This absurd talk of "the irresponsible borrower" ignores reality. In fact it was the investors and banks that have been irresponsible. They are the ones who offered loans to people that were questionable. The borrower was uninformed and uneducated. The underwriters who worked for the lenders had a job to do and failed. They were supposed to weed out the unqualified borrower. Instead they were told to offer loans to anyone who had a certain FICO score. The FICO score is the biggest sham that has ever been perpetrated on the American Financial industry. It ignores the basic principals of lending. If you have a high numeric score you get the loan. It ignores down payment, time on the job, unexplainable credit problems and does not question anything a competent underwriter would question. And the loan brokers simply filled in the income needed to qualify for the loan and had the borrower sign an application at close of escrow. Many borrowers did not know what they were signing and told not to worry if the payment went up. They could simply refinance! The borrower was scammed by sophisticated predators. And what was learned? Do it all over again with Tax credits for new borrowere using FICO scores to qualify.
Lee
of CA
@
Oct 29, 2009 14:27:55 PM
Homeforcheap dot com
There are good companies out there actually trying to help people. But unfortunately there are also bad ones that are trying to take advantage of the situations. I purchased 2 foreclosures and have been happy with my purchases.
Home for Cheap
of KS
@
Oct 22, 2009 21:29:21 PM
Agree with Logic
Goverment stepping in is you and I paying someone elses morgage. People forget that Goverment money is paid by tax payers and soon the bill will come due. If you feel that goverment should step in and pay peoples morgages, let's setup a voluntary tax fund that you can contribute to. I get tired of America wanting the Goverment to pay for things or want to sue somebody for money. We need to get back to the basics, you work for what you get and buy what you can afford.
Hi, the home I live in is going to be foreclosed on because I moved in with my Mother after my 20 yr marriage ended and I decided to go to college. Now my Mother has passed away on Sept. 18th of 2009 and the VANDERBILT Mortgage company would rather take a loss through auction instead of working with me. So possible future home buyers beware VANDERBILT MORTGAGE is opperated by greedy heartless creatures.
Obamas plan can only be successful if lenders cooperate
Jackie Kennedy
of TN
@
Oct 21, 2009 13:04:06 PM
Logic
Anyone who thinks that the government regulating more of this sector will provide for sustained improvement and long-lasting stability is not paying attention. If banks and lending institutions were willing to "bet their dollars" on a government-backed system of support and regulation, then why are the "successful" banks in such a hurry to pay off their bailout money? The free market will weed out the irresponsible; people will be taken advantage of, and people will get hurt; the lenders that "force" through these "bad" loans will be exposed and their prosperity as a business will suffer. Freedom for businesses to compete for consumers' business is what has allowed for the US to be one of the highest [in percentage rate] in the world. Owning homes/property is NOT a right; it is a privilege; a privilege that MOST of us believe that you must work very hard to achieve and sustain. Government has as much business in lending regulation as they have in regulating what light bulbs I use in my home... Oh, wait, which world-leaders with heavy socialist tendencies believe government should regulate that too?
Conor
of WA
@
Oct 19, 2009 16:26:19 PM
Another Thing
Another road block is the record amount of bankruptcy on homeowners who haven't over leveraged their homes(and even those who have).
To begin with:
On February 18th in Mesa AZ the president promised to introducing legislation that would allow judges to rewrite 1st mortgages.
Like most of the presidents promises this too went the way of most of his talk.
Without lobbing congress the ball was handed over to vp Biden who, coincidentally or not, happened to be the man who wrote
all the laws that have to be overturned or amended to allow homeowners to keep their homes. Laws written again coincidentally while his son was a lobbyist for the banking industry.
TARP and the Making Homes Affordable program are also under his guise.
The Bankruptcy Law Network and The Mortgage Bankers Association in D.C. are in favor changes. They don’t want to run ruff-shot over mortgage companies and judges have no intention of allowing homeowners a free ride. But they are fully aware that families are forced in to bankruptcy as a last resort and that something must be done to stop the flood of abandoned homes amid this financial crisis. They also point out that the TARP and Making Homes Affordable programs do not apply to most people. By the time one needs help the rules governing those programs invalidate them from benefitting.
And the only one's benefitting are the banks.
Maybe because BO's only true political opponent HRC happened to suggest a national mortgage program (who's profits would be used to fund a national health program) is the reason the issue is being avoided by him and his WH staff or maybe because he's just that he's put out so much hot air in his promises that no one takes him seriously any more.
Except the Nobel committee that is.
'Hope' indeed.
Gil Martin
of IL
@
Oct 19, 2009 16:06:46 PM
Another Issue
Another road block is the record amount of bankruptcy on homeowners who haven't over leveraged their homes(and even those who have).
To begin with:
On February 18th in Mesa AZ the president promised to introducing legislation that would allow judges to rewrite 1st mortgages.
Like most of the presidents promises this too went the way of most of his talk.
Without lobbing congress the ball was handed over to vp Biden who, coincidentally or not, happened to be the man who wrote
all the laws that have to be overturned or amended to allow homeowners to keep their homes. Laws written again coincidentally while his son was a lobbyist for the banking industry.
TARP and the Making Homes Affordable program are also under his guise.
The Bankruptcy Law Network and The Mortgage Bankers Association in D.C. are in favor changes. They don’t want to run ruff-shot over mortgage companies and judges have no intention of allowing homeowners a free ride. But they are fully aware that families are forced in to bankruptcy as a last resort and that something must be done to stop the flood of abandoned homes amid this financial crisis. They also point out that the TARP and Making Homes Affordable programs do not apply to most people. By the time one needs help the rules governing those programs invalidate them from benefitting.
And the only one's benefitting are the banks.
Maybe because BO's only true political opponent HRC happened to suggest a national mortgage program (who's profits would be used to fund a national health program) is the reason the issue is being avoided by him and his WH staff or maybe because he's just that he's put out so much hot air in his promises that no one takes him seriously any more.
Except the Nobel committee that is.
'Hope' indeed.
Gil Martin
of IL
@
Oct 19, 2009 16:03:38 PM
Middle Class Scream
We should be screaming, shouting at the top of our lungs at what has happened with no end in sight. The banks were pd. huge
and even after AIG was bailed out, they continued to give out Million dollar bonuses.
This is outragous!!
When I grew up, I was taught, never take anything that didn't belong to you. Apparently, they weren't taught their lessons and to make matters worst, our government helped them along at our expense.
Unfortunately the trickle down affect has been like a sunami, tittle wave with no end in sight.
The mortgage crisis is one huge domino in the many strikes against us. No money in, no money out. However, utilities still rise every year, water rates still rise every year, taxes still rise every year, groceries still rise every year, gasoline rises every month, oil rises every year, !!!!
WHAT EVER HAPPENED TO REGULATION!! FREE MARKET IS IMPORTANT, BUT WHEN PEOPLE HAVENT SEEN RAISES IN THREE YEARS, WHAT EVENTUALLY HAPPENS IS A DOMINO EFFECT.
THIS IS WHAT IS HAPPENING TO THE MIDDLLE CLASS!! IT'S OUTRAGOUS!!
THINGS HAVE GONE FROM BAD TO WORSE!!!!
LISTEN TO THE PEOPLE; NOT THE LOBIEST AND AIG EXECUTIVES!!
ENOUGH IS ENOUGH!!!!!!
Tracy Gallati
of MA
@
Oct 19, 2009 16:01:44 PM
RE. MishofNY
Point taken - But refer to http://money.cnn.com/galleries/2009/news/0901/gallery.money_summit/
They estimate the bailout could have been worth $9500 to each tax payer. Your number is way too high.
Lee of CA @ Oct 29, 2009 14:27:55 PM
Home for Cheap of KS @ Oct 22, 2009 21:29:21 PM
of @ Oct 22, 2009 12:36:07 PM
Gil Martin of IL @ Oct 21, 2009 15:12:27 PM
Jackie Kennedy of TN @ Oct 21, 2009 13:04:06 PM
Conor of WA @ Oct 19, 2009 16:26:19 PM
Gil Martin of IL @ Oct 19, 2009 16:06:46 PM
Gil Martin of IL @ Oct 19, 2009 16:03:38 PM
Tracy Gallati of MA @ Oct 19, 2009 16:01:44 PM
BillInStl of MO @ Oct 19, 2009 14:19:43 PM
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