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O/T Mortgage Rate Freeze

Discussion in 'Uncategorized Threads' started by grnberetcj, Dec 7, 2007.

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  1. grnberetcj

    grnberetcj Active Member

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    Bad things happen to stupid people!

    Curt - Delaware
     
  2. lumper

    lumper TS Member

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    Dang ... if they had subprime loans and such for guns I would be shooting some fancy custom made shooter with a fancy stock from one of Gordy's vaults and then hoping the feds would try and bail me out for living far above what I know I can actually afford.

    Oh well ... I saw that Wally World has Mossberg 500's on sale again ... I'll be saving up for one since I know what I can afford.
     
  3. Questor

    Questor TS Member

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    All this means is that we're paying welfare to people who should have known better than to sign a contract they couldn't satisfy. It's murder on the mortgage companies too.
     
  4. FarmerD

    FarmerD TS Member

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    Folks, its time to wake up. The United States is becoming a welfare state. When will people start accepting responsibility for their own actions.

    I sure as hell don't want to bale the idiots out. Buy only what you can pay cash for. FarmerD
     
  5. W.P.T.

    W.P.T. TS Member

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    The Government should keep their nose out of the business of others especially when the people who are involved knew they didn't qualify in the first place ... Stupid is as Stupid does and we the ones who had nothing to gain will end up paying for it before its all over ... I have always been accountable and responsible for the mistakes I made especially on investments and those people should be also ... WPT ... (YAC) ...
     
  6. FN in MT

    FN in MT TS Member

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    I'm with VF 126....this whole thing pisses me off as well. If Your stupid enough to buy into a home with zero or little down, with an adjustable rate mortgage that You CAN'T afford.....why should the rest of us have to bail You out??

    Once again, a personal responsibility issue just like welfare, drug use, smoking caused cancer, obesity, lousy job from a lack of education or work ethic, etc, etc.

    FN in MT
     
  7. shot410ga

    shot410ga Well-Known Member

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    Why shoud the guy down the street get a freeze and not you? Because he's dumb and made a bad decision, and your not? Doesen't seem fair, does it?
     
  8. Hipshot 3

    Hipshot 3 TS Member

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    Like I said before.........Make dam sure your CD's at your bank are insured by the FDIC! Then smile....it could be worse! Thanks George!
     
  9. cnsane

    cnsane Member

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    I'm sure I've got the eye of the correct age demographic that most of you remember Nixon's price freezes. And then we get a Carter Party president and have Carter economic results. Again. And doesn't this latest debacle remind you of the S&L crisis of the early '80's. Greedy morons writing bad loans on commission while the Govt. turned a blind eye. And a Bush family member making money off it.
     
  10. Dave P

    Dave P TS Supporters TS Supporters

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    The same thing is going to happen in the vehicle financing market. Watch the ads:100% financing including TT and L, Poor credit, no credit etc., 7 year terms. In 3 or 4 years the buyer will probably owe 50%+ over the retail value much less the trade in value! My feeling from what my friends at my bank tell me is that all most people care about is the payment amount and how soon can I get it. Rate is immaterial right now. If the dealer handles your financing many times they get a generous kick back.
     
  11. halfmile

    halfmile Well-Known Member

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    No flames here. The beauty of this scheme is that every 'refinancing" will include lots of gravy in the bucket in the form of closing costs, fees, and appraisals. I would bet some of these loans will be at a higher assessed value than the original.

    The balloon is just getting a little more air blown into it. The end result will be the same. Either no more expansion or KA BOOM.

    HM
     
  12. tomk2

    tomk2 Member

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    I think many of you have been misled about what "the crisis" is.

    The poor unsophisticated subprime borrower took out a 195K loan on a 200K house, that is now worth 180K or less. His rates Jack up, he doesn't want to pay it or can't pay it, he accepts foreclosure and is out 5K. Now that is sad, but the lender is out 20K or 30K ! These sub prime borrowers are not worried, they will just walk. Its the holders of the mortgages that are scared.

    Investors seek so called "safe" investments. There are not enough US treasury notes to go around, and the interest on them stinks anyway. So they seek high quality, AAA rated mnortgage backed securites. Unfortunately, interest rates for mortgages have been very low, by historical standards, for many years. All the quality borrowers already have their 30 year fixed low rate loans, and are not in the market of giving their high credit ratings anymore. Enter the sub prime lender, who "bundles" crappy credit risk loans with better risk loans, pays a credit rater to give it AAA status (you read that correctly, it is the creator of the Mortgage backed security that pays the credit raters), and they sell it to investors. The original lender satisfies his greed by selling it to other ivestors. These chumps, who thought they got the safest possible AAA product, now know that the investments are crap. The fact that most of these investors are large institutions means its not the homeowner or the little guy that is effected by this.

    The current "bail out" plan includes people who have less than 3% equity in their homes. Not to belabor the point, but these are the people who can walk away with minimal loss, as I pointed out in the first paragraph. Now who the hell was lending people with the worst credit ratings, who were least qualified for the loans, hundreds of thousands of dollars with no money down? Greedy people who cashed in by passing off their tricks onto large institutional investors, thats who. This government plan is to soothe the nerves of these big investors, while making it sound like the government is there protecting the poor. Give me a break.

    Even in the worst hit areas, the foreclosures are under 2%, therefore 98% of the people are in no danger.
     
  13. mercedesman1981

    mercedesman1981 TS Member

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    All the mortgage "freeze" does is temporarily detain what must happen, a shake-out in the lending industry. It is maddening our tax money has to go to people that cannot make good decisions about their lives, these folks usually make poor decisions in other aspects too, not just their mortgages and in the end will have to pay the price. It was already proven Cartereconomics does not work. The burden to resolve the issues will have to fall on the next president as this action appears to be a "Republican" move to enhance the elections next year. I'm willing to bet Bernanke doesn't like it either, though he has been working to add more money to the unscrupulous lenders precarious position too. I doubt Greenspan would have done so, he preferred to allow the market to work the way it is supposed to, punishing those that make poor decisions while awarding those that do not.
     
  14. tomk2

    tomk2 Member

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    Oh, and I failed to see where the current bail out plan called for any government subsidy or tax dollars. That will be reserved for when the lenders fail ( can you say S&L crisis a la 1980's?)
     
  15. perazzitms

    perazzitms TS Member

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    No doubt, the whole mess is like trying to eat tomato soup with a fork.

    I've bought 2 houses in the last 5 years. BOTH times when I went to a mortgage company they did the whole 'how much house can you afford' thing. I was absolutely FLABBERGASTED at what they were trying to tell me I could spend on a house. I can't believe there are people out there who were stupid enough to believe what they were being told. A mortgage payment the equivalent of 3 WEEKS of your pay is NOT an affordable payment. Are you bloody stupid?

    Pile on to that you've squeezed into a payment that starts in with a teazer rate, knowing damn well you're in over your head when the rate goes up is just plain irresponsible - for the borrower AND the lender.

    The mortgage companies will eat some of this - and as far as I'm concerned, they should. The HUD-1 came about due to the mortgage companies, and I'm sure something similar will come out of this - an honest earnings statement or something.

    People who SHOULD go into foreclosure: Those who took an undocumented loan (liars loan). Speculators (these asses drove up prices for everybody). Anybody who took out an ARM, and who didn't refinance.

    That said, and I hate to say it, but something is necessary. This whole thing has the potential to push the entire country into a recession. Either directly or indirectly.

    But, until you make ARMs, liars loans, and stupid people illegal, there's always going to be some hard luck cases out there. This is just a band aid in a situation that requires a tourniquet.
     
  16. Pocatello

    Pocatello Active Member

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    Eddie, you say "These shady come-ons probably didn't catch many savy (sic) adults who grew up during the great depression,...". I'm 61 years old, and my parents were little kids during the great depression. What adults are you talking about?

    Granted, there are a lot of pretty stupid people out there, but those with real memories of the great depression are in their eighties or older now. They likely aren't buying houses.
     
  17. jimbotrap

    jimbotrap TS Member

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    I have been in the Real Estate Industry for over 40 years. (The past 10 in
    development properties only).

    That said I truly believe we must do something about the crisis we are currently in. Many people simply did not realize what could happen to them. And they were misled by unscrupulous lenders (or lendging agencies) that painted a very bright (but maybe not so true) picture.

    I am not one to feel sorry for people that cannot take care of themselves, but then on the other hand do we want to forclosure rate to totally ruin the value
    in properties, that good hard working citizens have worked so hard to earn? Yes it is a bail out. But if we really want to point to finger at who is guilty, point it at the the executives that contrived the ideas in the first place. And take back the exorbinate bonus many have paid themselves as a result. - Jim
     
  18. Maineman

    Maineman TS Member

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    Sorry...let 'em go down in flames. If you can't read, you don't deserve a mortgage.

    Mm
     
  19. JonP

    JonP Member

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    I'll put in my 2 PO'd cents: The articles I've read in the last few days state that just a small percentage of the people that got the subprime loans will qualify for the bailout yet the mortgage companies are the ones cheering on this bailout plan! Why? Because they are the ones that are going to end up with a much better bottom line with the majority of OUR tax dollars that this plan uses. As someone said above: Stupid is as Stupid does and in a (supposed) capitalist economy you're suppose to let the stupid ones (businesses) sink and the goods ones will bubble to the top.

    Just can't believe they're proposing using our tax dollars to bail out more stupid people and businesses. I always thought here in the U.S. we were SUPPOSE to operate under the assumption that ignorance of the law is no excuse and also buyer beware. Also,when you put your signature to a deal you'll have the honesty to live up to it or face the consequences (let alone a handshake which I feel the majority of the people on this forum would be good for).

    That's it, that's my PO'd 2 cents that I wish I could tell straight to
    Bush's face for go'in back on Republican principles of free trade and that a free capitalist economy will iron it self out without intervention and it is best to let it do so in the long run - and by God don't intervene with our tax dollars!

    Sorry, now I'm really done.

    Regards,

    Jon
     
  20. halfmile

    halfmile Well-Known Member

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    laughing up your sleeve or ridiculing someone "stupid" enough to get an ARM is pretty damn dirty if you ask me. In many cases they were simply trying to attain the American dream of owning your own home.

    The America I grew up in took care of the needy, the poor, and yes the stupid.

    It's too bad that the greedy got on the bandwagon and made victims out of many people.

    It's too bad some of them got suckered by the flimflam artists. But I guess it's part of the realigning of wealth taking place in this country now.

    Survival in today's society is harder than when I was young. But somehow the lazy and deliberately worthless manage to have it good.

    The ones who work and put effort into their life many times are the ones getting screwed.

    The big money won't get hurt by this. It never does. S & L, Enron, and so on down the line, watch the 401K holders get mashed again.

    HM
     
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