wtf is that. what kind of scum buys a house, agrees to pay a certain amount a month, and then shits their pants if the house price falls? what the hell does that have to do with the monthly payment THEY OWE? all deadbeats, not victims sounds to me like they should be building jails for these assholes, not worrying about how to bail them out. if you're one of them, tell me how you look in the mirror?
agrees to pay a certain amount a month, and then shits their pants if the house price falls? ----------------- This is the drift I've been getting from the news reports. What has the resale value have to do with the contract obligation for the homeowner?
I've yet to hear anyone call this one the sham that it is. The implication is that these pinheads all bought homes they could not afford and figured when it went up 50% they would borrow against it to make the payments. Sounds like a pack of 10 million asswipes to me.
the ones they have built are already loaded, so you are right they should be building more and more jails, but with what money, maybe your money, you love to pay the government who then pays their buddies to build prisons for you and your children, i am so proud of smart people like you anyhow all this is the fucking banks problem, banks can stop giving mortgages, so people don't have to live on the illusion of owning a house why let me think, in a natural state, it would only makes sense that anyone who gets an average income should be able to purchase a house after a certain number of years of working and saving, say 6 years, but why doesn't that happen, oh who will be left for the banks to rip off the banks own your house, your car, your fucking wallet, might as well own your wife too, but hey she's too fucking ugly, so they'll take your money and buy your daughter with it, at least she is young and don't worry it's not the deadbeats ripping the banks off, it's the bank owners ripping the future of your children off, but you don't understand, because if you did, then who would they feed off of, banks knew this was coming way before you could even add two numbers, you are the stupid one for underestimating them, you and your type and your generation pay and will continue to pay for your stupidity mark my words; what will come as a result of this rapid deflation will only be inflation, re-balancing the world to a point where everyone is equally pathetic, useless and replaceable. you won't even have a spec of dignity left to fight back, you will live the misery, and you will take pride in your stupidity i'm not saying all this to try an enlighten you, i am saying these as to restate the fact that humans are worthless entities and we will make sure they are put into the type of hell they deserve to live in
Well they're not ALL deadbeats. A lot of people were just idiots that should be thrown on the street. But there were several people that just flat out got screwed. The sale of ARMs is what screwed a good amount of people. People were told that they could use their 5 year or 3 year arms at low rates to pay down debt or the value of their house would increase so much that they could simply then refinance because their payment would go up after the teaser rate ends. So when the 5 years or 3 years are up and they go to refinance because their current mortgage loan is going to jump 40 to 50% (which they cannot afford!), so they go to refi like they were told they could.....they find out that their house has depreciated in value so much that they can't qualify to refi so they are stuck with the crapy high interest rate mortgage where the payment has ballooned so much that they can't afford the monthly payment. Hence why a lot of people are getting killed by the value depreciation in their homes and they can't afford their payment anymore
they find out that their house has depreciated in value so much that they can't qualify to refi so they are stuck with the crapy high interest rate mortgage where the payment has ballooned so much that they can't afford the monthly payment. --------------------- A) If the bank gave the re fi at a fixed rate with negative equity, the homeowner would still be making the payments and living/maintaining home. B) Bank forecloses on home, bank owns home, and no one is paying anything and bank eats negative equity. It would seem something could have been salvaged from Plan A. Plan B looks like the bank earned and spent the profit of the negative equity consequence of the resulting transaction and now has the house back. Didn't the bank make out like a bandit here?
I already said that in my second post here. So they stupidly believed they were entitled to windfall gains for buying an over priced shack. Look, I do resent having to bail out so many idiots. I would have shut them down before they got to square 1.
I agree, the banks should have done more to work with their borrower to work out something like refi the owner if they were paying on time, maybe give them a fixed with negative amortization or just a fixed mortgage rate amortized over 40 or even 50 yrs. I just don't see why a bank would prefer to foreclose on a good homeowner who can afford to pay a certain amount.....but then again these idiots also thought lending 500K with no income verification was AAA debt if you put a 100 of these subprime borrowers in a pool. I always thought if you take a 100 bags of dog shit and dumped them on a lawn then you had a lawn full of a lot of dog shit....apparantly these financial geniouses thought the lawn would be full of roses .
You're mostly right but you are generalizing. There were also a lot of people that weren't counting on home appreciation. There were also people that had taken out the ARMS because they had limited down payments and were making payments on time thinking that after 5 years they will have built up to 20% equity and then could refi to a conventional fixed rate even if their house doesn't appreciate.......but then they get the rude reality that suddenly their house has depreciated 30 or 40% and their equity is wiped out and now they can't refi. So the intent wasn't to get a "windfall gain", they just got screwed. I'm not saying I feel any sympathy for these people, I'm a strong believer in natural selection and I have two properties that I have ARM loans on and I would never get a 30 year fixed mortgage so I have no sympathy for someone who didn't do their research when taking out the biggest loan in their lives like I did......but I'm just pointing out that not everybody was trying to speculate.
I look pretty good in the mirror, thanks. I have one house paid for and another debt laden one that is a rental. Basically, if worse comes to worse, the heck with the rental payments, it was fun while it lasted but not a keeper, so what? A friend was telling me about evicting some section 8'ers today. They refused to have the annual inspection so the section 8 administration would not pay the landlord a whole year's rent, he had to pay it back or something. There is no loss to the renter, they left him with a house full to the brim with trash and they got to live in it for a year whether he got his money or not. That just is the modern US, people are in a deal until they are not, you look at all the risk reward and you decide...