Home loan forgiveness

Discussion in 'Politics' started by Wiseacre, Oct 28, 2011.

  1. Wiseacre
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    Wiseacre Retired USAF Chief Supporting Member

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    There's an opinion in today's WSJ about a guy named Ed DeMarco. He's the acting head of the Federal Housing Finance Agency, an independent regulator of Fannie and Freddie. He's basically the cop that prevents bad policy decisions that taxpayers would have to pay for. F&F are already some 141 billion in the hole, so his job is to make sure the situation doesn't get appreciably worse.

    Which brings us to the question of principle write downs, when lenders would reduce the mortgage principle amount for loans owned by F&F. IOW, a bailout, just in time for the 2012 election, another stimulus plan that bypasses Congress, imagine that.

    Except Mr DeMarco won't play ball, he says the taxpayers loseout in the deal, which is true. He says principal forgiveness is not within his statuatory mandate, and Congress should be the ones to appropriate money to fund the idea if they wish.

    Hard to argue with that, but of course the democrats are outraged. Bear in mind we've seen several housing relief programs in the lst few years, none of which have worked. And how fair is it to reduce somebody's mortgage but not somebody else's?

    So, this all leads to the question: what do you think of the idea of lowering somebody's mortgage principle with the US taxpayers paying for it? I can see extending the mortgage period out to 40 or even 50 years, or requiring a lower loan interest. What's your opinion?
     
  2. grunt11b
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    grunt11b VIP Member

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    They got themselves into the mess, they need to get themselves out of it, Tax payers should not be on the hook for someone elses bad decisions.
     
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  3. The Rabbi
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    The Rabbi Diamond Member

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    Transferring wealth from creditors to debtors is a bad idea that only encouragees further bad behavior.
     
  4. WillowTree
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    WillowTree Diamond Member

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    ditto that.
     
  5. Ringel05
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    Ringel05 Diamond Member

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    There's a guy I know, in his late 50s now, both he and his wife do government contract work, always paid his bills on time, paid their taxes, bought a house that was affordable (at the time) and was able to put extra money away into savings.
    6 months ago his wife's contract went bye bye and when nothing came through she went into a depression. His job was downgraded and in order to have a job he had to take a major cut in pay and the job has no medical insurance. He does what he can for extra money but has some developing serious physical ailments which limits what he can do and may not be able to continue working without proper medical care which he can't afford.
    Their emergency funds are almost gone and without some kind of intervention they will possibly lose their home.
     
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  6. RetiredGySgt
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    RetiredGySgt Platinum Member

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    Your point?
     
  7. RetiredGySgt
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    RetiredGySgt Platinum Member

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    By the way? The President does not have the authority nor the power to forgive US Debt. he can not unilaterally order a Government Agency to write off money owed to the US Government.

    If he does it is a violation of the Constitution , an Impeachable offense. And an unlawful order. If he does this he should be brought to Court for unlawful actions and theft of Government funds.
     
  8. DiamondDave
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    DiamondDave Army Vet

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    3 simple words...

    FUCK THAT SHIT!!!

    Those that scrape and sacrifice get the short end of the stick.... and of course, still foot the bill for those who bit off more than they could chew BY THEIR OWN FREE CHOICE...

    We have the freedom to succeed that goes hand in hand with the freedom to fail
     
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  9. Jarhead
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    Jarhead Gold Member

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    OK...how about this...(not a true story)

    There is a guy I know who had an idea and wanted to start a company that revolved around the idea. He invested his savings and began his venture. Things were going well for him as he expanded and hired more employees. However, whereas the demand for his product was there, the long life of his product (he spent time and money ensuring superior manufacturing and using top quality materials) the demand rapidly faded as he saturated the market. IN esence his idea was a good one but his desire to put out a quality product proved to be his downfall. He pumped much of the money he made into R and D in the hopes he can come up with another product to sell....but he ran out of funds and had to shut down...losing everything.

    We all have been put in positions to make decisions...sometimes we win and sometimes we lose...but it is the desire to win that keeps us going.

    But anyway......do we help the guy you know with the house? If yes, do we help the guy I know with the failed business?

    Maybe the guy you know should not have bought a house knowing he and his wife were on government contracts? Maybe my guy should have made his products out of cheeper materials and screw over the consumer?

    Wonder if you see my point.
     
  10. Mad Scientist
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    Mad Scientist Deplorable Gold Supporting Member Supporting Member

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    Total Mortgage Debt owned by Americans: 13.6 Trillion.
    FRB: Mortgage Debt Outstanding, September 2011

    Total amount of Bank of America derivative debt that was moved to the FDIC protected accounts. Meaning us taxpayers have to pay off their stupidity: 75 Trillion.

    Bank Of America Makes Taxpayers Insure 75 Trillion Dollars in Risky Derivative Schemes | BuzzFlash.org

    Now ask yourself this question: What would be the effect on the economy of all Americans no longer having ANY mortgage debt? Our economy would rocket into outer space wouldn't it? Tax revenues would rocket right along with it too!

    Now ask yourself another question: What is the effect on the economy of saddling Americans with 75 Trillion more in debt? It's a Killer.

    Merely re-financing debt for longer periods (40-50 years) will just make those same people who are struggling now, debt slaves for a longer period.
     

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