Posted on 12/07/2007 9:44:43 AM PST by goldstategop
When Casey Johnson and his wife moved to San Diego County three years ago, they couldn't find a home in their price range. So they did what they thought was the sensible thing.
Rather than over-leverage themselves with a risky mortgage, the couple rented an apartment in La Jolla and waited patiently for the housing market to drift back to earth, hoping they hadn't missed their chance to become homeowners.
The value of a rate freeze Graphic The value of a rate freeze click to enlarge
But now the government-brokered plan unveiled Thursday by President Bush to ease terms on some sub-prime mortgages feels like a "slap in the face," Johnson said.
Many people who prudently sat out the housing bubble -- or resisted the urge to cash out their home equity to help finance their standard of living -- share that visceral reaction. In part, they resent on principle the rush to help a segment of society that may not have acted so responsibly. But they also fear that any effort to prevent foreclosures could keep home prices from falling to an affordable level.
"I try to do the right thing, which is to have a down payment and a job and to be fiscally responsible, and it basically looks like it's not going to pan out if this sub-prime bailout goes through," said Johnson, a 34-year-old biologist at the Salk Institute.
(Excerpt) Read more at latimes.com ...
"Show me just what Mohammed brought that was new, and there you will find things only evil and inhuman, such as his command to spread by the sword the faith he preached." - Manuel II Palelologus
exactly. I am in the same position in Long Beach.
Do the right thing and get screwed by the GOV.
“delay the eventual day of reckoning when property values finally settle at their natural levels, keeping many would-be buyers locked out of the market in the meantime.”
I’m not worried. I’m sure Hillary or Obama has a plan to give huge tax credits to offset rent for those of us who are young professionals eager but now unable to become homeowners.
I’d love to know the average value of the homes being bailed out.
"Show me just what Mohammed brought that was new, and there you will find things only evil and inhuman, such as his command to spread by the sword the faith he preached." - Manuel II Palelologus
"Show me just what Mohammed brought that was new, and there you will find things only evil and inhuman, such as his command to spread by the sword the faith he preached." - Manuel II Palelologus
Once again, the gov’t rewards stupidity and penalizes responsibility.
Nor does it, nor can it, address the stupidity of home buyers failure to fully understand the mortgages offered BEFORE putting ink to paper.
I wholeheartedly agree with this man. I cannot believe the houses people "thought" they could afford. The husband manages an auto parts store, the wife is a secretary for the school board, and they have three kids-- but hey! They can afford a 3500 square foot house with five bedrooms, media room, finished basement and "teen suite."
"Show me just what Mohammed brought that was new, and there you will find things only evil and inhuman, such as his command to spread by the sword the faith he preached." - Manuel II Palelologus
The “Invisible Hand” does not take kindly to being interferred with.
"Show me just what Mohammed brought that was new, and there you will find things only evil and inhuman, such as his command to spread by the sword the faith he preached." - Manuel II Palelologus
You buy one you can afford, and you take that into consideration before entering into a legally binding contract. I like to think that if I earn more money, I can buy things that others cannot. Expensive homes are not an entitlement, they are a LUXURY ITEM.
All we need is lower rates to get back to normal. Much lower rates like after 2001.
The Fed raised the rates back up and now the entire banking system is froze up.
The public will benefit from the plan negotiated with the banks by not having bank distress and roiling of the markets. The banks undoubtedly developed the plan and allowed the President the plum of making it a policy of the government and removing the blame that might come from stockholders.
The people with bad loans are being given a 5 year window to solve their problem by refinancing or selling. The cost to the banks will be minimal compared to the cost of foreclosure and the resulting aquisition of realestate.
Those who experienced rate rises and foreclosure in 2007 are not saved. They must either bear the rate increase, refinance, selll out or be forclosed.
By the end of 2008 it will all be over except for those terminally stupid and unwilling to act to save themselves.
Stop and think about who’s really being bailed out here. It’s not the over-leveraged, credit challenged homeowner who could walk away and probably not lose any money. It’s the idiot mortgage brokers with their ‘no credit bad credit no problem’ pitch and their practice of lending money to anyone with a pulse, and the major banks who bought the mortgages who are being bailed out. They’re petrified at the idea of reposessing all those homes in a plummiting housing market and are desperate for the governemnt to save them.
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