Some mortgage borrowers getting desperate (Video report of home owners desperate to sell)

http://www.msnbc.msn.com/id/8874568/ ^ | 8-9-07

[Hydroshock]

Aug. 9: Growing problems in the housing and mortgage markets are putting pressure on borrowers who are trying to sell before losing their homes. Some are even walking away from mortgages. NBC's Josh Mankiewicz reports. Full story

[AppyPappy]

These people need to learn how to read a contract.

[brownsfan]

I saw someone here say, the market punishes fools. I agree.

[madvlad]

Caveat emptor, baby!

MV

[Phantom Lord]

I just hope President Bush doesn't agree to anykind of bailout. Especially for homeowners.

It is not the job or purpose of the government to save you from taking on too much debt.

[TChris]

Hmm.

Perhaps wiser standards such as 20% down on mortgages and a payment no more than about 30% of your monthly income will return to favor as a result of the tears.

[Oberon]

The concept I keep coming back to is "Money always returns to its rightful owners."

In other words, the wealthy tend to remain wealthy over time, because they keep doing the things that made them wealthy in the first place...regardless of market vicissitudes.

[RockinRight]

Although good rules to live by, from a market standpoint I don’t even find that necessary.

What the mortgage lenders have already done is good from a lending guidelines standpoint. Now we just have to wait for the old, existing riff raff loans to shuffle out.

[RightWhale]

The housing market, and now the credit market must be allowed to readjust to a new balance. In cold reality this means there will be losers and no winners.

[JoeGar]

These people need to learn how to read a contract.

And banks need to learn how to lend money to people who buy houses they cannot afford.

[300magnum]

*CNBC Alert

Fed Adds Another $16 Billion in Reserves to System, Following $19 Billion Injection Earlier Today

[bert]

I see no reason to panic. They should take out a loan on the equity to tide them selves through the rough patch

[roscommon]

ping

[John123]

I just hope President Bush doesn't agree to anykind of bailout. Especially for homeowners.

Oh no... the next President is going to have to deal with that -- and believe me -- banks ARE going to be bailed out...

And of course, if its President Hillary -- It's Bush's fault

[dashing doofus]

Expect Putz Schumer to address this issue with VERY IMPORTANT observations and proposed new programs shortly.

And, obviously, this is Bush’s fault.

[dashing doofus]

Why, how old-fashioned of you, to expect people to make a down payment when taking on a mortgage, and actually testing to see if they can afford the payments. ;-)

[John123]

I see no reason to panic. They should take out a loan on the equity to tide them selves through the rough patch

I know you are being sarcastic (right?). But the real truth of the matter is that credit is being tightened. Banker's lending standards are being more strict which means it is going to be tough to bail homeowners out of the hole they dug...

[Non-Sequitur]

I just hope President Bush doesn't agree to anykind of bailout. Especially for homeowners.

It is not the job or purpose of the government to save you from taking on too much debt.

His old man bailed out the S&L industry. This Bush will bail out the home mortgage industry.

[TXLibertarian]

I just hope President Bush doesn't agree to anykind of bailout. Especially for homeowners.

A bailout has already begun, although it is for the large lenders and banks rather than the individual homeowners. The Federal Reserve purchased $35 billion worth of mortgage backed securities today (the same paper no other institution was willing to touch). A disgusting example of the how banks in this country enjoy a "tails I win, heads you lose" relationship with the American taxpayer.

[dashing doofus]

Banks and mortgage lenders were pressured by many socialistic politicians into making these loans in the first place. A quote from a National Review Article:

Politicians have also been a key factor behind pushing lenders to lend to borrowers with lower prospects of being able to repay their loans. The Community Reinvestment Act lets politicians pressure lenders to lend to people they might not lend to otherwise — and the same politicians are quick to cry “exploitation” when the interest charged to high-risk borrowers reflects that risk.