|
Users viewing this topic:
none
|
|
Login  | |
|
RE: Current banking crisis - 7/23/2008 12:03:31 PM
|
|
|
Sophie11
Posts: 750
Joined: 1/24/2008
Status: offline
|
quote:
ORIGINAL: sylvan
quote:
Personal responsibility is what it is, there is no escape from the fact that most everyone taking these loans did so out of either greed or ignorance. If they were so tight on funds that they were between "a rock and a hard place" then I would have to say they had no business purchasing a home at that moment anyway. Just because they wanted to buy a home doesn't mean they should have.
That's true, but it's not entirely fair to label everyone that got into a bad loan greedy or ignorant. In most cases, they just wanted a home (what's wrong with that) and they trusted their lender. If you look at the overall facts, it is the lenders and banking institutions that were greedy. These are extremely wealthy individuals - they preach agains government intervention, they preach free market - yet they are the first one's to cry for government intervention when their shady house-of-cards falls down. Look at them crying to Congress to step in and bail them out. You should have a BIG problem with that. You should have a big problem with transferring public wealth into wealthy private hands.
Ok, well if you have read any of my previous posts you would see that I have already stated the banks are also at fault and I think it is horrible the government is bailing them out.
Also, when you say "they just wanted a home (what's wrong with that)", A LOT is wrong if they "just wanted" a home they cannot afford. They shouldn't have bought it! I too have "wanted" a home for the last 5 years but only purchased one 7 months ago. My husband and I waited until we were financially able to do so, put 10% down and took the remaining balance out on a fixed rate 30 year mortgage. Trust me we had people talking to us about other loans and we simply demanded a normal fixed rate mortgage.
The thing is the homebuyer has a responsibility to look out for themselves. It is their future on the line, their home, their family. They should take the time to study the ins and outs of the home-buying process before they agree to buy.
|
|
|
|
|
RE: Current banking crisis - 7/23/2008 12:12:54 PM
|
|
|
NoShow
Posts: 430
Joined: 5/10/2005
Status: offline
|
quote:
ORIGINAL: Sophie11
Ok, well if you have read any of my previous posts you would see that I have already stated the banks are also at fault and I think it is horrible the government is bailing them out.
Also, when you say "they just wanted a home (what's wrong with that)", A LOT is wrong if they "just wanted" a home they cannot afford. They shouldn't have bought it! I too have "wanted" a home for the last 5 years but only purchased one 7 months ago. My husband and I waited until we were financially able to do so, put 10% down and took the remaining balance out on a fixed rate 30 year mortgage. Trust me we had people talking to us about other loans and we simply demanded a normal fixed rate mortgage.
The thing is the homebuyer has a responsibility to look out for themselves. It is their future on the line, their home, their family. They should take the time to study the ins and outs of the home-buying process before they agree to buy.
Thing is, regardless of who was "right" and who was "wrong" the governments focus is on what will help fix the problem. Bailing out a bunch of individual homeowners isn't really going to do much for the situation. Nor is the fallout of letting them lose their homes.
The government is going to get more bang for their buck bailing out the banks (and Fannie and Freddie). But more importantly is preventing or minimizing the fallout of letting them fail.
|
|
|
|
|
RE: Current banking crisis - 7/23/2008 12:27:59 PM
|
|
|
Sophie11
Posts: 750
Joined: 1/24/2008
Status: offline
|
quote:
ORIGINAL: NoShow
Thing is, regardless of who was "right" and who was "wrong" the governments focus is on what will help fix the problem. Bailing out a bunch of individual homeowners isn't really going to do much for the situation. Nor is the fallout of letting them lose their homes.
The government is going to get more bang for their buck bailing out the banks (and Fannie and Freddie). But more importantly is preventing or minimizing the fallout of letting them fail.
Yeah I understand that. I still don't think it's right though.
|
|
|
|
|
RE: Current banking crisis - 7/23/2008 3:59:00 PM
|
|
|
sylvan
Posts: 120
Joined: 5/2/2008
Status: offline
|
quote:
The thing is the homebuyer has a responsibility to look out for themselves.
Well, there are a lot of people that will tell you a 30-year mortgage is a bad idea. The good thing is it's better than renting in terms of wealth accumulation. In any case, if your husband (or you) happened to lose his job in this economy - your mortgage would become a problem real fast, whether you're in fixed rate loan or not. Just saying, it wouldn't make you greedy or ignorant.
When it comes to homebuyers, there was a small percentage that were fradulent on their forms - lied about income, etc. I don't have much sympathy for them.
quote:
Thing is, regardless of who was "right" and who was "wrong" the governments focus is on what will help fix the problem. Bailing out a bunch of individual homeowners isn't really going to do much for the situation. Nor is the fallout of letting them lose their homes.
The government is going to get more bang for their buck bailing out the banks (and Fannie and Freddie). But more importantly is preventing or minimizing the fallout of letting them fail.
This is true, but are we not a free market society. Obviously not - that's just something politicians lie about. When we're taking about "the government" bailing them out, we are talking about you - and me. America is upside down already, so what does a bailout mean? It means the American middle class goes further into debt - we borrow money and GIVE it to these wealthy corrupt private institutions. And the kicker, then we (you and I) get to pay interest on the borrowed money - Interest!! - Paying interest right back to the very same corrupt institutions. Trillions + interest on trillions. It's not really a bailout - it's robbery - a wealth grab. We're just giving these private institutions free land, free money, enslaving our society in more debt and interest obligation, etc. Don't you see, the government is the problem - we've got to fix government. Yeah, a bailout would give some present relief - but, it's a huge price.
As Sophie mentioned, it's not right. Let do what's right.
|
|
|
|
|
RE: Current banking crisis - 7/23/2008 5:21:53 PM
|
|
|
NoShow
Posts: 430
Joined: 5/10/2005
Status: offline
|
What do you think is right?
Loans get bundled up and resold. In the case of Fannie and Freddie's many of their loans are now "owned" by people in fixed income (some retired folks), also pension funds own them as well. People groups looking for more income, since they couldn't get them from CDs. So the bailout will help them, not (just) the wealthy corrupt private institutions.
Let Fannie & Freddie and a number of the big banks go under, will ripple through the whole credit market. And in the end, you and I, the people, will pay the price of it. Whether it be through more expense interest rates or interest expense passthrough by the companies we buy from, it'll still come from us. At a huge price.
Will it be less expense (and less painful) to you and I, one way over the other? Probably yes, but it's probably going to be via a bailout.
Yeah I see that the government is the problem. Government corruption is basically our own fault. The general public is such of a "my-party-is-always-wrong-and-the-other-party-is-always-wrong" mentality, it's blind to the fact that it's not about Democrats and Republicans, it's about the Haves and the Have-Nots.
|
|
|
|
|
RE: Current banking crisis - 7/23/2008 6:49:57 PM
|
|
|
relady
Posts: 1040
Joined: 4/11/2005
From: Greater St. Louis Metro
Status: offline
|
quote:
And have only "heard" of it happening, never "seen" it happen. maybe you live in a state that regulates its lenders a little more closely than most. There are a few of those around I hear.  I have been a Realtor since 2001 and have seen it happen several times.
|
|
|
|
|
RE: Current banking crisis - 7/25/2008 7:46:11 PM
|
|
|
Sophie11
Posts: 750
Joined: 1/24/2008
Status: offline
|
quote:
ORIGINAL: sylvan
quote:
The thing is the homebuyer has a responsibility to look out for themselves.
Well, there are a lot of people that will tell you a 30-year mortgage is a bad idea. The good thing is it's better than renting in terms of wealth accumulation. In any case, if your husband (or you) happened to lose his job in this economy - your mortgage would become a problem real fast, whether you're in fixed rate loan or not. Just saying, it wouldn't make you greedy or ignorant.
When it comes to homebuyers, there was a small percentage that were fradulent on their forms - lied about income, etc. I don't have much sympathy for them.
Well, of course no one can account for every and any possible hardship that may come their way in the future, but the point is that most people who took out these type loans would have had a hard time ever affording a normal fixed rate loan. That is the reason they chose the option they did. And most are not losing their homes due to some unforeseen catastrophe, but simply because their hopes and dreams of being more financially sound when the mortgage jumped never came to fruition. It's a different scenario.
Anyway, I am quite sure these folks were wanting so badly to be in a nice, big new home. So did I. It was a wee bit difficult watching everyone else in my neighborhood (or so it seemed!) building a new home or moving into a new home every day while my husband and I lived in a mobile home for the last 6 years. So I understand the wanting part of it, it's just that more people need to move past the idea that they are meant to have everything they want in life exactly when they want it.
And I understand that a 30 year mortgage is of course not as good as a 20 or paying cash, but a fixed rate is still the best way to take on such a long term loan, and we always have the option of making extra payments when possible to shorten the term. Even though a 30 year fixed may not be the best, it is the most common and still relatively safe. Nothing is ever a sure bet unless you pay cash though of course, I understand that. 
|
|
|
|
|
RE: Current banking crisis - 7/25/2008 8:18:59 PM
|
|
|
stellaluna
Posts: 3991
Joined: 4/11/2005
Status: offline
|
quote:
ORIGINAL: Marcus.
I was pre-approved for a home loan before I started house hunting. I was very conservative on what I would allow my mortgage payments to be and what type of loan I would take. I was surprised by the mortgage lender pushing the ARM. I had read that it was for the wealthy not middle class. He said that they pushed it for folks who move frequently to make the payment lower and the wealthy. Not knowing when I would move again, I avoided the ARM. With the prices in my area averaging $300K and not finding anything I liked in my price range I quit looking altogether.
This is exactly what happened to me.
I was approved for X amount based on my income and given an estimated monthly payment. It was a lot higher than the rent I was paying, so I told my realtor I didn't want to spend above Y. Would I be making more money 3 or 4 years down the line? I hoped so, but I didn't know for sure and I didn't want to gamble that way. I didn't end up buying anything because I didn't find anything I liked in my price range.
Marcus and I made the choice to not get ourselves into a financial crisis. I'm sure there are others like us, but it appears there are many more who throw all caution to the wind to get what they want when they want it.
(And Sophie, too!)
quote:
ORIGINAL: Sophie11
Also, when you say "they just wanted a home (what's wrong with that)", A LOT is wrong if they "just wanted" a home they cannot afford. They shouldn't have bought it! I too have "wanted" a home for the last 5 years but only purchased one 7 months ago. My husband and I waited until we were financially able to do so, put 10% down and took the remaining balance out on a fixed rate 30 year mortgage. Trust me we had people talking to us about other loans and we simply demanded a normal fixed rate mortgage.
_____________________________
I'm tired of signatures.
|
|
|
|
|
RE: Current banking crisis - 7/25/2008 8:25:26 PM
|
|
|
stellaluna
Posts: 3991
Joined: 4/11/2005
Status: offline
|
Also, I recall a conversation with my brother a few years back.
He was working as a mortgage broker at the time and he took a phone call from a disgruntled client while I was with him. I asked him what it was about and he said they were mad because they had an ARM and their payments had nearly doubled and they couldn't afford them. So I asked if there was something he was supposed to be doing about it and he said he had done all he could.
His company's policy was not to push an ARM if the client was under a certain income. If a homebuyer specifically asked for an ARM, they would give them one, but they also gave them a packet about refinancing before the "grace period" on the ARM ended. (Sorry, I don't know the right term.) Anyway, my brother said 6 times out of 10, the homebuyer did not follow the directions in the packet and didn't refinance in time. He said 3 times out of 10, the homebuyer let his or her credit slide once they got a mortgage and couldn't refinance. Nothing he could do about it except take their mean and nasty phone calls.
_____________________________
I'm tired of signatures.
|
|
|
|
 New Messages |
 No New Messages |
 Hot Topic w/ New Messages |
 Hot Topic w/o New Messages |
 Locked w/ New Messages |
 Locked w/o New Messages |
|
 Post New Thread
Reply to Message
Post New Poll
Submit Vote
Delete My Own Post
Delete My Own Thread
Rate Posts |
|
|
Forum Tools
Printable Version
