Y ou know, there are all kinds of scare tactics used in political contests. We will let you keep the freedoms the other guys want to take away from you. We will let you keep the stuff the other guys want to take away.
The fact of the matter is they can't take ANYTHING away from you that you don't LET them take. You don't work for them, they work for YOU!
I know that is a very simplified way of puttin it but it is TRUE. All anybody has to do is stand up and say NO, yeah the first few will probly get some grief, a LOT of grief....but so did the first guy who told England to screw off.
People have got the idea that they have no power to change anything, the fact is the PEOPLE are the only ones who DO have the power to change things.
THEY can't GIVE you freedom, all THEY can do is take it away. They can't take it away unless you LET em.
The problem is that when people DO stand up and say wait just a friggin minute, most people think they are just bein a pain in the butt and some kind of crackpot. Most people nowadays don't have the cajones it takes to buck the system, they like things comfortable. They worry about makin waves for their families and that's a legitimate concern, but so is teachin them there are some things that are worth the sacrifice you have to make to have them. You don't HAVE to settle for what THEY will LET you have...................
Pam, since when has anything you have done been small? You are right. Don't let anybody take what you don't want to give.
THAT is why we need the McCain and Palin in there. THEY are the ones that will buck the system.. Palin ( not Joe Biden has proven that fact.
McCain ( not Obama) has proven that fact.
The people and the country first..
Teresa, I respect you immensely but Mccain is just SSDD. He is no more the answer than Obama is. Palin has just enough brass to get her butt in a sling if she isn't careful. Biden has that squinty might narrow between the eyes thing goin on.............I'm really serious about this....they are gonna keep givin us crappy candidates just as long as we keep votin for em just because they are less full of it than the other one. I really think my vote is important enough, just like everybody elses is, that we should be able to give it to a person that is worthy of it.
The balance of power needs to turn back around, the politicians need to start EARNING what WE let THEM have instead of the other way around.
Well.........in my opinion, the conference on the bail out has fallen apart because the Democrats refuse to help fix what they screwed up in the first place. I would think McCain knows the score by now.
But we the people can argue over it all day long and into the night and it still won't mean squat from siccum...
We're going to get the stinkin' end of the stick and pay out the wazzoo with no say in the matter. >:(
Actually it's the house republicans holdin things up and they got some good arguments for it. Ain't just the democrats who screwed it up, every politician up there bears some responsibility and the businesses themselves are to blame, if it was me and you nobody would even hear the whimper when we went under!
For once losin my job to the housin bust has been a good deal , lol I got time to watch the news and keep up on this.
What I don't understand is why these people who took out loans that they couldn't make the payments on be bailed out of anything. Why not just foreclose and let them go find something else, the way I would have to do?
Why should the business that loaned them the money in the first place be helped to stay in business? Couldn't they tell they were getting into trouble when they loaned money to people that didn't qualify to pay back the loans? Why not just let them go under? How is it going to affect me if they don't get out of this?
If I have to help save a $500.000 home for somebody, are they going to let me come live in it?
Does anyone have answers? Answers?????? Anyone??????
The reason to avoid foreclosure is that currently foreclosures are receiving about 50 cents on the dollar, furthermore that is only the ones that sell, most roughly 60% are not selling. As a results, should the banks choose to foreclose they will have an unproductive asset (ie: no revenue, simply sitting there unable to be disposed of). Again, not expressing an opinion on the bailout but that is why the government is advising most to avoid foreclosing. One possible solution that could have been attempted, but is now too late is FHA refinancing available on all consumer mortgage loans. The interest rate is fixed and the payment term is 30 years, a standard mortgage. Most of these mortgages that are questionable now are no longer subprime but alt-A, which are not A paper loans but in between. These tend to be exotic, pick-a-payment, interest only, etc. No doubt, people should not have signed their mortgage w/o reading the paperwork, however, it has hasn't and in many cases that mortgage companies didn't disclose a lot of this information until closing, where I would gather that the signer felt pressured at that point in time. However, like I said they are still responsible, I'm not absolving them of any blame.
So the banks made bad deals to begin with. If they can't turn their foreclosed properties into enough to cover what remains on the mortgage, something wasn't right to begin with. Like not enough collateral to cover the loan. Wouldn't it have been better for the bank to work with the customer to refinance when it became evident that they couldn't handle the payments? What happened to the customer's assets that he couldn't make the payments? Maybe the house isn't worth as much as it was, but the customer's income should be about the same.
Is this just a case of the collateral not covering the loan anymore? Isn't that the risk the bank takes when financing a house or a car? I just simply don't understand why the government needs to get involved in a business's bad decisions or a customer's overspending. Isn't this the country of free enterprise? Take your chances or don't take a chance.
Yeah Wilma they loaned the money on speculation that housing values would keep goin up and when they tanked their collateral was no longer worth enough to pay what was owed on it. So they mortgage companies basically did it to themselves cause they figured if people did default the house would be worth a lot more than they loaned on it so they would make boocoo bucks no matter what.
Wilma, it is a case of all of the above.
1.Most of the loans the collateral would cover the loan when it was written. There were unspoken agreements between appraisers and lenders that properties needed $x to meet a loan and appraiser (I'm sure) would take that into consideration, I've seen it happen, however that is a large percentage of the asset value. What has occurred is that home sales have fallen so drastically that there is a glut on the market and that has dragged down home prices, destroying the collateral value. Furthermore, foreclosures ALWAYS sell for less than the same home selling conventionally, thus the 50% average we are sitting at right now.
2.IT WOULD BE more logical for banks to choose to modify the term/interest rate/payment amount than to foreclose in the current situation, however, not all banks have (for some reason??) actually done so.
3.Sure its a country of free enterprise, however, I personally believe in the value of the FHA. I believe that the government should have available a program to help consumers purchase a home. Should you not believe that, fine, it is your own opinion, but is my belief. Furthermore, as I said in my original post, if the federal government had structured this to allow the FHA to refinance the consumers, two things would have happened: yes, you would have an increase in default rate @ FHA, however that would be marginal against the net profit drawn through fees that the FHA charges to insure the loans, and secondly, we would have avoided a large portion of the foreclosures that have happened since FHA works harder to avoid foreclosure (this will have stabilized to some degree the decline in home sales as consumers avoid purchasing due to a fear of recession (consumer=2/3 of the economy))
4.Yes, our home prices were inflated due to the housing boom as that is normal for a boom/bust cycle, however they probably still have more to fall.
Your number two is the one I can't figure out either. It makes sense that most of the people in trouble could make their payments and keep their houses if the bank would cut them enough slack to do it. There are a lot of factors causing people to miss their payments including job loss and raisin prices, not very many are actually just not even tryin. Go ahead and take those few out and give the others a break. But common sense rarely figures in the world of big finance.......