Posted on 02/20/2009 4:23:31 AM PST by smartyaz
Bus driver Minta Garcia admits that she and her husband bought more house than they could afford, but she said "the lender made the purchase all too easy." Now the home that she purchased for $800K is worth $675K and she wants Obama to "Stop the foreclosures".
(Excerpt) Read more at housingdoom.com ...
Are they hiring?
Since her mortgage is worth more than her home, I gave her a lowball mortgage of $675,000. Now at 1% for 30 years, that still comes out to $2171 per month. I wonder if she could afford that?
Since when are we allowed to trust anyone? Do your own due diligence. Everybody has an angle and it is up to us as consumers to logically evaluate each offer. In the end, you are responsible for you.
I do not doubt that at all.
Disgusting.
Irresponsinility obviously pays.
How the heck does a bus driver get an $800,000 home?
Neither Minta nor octo-mom deserve the house. THEY CAN'T AFFORD IT on their income from employment!
reagan_fanatic: “There is no excuse for this.”
It shouldn’t matter if they have an excuse or not. The only thing that matters is that they be held responsible for the decisions they made. Who knows? They might even deserve a bit of sympathy. Nevertheless, no one should have the power to compel the rest of us to pay for the mistakes they made. If the bank decides to voluntarily rewrite the terms of the loan or allow a short sale, that’s OK. I also don’t care if people voluntarily donate to help the folks pay off their $800K home. As I stated, the problem is simply this: they are demanding that other people cover the losses. Even worse, they are attempting to use the force of government to require you and I to cover their mistake! That is simply not acceptable under any circumstance. If nothing else, it places the value of their property higher than the value of our property (since they want to confiscate OUR property to pay for theirs). When a thief breaks into your house, you have the right to defend it. Yet, these are thieves who are being aided and abetted by the very government that was founded to defend our property rights!
I just used a mortgage calculator at the original $800K amount for 30 years at 5%. Monthly payment would be $4294.57.
America, RIP.
“Why would you roll an unsecured debt into your home, thereby making it secured debt?”
Because tomorrow never comes.
As I live in my $60,000 house and help pay for her over half a million dollar house.
And it’s the lender’s fault for letting her get it.
No wonder this country is going to hell.
FWIW the foolish driver is not important, valuing the house poperly is important.
House bought for 800k sold in foreclosure at 500k costs include attorney fees, court costs and time on banks books plus losses. (most forcclosures are bought back for cost of note because bank has an 800k level judgment)
in bankruptcy (assuming law changes back to pre2005)
House in bankruptcy is revalued for 500k and the owner assumes the new loan (IF they can afford it otherwise it just goes to the bank). same 300k write off, much less lawyer fees, NO time on bank books for maintainance, no forclosure sale.
both examples are FREE MARKET WORKING, no BS socialist nonsense doublspeak obama bailout.
If foolish bush driver can’t affort the house at full market value will not be allowed to keep it. Bankruptcy in a ch 7 liquidation is faster than a forclosure that may take over a year in this environment.
The issue we should focus on is “value of the property”, once valued to reality it goes into the flow of commerce.
Value the house, save the ecconomy.
Bingo!
Problem #1: The CRA required that lending institutions make a certain number of loans they knew would be bad.
Problem #2: Those lending institutions went to the government saying “you need to cover us on those bad loans you’re making us extend.” The government agreed to do so with Fannie & Freddie.
Problem #3: The government, spending tax dollars as usual, didn’t use ANY diligence (let alone “due diligence”) to make sure that excessive numbers of bad loans were being made. The more, the merrier. Plus, there was no oversight (thanks to the Chris & Barney show) over the management at Fannie & Freddie. In secularizing the bad loans, as well as through “cooked books,” Fannie & Freddie looked like much better investments than they were. And people like Franklin Raines and Jamie Gorelick became multimillionaires from bogus bonuses. They (and many others within Fannie & Freddie) should have been arrested and tried for fraud and all sorts of securities violations.
Problem #4: Corrupt lenders knew they could charge exhortation front end fees on loans they knew would never be paid, and then sell them off to the government, so they went into that market and made a killing, knowing that the government would never look into the abuses of the tax payers.
There’s LOTS of blame to go around. But people should have to pay for their bad decisions. And certain people in government and the lending industry should be in federal prison for the fraud they perpetrated.
Mark
The hatred for Minta comes from a narrow view of the problem. A lot of people here seem to believe that if it were not for the democrats forcing banks to make loans to deadbeats, the crisis would not have happened. There's two problems with belief: first the agreement to force the banks to make those loans was bipartisan (1999, 2000). Second, all the bad mortgages could have been bought outright for a few hundred billion or grossed down for a fraction of that. The fact that we have dumped 5 trillion in guarantees and infusions into banks means that bad mortgages are not the bulk of the problem,
Every congress-critter needs to take one of those classes. Heck, every elected official AND appointed bureaucrat!
And they need Nuns from a Catholic school with rulers to teach the classes and crack them on the knuckles over and over again!
Mark
It’s just like that commercial with that lady walking around with the monkey on her back.
yes, that lender said “Sign here, it’s standard” and I have no doubt that happened, but I also know I watched the lady “JUST SIGN IT ANYWAY”.
Once upon a time there were consequences to signing stuff you didn’t read. Or understand.
Holy cow!
When we bought our current house 3.5 years ago (we sold our townhouse at the tip-top of the market and closed on this one as it was starting to come down), the bank offered my husband a $500k loan on his income only. We’re both in the IT industry, but seriously — how on earth could they feel ok offering a mortgage for more than 5x someone’s salary?
We didn’t take it.... we stayed within the budget that we set for ourselves as we started the house shopping adventure and, happily, can afford the payments if one of us gets laid off.
People are stupid, and mortgage lenders are greedy ******s.
Oh yea..that’s right....the old ‘Be Here Now’ mantra from the 60’s commie revolution....lol
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