Gross: Bush needs to rescue homeowners

[jams]

It always seems the more you f-up the more your get bailed out. Why do we keep rewarding people for f-ing up. Pay the piper!

I am a hard working middle class worker who lives within my means and it burns me up at how some people get things handed to them!

If people don't work for what they, have they don't value it! We have seen it time and time again. It allows the "stupids" of the world to keep making the same mistakes over and over again and we just keep bailing them out!

[imagine2frolic]

Scott, are you sure about only 150 homes? Can you imagine how busy the water, and sewer pipes are???????LOL. When I lived in San Francisco I would sometimes take the bus through Chinatown. Sometimes looking at the apartment building windows you would see rows of bunks like a submarine. I would always wonder how many people live there?

[imagine2frolic]

Ernie, after reading your question I stumbled across. this.http://www.msnbc.msn.com/id/20359910/

[CobraEd]

But if they go completely out of busness and fold up, then there is no one to pay the mortgage to anymore. The house is yours!!


.

[Excaliber]

Thanks Imagine, that was a good link. Ed, I won't hold my breath the mortgage will simply disappear.

"Homeworld" used to sell furniture through Sears. I bought about $5000 worth and within a week or so after that they went bankrupt. I did not get all the 'matching pieces' and it was impossible to get them from another source. I refused payment (credit card) saying they could come get their stuff from my home, or deliver the rest of the set to me, their call.

The credit card company agreed, I never had to pay a dime for what I did get and no one ever showed up to collect the furniture I had all ready gotten!

[VRM]

A friend of mine got ARMed. He signed up for one of those crazy mortgage deals that he saw on TV or someplace. He told me about it as he was about halfway through the process. I told him he should back out of it and lock in a good rate (this was about 4 years ago). He said that his credit was not that great. Well, fast forward - he took out a bunch of equity to buy a new truck, a new car, and also to remodel his house. He seems to buy (not lease) a new car every 2-3 years. Then the rate started to go up. He would have lost his house if his dad had not paid off his truck, car, and credit card bills for him.

The whole thing is his own fault for not living within his means, and for not understanding the mortgage plan that he was getting into. Unfortunately, there are lots of people just like him. They started to see dollar signs (and flat screen TVs) when lenders told them that they did not have to pay for the principal for a few years, or that they could use their home equity to buy all those things that they 'need'. Lenders also have a responsibility to write loans that stand a good chance of running to term.

There is plenty of blame to go around, but that is not going to fix the problem. I'm not a banker, and I know that the issue is more complex than my understanding of it, but where is that breaking point between rewriting the note for an rate that the lender can afford for the duration of the note and the costs involved in forclosure? In this market there are just not going to be that many people able to buy all the homes being forclosed on, so what are the lenders going to do with them? With the value of the homes being a lot less the lenders will take a (sometimes substantial) hit there as well when they try to resell.

I might be wrong, but it just seems to me that it would be better to make a smaller profit on someone paying a loan properly than to end up with extra costs associated with forclosure and resale.

Steve

[CobraEd]

VRM, This is another classic example of $hit for brains. And now the American public will have to bail out all the people like this, that is if their mommys and daddys dont fix it for them.

.

[VRM]

Originally Posted by CobraEd

VRM, This is another classic example of $hit for brains. And now the American public will have to bail out all the people like this, that is if their mommys and daddys dont fix it for them.

.

Yep, I agree...this same guy has been jealous of me having a Vette. I've told him numerous times that if he bought a car and drove it for a few years then he would not be throwing money at car dealers and could actually save for a fun sports car. Instead, he goes out every 2-3 years and buys the biggest pickup he can find. I've known him for 10-12 years now and he has had 4 new pickups (usually a dually covered in chrome doo-dads) in that time. His wife just got (2 years ago) a brand new Pontiac Grand Prix - 26K for that.

He makes better money than average, but not enough to afford what he is doing.

Unfortunately, when people stop their crazy spending for TVs, cars, and so on, the economy will take a turn for the worse.

I'm not in favour of bailing out the companies or the borrrowers - they made the decisions to finance this they should have to live with it.

Steve

[DAVID GAGNARD]

Yep, I agree...this same guy has been jealous of me having a Vette. I've told him numerous times that if he bought a car and drove it for a few years then he would not be throwing money at car dealers and could actually save for a fun sports car. Instead, he goes out every 2-3 years and buys the biggest pickup he can find. I've known him for 10-12 years now and he has had 4 new pickups (usually a dually covered in chrome doo-dads) in that time. His wife just got (2 years ago) a brand new Pontiac Grand Prix - 26K for that.

He makes better money than average, but not enough to afford what he is doing

An old buddy of mine had a saying for folks like that......they have a champainge taste and a root beer pocket book !!!!!!!!!!!

I have a brother-in-law like that, actualy 2 like that......One asked me why I continue to drive a truck 10 years when he knows I could afford one every five years??? He trades in his F-250 Lariat,4x4,crew cab,loaded to the gills every 3 years, so far he has never owned anything outright, he just continues to pay notes and probably will all his life....same goes for his ATV and bass boat......one day I told him I make twice as much as he does, but can't afford half the things he has!!!!!!!!!!!!!!!!!! but I OWN everything I have, to me that means a lot.......

people like him help keep the economy rolling along I guess...

David

[Sizzler]

Originally Posted by jams

It always seems the more you f-up the more your get bailed out. Why do we keep rewarding people for f-ing up. Pay the piper!

I am a hard working middle class worker who lives within my means and it burns me up at how some people get things handed to them!

If people don't work for what they, have they don't value it! We have seen it time and time again. It allows the "stupids" of the world to keep making the same mistakes over and over again and we just keep bailing them out!

Totally agree. Look at all the obese seniors on Medicare getting $100's of drugs for high blood pressure, diabetes, blood thinners, who knows what all. And not just seniors anymore. They want to expand all these 'get out of jail free' programs to the general population.

I am a hard working middle class worker who lives healthily and it burns me up at how some people get things handed to them!

If people don't work out and eat responsibly, they don't value it! We have seen it time and time again. It allows the "stupids" of the world to keep making the same mistakes over and over again and we just keep on paying their bills, bailing them out!

[trularin]

This is one of those situations where a person just needs to sit back and watch how something like this plays out.

There may be a rather large number of pricy homes on the market in the next three years or the feds are going to shore up this stupidity like many of the other government programs.

[Cobrabill]

Originally Posted by DAVID GAGNARD

A family with 5 kids and an income of $50,000 doesn't belong living in a $400,000 house to start with!!!!!!!!!!!!! that's one of the problems with this whole mess right now..............

David

David-stop with the logic-would ya?

[Excaliber]

Family with 5 kids in Hawaii, little or no choice, it's gonna cost them $400K or more for adequate housing. What to do? Move in the Aunties and Uncles and Cousins and spread the payments out over family. Enclose the garage for another 'family room with beds'. Put an extension on the back of the house for the newly married son/daughter. Park eight cars in front of the house, everyone works three jobs. NOT kidding! Thats a way of life here for many many folks.

Typical local joke:
My Father rejected me and kicked me out! How sad, when did that happen? When I turned 34...

[bomelia]

stupid is as stupid does, but whats even worse is when they get help doing it. it borders on being immoral.

[Excaliber]

Immoral? You mean like the way Ditech and Countrywide CONTINUE to do buisness? Suckering people into sub prime loans, which is still happening in spite of the melt down.

[J. T. Toad]

NEWS FLASH:

It's called supply and demand.

[4RE KLR]

As long as the fish keep biting, the bait will still be in the water.

[Excaliber]

Well there it is, sub prime loan ACCEPTEES are fair game.

You know theres a reason they call it 'fishing' instead of 'catching', might be sucker fish out there just waiting...

[Art Burtt]

I seem to remember a mortgage was supposed to be no more than one weeks salary and you needed a minimum of 10 % down plus a clean credit history to get a mortgage. Are mortgage "brokers" on commision? Maybe this added to the mess. No way should the government ie. "us" bail out these people!

[392cobra]

Art,
That was before a lot of people lost their good sense.Maybe with all this happening,some will regain it.
Kind of like the "Tech Bubble".