Posted on 03/05/2008 3:37:43 PM PST by kiriath_jearim
Glenn Beck argues that we need to let ourselves have some small economic problems now to avoid bigger ones later. In other words, banks in trouble because of bad loans? Let them die.
USA as housing project. Capital idea!
I lived through the seventies and through jimmy Carter and 20 % rates. This is not the biggest slump since the depression, juxtapose the past decade it is a big slump. I do not see how government intervention is going to help our economy.
SWEET ... let them pass this. I'll just quit my job, stop paying taxes and watch the federal government buy my house from me.
I don’t think this is meant to help the economy, it’s more for consolidating power for the blowhard seantors by creating more dependents.
Those of us who work hard and pay our mortgages will be next. We’ll be choked to death by taxes on our properties, the energy we use to keep ourselves warm in the winter and the fuel we use to drive to work so we can pay ever increasing taxes on our earnings.
Why not just restore the severabilty of unsecured portions of home loans in bankruptcy court?
PRE-2005 reform, the debtor could “lien strip” an under collateralized loan and renegotiate the secured portion under the auspices of the bankrupcy court.
This meant lenders who lent 125% loan to value were out the 25% stupidity of the lender value of the loan.
Under the current law, there is the stupidity of the lender protection because the full 125% is protected. Thus people find it EASIER TO WALK AWAY and buy another house with a bit more down and perhaps a percentage point or two more loan interest.
They could even make a new ch13 which is ONLY for the home mortgage loan negotiation and is open and closed in the time it takes to redo the loan.
You’d think the Panic Button would be knocked off the control panel by now from the liberals hitting it so hard all the time.
I’m a contractor and one of my customers is s person that buys houses at FHA and FMHa auctions. The condition of these houses when the people leave are very telling about the mind set of people that are given everything. These houses have excrement on the walls, holes in the walls and doors, these houses are disgusting.
Wow, I can go fall down the stairs at my crummy job, collect Workers Comp. and then not be able to pay my mortgage and let you and all the other FReepers bail me out.
Great idea.
A close friend rehabs appartment buildings and does condo conversions. He says the same thing about section 8 renters.
“I’m a contractor and one of my customers is s person that buys houses at FHA and FMHa auctions. The condition of these houses when the people leave are very telling about the mind set of people that are given everything. These houses have excrement on the walls, holes in the walls and doors, these houses are disgusting.”
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Perhaps these people are “venting” their frustrations at being unable to make the increased payments on their ARMs, balloon payments or similar “creative financing” that got them hooked on easy “First-Time Homebuyer” mortgage plans “custom-made” to fit them.
When people are given everything all their lives they have no sense of value, no respect , no gratitude and no concept of responsibility. It is actually cruel to allow people to live under the wardship of the state, a class of non productive miserable people are created.
I do not believe FMha or FHA loans are ARMs.
Moral Hazard! Moral Hazard! Moral F@$#in Hazard!!!!
“I do not believe FMha or FHA loans are ARMs.”
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Many people opted for other loans besides FHA or VA, etc. I remember in Las Vegas a few years back with real estate brokers and mortgage companies offering “creative financing” to help those who have “less than stellar” credit.
This isn’t a slump. Its been caused by a massive overbuild of housing. And now states like California, Nevada, Arizona, and Florida are sitting on inventories that will take many years to work out.
I’m probably reading into what you have written, but it sounds like you feel the people losing their houses are being victimized. I have an ARM, I knew the risks before I signed the contract. I liked the terms for getting into the loan, if I get in trouble with this loan, it is my fault and I ned to find a way to pay my debt.
If a bank does not perform due diligence on people they are lending to or they loan 125% of the value of a property, they deserve to suffer the consequences. These are gambles by lenders and borrowers, it is not the tax payers or responsible home owner’s responsibility to bail them out.
If I can’t make my payment, I have no right to destroy the house on the way out, if I do this I should be locked up and forced to pay for the damages when I get out
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