Here we go again... govt telling banks to "loan"

[afterhours]

to make this simple:

1. gov. decided all people should own homes.
2. gov. told banks to lend to those that could not afford a home
3. banks started giving money away...
4. prices go up.
5. people start using houseing to build wealth(flipping houses)
6. banks start bundling the rsiky loans and selling to lower thier risk
7. bad loan infiltrate banks worldwide


8. bad loan(interest only,ARM, etc...) come due, people cannot afford the and start losing homes
9. massive bad causes crahs in economy, worldwide

10. gov. offers billions to bail out wall street....


11. go to "step 2." to repeat cycle.

gov. should be here to protect me from attack from our enemies both foreign and domestic...not make sure someone making $8.00 an hour can buy a home.

 

[shawnski]

So you have a house you can't afford and will tear it up to teach them a lesson? Where's self responsibility anymore. That's the biggest problem nowadays.
Posted via Mobile Device

see.. that is the problem, i bought a house that i could afford and did for many years, economy gone bad i spend thousands of dollars of my saving to pay bill and my mortgage on time since my pay cut by 30%. so... don't tell me i can't afford paying because i did not cause the hardship and economy crisis, and now that i need the help , no one is there to help because it is not to their benefit and they getting all the extra money from goverment to make themselves richer, so why should i give a shi$ about them and their property?

 

[afterhours]

I have noticed that you resort to names when you read something you don't like from Bogus.. Why is that ?? What does that name imply coming from you ??

corky is the name of the main character in an 80's TV show....he had Downs Syndrome...

 

[shawnski]

I agree... Personal responsibility is a huge, and important part of America.

looks like you know all about responsibility, when you get a time read some of the many many horror stories banks are doing to the homeowners, lies and lies and lies...and forclose their home off their feet..

i guess it is american way right?

 

[m_ridgeway]

see.. that is the problem, i bought a house that i could afford and did for many years, economy gone bad i spend thousands of dollars of my saving to pay bill and my mortgage on time since my pay cut by 30%. so... don't tell me i can't afford paying because i did not cause the hardship and economy crisis, and now that i need the help , no one is there to help because it is not to their benefit and they getting all the extra money from government to make themselves richer, so why should i give a shi$ about them and their property?

Why can't you re finance? I've never seen someone get turned down by everybody and it not been their fault at all. Maybe you should've paid down principle instead of making min payments. My pay gets reduced by 5x when I'm not traveling. Then I can make min payments. While I am working I pay over and keep my debt at a manageable level. If I had to lose my house, bike, vehicles etc then I would chalk it up to me being irresponsible and taking too much credit vs a greedy bank taking advantage of my innocence or stupidity.
Posted via Mobile Device

 

[Mr Brown]

So what would be your solution to the current problems facing America today, regarding the economy in particular ?

I will start it off with a few of my own, then we can go from there.

1. The Government should be in place for the main reason of protecting our country from all enemies, foreign and domestic.

Who determines what constitutes a domestic enemy? Some would say non-Christians fit this category, some would say socialist republics, etc...

2. The government role in the private sector should be strictly limited, and it's main function would be to enforce rules/laws designed to prevent major abuses in that sector.

That's how it is SUPPOSED to function now, but the rules get changed to benefit those with political influence (i.e. money)

3. At no time would the government be allowed to coerce, or otherwise pressure the private sector to act in a certain way, offer assistance, etc., unless it is voted on and approved by a majority of the American people..

A good theory, but wouldn't fly as it would take far too long for a majority vote of the entire country.

I believe the government has grown way to large, controls way to much of what we do, and needs some major trimming.. Government is essential to the country, but moderation is the key IMHO...

The main problem as I see it is that a representative democracy cannot function when the representatives no longer represent the people. This is what has happened. The ruling political class is concerned only with two things: Selling their influence, and ensuring their own future as politicians.
They could not care less about those they nominally serve, and we allow them to continue this way. They magnify trivial differences among us, and we buy right into it, arguing about religion, immigration, healthcare and war, and the whole time they are doing whatever they want.
Term limits are the answer, after a certain amount of time has passed, an individual should not be eligible for public office of any sort for 10 years. They should have to go get a job, and live like the rest of us.
As far as the economy goes, there should be no such thing as "too big to fail" in our economy. If, as we do in name, we have a capitalist free market economy then it's sink or swim. The stock market was created to allow speculators to join industrialists to finance a specific good or service. It has degenerated into the mess we have today due to there being no REAL good or sevice behind what is being sold. Somebody mentioned the market being okay with the sale and re-sale of the subprime mortgages had the bubble not burst. This is simply not true. The houses were worth what they were worth. Artificially increasing the price simply to turn a profit is what caused the crash. A demand for housing in a given area is what raises the housing prices in that area. The rate of growth was unsustainable, and the banks knew it. They just got all they could and got out, knowing we would foot the bill.

 

[shawnski]

Why can't you re finance? I've never seen someone get turned down by everybody and it not been their fault at all. Maybe you should've paid down principle instead of making min payments. My pay gets reduced by 5x when I'm not traveling. Then I can make min payments. While I am working I pay over and keep my debt at a manageable level. If I had to lose my house, bike, vehicles etc then I would chalk it up to me being irresponsible and taking too much credit vs a greedy bank taking advantage of my innocence or stupidity.
Posted via Mobile Device

i have tried that and they denied me, my next step was modification and just found out no for answer and i know the next "no" will be shortsale.
see... i would have had the house for sale along time ago but when price of houses has dropped so much and you are upside down, there is nothing you can do. my neighbor's house is for sale for 9 months and has not sold yet because he is asking more than it worth for it and if not he will be upside down and can't afford paying the difference.

 

[SLO MO]

Aside from the mortgage help loans which is separate, I thought "telling the banks to loan money" was specifically for small bushiness that are having trouble, getting started, maintaining payroll and growing, at least this is what I've been hearing them say.

Not predatory lending, I think the push for the banks to loan money was more so , since we bailed you out funnel that money to the businesses that help keep people employed and moves the economy.

If the banks don't give loans to small business how do they continue to survive? a lot of them take loans to meet payroll or expand creating more business for someone else.

 

[TonyMastodon]

Obama: Time for banks to boost lending - U.S. business- msnbc.com



I will say it again.. our govt can not run its own biz and here they go, telling other industry "how to do it" the Govt way...

holy crap... did they not learn the first time..?? subprime lending was a forced loan program that got us into this mess to start with...

You may be taking this out of context.. I dont think this will mean "give EVERYONE a loan"

 

[F=MA]

Why can't you re finance? I've never seen someone get turned down by everybody and it not been their fault at all. Maybe you should've paid down principle instead of making min payments. My pay gets reduced by 5x when I'm not traveling. Then I can make min payments. While I am working I pay over and keep my debt at a manageable level. If I had to lose my house, bike, vehicles etc then I would chalk it up to me being irresponsible and taking too much credit vs a greedy bank taking advantage of my innocence or stupidity.
Posted via Mobile Device

Financing is not easy to get at present for most. After getting their hands caught in the cookie jar, I suspect you'll have a tough time finding any lender who will refinance 100% of the note for someone who is upside down. I think everyone here will agree that's risky business even in good economic times.

There are parts of the country where real estate values have fallen by 30% or more. A new homeowner who purchased a home in 2006 with even the traditional 20% down is going to be upside down through no fault of their own...and out of luck when it comes time to refinance.

You have a pay reduction that seems to occur regularly, and therefore you know you need to save during the good times because the type of job you have seems to dictate that need. Most people have a more stable source of income, and tend to be optomistic (to the point of being arrogant in many cases) about the future. I suspect if more people had jobs like yours, we'd see more with a higher savings rate.

I suspect there are a number of people who call themselves responsible who could find themselves in shawnski's position very quickly when hit with a 30% reduction in property value coupled with a 30% cut in income.

I don't agree with the thought process about destroying the asset out of spite, but I can understand why shawnski has frustration...and I commend him for his efforts to date to find a solution through the bureaucratic hassles inherent with people who sit in offices and move pieces of paper from one pile to another.

Those who feel superior because their neighbors weren't foreclosed on might want to consider what happens to their own property values when 1/3 of a subdivision is in foreclosure...what happens to the tax base...what happens when less desirable renters move into the neighborhood to replace the previous homeowners who had a stake in the success of the neighborhood.

Not a personal attack, mattstang. Congratulations on achieving the position you're in.

 

[F=MA]

You may be taking this out of context.. I dont think this will mean "give EVERYONE a loan"

Quit making sense Tony...this is the internet...it is implied that everything must be taken out of context.

 

[Bird Hunter]

looks like you know all about responsibility, when you get a time read some of the many many horror stories banks are doing to the homeowners, lies and lies and lies...and forclose their home off their feet..

i guess it is american way right?

I wasn't attacking you shawn, I just don't agree with you on destroying the property.. I definitely don't agree with a lot of things the banks and government are doing, but I also don't agree with destroying property because we get wronged.. I too have had a massive pay cut, working less hours, etc.. I too am barely getting by with my bills, but you know what, you are right, it is the American way, and I wouldn't want it any other way..

I lost a house and two vehicles in the 90's when I was injured on the job, and my "company" decided to fight with the government over who should pay me while I was in physical rehab for 4 months. I was definitely irate to say the least, and yes I wanted to burn the house and cars to the ground, but I moved on and started over. I'm not trying to say I'm some symbol of responsibility, it was actually my captain who kept me from doing what I wanted with the property, as I had voiced my intentions to him, but I definitely learned a lot from that experience, and I hope you learn from this one without getting into trouble.. I truly feel for you, and I wish you the best...

 

[m_ridgeway]

I'm not trying to attack or taking anything personal and I'm compassionate to a degree for people going through hardships.
I'm sure he's just e-talking about destroying his place and etc. But people who do this are more ridiculous than the banks that loan them the money.
All still goes back to personal responsibility. Don't take a 100+ percent loan. Pay down and pay ahead to get your principle down. I'm only 24 and have a concept of I don't wanna pay on a house for 15-30 years. So I bought a decent house and I am trying to pay it off then sell and use the money to buy up. I don't understand why people need to buy a 50k car or a very expensive home on their first swing and finance the whole amount and tax. Also its not so much that I can plan on my pay decrease but even if I get fired tomorrow I can work the next day and I know what I can make. I guess that's one good thing about being a pessimist is that I plan for the worst.
Posted via Mobile Device

 

[shawnski]

Financing is not easy to get at present for most. After getting their hands caught in the cookie jar, I suspect you'll have a tough time finding any lender who will refinance 100% of the note for someone who is upside down. I think everyone here will agree that's risky business even in good economic times.

There are parts of the country where real estate values have fallen by 30% or more. A new homeowner who purchased a home in 2006 with even the traditional 20% down is going to be upside down through no fault of their own...and out of luck when it comes time to refinance.

You have a pay reduction that seems to occur regularly, and therefore you know you need to save during the good times because the type of job you have seems to dictate that need. Most people have a more stable source of income, and tend to be optomistic (to the point of being arrogant in many cases) about the future. I suspect if more people had jobs like yours, we'd see more with a higher savings rate.

I suspect there are a number of people who call themselves responsible who could find themselves in shawnski's position very quickly when hit with a 30% reduction in property value coupled with a 30% cut in income.

I don't agree with the thought process about destroying the asset out of spite, but I can understand why shawnski has frustration...and I commend him for his efforts to date to find a solution through the bureaucratic hassles inherent with people who sit in offices and move pieces of paper from one pile to another.

Those who feel superior because their neighbors weren't foreclosed on might want to consider what happens to their own property values when 1/3 of a subdivision is in foreclosure...what happens to the tax base...what happens when less desirable renters move into the neighborhood to replace the previous homeowners who had a stake in the success of the neighborhood.

Not a personal attack, mattstang. Congratulations on achieving the position you're in.

i am upset now but i have no intension on destroying my place, when it gets to that day and i hope not i would not put any effort of getting the place cleaned.

 

[m_ridgeway]

i am upset now but i have no intension on destroying my place, when it gets to that day and i hope not i would not put any effort of getting the place cleaned.

Hey if it comes to that you can come to ok and buy a house for ten nickels.
I'm sure it will work out one way or another and be happy you still have a job. Just try to learn whatever you can and move on.
Posted via Mobile Device

 

[Bird Hunter]

i am upset now but i have no intension on destroying my place, when it gets to that day and i hope not i would not put any effort of getting the place cleaned.

Yeah, I wouldn't clean it either !!

Shawn, just think of the payments you have made as rent. When you are back to making more $$, start saving for a new place. When you do find one, try to make sure it's something you could most likely afford if times get tough again.. My house is not the best in the world, but it's comfortable and I can still make the payment even with the reduction in pay we have had..

 

[shawnski]

I'm not trying to attack or taking anything personal and I'm compassionate to a degree for people going through hardships.
I'm sure he's just e-talking about destroying his place and etc. But people who do this are more ridiculous than the banks that loan them the money.
All still goes back to personal responsibility. Don't take a 100+ percent loan. Pay down and pay ahead to get your principle down. I'm only 24 and have a concept of I don't wanna pay on a house for 15-30 years. So I bought a decent house and I am trying to pay it off then sell and use the money to buy up. I don't understand why people need to buy a 50k car or a very expensive home on their first swing and finance the whole amount and tax. Also its not so much that I can plan on my pay decrease but even if I get fired tomorrow I can work the next day and I know what I can make. I guess that's one good thing about being a pessimist is that I plan for the worst.
Posted via Mobile Device

my house purchased for 175000 and i put 5% down 5 years ago, as you know most of the money it goes toward interest and taxes and hardly anything toward equity. on recent appraisal, my house worth 128000 dollars.!!!!

 

[Haya01B]

So how do you know if you are going to be paid back or not? There are some people who had the best credit you could have and went bust! It's a gamble either way! But one thing is for sure you can not lend what you don't have and that is what happen in the first place. There is a lot of no existent money floating around in the system. A lot of misplaced money too!

 

[m_ridgeway]

my house purchased for 175000 and i put 5% down 5 years ago, as you know most of the money it goes toward interest and taxes and hardly anything toward equity. on recent appraisal, my house worth 128000 dollars.!!!!

Shouldve put down 20 plus. I'm kinda tired but isn't 5 percent about 8k? Thats a drop in the bucket if you finance 175k. I'm guessing you were on a 30yr loan? Shouldve been on a 15 or paying that rate at least. Also your taxes should match your homes value not debt.
Posted via Mobile Device

 

[Mr Bogus]

LMMFAO.
Bogus in attitude, not just name.
The government is wrong when they do something, wrong when they do nothing.
Tell ya what, since you have it all figured out why don't you run for the presidency, and then all the people that are in the right part of the country, the right industry and of the right race will be taken care of.
Oh wait, you don't have any experience in government so you wouldn't be the right guy for the job.

Who determines what constitutes a domestic enemy? Some would say non-Christians fit this category, some would say socialist republics, etc...


That's how it is SUPPOSED to function now, but the rules get changed to benefit those with political influence (i.e. money)


A good theory, but wouldn't fly as it would take far too long for a majority vote of the entire country.


The main problem as I see it is that a representative democracy cannot function when the representatives no longer represent the people. This is what has happened. The ruling political class is concerned only with two things: Selling their influence, and ensuring their own future as politicians.
They could not care less about those they nominally serve, and we allow them to continue this way. They magnify trivial differences among us, and we buy right into it, arguing about religion, immigration, healthcare and war, and the whole time they are doing whatever they want.
Term limits are the answer, after a certain amount of time has passed, an individual should not be eligible for public office of any sort for 10 years. They should have to go get a job, and live like the rest of us.
As far as the economy goes, there should be no such thing as "too big to fail" in our economy. If, as we do in name, we have a capitalist free market economy then it's sink or swim. The stock market was created to allow speculators to join industrialists to finance a specific good or service. It has degenerated into the mess we have today due to there being no REAL good or sevice behind what is being sold. Somebody mentioned the market being okay with the sale and re-sale of the subprime mortgages had the bubble not burst. This is simply not true. The houses were worth what they were worth. Artificially increasing the price simply to turn a profit is what caused the crash. A demand for housing in a given area is what raises the housing prices in that area. The rate of growth was unsustainable, and the banks knew it. They just got all they could and got out, knowing we would foot the bill.

so pick a side... one post you seem to think I am full of **** and the next you are bashing the govt for over extended roles...

You fail to acknowledge that the govts role in sub-prime mortgages is what drove the housing prices to such artificial highs.. Supply and demand dictate value (relative or otherwise)

When you give millions of people money to buy homes that otherwise do not have the income, money management skills or both to every purchase a home, you force an artificial demand.. I am one of the lucky ones, housing values in our city never skyrocketed and so never crashed.. Talk to people in CA, or AZ about this..

As payments started to rise from these "bad loans", the bubble began its decline until it burst... The housing market bust was predicted as were the consequences of it in 2003-05.. They were just premature in the year, not the consequences..