US Government seizes control of mortgage giants

[Breecher_7]

http://news.yahoo.com/s/ap/20080907/ap_on_bi_ge/mortgage_giants_crisis

For those of you that deal with mortgage lenders as often as I do you will understand why im ranting...

This is great, lets just bail out people that cant pay there mortgages and give away more free money.... In turn making our dollar even weaker. That is where this is going to lead.

I am so ******* tired of our government feeling that its there problem to bail stupid or just plain lazy people out of there financial problems. If your home is in forclosure the odds are you either bought a home you couldnt afford in the first place or you are just to damn lazy to find a new job if you got fired or laid off. :chair:

For those with good solid credit, these two companies going bankrupt would not even phase you or your purchasing future.

And for those of you that are going to whine about your credit, its your own fault if you ****ed it up. Its not anyone elses problem! Credit is easy to build, buy things, pay your bills on time.

And if you dont have a job, FIND ONE! There is no shame in working a bullshit job till somthing else comes along. Sitting around sucking unemployment just because you cant find the job you WANT, IS BULLSHIT. Ive been there, I got laid off two years ago, I got my ass right back into the job market and had 3 job offers in less then a week, all in the field I wanted to stay in. Its nonsense to say jobs arnt out there, You just need to apply yourself and look harder.

[Reverend Cooper]

the government is responsible for this happeneing,alan greenspan ****ed alotta shit up

[07ROUSHSTG3]

i was watching the press conference today. deadbeats suck, and this is just another example of how the entire county is suffering due to a small percentage of losers. it could be worse. not only could the government be bailing these walking piles of garbage out of their mortgages, they could be supplying them with health insurance and feeding them..............oh wait, that could be coming soon too. damn, we are ****ed.

[Breecher_7]

i was watching the press conference today. deadbeats suck, and this is just another example of how the entire county is suffering due to a small percentage of losers. it could be worse. not only could the government be bailing these walking piles of garbage out of their mortgages, they could be supplying them with health insurance and feeding them..............oh wait, that could be coming soon too. damn, we are ****ed.

:thumbsup Great minds think alike! :rolf

[CPonyGo]

The mortgage brokers were no saints either selling people more house than they could really afford should their ARMS come due....!

[CPonyGo]

Oh and Mortgage brokers are disappearing fast as they came on the scene

[Breecher_7]

The mortgage brokers were no saints either selling people more house than they could really afford should their ARMS come due....!

Very true. But mortgage brokers dont give a shit. The brokers in most cases are just there to close the loan for a variety of different lenders. As long as there getting paid, that could give two shits if you can pay your mortgage. Thats not there problem.

My best friend and his brother are owners of a rather large brokerage in New Berlin. They do the same thing, they could give a shit less if you can pay your mortgage, there job is to make you happy and close your loan. YOu see the payments before you sign, if you cant afford it, dont buy it. PLain and simple.

[CPonyGo]

While what you say IS true....They get them in the office and get them all hyped up...and most of these ppl aren't or wouldn't have been your average or typical home buyer the ARM loans made it so lucrative....not denying what you are saying but a lot of the blame game goes both ways....very qualified brokers and ppl who should not be buying...and then the govenment that made the rates attractive to sell these loans...

[Breecher_7]

Well there is somthing to say for someone that is dumb enough to purchase an arm loan. But Ill keep my OPPINIONS to myself.

[CPonyGo]

common- for a smart guy, Breecher- wtf kinda statement is that....apparently literally millions of ppl just aren't as knowledgeable as you in mortgage situations when they want something everyone else has and the government/mortgage brokers are dangling loans like friggen candy to a kid....

OR...should we just go back to your original post and stick to the "lazy people" retort and thats it....omg...they are stupid, lazy, and as you edited your post to make even more intense, to f up their credit....wow- just must be amazing to be in your group of 850 credit scores...all for one and none for the others...

I made a legit point of it isn't necessarily them but you are so upset and need to point a finger.....

[tommyt5078]

Could not agree more with the OP.


I wish they would do something for the people that are doing things right, lol.

[Breecher_7]

common- for a smart guy, Breecher- wtf kinda statement is that....apparently literally millions of ppl just aren't as knowledgeable as you in mortgage situations when they want something everyone else has and the government/mortgage brokers are dangling loans like friggen candy to a kid....

OR...should we just go back to your original post and stick to the "lazy people" retort and thats it....omg...they are stupid, lazy, and as you edited your post to make even more intense, to f up their credit....wow- just must be amazing to be in your group of 850 credit scores...all for one and none for the others...

I made a legit point of it isn't necessarily them but you are so upset and need to point a finger.....


Purchasing a loan that is adjustable is just NOT a smart thing to do. Plain and simple, thats all I really meant by that.

And yeah, i stand behind the other things I said. Credit doesnt **** itself up. People shouldnt ***** that there rates are so high when its there own fault.

I didnt put this up to argue with you, ive argued enough today. I put this up because im sick of this giving away money shit. Just like the "stimulous" checks, that was assanine. Our national debt is outrageous but lets just give away billions of dollars more.

I could continue this into tax refunds and state assistance and alot of other shit but I wont.

[CPonyGo]

I understand Breecher...totally...I was given another view...I am working on selling one place and buying an investment property and it is a *****....and all I am saying is like a bait/hook and real em in...granted man that if they are playing in the 550-600 range of scores...brokers are making it happen and building them saying..you can do it you can swing this for 2 years and refi it into a fixed when the brokers now its BS.....I am on your side and not arguing :)

[07ROUSHSTG3]

While what you say IS true....They get them in the office and get them all hyped up...and most of these ppl aren't or wouldn't have been your average or typical home buyer the ARM loans made it so lucrative....not denying what you are saying but a lot of the blame game goes both ways....very qualified brokers and ppl who should not be buying...and then the govenment that made the rates attractive to sell these loans...

there is something to what you say, but I still believe that people should take responsibility for their own actions. i have never seen a broker or a banker FORCE anyone to sign something. i see tons of people taking out auto loans that they can't afford. they get in over their head, but who is too blame? is it the car salesman who showed them the 50K truck? is it the finance departments fault for taking their credit app? is it the banks fault for loaning them the money? IMO it still goes back to the individual. everyday, everyone makes decisions that affect their lives, some in good ways, and some in bad. we should all be held accountable for those decisions we make, and to in essence force people that did not make that same bad decision to bail them out isn't the way it should work. we ALL are going to end up paying for this. the vast majority of the nation did not get swindled by these criminal brokers that you speak of. the vast majority of the nation's homeowners are paying their mortgage on time. the vast majority of the the nation's homeowners are doing what they need to do to fulfill their obligations. the problem is, the vast majority of the nation will end up getting screwed.

[Karps TA]

If I borrow money to somebody who has a history of not paying people back, who is the dummy?

Don't give money to people who can't afford it, and this wouldn't be a problem. You can't completely blame people for taking advantage of what is being given or offered to them. Yes people should learn self control, but this isn't make believe land.

Unfortunately what happens if the gov doesn't do a bailout? Tons more people lose their houses, which floods the markets, and then in turn punishes those of us who pay our bills because the housing market crashes even further, trapping us with homes that aren't able to be sold at what they are worth, yet still being taxed at that high value.

Sucks, but the other option hurts just as bad. Maybe lenders will learn something from this.

[07ROUSHSTG3]

If I borrow money to somebody who has a history of not paying people back, who is the dummy?
.

not saying that you wouldn;t be a dummy, but in the end, you are still owed money and the person that you borrowed it to should pay you back, not me.

[wrath]

I liked how things are/were. They'd help you out if you were truly desperate but that's it. No more boats, no more Escalades, no more trips to Lake Tahoe. Help you just enough to keep food in your stomach and clothing on your back. It'll probably turn into a Get out of Jail free card for a bunch of irresponsible people.

The government created this problem by allowing people to get loans. People buy what they can afford. The government says "yes" so the mortgage brokers sell you something you can't afford. We're a society of "it's not how much it costs, it's how much the payments are". Look here at SE WI. Same shit happened. The FIBs pushed up the cost of condos and recreation property and the locals pushed up everything else. Someone, somewhere told people that make $45,000/year that they can afford a $190,000 3 bedroom 1 bath house in Waukesha. Since lending was "cheap" house prices just went up and up. Well, 50 year mortgages don't exist.

So, as people began defaulting it causes a downward spiral. I suspect it's going to get a bit worse here before it gets better. Especially as places keep shedding jobs. Mercury Marine is getting rid of people, Osh Kosh truck is getting rid of people, Miller is getting rid of people... the list goes on. There were a ton of sales in this week's newspaper but that's from all the people with kids that don't want to move once the schoolyear starts that were waiting for "the best deals". In my price range (<$225k) I saw very few houses that sold within 1% of their asking price unless the asking price was 2007 assessed value.

[CPonyGo]

there is something to what you say, but I still believe that people should take responsibility for their own actions. i have never seen a broker or a banker FORCE anyone to sign something. i see tons of people taking out auto loans that they can't afford. they get in over their head, but who is too blame? is it the car salesman who showed them the 50K truck? is it the finance departments fault for taking their credit app? is it the banks fault for loaning them the money? IMO it still goes back to the individual. everyday, everyone makes decisions that affect their lives, some in good ways, and some in bad. we should all be held accountable for those decisions we make, and to in essence force people that did not make that same bad decision to bail them out isn't the way it should work. we ALL are going to end up paying for this. the vast majority of the nation did not get swindled by these criminal brokers that you speak of. the vast majority of the nation's homeowners are paying their mortgage on time. the vast majority of the the nation's homeowners are doing what they need to do to fulfill their obligations. the problem is, the vast majority of the nation will end up getting screwed.

No they don't tie their hands but the closing is so busy ..signing here and there it overwhelms them that they don't think about next months payment...or that they can afford...they are signing papers because brokers and lender MADE the FN numbers work for ppl that shouldn't have bought in the first place...Debt to income numbers can be juggled...

So in the end- the BUYER shouldn't be BUYING- the BROKER is SELLING and making moneyt regardless... and the lenders..well they are idiots

[CPonyGo]

I liked how things are/were. They'd help you out if you were truly desperate but that's it. No more boats, no more Escalades, no more trips to Lake Tahoe. Help you just enough to keep food in your stomach and clothing on your back. It'll probably turn into a Get out of Jail free card for a bunch of irresponsible people.

The government created this problem by allowing people to get loans. People buy what they can afford. The government says "yes" so the mortgage brokers sell you something you can't afford. We're a society of "it's not how much it costs, it's how much the payments are". Look here at SE WI. Same shit happened. The FIBs pushed up the cost of condos and recreation property and the locals pushed up everything else. Someone, somewhere told people that make $45,000/year that they can afford a $190,000 3 bedroom 1 bath house in Waukesha. Since lending was "cheap" house prices just went up and up. Well, 50 year mortgages don't exist.

So, as people began defaulting it causes a downward spiral. I suspect it's going to get a bit worse here before it gets better. Especially as places keep shedding jobs. Mercury Marine is getting rid of people, Osh Kosh truck is getting rid of people, Miller is getting rid of people... the list goes on. There were a ton of sales in this week's newspaper but that's from all the people with kids that don't want to move once the schoolyear starts that were waiting for "the best deals". In my price range (<$225k) I saw very few houses that sold within 1% of their asking price unless the asking price was 2007 assessed value.

100% agreement......

[Karps TA]

There are SO many things that "we" pay for that nobody want's to pay for, I'd put this down quite a bit on the list. The govt doing nothing would hurt me a helluva lot more then them doing this.

[07ROUSHSTG3]

No they don't tie their hands but the closing is so busy ..signing here and there it overwhelms them that they don't think about next months payment...or that they can afford...they are signing papers because brokers and lender MADE the FN numbers work for ppl that shouldn't have bought in the first place...Debt to income numbers can be juggled...

So in the end- the BUYER shouldn't be BUYING- the BROKER is SELLING and making moneyt regardless... and the lenders..well they are idiots

:rolf:rolf:rolf:rolf:rolf:rolf
oh, those poor overwhelmed people :rolleyes:


bottomline:
i don;t care who you blame, we shouldn;t have to pick up the tab for these idiots, that is all i am trying to say, and i think that most would agree with that. blame who you want, the brokers, the bankers, the realtors, the buyers, the government, fox news.......it doesn't matter! the responsibility shouldn't be on my or your shoulders. i know that "it is the way it works", but when will it end?

[SSDude]

the government is responsible for this happeneing,alan greenspan ****ed alotta shit up

Got that right.
Greenspan and the Fed left the rates to low for to long. Generally rates are lowered to stimulate economic growth but this isn't the kind of growth we needed. Instead the the brokers had this surplus of money available to give out and the banks accepted the risky loans being made.
The banks should pay for this. Instead the government steps in to bail people and the banks out. The banks and the looser people won't learn a thing with a bail out.:fire
The right thing isn't being done but either way good people will pay for this debacle. If the affected banks are allowed to go under the FDIC steps in and makes good on peoples losses at the banks. I would prefer this route as there will be some pain felt by banks and loosers, so maybe lending will be tightened up for people who can't afford what they buy.

[Karps TA]

Of all the things the govt pays for and wastes money on this is the thing that is putting people over the edge? I mean really? I'm against wasteful spending as the next person, but I'd rather they do this, then my house lose another $25K this year in resale value. For what I actually pay in taxes after I get my rebate check back, this won't even raise a hair on my ass. There's a few bigger things that we could easily stop and pay for this.

[CPonyGo]

:rolf:rolf:rolf:rolf:rolf:rolf
oh, those poor overwhelmed people :rolleyes:


bottomline:
i don;t care who you blame, we shouldn;t have to pick up the tab for these idiots, that is all i am trying to say, and i think that most would agree with that. blame who you want, the brokers, the bankers, the realtors, the buyers, the government, fox news.......it doesn't matter! the responsibility shouldn't be on my or your shoulders. i know that "it is the way it works", but when will it end?

These idiots...They all fall under that category...from buyers to lenders and every one in between wanting to what every one else does..make money...and just where the fu<k is st cloud cause I think you may get a dotted eye for the rolleyes ....just conversating here..don't need that shit!

[SSDude]

The government created this problem by allowing people to get loans. People buy what they can afford. The government says "yes" so the mortgage brokers sell you something you can't afford.

I'm not totally clear on what you mean here but the lenders/banks set the minimum requirement for getting a loan not the government. The lenders/ banks got greedy with the low rate money available and loosened up the lending requirements to far. They were willing to take the risk on these under qualified loosers that wanted to buy more than they could truly afford.

[CPonyGo]

lol- yeah ..its a risk they would take and then hope the government bailed them.. agreed

[SSDude]

The Fed will bail them out like a bad parent getting their problem child out of a jamb.

[SSDude]

Then some AZZhat legislature will step in a say we need more goverment regulation

[07ROUSHSTG3]

These idiots...They all fall under that category...from buyers to lenders and every one in between wanting to what every one else does..make money...and just where the fu<k is st cloud cause I think you may get a dotted eye for the rolleyes ....just conversating here..don't need that shit!

agreed. they are all idiots.

and i used the rolleyes, because i actually do roll me eyes when i hear statements like that. the "poor old me" argument doesn't hold water with me, I'm sorry. and here is a map for you :)

http://www.mapquest.com/maps?city=St.+Cloud&state=WI

[Sprayaway Fox]

Do I think the brokers should be responsible...NO. If there is a crack dealer on the corner is it his fault you got hooked on crack?...No!. you were the dumbass that purchased it. Too many govt. programs nowadayz also. As much as conservative get sheet nowadays it seems they are the ones that always pull threw when everything else is sheet. cause their "conservative" on things. They get buy with what the got and if the got a couple of extra dollars after putting it check in the bank and paying off bills, and saving. Then they will think of a splurge item to get.

[Prince Valiant]

This whole lending she-bang is a problem with no innocent parties...but make no mistake, the groundwork was laid by the federal gov't.

In 1977, the "Community Reinvestment act" was passed (to be fair, it was strengthened under both clinton and bush II). Essentially it barred lenders from restricting their capital from going to high-income markets only, IE safe loans in which the lender knew was sure bet to repay. Through subsidies, penalties, mandates, and intimidation of action, Banks/lenders accepted a number of "liar loans" in which on paper, there was not much hope of paying the lender back (cost of defaulting was less than the threats if they didn't make the loans). Essentially, it said that even though a smart guy wouldn't make this deal, you still have to make the deal...the original idea was to encourage homeownership in blighted areas by low-income individuals (the road to hell is paved with good intentions). However, this drives the cost up on everyone.

The federal reserve DID worsen the problem by expanding the money supply (thus keeping rates low, and helping to hide the increased cost of the community investment act)...that encouraged even more to seek loans on terms they likely couldn't afford...in many cases, even the borrower was aware that they might not be able to afford, but this was okay as the value of the home was seen as to only go up. If they needed to get out, they could do so with a profit. Also seen by the relatively high number of "flippers" who knew they couldn't afford two mortgages.

Both the gov't mandate and expansion of monetary supply encouraged increased risky behavior and fueling a housing price bubble...as more and more were moving into the market, it basically was becoming a large pyramid scheme...people could keep moving up, as long as new people could keep moving in. As soon as a little bump was hit, and the bottom of the market moved too high for new investors (new/first-time-home-owners) to move in, the pyramid/bubble collapsed.

It DOES beg the question...if gov't helped create the problem should gov't fix the problem?

I say the only way to get off this endless circle is to say NO. Gov't should leave it alone. Get rid of the "community reinvestment act" and leave investors (both home-owners and lenders) to act in their own self-interest. Let the market correct itself. Yes, everyones home values WILL go down, but this will bring a glut of new buyers that banks will compete for to make loans to, and thus keep the market on either end from falling too far down.

[Breecher_7]

This whole lending she-bang is a problem with no innocent parties...but make no mistake, the groundwork was laid by the federal gov't.

In 1977, the "Community Reinvestment act" was passed (to be fair, it was strengthened under both clinton and bush II). Essentially it barred lenders from restricting their capital from going to high-income markets only, IE safe loans in which the lender knew was sure bet to repay. Through subsidies, penalties, mandates, and intimidation of action, Banks/lenders accepted a number of "liar loans" in which on paper, there was not much hope of paying the lender back (cost of defaulting was less than the threats if they didn't make the loans). Essentially, it said that even though a smart guy wouldn't make this deal, you still have to make the deal...the original idea was to encourage homeownership in blighted areas by low-income individuals (the road to hell is paved with good intentions). However, this drives the cost up on everyone.

The federal reserve DID worsen the problem by expanding the money supply (thus keeping rates low, and helping to hide the increased cost of the community investment act)...that encouraged even more to seek loans on terms they likely couldn't afford...in many cases, even the borrower was aware that they might not be able to afford, but this was okay as the value of the home was seen as to only go up. If they needed to get out, they could do so with a profit. Also seen by the relatively high number of "flippers" who knew they couldn't afford two mortgages.

Both the gov't mandate and expansion of monetary supply encouraged increased risky behavior and fueling a housing price bubble...as more and more were moving into the market, it basically was becoming a large pyramid scheme...people could keep moving up, as long as new people could keep moving in. As soon as a little bump was hit, and the bottom of the market moved too high for new investors (new/first-time-home-owners) to move in, the pyramid/bubble collapsed.

It DOES beg the question...if gov't helped create the problem should gov't fix the problem?

I say the only way to get off this endless circle is to say NO. Gov't should leave it alone. Get rid of the "community reinvestment act" and leave investors (both home-owners and lenders) to act in their own self-interest. Let the market correct itself. Yes, everyones home values WILL go down, but this will bring a glut of new buyers that banks will compete for to make loans to, and thus keep the market on either end from falling too far down.


I always await your responses! :thumbsup

[CPonyGo]

LOL- me too...

[07ROUSHSTG3]

I say the only way to get off this endless circle is to say NO. Gov't should leave it alone. Get rid of the "community reinvestment act" and leave investors (both home-owners and lenders) to act in their own self-interest. Let the market correct itself. Yes, everyones home values WILL go down, but this will bring a glut of new buyers that banks will compete for to make loans to, and thus keep the market on either end from falling too far down.


i too would like to see them let the market correct itself.

let the bad banks go under, let the irresponsible borrowers become rentors or homeless, let the brokers be unemployed, and leave the taxpayers, honest lenders, and good people alone. you bring up a good point about the glut of new buyers. people seem to think that all these foreclosed homes will sit empty, that is not the case.

[SSDude]

This whole lending she-bang is a problem with no innocent parties...but make no mistake, the groundwork was laid by the federal gov't.

In 1977, the "Community Reinvestment act" was passed (to be fair, it was strengthened under both clinton and bush II). Essentially it barred lenders from restricting their capital from going to high-income markets only, IE safe loans in which the lender knew was sure bet to repay. Through subsidies, penalties, mandates, and intimidation of action, Banks/lenders accepted a number of "liar loans" in which on paper, there was not much hope of paying the lender back (cost of defaulting was less than the threats if they didn't make the loans). Essentially, it said that even though a smart guy wouldn't make this deal, you still have to make the deal...the original idea was to encourage homeownership in blighted areas by low-income individuals (the road to hell is paved with good intentions). However, this drives the cost up on everyone.

The federal reserve DID worsen the problem by expanding the money supply (thus keeping rates low, and helping to hide the increased cost of the community investment act)...that encouraged even more to seek loans on terms they likely couldn't afford...in many cases, even the borrower was aware that they might not be able to afford, but this was okay as the value of the home was seen as to only go up. If they needed to get out, they could do so with a profit. Also seen by the relatively high number of "flippers" who knew they couldn't afford two mortgages.

Both the gov't mandate and expansion of monetary supply encouraged increased risky behavior and fueling a housing price bubble...as more and more were moving into the market, it basically was becoming a large pyramid scheme...people could keep moving up, as long as new people could keep moving in. As soon as a little bump was hit, and the bottom of the market moved too high for new investors (new/first-time-home-owners) to move in, the pyramid/bubble collapsed.

It DOES beg the question...if gov't helped create the problem should gov't fix the problem?

I say the only way to get off this endless circle is to say NO. Gov't should leave it alone. Get rid of the "community reinvestment act" and leave investors (both home-owners and lenders) to act in their own self-interest. Let the market correct itself. Yes, everyones home values WILL go down, but this will bring a glut of new buyers that banks will compete for to make loans to, and thus keep the market on either end from falling too far down.

Clear, concise.:headbang

[Sprayaway Fox]

If your selling your house and bought a new one and paying double mortgage on it. Hey, you bet it all on red and its coming up black rite now, its not anybodys fault but your own. You took the risk that you thought it would sell faster than it is.

[Prince Valiant]

people seem to think that all these foreclosed homes will sit empty, that is not the case.Exactly...people walk, prices drop, buyers are encouraged to return by more affordable home prices, market begins to trend upward again...however, on far more stable groundwork.

It's not like innocent and honest people won't get pinched...It'll be unfortunate that some who bought toward the end of the bubble that won't walk away will probably need to stay in their home longer/pay more than they thought until the value rises enough to get out, but, they'll have learned a lesson, no doubt.

[tommyt5078]

I liked how things are/were. They'd help you out if you were truly desperate but that's it. No more boats, no more Escalades, no more trips to Lake Tahoe. Help you just enough to keep food in your stomach and clothing on your back. It'll probably turn into a Get out of Jail free card for a bunch of irresponsible people.

The government created this problem by allowing people to get loans. People buy what they can afford. The government says "yes" so the mortgage brokers sell you something you can't afford. We're a society of "it's not how much it costs, it's how much the payments are". Look here at SE WI. Same shit happened. The FIBs pushed up the cost of condos and recreation property and the locals pushed up everything else. Someone, somewhere told people that make $45,000/year that they can afford a $190,000 3 bedroom 1 bath house in Waukesha. Since lending was "cheap" house prices just went up and up. Well, 50 year mortgages don't exist.

So, as people began defaulting it causes a downward spiral. I suspect it's going to get a bit worse here before it gets better. Especially as places keep shedding jobs. Mercury Marine is getting rid of people, Osh Kosh truck is getting rid of people, Miller is getting rid of people... the list goes on. There were a ton of sales in this week's newspaper but that's from all the people with kids that don't want to move once the schoolyear starts that were waiting for "the best deals". In my price range (<$225k) I saw very few houses that sold within 1% of their asking price unless the asking price was 2007 assessed value.


For a responsible person that makes 45,000 could WITHOUT problem own a house worth 190,000 or more. For some loser to do this is another thing :thumbsup

[Cjburn]

The problem with our government is that it's people whom run it have no faith in the free market. For the most part, neither do the people who live under it do either. It's for their political gain do they "save" the common man from himself/herself, but all we get in return is a little less freedom, a lot more debt, and a more intrusive government. I would prefer our government stand up for personal and property rights of the free individual, and it rarely does either. The sheeple who vote in this country believe that everyone is a victim, no one has ever caused their own misery, and that either party that continues to run our great country into the ground is any different from the other. I don't hope for it, but one day this debt our government takes on through deficit spending, bonds, and fighting foreign wars will bankrupt the American dollar, and at that time the "tree of freedom" will have to be refreshed by the blood of patriots and tyrants alike.

[lordairgtar]

A couple of years ago, I walked in to Wells Fargo about a home loan. I had been to all the first home buyer seminars and looked into all the government programs to assist one in getting their first home. Went about my merry way looking at houses and realizing that the only houses I could ever afford were in slummy neighborhoods in Milwaukee or just too far away from work. I wanted to stay in Muskego. (Pretty odd that I can afford the rent here but not a mortgage) After more study with payment calculators, I realized I was pretty much given a bull story about buying houses. I didn't qualify for a lot of the programs but the asshat with a $7.50 an hour job at Burger king could. Hmmmmm, oh, and immigrants, legal and otherwise got a lot of help. I witnessed this myself! Anyway, I decided I did not need to put myself onto that road to financial ruin, so I quit looking for a house and I'm just going to wait til I retire and take my investments then and buy somewhere outside of Wisconsin...or at least away from the southeast part of it.

[Sprayaway Fox]

Im waiting for the other shoe to drop this will get worse if ALOT doesn'nt get fixed. We will all be eating out of soupcans.

[Al]

Question:

What percentage of the defaulters are on the unemployment list and how many defaulters simply borrowed to the max limit of their home's value, only to see it fall?

I like numbers, but don't get me wrong, these people deserve what they got.

[wrath]

For a responsible person that makes 45,000 could WITHOUT problem own a house worth 190,000 or more. For some loser to do this is another thing :thumbsup

Own a house *worth* $190,000 or pay a $190,000 mortgage? That's like $1,200/month just for the mortgage... plus taxes. So plan on at least another $300/month. Between those two that's at least 60% of your net income. You shouldn't really go past a third of your pre-tax (gross) income going to your housing.


I'm not totally clear on what you mean here but the lenders/banks set the minimum requirement for getting a loan not the government. The lenders/ banks got greedy with the low rate money available and loosened up the lending requirements to far. They were willing to take the risk on these under qualified loosers that wanted to buy more than they could truly afford.

Conventional limits of gross income going to housing are around 28%. People were buying houses in the mid-to-upper 40% range with zero down payment. Read: no safety net. Their back-end ratio was even worse. I know people that got loans on a 60% back-end ratio. These banks just "passed the buck" onto investors or preferably Fannie/Freddie.

As someone who has 45% of their gross income going to housing due to paying for two places to live, it's not a comfortable place to be. Especially with student loans on top of it. If I didn't have student loans it'd be fine. I think it's because I've been conditioned to paying for a house in Michigan I don't live in for the last year.

[Syclone0044]

The problem with our government is that it's people whom run it have no faith in the free market. For the most part, neither do the people who live under it do either. It's for their political gain do they "save" the common man from himself/herself, but all we get in return is a little less freedom, a lot more debt, and a more intrusive government. I would prefer our government stand up for personal and property rights of the free individual, and it rarely does either. The sheeple who vote in this country believe that everyone is a victim, no one has ever caused their own misery, and that either party that continues to run our great country into the ground is any different from the other. I don't hope for it, but one day this debt our government takes on through deficit spending, bonds, and fighting foreign wars will bankrupt the American dollar, and at that time the "tree of freedom" will have to be refreshed by the blood of patriots and tyrants alike.
Well said, and I like your sig. quote too. :thumbsup

What business does the US Government have buying companies and nationalizing them? Seems like the start of a disturbing socialist trend? Have they done this before? As I watch the price of FNM shares drop -90% today it seems like the investors of these companies might be the ones taking the biggest hit.

Does the government have the authority to be in the mortgage lending business? WTF?