Bush to Outline Aid to Mortgage Holders

Well then, I am currently behind on my cell phone bill, Verizon made me promises and I need my cell phone. I demand the gov't force all of you to pay my bill.

 

CHA CHING, we have a winner. It's YOUR responsibility to decide how much you can afford. That 28/36 rule isn't for everyone.

 

You can pick up some good foreclosures in 27610 and 27603 right about now. :shock:

 

Everything is disclosed at the time of closing by the attorney. They aren't poor people, they just made a bad decision and now they're going to learn a lesson the hard way.

 

What I normally see at new homes is... a brand spankin new house, not one but 2 new cars, house fully furnished, etc...

Gotta pay to play:mrgreen:

 

That is not true. They have creative terminology that seems similar to actual contractual terms. I have owned a few homes in my lifetime. The attorney just prepares the paperwork. He is at the closing in case there are questions. If there are no questions due to not knowing to ask then they are screwed.

 

I was beginning to think I am the only one who feels people should be responsible for themselves. Many people make NO effort to educate themselves about their home purchase. The bank says they qualify for "x" and the don't take the time to do the math and think about all the other expenses of living and home ownership. There are even on-line calculators who will do the math for you :roll: There are people who have been in bankruptcy ... can barely afford their current monthly bills but yet go with a subprime mortgage so they can move up in house ... hello?!

 

I agree with you also, that's why I said my feelings are mixed.

1. People have to educate themselves, it's their responsibility
2. Most of these foreclosures are for expensive homes, not $100 or less and the people are over extended on everything by their own doing
3. Lenders will slide one over on you, so you have to be aware
4. Appraisers that are hooked up with that lender will mislead you when they tell you your home is worth $50k more than it really is

So it's really both sides fault, the borrower and the lenders (and the ones in the middle that assist that lender).

 

These people get a gov't bail out and Katrina victims are still waiting for money 2 years later?

Sounds about right, doesn't it Mr. Bush?

If you want to talk about people who are victims of something they cannot control, try a freaking natural disaster.

 

Part of the problem with the whole mortgage industry is that for years they have been threatened with lawsuits for NOT making loans to people with poor credit in less desirable neighborhoods so to avoid the legal hassles they make loans to people who SHOULDN'T have and DON'T qualify for mortgages. They default and we wonder why. On top of that there is an implicit guarantee the government will bail out house failures.

As far a Katrina, don't get me started there. Many of those folks are still sitting on the collective ***** waiting for THE GOVERNMENT to bail them out. Therein lies the problem, people won't take care of themselves because they know that eventually some politician will find some way to force the taxpayer to fix it for them. So why bother being responsible????

 

I agree.

 

Um, yep, if we are going to drag Katrina into this, why didn't they research their homowners insurance to see that they were covered ahead of time, or research how a bad hurricane could affect them and move.

 

But then again. Why would you live below see level?

 

Because most people live in a fantasy world that nothing "like that" could ever happen to them....

It's called they need to be realistic in their plans and educate themselves to the fullest when making choices that involves THEIR money. If they don't then they can deal with the consequences.

 

This still baffles me also........

 

I have a friend that took out a loan and an equity loan to get his house and still had to put the closing on the credit cards. I think a lot of him but I don't think his bad decisions should be compensated for by the government.

 

Exactly! the "mortgage holder" is not the person who owes the money, it's the financial institution the money is owed to. Who is this program intended to help? The same banks and financial institutions that pushed through the new bankruptcy bill, complaining about people not paying their credit card debt while at the same time giving credit cards to anybody who can make a scribble on a signature line.

 

Right. How is the buyer supposed to know what questions to ask? They have been sold a bill of goods, and will not realize until later what the real cost is.

 

In my opinion, the only reason the government is getting into this at all is to protect the financial institutions from their own irresponsibility.

 

It's not a bailout. Obama and Edwards were the ones claiming they would "bailout" the borrowers by giving them money.

All Bush is doing is asking HUD to create programs to make it easier for the folks who got the low interest - high rising rate ARM loans to be able to refinance to something fixed with a slightly better rate...even if their credit score has gone down due to them being unable to make the higher payments on time - or at all.

He is also asking for more regulation in sub-prime lending.

The catch-22 for lenders is already showing itself. When they turned down the low-income, high-risk people, for loans on low-value homes....they were called racist and accused of red-lining.

When they were extorted to go ahead and extend the credit to these folks, they are now being called "predatory" and claims are flying around about how these banks "took advantage" of low-income minorities. The lenders can't win for losing.