Congress to Aid 2.2 Million Sub-Prime Borrowers

[neovan]

http://www.bloomberg.com/apps/news?pid=20601087&sid=a1x64z58hsB4&refer=home

And who's going to pay for all this? The responsible tax payer.

I suggest writing your congressperson if you don't agree with this.

 

[michaels]

America..the welfare state!

 

[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.

 

[waggy]

while i think the company should take the bad with the good. i would hate to see the outcome if a bunch went out of business.


also its not like they are going to pay off the house for them. they are going allow them to find ways to get back in good grace.

of course i do think they are just going to wipe out the late due amount ...

 

[michaels]

I am thinking of giving up my citizenship and flying to Mexico and sneaking over the border, then I would have it made!

 

[LS20]

terrific

 

[GTaudiophile]

Time for another Boston Tea Party.

Anyone want to join me?

 

[Ipno]

What is a subprime loan?

 

[DeadByDawn]

Originally posted by: Ipno
What is a subprime loan?

Basically it's a home loan to people with bad credit.

 

[waggy]

Originally posted by: Ipno
What is a subprime loan?

a loan given to those with bad credit. those that can't get a normal loan.

usually they get higher rates or really bad adjustable rates. seen one where people are offered a 6% loan for 2 years then jumps to 10%. during the 2 years they are sopposed to get the credit fixed and apply for a new loan. that does nto happen.

i

 

[Queasy]

Originally posted by: Ipno
What is a subprime loan?

A loan that is given to someone that does not have a good credit history or considered "risky" and have interest rates greater than 10%.

 

[Specop 007]

Originally posted by: GTaudiophile
Time for another Boston Tea Party.

Anyone want to join me?

Lemme finish working up some handloads for my precision shooter.

If you could wait till I've sprung for a .408 Cheytac that would be nice too, but I'm afraid that day will be a long time in coming.

 

[thirdeye]

Oh that's awesome. This is why I don't read the news.

 

[Darkstar757]

I contacting my congressman about this. WTF im sick of paying taxes for dumb crap like this.

 

[Queasy]

Originally posted by: waggy

Originally posted by: Ipno
What is a subprime loan?

a loan given to those with bad credit. those that can't get a normal loan.

usually they get higher rates or really bad adjustable rates. seen one where people are offered a 6% loan for 2 years then jumps to 10%. during the 2 years they are sopposed to get the credit fixed and apply for a new loan. that does nto happen.

i

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.

 

[Ricochet]

Originally posted by: Ipno
What is a subprime loan?

Loan given out to less than ideal candidates, ie those with bad credits.

Edit: Queasy beat me to it.

 

[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.

 

[Queasy]

If this passes, it will end up being the same kind of FUBAR that happened with the Katrina and other hurricane victims that were given crap like government issued debit cards. Ton of fraud and waste resulting in the program costing way more than it was projected to.

 

[waggy]

Originally posted by: Queasy

Originally posted by: waggy

Originally posted by: Ipno
What is a subprime loan?

a loan given to those with bad credit. those that can't get a normal loan.

usually they get higher rates or really bad adjustable rates. seen one where people are offered a 6% loan for 2 years then jumps to 10%. during the 2 years they are sopposed to get the credit fixed and apply for a new loan. that does nto happen.

i

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.

yeap. my SIL wanted to buy a house. she recieved a loan (i was shocked on that) and her rates was 6.45% for the first two years then 10% after. and if she was late on a payment the penalties were huge. of course she also could not pay it off early either (really huge penilties).

I did my best to talk her out of it. but she was going foreward with it. At least until she found out she needed $7k for fees and downpayment.

 

[boomerang]

Originally posted by: Queasy
If this passes, it will end up being the same kind of FUBAR that happened with the Katrina and other hurricane victims that were given crap like government issued debit cards. Ton of fraud and waste resulting in the program costing way more than it was projected to.

Absolutely right. I was thinking the same thing.

I predict it will pass as I suspect we are getting a highly sugar-coated version of what's really happening.

 

[waggy]

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.

wow they deserve whatever negitive thing happen to them. both the family and lender. there was no way they were going to be able to pay the adjusted rate.

though what was the adjusted rate? the smaller loan (58k) was 10% but it does not say what the loan was on the main loan.


anyway i have little sympathy for them.

 

[dullard]

Originally posted by: boomerang

Originally posted by: Queasy
If this passes, it will end up being the same kind of FUBAR that happened with the Katrina and other hurricane victims that were given crap like government issued debit cards. Ton of fraud and waste resulting in the program costing way more than it was projected to.

Absolutely right. I was thinking the same thing.

I predict it will pass as I suspect we are getting a highly sugar-coated version of what's really happening.

What will pass? What is that "it"? The article mentioned these ideas:

1) He intends to introduce a bill to deter lenders from offering consumers mortgages they can't afford.

That has nothing to do with debit cards or free money.

2) Dodd reaffirmed a plan to introduce a bill that would combat predatory lending. ``There is a difference between a subprime lender and a predator, and I don't want to lose the subprime lender,'' he said.

Again, that is probably a good plan, but the devil is in the details. No mention of free money.

3) directed banks to scrutinize underwriting standards, provide more information to customers about borrowing risks and ensure borrowers are able to repay loans.

4) he is open to the idea of helping subprime borrowers while noting that Democratic leaders haven't decided whether to do so.

There you go, a mention of a possibility of maybe discussing making a bill that might bail out borrowers. You are really jumping to conclusions.

 

[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:

 

[waggy]

Originally posted by: dullard

Originally posted by: boomerang

Originally posted by: Queasy
If this passes, it will end up being the same kind of FUBAR that happened with the Katrina and other hurricane victims that were given crap like government issued debit cards. Ton of fraud and waste resulting in the program costing way more than it was projected to.

Absolutely right. I was thinking the same thing.

I predict it will pass as I suspect we are getting a highly sugar-coated version of what's really happening.

What will pass? What is that "it"? The article mentioned these ideas:

1) He intends to introduce a bill to deter lenders from offering consumers mortgages they can't afford.

That has nothing to do with debit cards or free money.

2) Dodd reaffirmed a plan to introduce a bill that would combat predatory lending. ``There is a difference between a subprime lender and a predator, and I don't want to lose the subprime lender,'' he said.

Again, that is probably a good plan, but the devil is in the details. No mention of free money.

3) directed banks to scrutinize underwriting standards, provide more information to customers about borrowing risks and ensure borrowers are able to repay loans.

4) he is open to the idea of helping subprime borrowers while noting that Democratic leaders haven't decided whether to do so.

There you go, a mention of a possibility of maybe discussing making a bill that might bail out borrowers. You are really jumping to conclusions.

yeap. nothing has been said. they are just thinking of doing something. what? they don't even know yet.

 

[tfinch2]

This kind of stuff makes me sick.