CC's are thrown away and the lifestyle downsized, he will never be out of debt, or get ahead.
I have to agree with Dprice here. My girlfriend and I will be looking into buying our first home within the next 6 months or so. We could have gone out and bought a house we really couldn't afford with some ridiculous loan structure, but we were responsible and didn't. Any sort of a bail-out would be just another example of the responsible people in the country subsidizing the irresponsible.
People are always quick to point out that there were "predatory lenders" that duped consumers into taking out loans that they couldn't afford. Absent fraud or coercion, it has to be the responsibility of the party to be charged to read the documents he's signing. Part of the reason there are still formal closings on home loans is to get the point across to the borrower that they're signing very important papers. If there was fraud or coercion, then we already have civil courts in place that are perfect suited (no pun intended) to handle such cases.
People are always quick to point out that there were "predatory lenders" that duped consumers into taking out loans that they couldn't afford. Absent fraud or coercion, it has to be the responsibility of the party to be charged to read the documents he's signing. Part of the reason there are still formal closings on home loans is to get the point across to the borrower that they're signing very important papers. If there was fraud or coercion, then we already have civil courts in place that are perfect suited (no pun intended) to handle such cases.
I'll jump on the bandwagon here. When my wife and I bought our house 16 years ago, we researched the process in depth. We talked to homeowners we knew. We bought books and videos. We talked to banks. We hired a lawyer.
And that was all before the internet was so pervasive. Nowadays anyone can go online and within a few days be fully versed on the ins and outs of finding and purchasing real estate.
No doubt there are (or were) plenty of predatory lenders, but anyone who signed papers for a ridiculous ARM loan and/or padded their income to qualify, was just trying to beat the system. Just another example of trying to grab more than you can afford (with the ready assistance of some unscrupulous lenders).
If it sounds too good to be true, it ain't true. That never changes. Ignorance is no excuse.
And that was all before the internet was so pervasive. Nowadays anyone can go online and within a few days be fully versed on the ins and outs of finding and purchasing real estate.
No doubt there are (or were) plenty of predatory lenders, but anyone who signed papers for a ridiculous ARM loan and/or padded their income to qualify, was just trying to beat the system. Just another example of trying to grab more than you can afford (with the ready assistance of some unscrupulous lenders).
If it sounds too good to be true, it ain't true. That never changes. Ignorance is no excuse.
Same ole same ole. How far do we really want the government to go to protect us from doing dumb things? Some things are reasonable. Stop signs I guess. Some are not; smoking bans, no trans fats etc. How far do we wish to go? If someone feels that they can spend 70% of their income on home ownership, should the government tell them no? Should the government place large signs that say; if you do this and there is a downturn in the economy, dont come running to us for help? What is predatory lending? I really dont have answers here but I know many people that got into homes, switched to fixed after a year and are fine. I know just as many sweating each increase. These were great lonas at the time. Home ownership. The american dream. Interest only. SHould we have said no to the people that did this 5 years ago and are OK now? How far do we really want the government to go to protect us from doing dumb things?
Interst only for a time frame is not horrible, and made getting in possible for some. I just hope anyone who did get one, has the credit score and equity to refi now that the guidlines have changed.
Appraisers may have some questions to answer also.....did they do a "REAL" appraisal or were they given a figure and asked to "appraise" the House. I have a cousin in Ohio that had more sense and didn't do it. Other's in his field, and in the same area, aided in the problem by "over appraising" the property. We'll have to see if George will try to help bail out the loaning agencies like his Dad did for some Texans when he was in office.
It's all a matter of living within your means. We moved into our second home 3 summers ago. (My 3rd home loan in my life, 30 years just like all the others.) My wife was the one (fortunately) that set the limit as to how much we'd spend. The value has dropped since we bought it but we're not upside down and we have no plans to sell. We have two cars, the one I drive (2001 Hyundai) has been paid off for 2 years. I was thinking of replacing it this year but decided I better wait. No credit card debt -- my wife pays it off every month. A bigger house, nicer car, traveling more often, and a well-stocked humidor would be nice but not at the expense of going uncomfortably into debt.