New Mortgage Bailout Program: Stuck on Stupid.

[iamwhatiseem]

I get what you are saying Grampa....but I disagree.
We all knew this was happening. You can't tell me that a person whose household income was $85,000 that they didn't know they shouldn't be buying a $550,000 McMansion with no money down.
The entire system was absolutely geared for catastrophic failure and everyone involved knew it - including the buyers.
Pain must be shared. And I'll be damned if I want $billions more to bailout Mr. and Mrs. "I want it all now!" driving around in their little BMW's and sipping Starbucks coffee and whining because they overbought.
Sorry.

 

[Remodeling Maidiac]

I get what you are saying Grampa....but I disagree.
We all knew this was happening. You can't tell me that a person whose household income was $85,000 that they didn't know they shouldn't be buying a $550,000 McMansion with no money down.
The entire system was absolutely geared for catastrophic failure and everyone involved knew it - including the buyers.
Pain must be shared. And I'll be damned if I want $billions more to bailout Mr. and Mrs. "I want it all now!" driving around in their little BMW's and sipping Starbucks coffee and whining because they overbought.
Sorry.

I hear ya but I don't drive a BMW or sip foo foo drinks. I've been in my house for quite some time and I wasn't part of this scam but many like me are feeling the crunch through no fault of their own.

 

[California Girl]

I get what you are saying Grampa....but I disagree.
We all knew this was happening. You can't tell me that a person whose household income was $85,000 that they didn't know they shouldn't be buying a $550,000 McMansion with no money down.
The entire system was absolutely geared for catastrophic failure and everyone involved knew it - including the buyers.
Pain must be shared. And I'll be damned if I want $billions more to bailout Mr. and Mrs. "I want it all now!" driving around in their little BMW's and sipping Starbucks coffee and whining because they overbought.
Sorry.

While I do feel some sympathy for them, you are right. Don't buy what you can't afford. I earn decent money but I am still really careful with money.

 

[JoeB131]

Rabbi's economic policy- "Are there no prisons, are there no workhouses? "

 

[Ravi]

Here we go again. Why is Obama rolling out yet another soon-to-fail program to protect people from their own stupidity? I know the answer: the election is next year. But seriously. Will this guy ever get around to governing, like for real?
Obama to Announce New Program to Help Struggling Homeowners | ABC News - Yahoo! News
Note the requirements:

While administration officials say it will help thousands of homeowners, the program has its caveats. Only those homeowners whose mortgages are backed by Fannie Mae and Freddie Mac will be eligible for refinancing. They must have good credit and must have kept up with their mortgage payments, with no late payment in the past six months and no more than one late payment in the past 12 months. Additionally, the mortgage must have been sold to the agencies before May 31, 2009, and not been refinanced previously under the Home Affordable Refinance Program. The loan-to-value ratio has to be greater than 80 percent.

Now, if their mortgages are current with one late payment in the last 12 months, why in the hell do they need help to begin with? And since 80% of people enrolled in these programs end up foreclosed on anyway, why are we continuing to pour money into this?

It isn't a bailout and there is no tax money involved.

 

[Ravi]

It is more of the same really.
All the government knows how to do is fix current problems by piling them up for the future.
In the long run - this is a TERRIBLE plan. People who do this will hate themselves later.
Example...45 year old couple has a mortgage that is $1700 per month. Mortgage is $200,0000...home value is $165,000. They have 15 years to pay on loan.
With the plan the interest rate will lower their payment to $1495...but does that really help much? Sooo...they refinance for 25 years and the payment comes down to a manageable $1200 per month.
Now they won't have their home paid off till they are 70 years old. Thereby damning any hopes of a retirement.

You're betting that housing prices will never rebound and that the couple will live in this one house for the rest of their lives. A pretty unlikely scenario. Plus, they can refinance it for 15 years if they chose.

 

[JoeB131]

I get what you are saying Grampa....but I disagree.
We all knew this was happening. You can't tell me that a person whose household income was $85,000 that they didn't know they shouldn't be buying a $550,000 McMansion with no money down.
The entire system was absolutely geared for catastrophic failure and everyone involved knew it - including the buyers.
Pain must be shared. And I'll be damned if I want $billions more to bailout Mr. and Mrs. "I want it all now!" driving around in their little BMW's and sipping Starbucks coffee and whining because they overbought.
Sorry.

While I do feel some sympathy for them, you are right. Don't buy what you can't afford. I earn decent money but I am still really careful with money.

Obviously, only wealthy stockbrokers and bankers deserve government bailouts, not actual homeowners.

I agree in principle that all the folks who bought more house than they needed were part of the problem, but it wasn't like anyone was really trying to discourage them. Not the banks, not the realtors, not the "Flip this House" hucksters who told us that Real Estate was the way to go on investment.

As a practical matter, any comparble home that is foreclosed on brings down the value of my property, so anything that forestalls them is probably in all of our interests. Not sure this is the way to go, but better than the Romney "let them eat cake.... er let the foreclosures run their course" policy.

 

[iamwhatiseem]

I get what you are saying Grampa....but I disagree.
We all knew this was happening. You can't tell me that a person whose household income was $85,000 that they didn't know they shouldn't be buying a $550,000 McMansion with no money down.
The entire system was absolutely geared for catastrophic failure and everyone involved knew it - including the buyers.
Pain must be shared. And I'll be damned if I want $billions more to bailout Mr. and Mrs. "I want it all now!" driving around in their little BMW's and sipping Starbucks coffee and whining because they overbought.
Sorry.

While I do feel some sympathy for them, you are right. Don't buy what you can't afford. I earn decent money but I am still really careful with money.

Obviously, only wealthy stockbrokers and bankers deserve government bailouts, not actual homeowners.

I agree in principle that all the folks who bought more house than they needed were part of the problem, but it wasn't like anyone was really trying to discourage them. Not the banks, not the realtors, not the "Flip this House" hucksters who told us that Real Estate was the way to go on investment.

As a practical matter, any comparble home that is foreclosed on brings down the value of my property, so anything that forestalls them is probably in all of our interests. Not sure this is the way to go, but better than the Romney "let them eat cake.... er let the foreclosures run their course" policy.

People who bought more house than they need is the PRIMARY problem.
Of the homes in foreclosure - it isn't the 2 bdrm little cottages - it is the 4 Brdm, 3 car garage with finished basements that are the biggest problem.

 

[JoeB131]

While I do feel some sympathy for them, you are right. Don't buy what you can't afford. I earn decent money but I am still really careful with money.

Obviously, only wealthy stockbrokers and bankers deserve government bailouts, not actual homeowners.

I agree in principle that all the folks who bought more house than they needed were part of the problem, but it wasn't like anyone was really trying to discourage them. Not the banks, not the realtors, not the "Flip this House" hucksters who told us that Real Estate was the way to go on investment.

As a practical matter, any comparble home that is foreclosed on brings down the value of my property, so anything that forestalls them is probably in all of our interests. Not sure this is the way to go, but better than the Romney "let them eat cake.... er let the foreclosures run their course" policy.

People who bought more house than they need is the PRIMARY problem.
Of the homes in foreclosure - it isn't the 2 bdrm little cottages - it is the 4 Brdm, 3 car garage with finished basements that are the biggest problem.

I agree- They are the problem. but that involved a banker who looked at their finances and should have realized they wouldn't be able to make their home payments if there was even the smallest of recessions. The Bankers didn't care. Because as long as house prices were shooting up, they could collect a couple years of mortgage payments, then sell the house for more than the principle.

It fell apart when the bubble burst.

Now, I think that the completely irresponsible shouldn't be helped, but people who are at least making the effort to keep up should be. Will the program do that? Probably not. government programs are notorious for encouraging the wrong kind of behavior.

 

[PixieStix]

I will admit, that because I became unemployed for a year, I missed one mortgage payment. I recieved a big thick application in the mail concening "help" with my situation. I promtly read and shredded the contract after reading that in essense, the government will eventually choke the life out of you if you sign that application.

Nothing is free people. Please pay attention to what is really happening. The government will own you if you take them up on the offert for so called "help". What they are doing is helping themselves to your property and your life.

I was not so bad off that I could not catch up on my mortgage.

What is it that they say, if the government says "they are here to help?"

 

[iamwhatiseem]

Obviously, only wealthy stockbrokers and bankers deserve government bailouts, not actual homeowners.

I agree in principle that all the folks who bought more house than they needed were part of the problem, but it wasn't like anyone was really trying to discourage them. Not the banks, not the realtors, not the "Flip this House" hucksters who told us that Real Estate was the way to go on investment.

As a practical matter, any comparble home that is foreclosed on brings down the value of my property, so anything that forestalls them is probably in all of our interests. Not sure this is the way to go, but better than the Romney "let them eat cake.... er let the foreclosures run their course" policy.

People who bought more house than they need is the PRIMARY problem.
Of the homes in foreclosure - it isn't the 2 bdrm little cottages - it is the 4 Brdm, 3 car garage with finished basements that are the biggest problem.

I agree- They are the problem. but that involved a banker who looked at their finances and should have realized they wouldn't be able to make their home payments if there was even the smallest of recessions. The Bankers didn't care. Because as long as house prices were shooting up, they could collect a couple years of mortgage payments, then sell the house for more than the principle.

It fell apart when the bubble burst.

Now, I think that the completely irresponsible shouldn't be helped, but people who are at least making the effort to keep up should be. Will the program do that? Probably not. government programs are notorious for encouraging the wrong kind of behavior.

(My emphasis)
That last sentence...you got that right.
The mortgage bubble was built by the government - and today we are at the height of the education bubble - also built by the government.
Mark my words - in a few years, oh hell..sooner than that...people will start wanting to get bailed out from student loans for their worthless degree. What the government did to the mortgage industry - they are in top gear in the education field.
Look out for "too big to fail" universities coming to a theater near you around 2020.

 

[JoeB131]

So the banks should be willing to sell them. Correct ?

There are plenty of buyers. There is no credit available. This is a buyers market. Prices are low but financing restrictions are too tight because the govt fucked everything up so bad everyone pinched it off.

Look I'm not going to run in circles with you. I think I've made my case for this program. It's okay to disagree on the merits of it without getting into a pissing match.

Peace

I dont think Dragon Ball Z understands the housing market...

lol why did foreclosed homes affect your property value

I don't think DBZ understands much of anything...

 

[JoeB131]

(My emphasis)
That last sentence...you got that right.
The mortgage bubble was built by the government - and today we are at the height of the education bubble - also built by the government.
Mark my words - in a few years, oh hell..sooner than that...people will start wanting to get bailed out from student loans for their worthless degree. What the government did to the mortgage industry - they are in top gear in the education field.
Look out for "too big to fail" universities coming to a theater near you around 2020.

Oh, I agree. Education has been making people get degrees to get jobs.

Last job, I was one of three buyers fired in the downsizing, but I got a job faster than the other two did. Why? Because I had a college degree and they didn't. Has no effect on what I do, but it made me eligible for 90% more jobs.

 

[LoneLaugher]

I dont think Dragon Ball Z understands the housing market...

lol why did foreclosed homes affect your property value

Once we got clear on homes that "went under" (forclosed or simply upside down), I think the claim became more logical. But propping up homes isn't going to keep values from going to their equilibrium point. I've seen it firsthand.

But thanks for trying.

Yeah...I'm with you. I thought he meant the houses went under water...or lava. Why does everyone have to be so vague?

 

[Ravi]

I will admit, that because I became unemployed for a year, I missed one mortgage payment. I recieved a big thick application in the mail concening "help" with my situation. I promtly read and shredded the contract after reading that in essense, the government will eventually choke the life out of you if you sign that application.

Nothing is free people. Please pay attention to what is really happening. The government will own you if you take them up on the offert for so called "help". What they are doing is helping themselves to your property and your life.

I was not so bad off that I could not catch up on my mortgage.

What is it that they say, if the government says "they are here to help?"

All they are doing in this case is lifting the regulation to allow more people to refinance their homes.

 

[PixieStix]

I will admit, that because I became unemployed for a year, I missed one mortgage payment. I recieved a big thick application in the mail concening "help" with my situation. I promtly read and shredded the contract after reading that in essense, the government will eventually choke the life out of you if you sign that application.

Nothing is free people. Please pay attention to what is really happening. The government will own you if you take them up on the offert for so called "help". What they are doing is helping themselves to your property and your life.

I was not so bad off that I could not catch up on my mortgage.

What is it that they say, if the government says "they are here to help?"

All they are doing in this case is lifting the regulation to allow more people to refinance their homes.

Yes, this is true. But if you mess up or have any unfortunate tragedy in your life that messes with your finances you have to deal with the government who can and will forclose on your property. It is in the contract Ravi. I read it.. The refinancing is just a ploy

Everythingh that the government regulates, becomes a huge bureaucratic nighmare, whether intentional or not, it is a fact

 

[Ravi]

I will admit, that because I became unemployed for a year, I missed one mortgage payment. I recieved a big thick application in the mail concening "help" with my situation. I promtly read and shredded the contract after reading that in essense, the government will eventually choke the life out of you if you sign that application.

Nothing is free people. Please pay attention to what is really happening. The government will own you if you take them up on the offert for so called "help". What they are doing is helping themselves to your property and your life.

I was not so bad off that I could not catch up on my mortgage.

What is it that they say, if the government says "they are here to help?"

All they are doing in this case is lifting the regulation to allow more people to refinance their homes.

Yes, this is true. But if you mess up or have any unfortunate tragedy in your life that messes with your finances you have to deal with the government who can and will forclose on your property. It is in the contract Ravi. I read it.. The refinancing is just a ploy

Link? That's a pretty heavy accusation, Pix, so you need to back it up. Otherwise you are needlessly scaring people.

 

[PixieStix]

All they are doing in this case is lifting the regulation to allow more people to refinance their homes.

Yes, this is true. But if you mess up or have any unfortunate tragedy in your life that messes with your finances you have to deal with the government who can and will forclose on your property. It is in the contract Ravi. I read it.. The refinancing is just a ploy

Link? That's a pretty heavy accusation, Pix, so you need to back it up. Otherwise you are needlessly scaring people.

I have no time this morning. I wish I had kept that "offer", I shredded it. I will do a search when I get home from work. I am not sure they have made tha e actual contract/offer available online without actually signing. We will see

 

[Ravi]

Yes, this is true. But if you mess up or have any unfortunate tragedy in your life that messes with your finances you have to deal with the government who can and will forclose on your property. It is in the contract Ravi. I read it.. The refinancing is just a ploy

Link? That's a pretty heavy accusation, Pix, so you need to back it up. Otherwise you are needlessly scaring people.

I have no time this morning. I wish I had kept that "offer", I shredded it. I will do a search when I get home from work. I am not sure they have made tha e actual contract/offer available online without actually signing. We will see

You must have misunderstood something. The government isn't in the business of foreclosing on private property.

That's getting into conspiracy theory territory.

 

[007]

I will admit, that because I became unemployed for a year, I missed one mortgage payment. I recieved a big thick application in the mail concening "help" with my situation. I promtly read and shredded the contract after reading that in essense, the government will eventually choke the life out of you if you sign that application.

Nothing is free people. Please pay attention to what is really happening. The government will own you if you take them up on the offert for so called "help". What they are doing is helping themselves to your property and your life.

I was not so bad off that I could not catch up on my mortgage.

What is it that they say, if the government says "they are here to help?"

Exactly.

What the kenyan needs to do is just shut his financially ignorant pie hole and stop meddling with money the government doesn't have. The only thing this buffoon has done and can do is make things worse. Enough is enough of odumbo's PLANS. He's a socialist and knows NOTHING of how a FREE MARKET ECONOMY works.