Congress to Aid 2.2 Million Sub-Prime Borrowers

[Ipno]

While I don't want to pay for people making bad choices, it is easier on our economy to subsidize a lower interest loan for these people than to allow them to go bankrupt and lose their homes.

 

[HeroOfPellinor]

This is the equity your shrill voices of the majority of this forum have been shrieking for. Robbing from the rich to give to the poor.....creating equality.'

I'm stunned that this forum isn't in jubilation right now.....unless everybody is reeling in horror at the manifestation of their idiotic ideology.

 

[ebaycj]

Originally posted by: dullard

Originally posted by: Ipno
What is a subprime loan?

Typical example. These people knew they couldn't afford it, but were stupid enough to get the loan. Thus, the people are the main culprit and deserve financial hardship for the bad decision. On the other hand, the mortgage company should be filled with good mathematicians who knew they were offering a loan that couldn't possibly be paid in any realistic scenario. I call them enablers.

Congress should step in and help prevent these bad loans. Congress should not just bail out the bad borrowers.

In this example, why wouldn't they just re-finance their larger loan just before it was due to jump up in interest? One would imagine that with 2 years of on-time payments, it would be easy (or at least easier) to get a more "normal" mortgage.

 

[j00fek]

great now we have to pay for all the morons who took adjustable rate mortages

thnx USA

 

[Queasy]

Originally posted by: ebaycj

Originally posted by: dullard

Originally posted by: Ipno
What is a subprime loan?

Typical example. These people knew they couldn't afford it, but were stupid enough to get the loan. Thus, the people are the main culprit and deserve financial hardship for the bad decision. On the other hand, the mortgage company should be filled with good mathematicians who knew they were offering a loan that couldn't possibly be paid in any realistic scenario. I call them enablers.

Congress should step in and help prevent these bad loans. Congress should not just bail out the bad borrowers.

In this example, why wouldn't they just re-finance their larger loan just before it was due to jump up in interest? One would imagine that with 2 years of on-time payments, it would be easy (or at least easier) to get a more "normal" mortgage.

Same situation as people not submitting their rebates....the borrowers get lazy and aren't paying attention to their finances until it is too late.

 

[neovan]

Originally posted by: ebaycj

Originally posted by: dullard

Originally posted by: Ipno
What is a subprime loan?

Typical example. These people knew they couldn't afford it, but were stupid enough to get the loan. Thus, the people are the main culprit and deserve financial hardship for the bad decision. On the other hand, the mortgage company should be filled with good mathematicians who knew they were offering a loan that couldn't possibly be paid in any realistic scenario. I call them enablers.

Congress should step in and help prevent these bad loans. Congress should not just bail out the bad borrowers.

In this example, why wouldn't they just re-finance their larger loan just before it was due to jump up in interest? One would imagine that with 2 years of on-time payments, it would be easy (or at least easier) to get a more "normal" mortgage.

they can't because they have blemished their credit by missing payments. they are also probably underwater on their loan and with the elimination of 100% financing, they are SOL.

 

[amish]

Originally posted by: radioouman

Originally posted by: dullard

Originally posted by: Ipno
What is a subprime loan?

Typical example. These people knew they couldn't afford it, but were stupid enough to get the loan....

Oh that is just awesome...

he has been logging seven days a week at the drug store where he is employed as an assistant manager

said Jemima, a medical assistant.

$290,000 purchase price of a Waltham, Mass home

What did these people expect? Even with perfect credit and a reasonable loan, they wouldn't be able to afford that house!! :laugh:

that's what i was thinking too. if they were stupid enough to sign for that loan i don't feel sorry for them. why don't people think before signing a contract?

 

[dullard]

Originally posted by: ebaycj
In this example, why wouldn't they just re-finance their larger loan just before it was due to jump up in interest? One would imagine that with 2 years of on-time payments, it would be easy (or at least easier) to get a more "normal" mortgage.

They were sub-prime for a reason. Two years of on-time payments won't erase decades of bad credit on their credit score. Nor will the house suddenly change the behavior of that family to avoid the problems that caused the bad credit to begin with.

In some rare cases, it may all work out. But throw in any snag, and the delicate balance ends. In this case, a pregnancy was that snag.

Again, the borrowers are at fault for borrowing more than they could afford to pay back. But the lenders are at fault for lending money that couldn't possibly be paid pack except in some miracle turnaround story.

 

[ShotgunSteven]

Imagine what would happen if people in America were suddenly held accountable for their own decisions and actions, even the stupid ones.

 

[Miramonti]

Pure crap. :|

Let them default and charge any mortgage brokers with fraud who falsified any loan applications.

 

[b0mbrman]

Hmmm...I hold two mortgages on investment 4plexes right now

Where do I get my free money?

Also, will I be screwed because they provide steady income and they're well within the realm of affordability?

In other words, how can I prove I'm more irresponsible than I actually am?

 

[mrzed]

Originally posted by: HeroOfPellinor
This is the equity your shrill voices of the majority of this forum have been shrieking for. Robbing from the rich to give to the poor.....creating equality.'

I'm stunned that this forum isn't in jubilation right now.....unless everybody is reeling in horror at the manifestation of their idiotic ideology.

Perhaps because this is in fact stealing from the middle class to give to the rich and (dubiously) help out the poor at the same time.

Who owns this debt? Those are the people who stand to lose most on defaults. The poor sods who have negative equity in their houses stand to lose zero because that is how much they have (well, less than zero, but amounts to the same thing).

This is much more akin to the savings and loan scandal or the collapse of the big asian banks than it is a welfare scheme for the poor.

 

[smack Down]

Originally posted by: b0mbrman
Hmmm...I hold two mortgages on investment 4plexes right now

Where do I get my free money?

Also, will I be screwed because they provide steady income and they're well within the realm of affordability?

In other words, how can I prove I'm more irresponsible than I actually am?

Home Equity loan

 

[b0mbrman]

Originally posted by: smack Down

Originally posted by: b0mbrman
Hmmm...I hold two mortgages on investment 4plexes right now

Where do I get my free money?

Also, will I be screwed because they provide steady income and they're well within the realm of affordability?

In other words, how can I prove I'm more irresponsible than I actually am?

Home Equity loan

Hmmm....I can do that...

Hopefully that'll be enough. If the requirement is that I actually have to default on my loans to get the free money, I might not be so interested...

 

[Trevelyan]

So it looks like as Americans we either have huge amounts of personal debt, or alternatively we carry the huge debt of other people.

Awesome. I love watching Congress borrow money using my credit for other people and then asking me to pay it back. Who is responsible for this -- Democrats or Republicans?

 

[dmcowen674]

Originally posted by: Queasy
Yep, the couple that bought my last house did that.

My jaw dropped during closing when I heard the terms of their loan.

8% for the first two years and then can jump as high as 13% afterwards.

Was 8% too low?

13% too low as well?

What should they pay 33% like credit card rates?

 

[Superself]

Originally posted by: dullard

Originally posted by: Ipno
What is a subprime loan?

Typical example. These people knew they couldn't afford it, but were stupid enough to get the loan. Thus, the people are the main culprit and deserve financial hardship for the bad decision. On the other hand, the mortgage company should be filled with good mathematicians who knew they were offering a loan that couldn't possibly be paid in any realistic scenario. I call them enablers.

Congress should step in and help prevent these bad loans. Congress should not just bail out the bad borrowers.

Is this really typical or an extreme case? Good God I hope not!

 

[b0mbrman]

Originally posted by: dmcowen674

Originally posted by: Queasy
Yep, the couple that bought my last house did that.

My jaw dropped during closing when I heard the terms of their loan.

8% for the first two years and then can jump as high as 13% afterwards.

Was 8% too low?

13% too low as well?

What should they pay 33% like credit card rates?

Who said anything about too low? 😕

 

[dullard]

Originally posted by: Superself
Is this really typical or an extreme case? Good God I hope not!

1/20 homes are currently in default. Their mortgages are not being paid in full. I don't know if that is a record, but it is certainly a number that has increased a lot recently. Think about it. A normal block has maybe 20 homes (both sides of the street). One of them isn't being paid in full.

1/185 homes are currently in foreclosure. This IS an all time record high. Enough months have passed with insufficient payments that the banks are taking the money back.

Is 1 out of 185 typical or extreme to you?

 

[dmcowen674]

Originally posted by: b0mbrman

Originally posted by: dmcowen674

Originally posted by: Queasy
Yep, the couple that bought my last house did that.

My jaw dropped during closing when I heard the terms of their loan.

8% for the first two years and then can jump as high as 13% afterwards.

Was 8% too low?

13% too low as well?

What should they pay 33% like credit card rates?

Who said anything about too low? 😕

Everyone in here blaming the people.

 

[johnjbruin]

****** it - I have been waiting for this happen so I can buy a house. God damn the congress.

 

[shortspanishguy]

Originally posted by: dmcowen674

Originally posted by: Queasy
Yep, the couple that bought my last house did that.

My jaw dropped during closing when I heard the terms of their loan.

8% for the first two years and then can jump as high as 13% afterwards.

Was 8% too low?

13% too low as well?

What should they pay 33% like credit card rates?

8% is high as an intro rate.

 

[tw1164]

Didn't they have to get PMI?

 

[neovan]

Originally posted by: tw1164
Didn't they have to get PMI?

No, they got an 80/20 which is basically getting 2 loans, 1 for 80% and the other for 20% to avoid PMI

 

[OutHouse]

Originally posted by: Specop 007
Democracy works until people realize they can vote themselves money from the public treasury.

But really, we've been doing that for decades. Medicaid, Medicare, Social Security, WIC, etc etc etc.

Its getting to the point I wonder why the hell I even work anymore.

is there anything wrong with those programs you listed? without those programs our country would be a thirdworld country.