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Mortgage Meltdown:10-5 Mortgage forgiven for woman, 90, who shot herself

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Vic

Elite Member
Jun 12, 2001
48,537
9,528
126
Originally posted by: Evan Lieb
Originally posted by: bamacre
I blame the Fed for shoving the money out. Low interest rates lead to malinvestment.
Only if you believe in the nonsense of Ron Paul Economics.
I think it's inarguable that artificially low interest rates fueled excessive borrowing, which was the primary cause of all this (although not the only cause by a long shot).

You don't need to be a Ron Paul follower to see that.
 

First

Lifer
Jun 3, 2002
10,518
271
136
Originally posted by: Vic
Originally posted by: Evan Lieb
Originally posted by: bamacre
I blame the Fed for shoving the money out. Low interest rates lead to malinvestment.
Only if you believe in the nonsense of Ron Paul Economics.
I think it's inarguable that artificially low interest rates fueled excessive borrowing, which was the primary cause of all this (although not the only cause by a long shot).

You don't need to be a Ron Paul follower to see that.
I was commenting on the "I blame the Fed for shoving money out" statement, which isn't accurate and is bamacre's way of saying we're causing inflation (even though we're, in fact, not). Though the statement "low interest lead to malinvestment" is incorrect as well. Reducing interest rates the way we saw earlier in the decade was an overly aggressive monetary policy to take and that can lead to excessive borrowing, that I agree. Low interest rates by themselves are fine done with care and moderation, though even the aggressive rate cuts we saw a few years back didn't lead to excessive inflation.
 

scruffypup

Senior member
Feb 3, 2006
371
0
0
I cannot see how anyone could blame the lender in these situations, there is a truth in lending act where the terms are laid out to a person prior to them signing. The person taking a loan has the option to sign or not, and if they don't understand it, they can take it to someone to explain it to them better or do research,... noone holds a gun to these people.

On top of that fact, there were foreclosures occuring to people before this current "mess", so whether you want to blame this mess on the greed of the American people, greed of American businesses, the Fed keeping rates too low for too long, the lobbyism of Fannie Mae and Freddie Mac and Countrywide to Democrats, to the current president for being president while this occurs matters not. This stuff happened before, it just tends to get more recognition now since it is on a larger scale and it is an election year.

People in this country need to start being responsible for their own actions, quit blaming others, demanding a hand out, etc.

Of course now there will be replies stating I have no compassion, I do, but sorry the truth hurts when our country as a whole has been acting irresponsible for quite a while.
 

BoberFett

Lifer
Oct 9, 1999
37,563
9
81
Originally posted by: Evan Lieb
Originally posted by: Vic
Originally posted by: Evan Lieb
Originally posted by: bamacre
I blame the Fed for shoving the money out. Low interest rates lead to malinvestment.
Only if you believe in the nonsense of Ron Paul Economics.
I think it's inarguable that artificially low interest rates fueled excessive borrowing, which was the primary cause of all this (although not the only cause by a long shot).

You don't need to be a Ron Paul follower to see that.
I was commenting on the "I blame the Fed for shoving money out" statement, which isn't accurate and is bamacre's way of saying we're causing inflation (even though we're, in fact, not). Though the statement "low interest lead to malinvestment" is incorrect as well. Reducing interest rates the way we saw earlier in the decade was an overly aggressive monetary policy to take and that can lead to excessive borrowing, that I agree. Low interest rates by themselves are fine done with care and moderation, though even the aggressive rate cuts we saw a few years back didn't lead to excessive inflation.
Wow, talk about a strawman. bamacre said nothing about inflation you pompous jackass. And he's absolutely right, when borrowing costs practically nothing, of course people are going to borrow a lot and "invest" it in areas where there was no investment needed.
 

dmcowen674

No Lifer
Oct 13, 1999
54,894
46
91
www.alienbabeltech.com
Originally posted by: scruffypup
I cannot see how anyone could blame the lender in these situations, there is a truth in lending act where the terms are laid out to a person prior to them signing. The person taking a loan has the option to sign or not, and if they don't understand it, they can take it to someone to explain it to them better or do research,... noone holds a gun to these people.

On top of that fact, there were foreclosures occuring to people before this current "mess", so whether you want to blame this mess on the greed of the American people, greed of American businesses, the Fed keeping rates too low for too long, the lobbyism of Fannie Mae and Freddie Mac and Countrywide to Democrats, to the current president for being president while this occurs matters not. This stuff happened before, it just tends to get more recognition now since it is on a larger scale and it is an election year.

People in this country need to start being responsible for their own actions, quit blaming others, demanding a hand out, etc.

Of course now there will be replies stating I have no compassion, I do, but sorry the truth hurts when our country as a whole has been acting irresponsible for quite a while.
Bullshit. What Financial Company payroll are you on?

What is it you don't understand about the words predatory and misleading?

Everyday Americans were bombarded with false, misleading and deceptive advertising about these loans.

Hidden in tiny unintelligible print at the bottom to the ordinary citizen was legalese that I'm sure not even 90% of Lawyers could decipher.

In fact Countrywide just this morning admitted this very fact:

10-6-2008 Countrywide Settles State Consumer Fraud Cases for $8.4 Billion

Countrywide Financial Corp., the home mortgage lender, will offer interest rate and loan principal reductions plus other distressed borrower relief valued at $8.4 billion to settle consumer fraud complaints from 11 states.

The accord, which includes relocation assistance for homeowners whose homes have been or are about to be foreclosed, will affect about 400,000 customers and resolves lawsuits filed against it by attorneys general in Illinois, California and Florida and complaints from eight other states, according to attorneys general Lisa Madigan of Illinois and Edmund G. ``Jerry'' Brown of California.

The package will likely become the largest predatory lending settlement in history, Brown said in a press statement yesterday.

The states' suits sought unspecified restitution for homeowners. California also asked for civil fines of as much as $2,500 for each violation of state laws banning unfair business practices and misleading advertising.
 
Dec 26, 2007
11,783
2
76
Originally posted by: Thump553
Personally I feel sorry for the sheriff's deputies. What a d*mn miserable job they got.
Welcome to Akron, OH. I grew up in a city about 20 min outside of Akron, and now live about 30 min South of it. Akron is a bad city, with the *possible* exception of the campus (which has taken over most of downtown). The campus is great, but step off campus and I get worried. Last week for example got two emails from school about crime, one was an armed bank robbery and the second was a shooting. These aren't uncommon either. For that matter neither are rapes.

Some of the outskirts of Akron are scary places, and I refuse to go to them lol.

Edit: so RIGHT as I clicked "post", the morning show I listen to starts talking about it. They are playing the speech Dennis gave.
 

piasabird

Lifer
Feb 6, 2002
17,168
60
91
Well there is always the "I was too senile to realize what I was signing defense." If a person had diminishing mental capacity at the time the contract was signed, it may not be a legal contract. Of course the result might be that the state could have you declared mentally impaired and have you sent to a home and auction your house to pay your bills.

Is it just me or does anyone else consider 90 a bit old to be living by yourself? Hope I can still get around at 90.
 

First

Lifer
Jun 3, 2002
10,518
271
136
Originally posted by: BoberFett
Originally posted by: Evan Lieb
Originally posted by: Vic
Originally posted by: Evan Lieb
Originally posted by: bamacre
I blame the Fed for shoving the money out. Low interest rates lead to malinvestment.
Only if you believe in the nonsense of Ron Paul Economics.
I think it's inarguable that artificially low interest rates fueled excessive borrowing, which was the primary cause of all this (although not the only cause by a long shot).

You don't need to be a Ron Paul follower to see that.
I was commenting on the "I blame the Fed for shoving money out" statement, which isn't accurate and is bamacre's way of saying we're causing inflation (even though we're, in fact, not). Though the statement "low interest lead to malinvestment" is incorrect as well. Reducing interest rates the way we saw earlier in the decade was an overly aggressive monetary policy to take and that can lead to excessive borrowing, that I agree. Low interest rates by themselves are fine done with care and moderation, though even the aggressive rate cuts we saw a few years back didn't lead to excessive inflation.
Wow, talk about a strawman. bamacre said nothing about inflation you pompous jackass. And he's absolutely right, when borrowing costs practically nothing, of course people are going to borrow a lot and "invest" it in areas where there was no investment needed.
Yawn. You're a layman.
 

BoberFett

Lifer
Oct 9, 1999
37,563
9
81
Originally posted by: Evan Lieb
Originally posted by: BoberFett
Originally posted by: Evan Lieb
Originally posted by: Vic
Originally posted by: Evan Lieb
Originally posted by: bamacre
I blame the Fed for shoving the money out. Low interest rates lead to malinvestment.
Only if you believe in the nonsense of Ron Paul Economics.
I think it's inarguable that artificially low interest rates fueled excessive borrowing, which was the primary cause of all this (although not the only cause by a long shot).

You don't need to be a Ron Paul follower to see that.
I was commenting on the "I blame the Fed for shoving money out" statement, which isn't accurate and is bamacre's way of saying we're causing inflation (even though we're, in fact, not). Though the statement "low interest lead to malinvestment" is incorrect as well. Reducing interest rates the way we saw earlier in the decade was an overly aggressive monetary policy to take and that can lead to excessive borrowing, that I agree. Low interest rates by themselves are fine done with care and moderation, though even the aggressive rate cuts we saw a few years back didn't lead to excessive inflation.
Wow, talk about a strawman. bamacre said nothing about inflation you pompous jackass. And he's absolutely right, when borrowing costs practically nothing, of course people are going to borrow a lot and "invest" it in areas where there was no investment needed.
Yawn. You're a layman.
I love hearing this from you so called experts, the very same experts who apparently couldn't see this coming until it hit them in the face.

It's going to be fun to dredge up your quotes a couple of years from now to remind you how little you actually know.
 

First

Lifer
Jun 3, 2002
10,518
271
136
Originally posted by: BoberFett

I love hearing this from you so called experts, the very same experts who apparently couldn't see this coming until it hit them in the face.
I've been saying we're already in a recession for a good few months now, and I also said it would last until at least the end of this year. Would you like a link and quote to complete the ownage?

It's going to be fun to dredge up your quotes a couple of years from now to remind you how little you actually know.
As opposed to the zero predictions you've made, since you are incapable of making any given that you aren't man enough (informed enough, actually) to put your neck out there? As I've said many times before, economics is not an exact science and if you're so sure the markets are going to do exactly the opposite of what I and others have (reasonably) claimed will occur (i.e. a modest recovery in 2009 and further growth for several years thereafter), then why aren't you shorting right now and why aren't you making predictions? Yeah, thought so.
 

SarcasticDwarf

Diamond Member
Jun 8, 2001
9,574
0
0
Originally posted by: piasabird
Well there is always the "I was too senile to realize what I was signing defense." If a person had diminishing mental capacity at the time the contract was signed, it may not be a legal contract. Of course the result might be that the state could have you declared mentally impaired and have you sent to a home and auction your house to pay your bills.

Is it just me or does anyone else consider 90 a bit old to be living by yourself? Hope I can still get around at 90.
I don't really see the problem with that. The whole "well it was GRANDMA and since she is 75 she is not responsible" is a load of crap.
 

BoberFett

Lifer
Oct 9, 1999
37,563
9
81
Originally posted by: Evan Lieb
Originally posted by: BoberFett

I love hearing this from you so called experts, the very same experts who apparently couldn't see this coming until it hit them in the face.
I've been saying we're already in a recession for a good few months now, and I also said it would last until at least the end of this year. Would you like a link and quote to complete the ownage?

It's going to be fun to dredge up your quotes a couple of years from now to remind you how little you actually know.
As opposed to the zero predictions you've made, since you are incapable of making any given that you aren't man enough (informed enough, actually) to put your neck out there? As I've said many times before, economics is not an exact science and if you're so sure the markets are going to do exactly the opposite of what I and others have (reasonably) claimed will occur (i.e. a modest recovery in 2009 and further growth for several years thereafter), then why aren't you shorting right now and why aren't you making predictions? Yeah, thought so.
I'll quote this too, just so it doesn't get lost.
 

First

Lifer
Jun 3, 2002
10,518
271
136
Originally posted by: BoberFett
Originally posted by: Evan Lieb
Originally posted by: BoberFett

I love hearing this from you so called experts, the very same experts who apparently couldn't see this coming until it hit them in the face.
I've been saying we're already in a recession for a good few months now, and I also said it would last until at least the end of this year. Would you like a link and quote to complete the ownage?

It's going to be fun to dredge up your quotes a couple of years from now to remind you how little you actually know.
As opposed to the zero predictions you've made, since you are incapable of making any given that you aren't man enough (informed enough, actually) to put your neck out there? As I've said many times before, economics is not an exact science and if you're so sure the markets are going to do exactly the opposite of what I and others have (reasonably) claimed will occur (i.e. a modest recovery in 2009 and further growth for several years thereafter), then why aren't you shorting right now and why aren't you making predictions? Yeah, thought so.
I'll quote this too, just so it doesn't get lost.
Sad thing is, I knew you'd duck out of the challenge.
 

First

Lifer
Jun 3, 2002
10,518
271
136
Me on July 12th, 2008: "This is a full blown recession...The combination of failing banks and mortgages, a weak dollar, and staggering gas prices has signaled a more than obvious recession at this point..."

Originally posted by: Evan Lieb
...why aren't you shorting right now and why aren't you making predictions?
Bump.
 

OutHouse

Lifer
Jun 5, 2000
36,413
616
126
Originally posted by: fleshconsumed
I read about it several days ago on CNN. I think she took out 30 year mortgage for 40K. I really don't understand what she was thinking when she got it. She is 90 years old, she has no hope of repaying it before she dies.
wtf was wrong with the bank in giving such a loan? they knew full well that this woman could not make the payments just by looking at her income.

oh i forgot income didnt matter.
 

dmcowen674

No Lifer
Oct 13, 1999
54,894
46
91
www.alienbabeltech.com
More details on her "mortgage".

10-13-2008 Ohio shooting puts face on foreclosure crisis

AKRON, Ohio - By the time deputies came to escort Addie Polk out of her home of 38 years, the 90-year-old had taken out her life insurance policy and placed it next to her pocketbook and keys in the neatly kept house.

She shot herself in the chest Oct. 1 before she could be taken away from the foreclosed house, which was worth less than its mortgage from the day she took out the loan.

She took out a 30-year, 6.375 percent mortgage for $45,620 four years ago when the house was appraised at $31,230.

That move put her in a position that, according to Deutsche Bank, up to 40 percent of borrowers, or 20 million households nationwide, could face within 12 to 18 months: Suddenly Polk owed more on her house than it was worth.

While many households ran into that problem when once-soaring house prices declined, there was no bubble on LaCroix Avenue, located in a city whose population dropped 4 percent since 2000 amid declining manufacturing.

 

WHAMPOM

Diamond Member
Feb 28, 2006
7,628
181
106
I am glad I live where the police arrest scammers that would bilk $600 out of an elderly man for two hours of yard work.

When Countrywide is sued by 11 states for deceptive practices and settles, you think they could be admitting guilt??? Don't think so? Then you may need to check and see if you have your 'ead up your 'ss.:evil:
 

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