Here's an idea, Let's bail out everyone who has been forclosed on!

Nabisco · 06-25-2008, 10:56 AM

FOXNews.com - $300B Housing Rescue Plan Passes Key Senate Test - Politics | Republican Party | Democratic Party | Political Spectrum

I can't believe that this is actually going through Congress. Lets teach those hundreds of thousands of Americans who bought home's on risky loans without enough financial backing that we'll just bail them out. That they need not learn from their mistakes.

**mindgame** · 06-25-2008, 10:59 AM

wtf...its coming out of our tax dollars like always right?

**bioman** · 06-25-2008, 02:29 PM

I'm currently in a crappy mortgage that threatens to put me under...but I do not approve of a bailout.

Reaper329 · 06-25-2008, 02:38 PM

its a thin line to walk, but for the most part you guys are right, the government cannot and shouldnt do this. these people either need to try and sell, or talk to the mortgage co.'s and see if they can work something out. most companies are looking to deal at this point b/c of all the f/c's that have been out there

Fastone · 06-25-2008, 03:07 PM

Quote:

Originally Posted by Reaper329

its a thin line to walk, but for the most part you guys are right, the government cannot and shouldnt do this. these people either need to try and sell, or talk to the mortgage co.'s and see if they can work something out. most companies are looking to deal at this point b/c of all the f/c's that have been out there

There's quite a few folks out there who made sound investments into homes when things were going well only to have the company they worked for in some cases many years pull the rug out from under them (can you say Enron). I think there should be some sort of compromise that can be worked out to help these people.

Nabisco · 06-25-2008, 03:19 PM

I don't completely blame people for their circumstances. The subprime business was only a portion of forclosures. It's been the near record drop in house prices that have affected "cash poor" people who looked at their house as an investment. Sure it would be nice of the Federal Govt to help them out, but the question is how do you determine who gets money and who doesn't? Does the smuck who purchased a $400,000 home on a $50,000/yr salary deserve to be bailed out? I would hazard with a big NO...but there are some people who saved money and used a not so great mortgage loan to purchase a home for their family, going off the basis that housing prices had increased steadily and there was no sign of that changing.

But the government wants to spend 300B dollars to fix this problem, and I say thats not the answer. There is nothing wrong with renting. I do it...so do others. Not everyone was cut out to own a home, as elitist as that sounds.

**Dadof2** · 06-25-2008, 07:09 PM

I personally resent the hell out of tax dollars going to bail people out of dealing with the consequences of their actions.

Since when it is the job of the federal government to take money from one party and give it to another? This was never supposed to be the function of our government.

But I guess some people perpetually need a mommy.

If they are going to pass this legislation then it should be legal for me to go and stay in any of these peoples homes, as I helped to pay for them.

**Frank Costanza** · 06-25-2008, 07:52 PM

Quote:

Originally Posted by bioman

I'm currently in a crappy mortgage that threatens to put me under...but I do not approve of a bailout.

You're wrong. Congress says so. Chris Dodd knows more about your circumstance than you do.

**bioman** · 06-26-2008, 12:12 AM

Well, if Chris Dodd is dumb enough to pay off my mortage, then I guess i will let him. lol

Of course, then I should probably expatriate before the govt makes their money back at 10,000% interest in the form of tax increases.

Mulletsoldier · 06-26-2008, 12:40 AM

A house isn't an investment - assuming it is, and therein assuming it will produce you additional capital, lands you in hotwater when the market for that particular commodity changes. IMO, people shouldn't be bailed out for failing to make that distinction, regardless of the circumstance.

There are many, many, many things I endorse additional taxation for; correcting misinformed decisions isn't one of them. Bad, bad idea.

**Trauma1** · 06-26-2008, 01:13 AM

My wife and i just bought our first house in tampa, and we are waiting to close on it at the end of the month. The house we bought was from a couple that fit the typical description/scenario as to why there are so many forclosures right now.

It's a shame that so many people foolishly bought so far outside their means and are now paying for it, but i also agree that some people had circumstances arise out of their control that played into the hardship as well (i.e illness, loss of job, family, divorce).

Being a buyer's market right now enabled us make a killing for what we got vs. what we paid. I couldn't be happeir myself on our deal, but i truly feel bad for those that had things happen out of their control leading to a forclosure.

Reaper329 · 06-27-2008, 08:03 AM

Quote:

Originally Posted by Trauma1

My wife and i just bought our first house in tampa, and we are waiting to close on it at the end of the month. The house we bought was from a couple that fit the typical description/scenario as to why there are so many forclosures right now.

It's a shame that so many people foolishly bought so far outside their means and are now paying for it, but i also agree that some people had circumstances arise out of their control that played into the hardship as well (i.e illness, loss of job, family, divorce).

Being a buyer's market right now enabled us make a killing for what we got vs. what we paid. I couldn't be happeir myself on our deal, but i truly feel bad for those that had things happen out of their control leading to a forclosure.

what also is an option for some is that there are government insured lenders like an FHA mortgage for example that does not take credit into their decision making, so people have options. The major concern is the equity and/or value of the home if they were approaching f/c and wanted to refi. Its a rough situation.

I agree 100% that the government should not be bailing people out who made horrible decisions, however, throughout the last century we have seen the issues that happens to banks when f/c's hit high numbers. The bank lose money hand over fist, which creates a downward spiral for banks.

I also agree that for some circumstances, help is necessary, based on exigent circumstances.

**Frank Costanza** · 06-27-2008, 08:22 AM

I'm 100% against the government bailing these banks/people out when it comes to my ideological beliefs but I"m also not so stubborn to know when reality trumps ideology. Its the reason I didn't mind the Bear Stearns bailout and probably why I won't mind that much over this one. Sometimes the damage caused is not proportional and this would definitely be one of those cases.

If the government didn't interfere in the first place, this would never have happened.

They caused this problem back in the 90's...not "predatory lenders". We have "predatory lenders" and "speculators" causing the problems....if you believe that one I have a bridge for sale.

CryingEmo · 06-27-2008, 10:36 AM

It seems like if they caused the problem, then they have to fix it, no?

In any case, I wish this whole problem would get resolved. I have a mediocre mortgage. I'm not going to go under anytime soon, but If I was a risk taker, I could probably get screwed.

The thing is, the only deal I was offered was an ARM. Someone my age will not get approved for a 30 year fixed with an affordable monthly payment. The only people that can realistically afford that are either making 75k+ or will average like 35 years old and older. Exactly what age are you supposed to be able to afford a house? Weren't people buying houses back in the 50's at age 20?