Bush Unveils Mortgage Relief

[Modeps]

http://money.cnn.com/2007/12/0...ited/index.htm?cnn=yes

I pay my mortgage on time, every month. I sometime scrape by because I've got a daughter and often unexpected expenses come up, yet my priority is to not be late on my mortgage... I have good credit, I had a down paymenet on my house, and I'm stuck with a mortgage rate TWICE of what these lowlifes get.

I'm so irate.

 

[palehorse]

Don't you just love it when the government tries to reach out and pay the stupid and lazy amongst us, for being just that, stupid and lazy?!

Then again, I don't know who to blame in this one. Too many entities played a role in allowing this to happen in the first place...

bah...

 

[Skitzer]

Originally posted by: Modeps
http://money.cnn.com/2007/12/0...ited/index.htm?cnn=yes

I pay my mortgage on time, every month. I sometime scrape by because I've got a daughter and often unexpected expenses come up, yet my priority is to not be late on my mortgage... I have good credit, I had a down paymenet on my house, and I'm stuck with a mortgage rate TWICE of what these lowlifes get.

I'm so irate.

Who are you to determine who should and shouldn't own a home!
This has nothing to do with you paying your mortgage on time ...... congrats, welcome to the club, I pay mine too ..... so what.
Your callous description of people as scumbags and lowlifes speak volumes about your personality. You don't know these people or their situations or what has happened in their lives ............ get a grip!
What is the real reason you're pissed? Is it because someone may be getting something you aren't?

I'm glad people are getting help in order to keep their "HOMES"

 

[Vic]

The qualifying requirements are great. Pretty much no one will be "helped" by this.

- mortgage must have been originated from 1/05-7/07
- must be an ARM whose initial adjustment occurs 1/08 or later
- borrower(s) must have 660 mid-score or lower
- must be current on mortgage
- cannot have been 60 or more days late in the past 12 months
- must be qualified as incapable of making adjusted payments
- must be qualified as capable of making unadjusted payments

It's a joke.

 

[palehorse]

Originally posted by: Vic
The qualifying requirements are great. Pretty much no one will be "helped" by this.

1) mortgage must have been originated from 1/05-7/07
2) must be an ARM whose initial adjustment occurs 1/08 or later
3) borrower(s) must have 660 mid-score or lower
4) must be current on mortgage
5) cannot have been 60 or more days late in the past 12 months
6) must be qualified as incapable of making adjusted payments
7) must be qualified as capable of making unadjusted payments

It's a joke.

The article claims that analysts believe that 240,000, of the 2 million + people effected by the end of '08, do meet those req's, and will be helped.

I numbered them to make it easier to discuss. I think anyone who fails to meet #4 or #5, without exceptional extenuating circumstances, deserves to lose their home - especially given the fact that they can't even keep up with the incredibly low introductory rates! (These are the "stupid and lazy people" I was referring to in my first post).

Which of the requirements leads you to believe that it's impossible for anyone to qualify?

 

[GrGr]

This isn't so much to do with helping the people with loans, they wouldn't care if people defaulted unless them doing so didn't hit the precious banks (and overall economy) so hard.

 

[Starbuck1975]

The commentary on Bush's plan, which is a variation on Hillary's plan, indicates that this proposal is politically motivated, but will do very little to stem the flow of foreclosures in the coming months...if anything, it is Bush's attempt at engaging the housing bubble burst issue before the Democrats can turn it into a major campaign talking point.

The market is in desperate need of a price correction, and that outcome is inevitable.

However, the scope of the housing bubble is so extensive, that it could drag our entire economy into a rather nasty recession, or dare I say depression, if the government does not act. There are simply too many players, and too much money, lost in the Ponzi scheme that fueled the housing bubble of the last 5 years.

Bush's plan will slow the bleeding a bit, enough for the market to lick its wounds and move on...those who were fiscally responsible during the housing bubble will come out better in the end.

I know of many market speculators, flippers and other greedy individuals who timed the market poorly and are now underwater...these people do not deserve a bailout...unfortunately, enough of these knuckleheads jumped on the housing bandwagon to jeopardize our entire economy.

I'm glad people are getting help in order to keep their "HOMES"

You don't get to keep something that was never yours to begin with...yes it is true that the mortgage industry exploited many home buyers...granted, why these home buyers failed to read the fine print on the most expensive purchasing decision of their lives is beyond me, but it happens.

No money down, interest only loans...ARMS...home ATM machines, I mean HELOCS...this isn't about people keeping their homes...it is about greed, speculation, and fiscal irresponsibility.

You don't make a downpayment on a home, and your mortgage payments only go towards the interest...guess what...you are a renter, and the bank is the landlord...you have no equity.

The whole housing market Ponzi scheme only worked under the assumption of endless appreciation...buying an overpriced home at a ridiculously low teaser rate, and then refinancing when that teaser rate expires, only works if homes continue to appreciate...well the housing bubble hit a wall, and the rules of the game are now back to market fundamentals.

 

[Vic]

Originally posted by: palehorse74

Originally posted by: Vic
The qualifying requirements are great. Pretty much no one will be "helped" by this.

1) mortgage must have been originated from 1/05-7/07
2) must be an ARM whose initial adjustment occurs 1/08 or later
3) borrower(s) must have 660 mid-score or lower
4) must be current on mortgage
5) cannot have been 60 or more days late in the past 12 months
6) must be qualified as incapable of making adjusted payments
7) must be qualified as capable of making unadjusted payments

It's a joke.

The article claims that analysts believe that 240,000, of the 2 million + people effected by the end of '08, do meet those req's, and will be helped.

I numbered them to make it easier to discuss. I think anyone who fails to meet #4 or #5, without exceptional extenuating circumstances, deserves to lose their home - especially given the fact that they can't even keep up with the incredibly low introductory rates! (These are the "stupid and lazy people" I was referring to in my first post).

Which of the requirements leads you to believe that it's impossible for anyone to qualify?

I didn't say that it would be impossible for anyone to qualify. Don't put words in my mouth. I said that pretty much no one will be helped by this. Analysts predict 10%, and my opinion is that it will be even less than that, based on the combination of conditions 3, 6, 7 as outlined above.

 

[Vic]

Originally posted by: GrGr
This isn't so much to do with helping the people with loans, they wouldn't care if people defaulted unless them doing so didn't hit the precious banks (and overall economy) so hard.

ding ding ding!


The problem for the banks and the investors is that they've put themselves between a rock and a hard place. The banks can't have high percentages of their loans default, but the investors bought these securities on the promise that the yields would go up. What do they do but run to Unca Sam?

 

[Genx87]

A new crisis has been invented by politicians to scare us and make us believe they are our saviors.

 

[Modeps]

Perhaps I'm a bit quick to judge the buyers as "scumbags" but you know what? I would have LOVED to buy a larger house for my soon-to-be-growing family at a rate 1/2 of what I'm paying now then have it fixed for 5 years.

I guess I'm just being selfish, thinking about myself instead of the 'unfortunate' mortgage companies.

 

[Moonbeam]

Capitalism is boom and bust, no?

 

[Moonbeam]

All those capitalist risk takers that make the economy go round and round and increase their personal wealth by taking such risks sure come in for a lot of blame when things go bad and they are too important to let sink. The lesson, clearly, is to get way out on any bubble and Ponzi scheme.

 

[LegendKiller]

Originally posted by: Skitzer

Originally posted by: Modeps
http://money.cnn.com/2007/12/0...ited/index.htm?cnn=yes

I pay my mortgage on time, every month. I sometime scrape by because I've got a daughter and often unexpected expenses come up, yet my priority is to not be late on my mortgage... I have good credit, I had a down paymenet on my house, and I'm stuck with a mortgage rate TWICE of what these lowlifes get.

I'm so irate.

Who are you to determine who should and shouldn't own a home!
This has nothing to do with you paying your mortgage on time ...... congrats, welcome to the club, I pay mine too ..... so what.
Your callous description of people as scumbags and lowlifes speak volumes about your personality. You don't know these people or their situations or what has happened in their lives ............ get a grip!
What is the real reason you're pissed? Is it because someone may be getting something you aren't?

I'm glad people are getting help in order to keep their "HOMES"

I can throw out a dozen or so anecdotes of people I know who are, more or less, scumbags and will take full advantage of this situation.

If you shouldn't have had a "home" in the first place you shouldn't be allowed to keep it through government intervention. That's called a planned economy and plain and simple socialism.

The people who will pay for that person to keep their house is every investor in this world, including pension funds, 401k funds, mutual funds, bond holders. That is then redistributed among all people in this country through lesser spending in the long-run.

*EVERYBODY* bears the cost of these idiots and their moronic decision.

What's funny is that you don't seem to realize that this is a political game. Bush et al. are making themselves look good by helping the "common man". However, all they are doing hurting the real common man while helping the uncommon one. They are creating a moral hazard by encouraging people who shouldn't have taken these risks, to take them in the future, because they *know* the government will bail them out. Look up "moral hazard" and you will see what I mean.

It's sad that people aren't calling this for what it is, political favortism to the minority to remain in office. It is nothing but manipulation of a market economy to suit those in power to keep themselves in power.

 

[gururu2]

OP if you make your payments easily, stop whining. Owning a house is beginning to detach itself from the American dream as real estate skyrockets. we have more banks behind housing than individuals. the market had to correct itself sometime, and I'm all for helping more individuals keep their housing. if you blame anyone, blame Bush for making this save apply to such a small percent of homeowners.

 

[NaughtyGeek]

Originally posted by: GrGr
This isn't so much to do with helping the people with loans, they wouldn't care if people defaulted unless them doing so didn't hit the precious banks (and overall economy) so hard.

Bingo! We have a winner. You sir have hit the nail on the head. This is nothing more than a corporate bail out. Didn't the people who originated these loans do their due diligence in qualifying these folks in the first place? Why can't the creditors work with the borrowers to prevent them from going into default? Why? Because it's much easier to use my money to cover the profit losses instead of holding the lenders accountable for their own flawed/failed lending practices. Got forbid the biggest industry in the US (banking) was to take a hit for their own poor decision making. Let the US tax payer take care of it instead. That way we can cause that many more people to struggle to pay their mortgage because they're paying their's and a portion of someone else's as well. Nice!

 

[FiddleDD]

over the last year I have watched our house lose $150,000.00 in equity...its to the extreme part that if something...anything isn't done to try and help...people are going to fold all over the place...

 

[Vic]

Originally posted by: Moonbeam
Capitalism is boom and bust, no?

It's pretty hard to attribute this situation to capitalism, Moonie. These markets have been grossly manipulated front to back, this latest just being a small example.

 

[LegendKiller]

Originally posted by: gururu2
OP if you make your payments easily, stop whining. Owning a house is beginning to detach itself from the American dream as real estate skyrockets. we have more banks behind housing than individuals. the market had to correct itself sometime, and I'm all for helping more individuals keep their housing. if you blame anyone, blame Bush for making this save apply to such a small percent of homeowners.

Yeah, because the government should bail everybody out? Right?

I guess that's what capitalism is. You f-up, you take out too much debt, then the government will help you out! Wow, what ever happened to risk/reward and survival of the fittest? I guess that we should turn into a nanny state.

People like you are the ones who haven't read one lick of John Adams or Thomas Jefferson or anything else. You believe in big-government handouts and diffusion of responsibility.

It's pathetic that in this hand-holding, "best friend" bullshit country we are now resorting to being treated with kid gloves in all life's situations.

This reminds me of an article I read in a magazine this week, the title of it is "Is your kid a douschebag?", and what it describes is exactly what you want. Entitlement.

Sad.

 

[BoberFett]

Originally posted by: gururu2
OP if you make your payments easily, stop whining. Owning a house is beginning to detach itself from the American dream as real estate skyrockets. we have more banks behind housing than individuals. the market had to correct itself sometime, and I'm all for helping more individuals keep their housing. if you blame anyone, blame Bush for making this save apply to such a small percent of homeowners.

Hey genius, do you realize what caused real estate prices to skyrocket? Low rate loans and easy money for people who can't afford homes. Think about it.

 

[gururu2]

Originally posted by: BoberFett

Originally posted by: gururu2
OP if you make your payments easily, stop whining. Owning a house is beginning to detach itself from the American dream as real estate skyrockets. we have more banks behind housing than individuals. the market had to correct itself sometime, and I'm all for helping more individuals keep their housing. if you blame anyone, blame Bush for making this save apply to such a small percent of homeowners.

Hey genius, do you realize what caused real estate prices to skyrocket? Low rate loans and easy money for people who can't afford homes. Think about it.

thats the obvious answer. go up the ladder a few steps and you'll realize who/what was responsible for million dollar homes in blue collar neighborhoods.

 

[FiddleDD]

I wish they would drop mortgage rates to around 5%, Then you would see everyone refinancing...and paying to refinance...and then money would circulate throughout the housing market again.

 

[palehorse]

Originally posted by: FiddleDD
over the last year I have watched our house lose $150,000.00 in equity...its to the extreme part that if something...anything isn't done to try and help...people are going to fold all over the place...

Do you have an ARM, or a fixed loan?

If it's a fixed loan, then I can't see how this would effect you unless you have to immediately sell your house and escape the country. Even then, you could probably recover in a few years. If that's not the case, then guess what... you just need to stay in that particular house a while longer - until the value of said home increases again to the point where you can afford to sell it. If it never gets back up to where you want it, then too bad, so sad, take your losses like a man and move on.

If it's an ARM, then it's mostly your fault for taking that risk in the first place! You can blame the greedy lenders, or your childhood Priest... regardless, in the end, it was your decision to sign the paperwork, was it not?

Whatever happened to the the concept of suffering the consequences of a bad decision, and learning from our mistakes? (This applies to investors, lenders, AND ignorant home-buyers!)

Welcome to adulthood.

 

[Exterous]

Originally posted by: LegendKiller

Originally posted by: gururu2
OP if you make your payments easily, stop whining. Owning a house is beginning to detach itself from the American dream as real estate skyrockets. we have more banks behind housing than individuals. the market had to correct itself sometime, and I'm all for helping more individuals keep their housing. if you blame anyone, blame Bush for making this save apply to such a small percent of homeowners.

Yeah, because the government should bail everybody out? Right?

I guess that's what capitalism is. You f-up, you take out too much debt, then the government will help you out! Wow, what ever happened to risk/reward and survival of the fittest? I guess that we should turn into a nanny state.

People like you are the ones who haven't read one lick of John Adams or Thomas Jefferson or anything else. You believe in big-government handouts and diffusion of responsibility.

It's pathetic that in this hand-holding, "best friend" bullshit country we are now resorting to being treated with kid gloves in all life's situations.

This reminds me of an article I read in a magazine this week, the title of it is "Is your kid a douschebag?", and what it describes is exactly what you want. Entitlement.

Sad.

Normally I am the first to be against anything that helps out the stupid, lazy or ignorant. Unfortunately, this situation has the potential to be big enough to impact almost everyone in the US adversely due to the very large numbers of stupid, lazy and ignorant people who were sucked in by mortgages they didn't understand and over bought.

Obviously the market needs to correct itself but its the governments job to ease that transition and prevent economic disaster. As much as it pains me to say this I believe that some sort of relief plan is necessary otherwise the smart, well prepared and contentious will suffer as well

 

[FiddleDD]

I'm not in financial trouble...I can only imagine with the housing market dropping so drastically..if jobs were changed and relocation had to be made...it would be very difficult for people to move...then they would have to forclose...etc...causing this rippling affect...

Because...we are all neighbors in a sense..and if your neighbor has to sell his house at a extremely low price...you don't think you will suffer???

Then your house becomes less than what you paid for it...do you see the point yet??

Originally posted by: palehorse74

Originally posted by: FiddleDD
over the last year I have watched our house lose $150,000.00 in equity...its to the extreme part that if something...anything isn't done to try and help...people are going to fold all over the place...

Do you have an ARM, or a fixed loan?

If it's fixed, then I can't see how this would effect you unless you have to immediately sell your house and escape the country. Even then, you could probably recover in a few years.

If it's an ARM, then it's mostly your fault for taking that risk in the first place!

You can blame the greedy lenders, or your childhood Priest... regardless, in the end, it was your decision to sign the paperwork, was it not?

Whatever happened to the the concept of suffering the consequences of a bad decision? (This applies to investors, lenders, AND ignorant home-buyers!)

Welcome to adulthood.