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You have got to be kidding.

Discussion in 'Politics, Elections & Legislation' started by James344, Apr 3, 2013.

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  1. James344

    James344 Active Member

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    So when the low income people cannot afford the house payments, how unrestricted is the fed gubmint gonna be about taking more money from the actual income earners so the low income can keep their houses?
     
  2. Stl Flyn

    Stl Flyn Well-Known Member

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    Why is it you think the low income people, were the problem in the massive foreclosures of the housing market? Any ideas as to the percentages, or amounts of the total dollars, to what the demographics where?
     
  3. trim tab

    trim tab Active Member

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    It all started with Clinton when he introduced stated income loans with no proof of income etc. You better plug all the holes if you are going to start this.
     
  4. Catpower

    Catpower Molon Labe TS Supporters

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    It's his way to keep the big banks in his hip pocket and maybe a slight up tick blip on the economy for a short time

    Back in about 2005 I was working for a big credit union in the DFW metromess, and they were expanding big time,I was doing their HVAC work and one time there was a problem with a damper on a variable air volume box that served the president's office, to get to the damper I had to take the return air duct off the box, and an air duct is almost as good as a wire plant except you only hear one side of the conversation, the prez was on the phone with apparently someone high up in the banking industry, but the gist of the conversation was "Yes I know most these people are all going to default because there is no way they can pay for the mortgage" and apparently the person on the other end doubted the reasoning for making the loans, the president answered, "Don't worry at days end all loans are sold or transferred to Freddie or Fanny"

    The banks make their money and the tax payers cover the losses, and the banks donate money to the campaign of the party that made it all possible
     
  5. g7777777

    g7777777 TS Supporters TS Supporters

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    It had very little if anything to do with low income housing owned by the low income person.

    It had a lot to do with middle and upper middle class housing and the churning of these mortgages

    It had a lot to do with fake appraisals designed to raise the value of the home for mortgage purposes

    The homes were never worth anywhere near what they were on the market for so the fact that the people had no means of paying on a loan really meant little if anything. Once they tried to sell, they figured out their "investment" was worthless

    Sad situation of keeping up with the Jones and the big mortgage and banking companies laughing as they make huge profits

    Then you have the Fannie and Freddie issues of incompetents paying themselves huge bonuses to lose money running these entities

    Regards from Iowa

    Gene
     
  6. Catpower

    Catpower Molon Labe TS Supporters

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    It all perspective a $20,000 income in a $150,000 house or an $80,000 income in a $600,000 house
     
  7. WesleyB

    WesleyB Well-Known Member

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    Hoax???? It ain't April Fools Day anymore. We are sunk.
     
  8. Brian in Oregon

    Brian in Oregon Well-Known Member

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    Catpower, quote: <i>"It all perspective a $20,000 income in a $150,000 house or an $80,000 income in a $600,000 house"</i>

    Exactly. In my neck of the woods some of these properties were McMansions. But the vast majority were homes in the $150,000 range, which around here are entry level. It was mainly upper poverty class and lower middle class that got foreclosed on.
     
  9. wolfram

    wolfram Well-Known Member

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    Nasty double edged swords those sub-prime mortgages were (are). Most of them had fairly high intrest and/or the the payments were intrest only. Yes a lot of people did get to become 'home owners' but there was never any chance of them actually owning anything.

    Then the other side of sword comes with depressed home prices because so many people are trying to get out from under a mortgage they can't afford. This one directly affects all of us - even the ones that are living up to the terms of their loans.

    I can't see any good coming from a repeat of that disaster. For the sake of the borrower and the lender, there really needs to be good evidence that the borrower is capable of repaying the loan in a realistic time frame.
     
  10. likes-to-shoot

    likes-to-shoot Well-Known Member

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    Another slap in the face to those of us who worked hard and paid off our home loans like a responsable person.
     
  11. Stl Flyn

    Stl Flyn Well-Known Member

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    So are you saying that every single foreclosure was due to every single person NOT working hard, trying to pay off those loans? I think you are slapping yourself.

    Lenders greed caused the problems! Like they where forced into giving loans was the problem, come on. Where they forced to give loans based on 120% Loan to value ratios too? Loans to people that where employed, underemployed, or unemployed but had equity in their homes, so they could buy cars, and toys? Give me a break!

    How many homes where foreclosed on that had second mortgages on them, or had every bit of equity and more drawn from them, so they could live high off the hog. You know who the hog is right? What class of people do you think did this the most? It sure as hell was not the first time, low income buyers, and it sure as hell was not forced. The lenders where calling everyone owning a home, trying to get them to refinance, just for those reasons. The lenders where the problem. Again looking at everything through political eyes, causes blindness!

    The housing bubble was created not only by ALL people over extending themselves, but the lenders promoting it to the point that when the downturn happened, there was no chance of recovering. Off went the bank execs, with their billions in bonuses for doing such a good job, and raising income, that WE are now paying.
     
  12. Brian in Oregon

    Brian in Oregon Well-Known Member

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    That's what the law was about. Requiring lenders to make questionable loans under penalty of law.
     
  13. Bisi

    Bisi TS Member

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    Stl, yes it was the government telling banks to make the damn loans. Your ahole government you adore was responible for the housing mess.
     
  14. ou.3200

    ou.3200 Well-Known Member

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    This is where it started:

    "Chevy Chase bank settles bias lawsuit
    August 23, 1994|By David Conn | David Conn,Sun Staff Writer
    The U.S. Justice Department announced yesterday that Chevy Chase Federal Savings Bank and its mortgage subsidiary agreed to an $11 million settlement of the nation's first discrimination suit brought against a lender for refusing to serve minority neighborhoods.
    Under the settlement, the privately owned Chevy Chase and its B. F. Saul Mortgage Co. subsidiary agreed to offer low-cost mortgages to residents of majority-black areas in the District of Columbia and Prince George's County, expand its presence in those neighborhoods and try to hire more blacks for lending positions."

    So, yes, they were forced to give loans to borrowers who were not in a position to pay the loans back. Interestingly Chevy Chase Bank did not even have any branches in areas they were accused of refusing to serve. Once Chevy Chase settled all the other banks fell into line on the slippery slope leading to the housing bubble.
     
  15. Setterman

    Setterman Well-Known Member

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    So Stl Flyn, you agree then that most of the people that lost their homes were irresponsible and poor money managers? Possibly stupid?

    When the vacuum salesman comes to the door, I don't buy that super vac cause I know it's a bad investment. Same with getting a new car every 2 years when the dealer calls, or maybe buy a jet ski, a boat, a house on the lake, etc. Who is responsible for the loans and risk I take?

    Me,....or the taxpayer?
     
  16. Itchyb

    Itchyb TS Member

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    Jeez, it aint rocket science. I am in the insurance business, I get calls DAILY from lenders trying to qualify people for loans. They need to shave a few dollars a month on the home insurance to qualify these losers for a home. DUH! They are so close to not being able to qualify, they have to shave 5 bucks a month off the home. Then what happens? They have a loss on one of these turds, and they don't have the thousand dollar deductible to fix the loss.

    Next, the lender sells the crappy loan back to the feds, and the lender is off the hook for this crappy loan. I believe Clinton started the mess back in the late 90's when him and that vile woman of his wanted everyone to be a homeowner. Face it, all people are not going to qualify for a home.

    It isn't the lenders, it is the feds saying loan them the money! Then dumping this shit on the backs of the taxpayers and laughing about it.
     
  17. Brian in Oregon

    Brian in Oregon Well-Known Member

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    The bottom line is the Democrats bought votes with this then blamed the Republicans for their mess.
     
  18. oz

    oz Active Member

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    How else are we going to get all the illegal aliens, oops I mean undocumented democrats, into a house?????
     
  19. Stl Flyn

    Stl Flyn Well-Known Member

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    Click. Read the whole thing. Also note the time frames, of which the majority of the affected would be the low income, minority people, because they are the first to lose their jobs. I would bet the numbers of foreclosures between 2010-2012 would be even higher among the middle and higher income. Then try to tell me the lenders were not responsible for not only giving sub-prime loans to the marginal buyers, but also promoting them to refinance to live off of the increase in their properties. Forced to lend, is nothing but political bullshit! The lenders seen it as a way to line their pockets with absolutely no risk. That's what they did. Look at the percentages in the chart, as to what the demographics were in the race and incomes category, for the total foreclosures.

    While the Government was responsible for lowering the guidelines to allow lower income people to buy homes, it also lowered the guidelines for ALL borrowers of ALL incomes. That opened the doors for the "Housing Bubble" economy to take affect. It allowed lenders to lend to ALL, through refinancing and first mortgages, without risk, because the government would back them through Fannie and Freddie. The lenders then went into free for all mode, lending money and refinancing to ANYONE that owned a home, or qualified to buy one to the MAXIMUM limits. Seven, eight months, a year down the road, they called those people back telling them to refinance, and use that equity to impress the neighbors, with a new car borrowed against the equity in their homes. Then another year down the road they called back saying they could not only borrow the equity you have accumulated since the last refinance, but we will GIVE you another 20% above that as projected increase in the value of your home. So what did ALL of the irresponsible people do? They said, hell yea! Do you happen to know my neighbors, the Johnsons? That is what created the false economy, and the housing bubble of which we have suffered from loans originating since beginning in late 2005.

    Had the government only backed the low income loans originated, the economy would have been less then half of what it was, because lenders would not have overextended ALL borrowers because of no risk, of which the majority were, of middle to high income.
     
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