Club Cobra - Gross: Bush needs to rescue homeowners

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yes mortgage brokers are paid commissions. That is why they want you to refi every year.

Quote:

Originally Posted by Excaliber

While Home owners have to accept responsibility for bad financial decisions there is NO DOUBT many mortage brokers were offering sucker deals and not disclosing the risk. I've been telling my friends for years, well before the current home market boom, just because the bank WILL loan you X amount doesn't mean your smart to accept it.

And now a serious question:
My home loan is through Countrywide Mortgage, 5 point something percent, fixed, small amount, I'm happy! There assuring every thing is fine, no problems, blah blah while their stock is falling through the floor and their bleeding money and can't BORROW anymore. IF they go bankrupt, how will that impact ME?

My 2 cents: if they BK, which isn't likely now that B of A has invested in them, assets (including your loan) will be sold off to another lending with no impact on you. 5 somthing fixed (depending on how long it's fixed) is a great deal!

Quote:

Originally Posted by 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!

Commission, big time! Huge money has been made by mortgage brokers in the prior to the last year or so - huge. I had one buy a house I sold in AZ around 3 years ago - has payments were close to $8,000 per month plus homeowners insurance and property tax (reasonably low in AZ) - anyway - even he in now between a rock and a hard place - he basically purchased it with no down, borrowing equity from another property and his income stream has gone south. He's got a wife and two cars, a corvette, and a boat. The good life, but the chickens are coming home to roost and they are huge, mad chickens.

I thought a 'fixed' mortgage was 'fixed' for the life of the loan? Mine is...

Ernie - that's my understanding of a "fixed" rate loan too, has been so far
anyway. Those with the varible interest rate loans are the ones wading in
deep kim chee now which will keep getting deeper in the future for now.
Scarey thought to enter into one of those with historically low interest rates
which can essentually only go up but a lot of people went for it. I'm still
getting a lot of spam to reinvest my 4 7/8% fixed for a 5 yr low interest
only, loan. I can just just see us 5 years down the road in a Jimmy Carter
type situation with 18% to 20% loan rates. Yikes. (Hope that doesn't happen again!). When this loan is pau I'm done with loans.

I do not think "W" will rescue anyone unless he can benift from it.

Sad but true... :(

Quote:

Originally Posted by J. T. Toad

http://www.lewrockwell.com/dilorenzo/dilorenzo125.html

Thanks J.T.

Well that would make sense that something weird like this is at play. On the other hand, the author (Thomas J. DiLorenzo) of "The Government-Created Subprime Mortgage Meltdown" come across as a pretty far out guy even for a Libertarian. Check out his book link to "Lincoln Unmasked: What You're Not Supposed to Know About Dishonest Abe".

I'm getting kind of sick of both the major political parties in this country. But other levelheaded candidate pickin's are pretty slim. It seems like nobody's taking care of the middleclass anymore, at any rate.

It's still my assertion that the working middleclass will bear the burden for all this in the end. We always do.

Nobody else actually generates GNP or any real wealth to pay for whoever is left holding the bag of money here. And when one segment loses, there is always a bag... of where the money went somewhere.

Hard to follow sometimes, but nobody makes a true profit without somebody elses loss. In a way, all modern investment schemes appear to be pyramid schemes. Profit begets profit until the whole thing falls like a game of musical chairs.

I know this probably doesn't make sense to anybody, but I feel better having said it if nothing else. :o

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