Bill CLinton: Fixing the economy by forgiving underwater mortages?

[senseamp]

It is damn near impossible to get a bank to approve a short sale.

You don't need a bank approval for a strategic default. Yes, your credit history is going to be ruined. But guess what, short sale means you didn't pay what you borrowed either, so your credit should be ruined. Credit rating is measure of how likely you are to pay off what you borrow.

 

[Engineer]

bullshit, i pay my mortgage month in and month out...... do NOT forgive the debt, just be more lenient with the payments...... FFS why do i even bother being responsible when in the end i'm the chump for making payments

You and me both brother...you and me both.

 

[woodie1]

Bill Clinton is right. It makes sense to print more money. What's a little more red ink. China doesn't care and it sets a good example for our kids.

 

[jstern01]

If the bank gave the loan when the house wasn't worth as much, sure. But at the time, the sales going on made the homes worth that much because people were WILLING to pay that much for them.

If you walk away from a loan that you WILLINGLY took and CAN PAY for it, you're an asshole, business decision or not. I would love for people who do this to get a "special ding" on their credit for it that would last for a decade (or more) but that's not going to happen.

Pay your damn bills.....you took them out so pay them.

Hey, its only business, chill. That is exactly the line of crap major companies like the Mortgage Banker Associations, who walked away from their mortgage http://news.firedoglake.com/2010/08...ation-strategically-defaults-on-office-space/. I guess its okay for corporations to just walk away from losing propositions, but the average joe has to suck it up.

 

[Zebo]

Funny to watch childish short sighted crying about I paid mine so you should have to too. Wait and see your home values when half residents are booted. You might change your minds.

Full disclosure I owe about 100K on a 700K home which was worth 2M at one point. I built it myself so I lost nothing, yet.

 

[Engineer]

Funny to watch childish short sighted crying about I paid mine so you should have to too. Wait and see your home values when half residents are booted. You might change your minds.

Full disclosure I owe about 100K on a 700K home which was worth 2M at one point. I built it myself so I lost nothing, yet.

Are you saying that I should have more of my money (taxes) paid to help these people keep their homes so that my value will not fall? Hell, I bought my house to live in, not an investment. I don't care if it drops and if it costs me less in property taxes because of lower value, fantastic. I don't see the need to pay more tax money.

Now, as I said, if the banks are smart enough to adjust the mortgages down on their own...that's another story.

 

[mrCide]

Banks should have allowed refi on low rates to help people with the large payments. Banks should let responsible buyers purchase another home with a rental agreement. Banks don't want to work with anyone because they fucked up by giving subprime loans and now everyone else has no options? The same banks who constantly walk away from their debts?

The banks and politicians fucked us, people only tried to "take advantage" of the market because they didn't know any better and were conned. Fuck the banks, your credit will take a hit per the agreement of the loan, and hey they can always sue if it makes them feel better fucking the borrower more.

Lame to whine about people doing strategic defaults, it's just jealousy. As for the banks, they shouldn't ever have been given a damn thing, period.

 

[1prophet]

They should only forgive mortgages that are too big to fail.:whiste:

 

[Darwin333]

Hint: The taxpayers already ate it when the federal government gave money to the banks to modify mortgages. The banks kept the money and didn't do shit to help the homeowners.

Hint: We (as in the .gov) don't have enough money to eat all of the losses nor can we obtain it. Well, I guess we could print trillions of dollars but that doesn't really achieve what we are talking about.

Just like in every other loan, both sides should eat their bad decisions but unfortunately we blew our wad on not fixing the core problems.

 

[Darwin333]

Funny to watch childish short sighted crying about I paid mine so you should have to too. Wait and see your home values when half residents are booted. You might change your minds.

Full disclosure I owe about 100K on a 700K home which was worth 2M at one point. I built it myself so I lost nothing, yet.

Even funnier is watching a lot of the same people defend giving the very banksters that fucked us all huge sums of taxpayer dollars and taxpayer backstops on their bad bets (the very same ones they are bitching about when we talk about taxpayer money helping the other side of the exact same bad bet).

Personally, I like the tried and proven method of: Bank makes bad loan, bank eats loss, borrower loses collateral and gets credit fucked along with possible civil suit. Golly how things seem to work just swell when both parties have true skin in the game.

 

[Engineer]

Even funnier is watching a lot of the same people defend giving the very banksters that fucked us all huge sums of taxpayer dollars and taxpayer backstops on their bad bets

Not sure who that was pointed at but I can assure you that I was against giving the banks money. Private profits and socialized loses for the mother fucking loss.

:whiste:

 

[Darwin333]

You really don't understand economics do you?

What about the tens of millions of homeowners who did not play the refinance game and are now upside down for tens of thousands or more?

Why do the banks get a free ride and bailouts, yet the average joe who has lost his job or faces cut backs and pay cuts and can not afford their home mortgage, through no fault of their own suffer at the hands of these same leeches?

Its people like you, Cain and Santorium who need a cup of STFU, and a boot in your butt.

Your lack of compassion for your fellow American is so touching.

The problem is that the banks shouldn't have been bailed out as they were in the first place.

You simply do not understand the basic math at play here. We can not afford to bail out the homeowners after we bailed out the banks and spent fuckloads on a ton of other shit. The bailout was supposed to fix the problem but it did anything but, leaving us in basically the same situation as before but it looks a bit better (probably because we made accounting fraud legal, just a guess).

We simply can not afford what you want unless we make the banks eat it. If we do that then we blew all that money we spent bailing them out. That isn't even considering the loans that you and I are guaranteeing.

 

[Darwin333]

Not sure who that was pointed at but I can assure you that I was against giving the banks money. Private profits and socialized loses for the mother fucking loss.

:whiste:

Agreed 100%, and it wasn't pointed at anyone specifically. The ones that it applies to know who they are and will defend the policy at all cost. Give them a few minutes and they will be along...

 

[Engineer]

Agreed 100%, and it wasn't pointed at anyone specifically. The ones that it applies to know who they are and will defend the policy at all cost. Give them a few minutes and they will be along...

I suspected as much!

 

[brencat]

Funny to watch childish short sighted crying about I paid mine so you should have to too. Wait and see your home values when half residents are booted. You might change your minds.

Half the population can be booted from their homes for all I care. If you can't pay, you're out. Life sucks. Fvcking cry me a river. Sorry if that offends all you misguided compassionate types. In the meantime, all the other people who patiently saved and rented and watched homes rise 12% per year while their incomes were flat on the other hand will be able to buy those homes at 30 cents on the 2005 bubble-peak dollar. Win for them and for home affordability again.

Yes my home value will probably drop another 50%. I didn't buy my home to flip it in 7 years, I bought it to live in, forever if need be.

And I too would NOT have given the banks 1 plug nickel. We have done nothing except rack up massive amounts of debt and we're STILL going to go into a Depression anyway. Because that's what happens after a credit bubble blows up. It's coming folks. Delay it all you want, but it's coming.

 

[Fingolfin269]

If Bill's proposal is somehow the magic bullet to our economic woes then sure go for it.

 

[Darwin333]

You destroy the banks and you destroy the economy.

Where does new business owner go to get a loan so he can expand or start a business?

Want to open a gas station? Hope you have the money to build one from scratch because no one will be able to loan you the money to build one etc etc.

If a literall handful of companies have us over a barrel that badly then it is very difficult to argue that we should not either nationalize them over the short term or break them up into much smaller pieces.

And for the record "we" wouldn't be destroying the banks, the banks own bad decisions is the cause.

 

[I Saw OJ]

http://www.youtube.com/watch?v=rCZRqH7sRyA

 

[WackyDan]

Is your house worth more or less than when you bought it in 2004?

humm, the thing is i have talked to my co-workers and neighbors, friends and so on about this and everybody i have spoken to has said their house is worth less now than 10-14 years ago.

More. Bought for $142k Now it is sitting about $180k based on other recent sales in the neighborhood... At it's peak it was worth about $190k.

 

[arcenite]

Why don't they forgive all mortgages? Would really boom the economy.

 

[Jhhnn]

If a literall handful of companies have us over a barrel that badly then it is very difficult to argue that we should not either nationalize them over the short term or break them up into much smaller pieces.

And for the record "we" wouldn't be destroying the banks, the banks own bad decisions is the cause.

Timing is everything, and with the Bush Admin still in power, nationalization was never even on the table- it wasn't even in the ballpark. Nor was the idea of applying a haircut to GSE investors, either- pay 'em every dime, courtesy of the taxpayers.

I think there's a great deal of merit in Clinton's proposal. This expands & explains it better than I could-

http://www.time.com/time/business/article/0,8599,1879270,00.html

 

[Svnla]

I have to go with Engineer and brencat. You signed the contract, your own choice, accept the responsibility (good and bad) with your own choice.

 

[Ichigo]

I have to go with Engineer and brencat. You signed the contract, your own choice, accept the responsibility (good and bad) with your own choice.

In an overall view of the world sense, I agree, but...

Why not discuss the trained professional representing the bank who understood the mortgage contract and how the other side could never pay it off? They do have a fiduciary duty similar to that ascribed to lawyers, doctors, etc.

 

[umbrella39]

Why don't they forgive all mortgages? Would really boom the economy.

My house is paid for. Where's my check for being responsible? I am the 53% That is all.

 

[Generator]

This is the sort of shit that really all the teabagger really understands. Its reason that moron Santelli howled his warcry of the Tea Party. Which still doesn't exist by the way. These are people who simply despise their neighbors. Whether they have mortgages or not, at the end of day they will always think they are the self-made pioneers of society. From their wholesome work is foundation from which society stands.

GO FUCK YOURSELF TEABAGGERS! YOU FUCKING MORONS LOL!

The trillions wasted on the banking sector has done nothing but serve their teabagger's lordly masters. Everyday they fight to make themselves more poorer so that their monied masters can live the dream. These people are slaves and as such they will simply go extinct in a decades time.

That 14 trillion could have put every American in their own home. Instead we gave it to a few New York bank/insurance companies so they could offload the toxic waste right back onto the people through the Fed. The teabagger is poorer, his neighbor is poorer, but all that matters is that the people are still on the hook. Normally I agree, but the economy has entered a transcended purpose beyond itself. The economy is so wealthy in ways that humanity is now a affordable priority.

Did you people honestly think the housing boom was a real economy?! You fucking rubes. When we look back at these times we see how greed itself paved the way! It doesn't matter what your ideology is, your efforts are building to a crescendo that is greater than your petty selves.