Posted on 03/06/2009 6:55:12 PM PST by Kaslin
Equity: A House bill rewards people who bought houses they couldn't afford by letting judges rewrite private contracts. Did anyone notice that most foreclosures are in four states, including Harry Reid's Nevada?
Provisions were added to the measure requiring home loan companies to show they had made a "reasonable" offer to work out a deal with those facing foreclosure. The homeowners would also have to show they had exhausted all other possibilities before filing for bankruptcy. It will be up to a judge to decide what reasonable is.
The net effect will likely be — surprise! — more bankruptcies to avoid the consequences of making bad decisions such as buying more house than one can afford or cashing out one's equity to finance a lifestyle one can afford. Frugality is no longer rewarded, as the grasshopper has won out over the ant.
The consequences of this government intrusion into the free market by violating the sanctity of private contracts are unknown. But we suspect it will drive up mortgage rates and further destabilize the housing market. Lenders will be more reluctant to lend if a judge can reduce what is owed with the stroke of a pen.
This further rewards those who bought too much house. And, as CNBC's Diana Olick points out, it will bail out those who used their homes as ATM machines. And took out second mortgages or home equity loans to finance that new addition, patio deck or car parked in the foreclosed driveway.
(Excerpt) Read more at ibdeditorials.com ...
I'd say....temporarily....
During the hayday of the housing boom, hordes of investors from California swarmed the Arizona market, inflating prices beyond all reason. At the same time, Mexican immigrants were buying homes in record numbers. Our neighborhood is awash with houses bought by Mexicans and later discarded.
We’re current with our mortgage. Perhaps that is a mistake.
Bet the bankers never thought of this when they were rolling all those arm's.
Dems sold out their principles ages ago. Now they are more than willing to take your principal too.
But you are right. Can’t rely on the government or spell check.
***Equity: A House bill rewards people who bought houses they couldn’t afford by letting judges rewrite private contracts.****
Rememeber, a house must be maintained to keep it’s value. If judges rewrite loan contracts expect the houses to deteriorate around the occupants.
The idea that contracts no longer mean anythings is quite disturbing...I work for a Credit Union, thankfully we were not involved in any subprime loans, did the right thing by our members and have had very strict lending guidelines, however, this bill allows for people that we lent to, to go to court and have their principle balances on their mortgages lowered!!! What do they think this is going to do to the lenders...do they think lenders will ever want to lend again, knowing that the contract could be changed so easily. I personally could qualify for this (my husband lost his job, thus i would be over the 32% percent debt to income ration) but we bought a house we could afford no matter what happened, we saved a “rainy day fund” to be prepared for the worst case senario. We did the right thing and yet many other who did not do the right thing are going to have their mortgages lowered!! It is truly digraceful.
I don’t think Obama even wants to “remake” the United States into a socialist state.
I think he wants to KILL all the white people in America, through economic chaos, freezing, starving, terrorist attack, etc.—and is willing to see a lot of black people die, too, if that’s what it takes.
Just as he is happy to see most black pregnancies end in murder, just as long as white babies are murdered, too.
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