Posted on 02/09/2009 2:50:36 PM PST by pleikumud
"If you are like most people, including me, and you've got one house ... it turns out that under current law you can't modify that mortgage if you are in bankruptcy," Obama told a townhall meeting as he campaigned for an $800 billion economic stimulus package being debated by lawmakers.
"That makes no sense ... that is forcing a lot of people into foreclosure," Obama said. "This is a piece of legislation that I strongly support."
(Excerpt) Read more at cnbc.com ...
Yeah, but Obama’s lawyer owns his house, so he can avoid taxes.
Every time he opens his mouth all he can do is jive talk.
Such a GENIUS!!!!!! I think we’ll just skip out on OUR recent little mortgage....the bank won’t miss it....
The report says: “President Barak Obama said on Monday that he supported changing the rules to let judges modify first mortgages to prevent home foreclosures.”
Just asking out of pure ignorance here...(and I’m not being snarky or anything, just curious), but aren’t mortgages/contracts modified all the time? I’m not understanding?
“”If you are like most people, including me, and you’ve got one house ...”
Yeah, but it ain’t a gift from a convicted felon...
If he is supporting legislation to modify first mortgages, does that mean 2nd, 3rd and so forth could be modified? If that is the case, then maybe the One is right.
Hold on a sec...didnt Biden have a part in those bankruptcy laws???
If all parties to a contract are willing to rewrite that contract, fine. There’s a problem when the government (in the form of a judge) forces a contract to be modified to benfit one party at the possible detriment of the other party.
How is a judge negating a contract in this case? Contracts are modified all the time with the consent of all parties to the contract.
Right to gain the power to unilaterally change the terms of a signed contract???
That's a very quick way to make contracts entirely useless, and for nobody to ever loan money to anyone in the future.
If that's what you mean by "right", then perhaps he is.
Joe Biden used to be referred to as the Senator from Bank of America, which acquired MBNA, which was headquartered in Wilmington. And, yes, Biden was the author of the current bankruptcy law, though I suspect it was written by his friends at Bank of America.
Can’t make car payments, can’t pay for the new furniture? According to Obama the bank or other owner of the promissory note has no rights.
Property rights are fundamental to our free, capitalist country. Without property rights, freedom doesn’t exist.
http://online.wsj.com/article/SB121950541258566467.html?mod=googlenews_wsj
I taught I taugh a putty tat...
The logic is since the banks/mortgage companies are bailed out by the government too, the third party.... taxpayers, who art not a party to the contract, get stuck with the bill. So the deadbeats and the banks win and the rest of us get you know what.... and the judge gets re-elected to boot.
Obama is talking about judges forcing modifications to benefit the debtor and screw the lender.
During bankruptcy proceedings, the bankruptcy judge can modify mortgages of all but your primary residence. This new law would allow those seeking bankruptcy protection to modify the mortgage terms on their primary residence. They could then seek bankruptcy protection and still live in the home, with new terms of payment.
Didn’t Rezko buy Obama’s house?
Maggot Kenyan.
>> According to Obama the bank or other owner of the promissory note has no rights.
Correct. Therefore, according to the Law of Unintended Consequences, it might be kind of tough for one to find a lender willing to TAKE a promissory note, after this goes down.
Not a real swift idea.
Zero is really hitting all his “marks” or is it “Marx” as he spends his “political capital”.
Looks like a lot of business owners are about to get an education of what it's like to be a divorcing father in family court.
Where the judge can modify any and everything in your life.
I have come to the opinion the GOVERNMENT is NOT going to be able to implement any help on this mortgage issue. It is just too BIG for Government to get a handle on.
What has the Government been able to handle in the last 30 years; I would like to know.
I agree that if one party is forced by law to do this. However, this can easily become a huge catch 22 for some people. For example, if someone has lost a job and has been unable to get a new one or is having to work for significantly less money than when they signed the mortagae agreement, then in better economic times they would sell that home. Today that could nearly impossible in today’s market.
Now you have unemployment, through no faault of your own and a market where you cannot get out of a debt you can no longer pay because a mortage company will not agree.
What does that person do?
I don’t like the idea of government passing laws that force things to happen in the free market. But whether it has reached many people here or not, there are a great many people facing life on the streets...and not because they chose not to pay a debt. But, because the government stuck it’s nose into the free market economy in the first place.
banks will be unwilling to loan if they think the person could in any way default in future.. so people won’t be able to get home loans unless gold-plated.
Should bankruptcy protection be eliminated altogether? Unless one believes that such a thin would be desirable and could be passed (neither of which I agree with) then it’s only justice to make it fair, difficult, and infrequent.
But if an honest person needs its protection - whether to assist in paying off medical bills or after an employment crisis - then it is to our neighborhoods’ stability if they can include their primary residence in their moderated payment plan. Bankruptcy protection only lasts for 5 to 7 years.
Banckruptcy laws were revised a few years back. I’m not sure it is as easy to do that now. And, yes, it should be fair, difficult and infrequent. I have always thought of bankruptcy as something honest people always try to avoid. But, stuff happens and right now the economy is happening to a lot of people.
CRA got the ball rolling for this and home mortgages are everyone’s biggest debt. The people who wanted to do away with prosperity went right at the one thing they were sure would destroy people’s lives. And they are winning.
I thought the post in question was about modifying loans, which the poster called negating contracts.
Under the current rules, citizens are supposed to pay taxes, but, hey, your administration doesn’t seem to mind folks unilaterally changing those rules. Maybe it’s time for everyone to do the same.
Private parties can also be lenders, not just banks. Think of all those owner carried home sales.
The populists will scream, “stick it to the banks,” but they don’t realize it affects regular folks too.
You only look at this in terms of the big bad bank not renegotiating principal because you lost your job. Should private parties who carried the house you bought, who exchanged their large asset of a piece of real estate for a piece of paper based upon your promise to pay, coupled with the legal remedy of being able to take that real property back in the event you don’t pay, be forced to lose the contractual right to take back that asset just because you lost your job?
This is done in the business world. If a business can’t pay a loan it is in the best interest of the bank and the business to see if they can find a solution that will benefit both
I stopped reading after your first line. Your D@MN right we are stuck with job loss and NOT of OUR making. And after 31 years of never missing a payment ON ANYTHING I am out on the street pal. So don’t tell me how I look at things. I see it for what it is and I know who caused it. And it wasn’t me, buddy!
I did not make an agreement with these people....they bought me...like a slave. And believe me, they made plenty of money off of me. Personally, now....I hope they have to eat it.
"A vote for this bill is a vote to protect family support payments in bankruptcy.''
IOW, bankrupting fathers by idiotic court rulings is just OK with Biden because they are lesser humans.
Obama is talking about judges (the government) forcing modifications to benefit the borrower and screw the lender. This is not the same as free parties negotiating a deal freely and privately.
I have a lot of sympathy for responsible people like you who have gotten caught up in this lousy economy. But your statement above is ridiculous.
No, it isn’t ridiculous. Unless you were buying a home at that point in time you may not fully understand. After all these years we built a house in 2006. We raised two kids and put them through college before taking on a new mortage. This is where we wanted to retire. The initial Mortgage company want out of business and sold our mortgage to someone else....who is not interested in doing any modifications even for those who are experiencing the pains of job loss. We did not ask for a mortgage from these people...they bought us.
I agree with you Crystal Cove. After searching for a house to buy just recently, the banks are losing a lot of money because of the drop in values. Add on top of that the foreclosure homes that make values drop even more. I think that banks should want to rework the contracts to keep the homeowners in the homes if possible. I never would have thought this until seeing first hand the number of foreclosures while shopping for a home. A forclosed home will never bring the same amount on the open market as a non-foreclosed home. So if all parties agree... why not?
In 2000 my wife and I bought our first home. We were approved on a mortgage up to 520k. We did the math and realized that if either of us lost our jobs, we would default and go into foreclosure within a year. We chose a more modest home that we could sustain on only one of our incomes. We went through some hard times but managed to scrape by. Now I’m thinking we made the wrong decision.
On a side note, the O’s now plugging digital medical records… wonder who’s paying for that.
If a BK judge modifies a person’s mortgage — lowers the interest rate or even the value of the property that does negate the original contract. I have never signed a home loan with a clause stating “or until a judge changes this”... if judges have this authority, good luck getting a mortgage unless you have a huge downpayment and perfect, perfect, perfect credit and probably a high-value job.
So how did your mortgage change from the one lender to the next? It should not have been any different than the original contract you signed...
Well I look at it as an elderly person (my inlaws) who sold their house in good faith, carrying the mortgage for a nice young couple, who now because of job loss, though no fault of the inlaws, get to keep the house that they haven’t paid for, taking the one big asset in the elderly folks’ lives for pennies on the dollar.
Yep, the old folks deserve it just because we all want to screw the banks.
“If you are like most people, including me, and you’ve got one house ... it turns out that under current law you can’t modify that mortgage if you are in bankruptcy,”
WRRRRRRRRRRRRRRRRRRRRRRRRRONG!!!!!!!!!!!!!!!!!
WRONG
WRONG
WRONG
LIE
LIE
LIE
LIE
LIE
LIE
This man is so stupid it gives me a headache.
It is in fact EASIER to modify your loan once you have entered foreclosure.
Every person in this country has seen those little signs on the side of the road offering loan modifications. These people specialize in helping people after they entered foreclosure.
Obama is so freaking stupid.
When your family becomes a single income family AFTER you sign the mortgage it makes a huge difference. The current mortgage company would rather foreclose on you than work with you. That’s it. You may think we are terrible people for expecting them to do that and so be it. But you might just be wrong. And there are a lot of us out there. But, you may think that is just our tough luck. If you do then ask youself why the conservative party is losing. I don’t want your tax dollars or anyone else’s. What I want is the opportunity to make a living and pay what I agreed to pay. But that is not going to happen in this country any time soon. Not anymore. And we didn’t cause this.
I don’t want to ‘screw’ anybody. I want to do what I said I would do. But if there jobs aren’t there...they aren’t there. And again....I did not cause this.
While I feel bad for your situation, it isn’t the banks fault you bought a house that required two incomes to sustain, and that is a hard, cold fact that could bite anyone at any time.
The judge gets to decide. Nobody else has to agree.
Tis the same with taxes, it’s okay not to pay, you might be chosen as
secretary of something===treasury maybe.`
Were you promised that the mortgage company would stay in business forever or never sell your loan? Were any of the loan terms changed?
Having read further, I see that you bought a house EXPECTING that both you and your wife would both be able to work steady jobs until it was paid off. YOU CHOSE to buy a house that required you both to work, and now because life sometimes sucks and your expectations weren't met, you are acting as though someone else forced you into this situation.
My husband and I invested a large sum of money in April of 2007. We had advisers, followed all of their recommendations for people of our age, we've had our portfolio looked at by 3 different professionals. Do you know what they say? "You guys have totally lost your shirts here, but in any other market you'd be doing quite well. These are normally very, very good investments."
Do I get to cry and whine and play the victim? No. We had a good plan, a reasonable plan and we just got unlucky. The timing was awful. The same thing happened to you. Does it stink? Absolutely. But it doesn't make you a victim of your mean ole bank, anymore than we are victims of our advisors who don't own a crystal ball.
Do you think I am crying and whining? Because I post a reality right here? I am doing everything I can. Sorry you lost your investment. I am losing a place to sleep.
I CHOSE to work. WE chose to WORK. If CRA had not destroyed the housing market BOTH of us would STILL be working. And I do NOT have a WIFE. I have a HUSBAND who cannot find WORK. I have worked EVERYDAY of MY life for the past 31 years. Yes, we CHOSE to buy a home from a particular company and we signed an agreement with THEM. No one else. We were sold.
Why can’t you get that?
Well, after reading here I guess I won’t need to feel so bad about going on government assistance even the economy is all my fault. Maybe crying and whining IS the only thing that works anymore since we are on our way to becoming United Socialist States of America. The best thing to be in a socialist state is the most needy.
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