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Obama administration to order lenders to cut mortgage payments for jobless

Catz Part Deux said:
So? Our current financial crisis would be worsened if millions of people walked away from their debt. If you want to talk about unsustainable development, start your own thread.
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If it has to be liquidated, better to do it now then stay stuck with the problem that we have now.
 
Catz Part Deux said:
It's arguable that this is possible.

Underwater mortgages drain equity, dampen retirement - USATODAY.com
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a LINK!

ms dicristo, bless her heart, is the perfect example of a bit of ANECDOTAL EVIDENCE

unfortunately, near SIXTY PERCENT of those who've already been assisted by obama's DUD of a hamp have already RE-DEFAULTED

that's called a comprehensive study

these bailouts, home mortgage holidays, so sadly, are, therefore, already a PROVEN failure

just look at the EMPIRICS provided by the associated press, bloomberg and the washington post

Our economy cannot handle another glut of foreclosures because homeowners are in underwater mortgages
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absolutely true

tragically, however, they're coming, a projected 4.5 million in 2010, according to ap

that's MORE THAN WE SAW IN MISERABLE 09

hamp was a DUD

so obtuse obama does just more of the same

obtuse obama has no answers, he's oblivious

by the way, what was he doing in IOWA yesterday?

LOL!
 
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MrVicchio said:
I read the article, obviously you have no clue about how economics or business works.
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:stop:


Wait, I thought you were the weatherman?

Now you're an economist with an MBA?? :roll::roll: Make up your mind.
 
Catz Part Deux said:
By all means, we want to encourage homeowners to continue IN THEIR HOMES. Our economy cannot handle another glut of foreclosures because homeowners are in underwater mortgages...and a lot are.
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And through no fault of their own, but rather as a direct result of the greedy and unscrupulous mortgage brokers and lenders who set the foreclosure extravaganza in motion by trading hyper-inflated junk.

braindrain said:
We should not be rewarding bad behavior by letting people keep the houses that they should have never got in the first place.
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Let me tell you a story...

In 2004, I purchased my home for $194,000. Over the course of the last six years, I've invested a lot of sweat and at least $50,000 toward improvements - completely rebuilt the gutted 1/5-mile gravel road, planted an enormous lawn, fruit trees, arbor vitae, 30+ rose bushes and hundreds of bulbs and assorted other plants, built an 8 x 12' greenhouse, three raised vegetable beds, an 8 x 12' Tuffshed, added a large deck on the front of the house and a roof and enclosure for the back deck, put in new carpet, new interior paint, new water heater, new kitchen sink/fixtures and Insinkerator, ran electrical lines to the outbuildings, new septic pump, completely rewired the garage, and on and on and on.

Two years ago, my home was assessed at $269,000 (before the roof/room was added to the back deck).

Today, the state assessor values my place at $187,000. Imagine its current "value" had I never invested a dime.

Now explain to me how I can possibly be faulted for the loss of value to my home. Please.

I'm all ears.

braindrain said:
They should have to sell the house and get something they can afford.
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Pray tell, who do you suppose is going to buy it? All the unemployed people out there whose homes are being foreclosed upon?

braindrain said:
If you want to own a house or a bigger house than you should get a better job
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And when millions of jobs disappear because the economy is in a pit... Then what?

braindrain said:
This everyone should own a home thinking is a big part of the reason that we are in the mess we are in.
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I think it's clear you have no real understanding of how we've come to the point we have.
 
MrVicchio said:
I read the article, obviously you have no clue about how economics or business works.
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Here's another article on it. If you'd read the original article, you'd realize that no new funds are being allocated to "rescue" homeowners. Instead, banks are being encouraged to adjust mortgage balances and/or work with homeowners to help them stay out of foreclosure.

Interestingly enough, Bank of America announced today a program that is virtually IDENTICAL in some regards to what Obama proposed doing. If ALL banks were doing this on their own, it's likely the government wouldn't be stepping in to ask them to do it.

Unfortunately, some banks' shortsighted policies have brought us to this place, from irresponsible/predatory lending to overvalued portfolios.
 
It would be better for the financial institutions to keep these people in their homes and paying on their homes rather than walk away and take the hit. The banks however, will get their money either way - though they may not get as much. So the thought that this is saving our financial institutions isn't really a valid point. The point that people will be taking personal hits on their credit scores is a valid point.

But neither leaving things as they are, or addressing them the way Obama wants to leads to the bigger issue: American's are not all entitled to own a home. My issue here is the banks and lenders got whacked with overextending risk to people they knew could not pay, on homes that were WAY above thier heads. Congressional members urged banks to lend like this then denied it all. The over-arching issue about lending money lurched to a crawl and now is getting a little better - but wasn't fully addressed. Until it is, this housing bubble may yet occur in the future. Standard lending practices need to be adopted and the high risk quick resell of mortgages to people who have no business owning a home is a bad practice I fear we'll see again in the future.
 
Ockham said:
It would be better for the financial institutions to keep these people in their homes and paying on their homes rather than walk away and take the hit. The banks however, will get their money either way - though they may not get as much. So the thought that this is saving our financial institutions isn't really a valid point. The point that people will be taking personal hits on their credit scores is a valid point.

But neither leaving things as they are, or addressing them the way Obama wants to leads to the bigger issue: American's are not all entitled to own a home. My issue here is the banks and lenders got whacked with overextending risk to people they knew could not pay, on homes that were WAY above thier heads. Congressional members urged banks to lend like this then denied it all. The over-arching issue about lending money lurched to a crawl and now is getting a little better - but wasn't fully addressed. Until it is, this housing bubble may yet occur in the future. Standard lending practices need to be adopted and the high risk quick resell of mortgages to people who have no business owning a home is a bad practice I fear we'll see again in the future.
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None of this addresses the people who are underwater in mortgages because of inflated property values, or the issue of people who've lost their jobs as the result of the recession and can't sell their homes...because of the recession. So, while I ddon't necessarily disagree with your points, they largely have nothing to do with the topic of the thread.
 
Glinda said:
And through no fault of their own, but rather as a direct result of the greedy and unscrupulous mortgage brokers and lenders who set the foreclosure extravaganza in motion by trading hyper-inflated junk.
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BS! They took out loans that they couldn't pay back. At the very least both lenders and borrowers are to blame.
 
we've already addressed these poor underwater suckers AND the topic of this thread

the FORECLOSURE CRISIS is significantly WORSE under obama

that's AP pontificating, not the pleasant prof

obama's HOME AFFORDABLE MODIFICATION PROGRAM has "failed and failed miserably," says JACKIE SPEIER

2.82M homes went under in 09, we're looking at 4.5M in 2010

obama promised to keep 4M americans in their homes thru his bailout efforts, only 170,000 were serviced

HALF of those who received aid have ALREADY defaulted

get real

the housing market which more than anything else led us HERE is FAR WORSE today after a year of ahab obama, the chaser of the great white whale of health care

Obama's HAMP program 'failed miserably' at preventing foreclosures | OregonLive.com
 
phattonez said:
BS! They took out loans that they couldn't pay back. At the very least both lenders and borrowers are to blame.
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You, too, seem to have a very limited understanding of how we came to this place. This article may help you to understand the role Greenspan, Phil Gramm, GWBush, et al played in the housing/lending debacle, which created and allowed mortgage fraud on a national scale.

Alan Greenspan’s Financial History For Lobotomy Victims
 
Glinda said:
You, too, seem to have a very limited understanding of how we came to this place. This article may help you to understand the role Greenspan, Phil Gramm, GWBush, et al played in the housing/lending debacle, which created and allowed mortgage fraud on a national scale.

Alan Greenspan’s Financial History For Lobotomy Victims
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Wait - no one put a gun to your head and forced you to sign the mortgage and I assume you knew that, however slight the chances, that housing prices do not always go up in the short term and value may go down. There is some accountability here by the home owners and while I know you're not saying this is 100% Greenspan's, Bush, Gramm's fault - and I might add, culpability by Congress on both sides of the isle, the rest of us who have seen our homes value drop is not due to the owners doing. We're at the mercy of the market and the forces that drive it.

We still always have a choice...
 
Glinda said:
And through no fault of their own, but rather as a direct result of the greedy and unscrupulous mortgage brokers and lenders who set the foreclosure extravaganza in motion by trading hyper-inflated junk.
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If you totally alleviate the negligence of the home buyers, this crap will happen all over again.

Your supposed to make sure you have enough money to continue your payments even if you loose your job.
It's called financial planning.

Glinda said:
Let me tell you a story...

In 2004, I purchased my home for $194,000. Over the course of the last six years, I've invested a lot of sweat and at least $50,000 toward improvements - completely rebuilt the gutted 1/5-mile gravel road, planted an enormous lawn, fruit trees, arbor vitae, 30+ rose bushes and hundreds of bulbs and assorted other plants, built an 8 x 12' greenhouse, three raised vegetable beds, an 8 x 12' Tuffshed, added a large deck on the front of the house and a roof and enclosure for the back deck, put in new carpet, new interior paint, new water heater, new kitchen sink/fixtures and Insinkerator, ran electrical lines to the outbuildings, new septic pump, completely rewired the garage, and on and on and on.

Two years ago, my home was assessed at $269,000 (before the roof/room was added to the back deck).

Today, the state assessor values my place at $187,000. Imagine its current "value" had I never invested a dime.

Now explain to me how I can possibly be faulted for the loss of value to my home. Please.

I'm all ears.
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So the government is supposed to insure your investment?

Yes your house is an investment.
Just like stocks, the value goes up, the value goes down.

Your investment shouldn't be propped up by the government.
 
Glinda said:
You, too, seem to have a very limited understanding of how we came to this place. This article may help you to understand the role Greenspan, Phil Gramm, GWBush, et al played in the housing/lending debacle, which created and allowed mortgage fraud on a national scale.

Alan Greenspan’s Financial History For Lobotomy Victims
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So you're really going to tell me that people didn't know what they were getting themselves into? They didn't know the risk with adjustable rate mortgages? Come on. People are not stupid.
 
phattonez said:
So you're really going to tell me that people didn't know what they were getting themselves into? They didn't know the risk with adjustable rate mortgages? Come on. People are not stupid.
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It was definitely a two way problem and it seems that both sides are getting babied because they ****ed up.
Rewarding poor behavior doesn't change that behavior.

To many damn cry babies.
 
every hamp dollar extended and not repaid is accounted vs the deficit

ie, the taxpayer into perpetuity

hello

we're already out BILLIONS of HAMP, which not only "failed," but "failed miserably"

according to ap, according to bloomberg, according to ms speier, according to tarp's inspector general

NO MORE!

go down this PROVEN WRONG path at your peril, president ahab

party on, progressives
 
Glinda said:
In 2004, I purchased my home for $194,000. Over the course of the last six years, I've invested a lot of sweat and at least $50,000 toward improvements - completely rebuilt the gutted 1/5-mile gravel road, planted an enormous lawn, fruit trees, arbor vitae, 30+ rose bushes and hundreds of bulbs and assorted other plants, built an 8 x 12' greenhouse, three raised vegetable beds, an 8 x 12' Tuffshed, added a large deck on the front of the house and a roof and enclosure for the back deck, put in new carpet, new interior paint, new water heater, new kitchen sink/fixtures and Insinkerator, ran electrical lines to the outbuildings, new septic pump, completely rewired the garage, and on and on and on.

Two years ago, my home was assessed at $269,000 (before the roof/room was added to the back deck).

Today, the state assessor values my place at $187,000. Imagine its current "value" had I never invested a dime.
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Did you purchase your home with the intention to live there or for it to go up in value? If your answer both.... and you wait... i am 99.9% positive it will eventually be worth more than $269k.

If your answer was to speculate on its value... you learned a valuable lesson about asset markets.
 
phattonez said:
So you're really going to tell me that people didn't know what they were getting themselves into? They didn't know the risk with adjustable rate mortgages? Come on. People are not stupid.
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:think:

Well, that's not entirely true... some people are stupid and will sign anything someone puts in front of them. Not so much stupid as ignorant... or.... ill informed or possibly misguided? There's a smaller group that was literally lied to as well... so while I mostly agree people are responsible/accountable for their own actions - they are ignorant/stupid/misguided sometimes too.
 
Ockham said:
:think:

Well, that's not entirely true... some people are stupid and will sign anything someone puts in front of them. Not so much stupid as ignorant... or.... ill informed or possibly misguided? There's a smaller group that was literally lied to as well... so while I mostly agree people are responsible/accountable for their own actions - they are ignorant/stupid/misguided sometimes too.
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Well then we probably shouldn't let them be in control of a lot of capital because more than likely they'll waste resources with the way they invest.
 
phattonez said:
Well then we probably shouldn't let them be in control of a lot of capital because more than likely they'll waste resources with the way they invest.
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They can waste it in any way they want... free will baby. They're free to be stupid, ignorant, or wasteful.
 
Ockham said:
They can waste it in any way they want... free will baby. They're free to be stupid, ignorant, or wasteful.
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That's what I'm saying. :screwy With free will, they won't get their hands on much capital unless the government steals it for them, which is what Glinda wants.
 
Glinda said:
And through no fault of their own, but rather as a direct result of the greedy and unscrupulous mortgage brokers and lenders who set the foreclosure extravaganza in motion by trading hyper-inflated junk.



Let me tell you a story...

In 2004, I purchased my home for $194,000. Over the course of the last six years, I've invested a lot of sweat and at least $50,000 toward improvements - completely rebuilt the gutted 1/5-mile gravel road, planted an enormous lawn, fruit trees, arbor vitae, 30+ rose bushes and hundreds of bulbs and assorted other plants, built an 8 x 12' greenhouse, three raised vegetable beds, an 8 x 12' Tuffshed, added a large deck on the front of the house and a roof and enclosure for the back deck, put in new carpet, new interior paint, new water heater, new kitchen sink/fixtures and Insinkerator, ran electrical lines to the outbuildings, new septic pump, completely rewired the garage, and on and on and on.

Two years ago, my home was assessed at $269,000 (before the roof/room was added to the back deck).

Today, the state assessor values my place at $187,000. Imagine its current "value" had I never invested a dime.

Now explain to me how I can possibly be faulted for the loss of value to my home. Please.

I'm all ears.



Pray tell, who do you suppose is going to buy it? All the unemployed people out there whose homes are being foreclosed upon?



And when millions of jobs disappear because the economy is in a pit... Then what?



I think it's clear you have no real understanding of how we've come to the point we have.
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Arborvitae and roses do nothing to increase the value of your home. Curb appeal, yes. Value, no.

Many of those other improvements seem more like asthetic improvements. I would guess that the house was likely in not such attractive state when you bought it or you wouldn;t have had to do all that. If so, you likely paid a little less than FMV at the time because of the condition.

Assessed value is not the same as fair market value. Hopefully your assessed value is well under FMV so you won't pay as much in taxes. Do you want the assessed value to be higher?? :confused:

Did you buy your house as an investment property or a place to live?

I also built my home at the top of the market. I'm not planning on selling unless I absolutely have to, and then, rest assured, I know I'll be getting a bargain on the new property I buy.

What people fail to realize is that a lot of foreclosures out there currently are NOT caused by someone losing their job or getting into trouble because of ARMs. Yes those happen, but a lot of people bought bigger and better homes before they sold their current one. When the former didn't sell quickly, they ended up carrying 2 mortgages. Many just defaulted on the previous one since they were already comfortable in a new and bigger house with no plans to move any time soon. In many cases, they strip the first property of all the goodies and install them in their new home. For every poor Joe down on his luck, there's an opportunistic Josephine out there taking advantage of the current situation.
 
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