Who here
MyHandsBound
Posts: 698
has had their home foreclosed? I want to know because I'm trying to get a better idea of who all these people are that are messing up the economy:)
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WASHINGTON (Sept. 28) - After a breakthrough
on a $700 billion Wall Street
bailout, lawmakers and Bush administration
now must settle the final details on a
rescue intended to keep credit flowing and
avert a crippling recession.
“We’ve made great progress. We have to get
it committed to paper so that we can formally
agree,” House Speaker Nancy Pelosi,
D-Calif., told reporters in announcing the
tentative deal early Sunday.
Congressional leaders hope to have a
House vote on the measure Monday, with a
vote in the Senate coming later.
“We’ve still got more to do to finalize it, but
I think we’re there,” said Treasury Secretary
Henry Paulson, who participated in
the negotiations in the Capitol.
“We worked out everything,” said New
Hampshire Sen. Judd Gregg, the chief Senate
Republican in the talks.
Democratic presidential nominee Barack
Obama, in a statement Sunday, said that
“failure to deal with the current crisis
would have devastating consequences for
our economy, costing millions of Americans
their jobs and retirement security.”
Under the plan, the government would purchase
mortgage-backed securities and other
bad debts held by banks and other investors.
The money should help troubled
lenders make new loans and keep credit
lines open. The government would later try
to sell the discounted loan packages at the
best possible price.
At the insistence of House Republicans,
some money would be devoted to a program
that would encourage holders of distressed
mortgage-backed securities to keep
them and buy government insurance to
cover defaults.
The legislation would place “reasonable”
limits on severance packages for executives
of companies that benefit from the rescue
plan, said a senior administration official
who was authorized to speak only on background.
It also calls for the financial sector to help
make up the difference if the government
does not recoup its investment in five years,
the official said, but details remained unclear.
The government would receive stock
warrants in return for the bailout relief, giving
taxpayers a chance to share in financial
companies’ future profits.
To help struggling homeowners, the plan
would require the government to try renegotiating
the bad mortgages it acquires
with the aim of lowering borrowers’ monthly
payments so they can keep their homes.
“I think it’s a better deal for the taxpayers”
than an initial proposal this past week from
the White House, said Sen. Lindsey Graham,
R-S.C. The key, he said, was getting
House Republicans to come along after
their earlier opposition.
Added Sen. John Kerry, D-Mass.: “I think
we have accountability.”
Despite the changes made during an intense
week of negotiations, the heart of the
program remains President Bush’s original
idea: spend billions of taxpayer dollars to
buy mortgage-backed securities whose value
has plummeted.
Graham and Kerry appeared on “Fox News
Sunday.”
That said, how anyone could say yes to an adjustable rate mortgage is beyond me.
Sweep the Leg Johnny.
but it's a little bit of everyone that caused this. Mortgage underwriters who had no business approving loans for people who couldn't afford it and people who signed mortgage papers for loans they knew they couldn't afford. If your TAKE HOME pay is $2000, you cannot afford a $1700 a month mortgage. Mortgage processors qualify you for a mortgage based on your gross income. Uneducated consumers get blinded by the "American Dream" of owning a piece of property. Buying a home is no joke and no one should go into it uneducated.
A friend of mine came close to forclosure. Her and her ex husband bought the house with an adjustable rate, 100% financing....knowing their marriage was in trouble. She fully admits they never should have bought the house, got into it as an uneducated consumer. The mortgage company shouldn't have lent them the money either....they could barely afford the mortgage with their take home pay.
Ultimately, she sold the house for less than the balance of the loan. The bank took a loss for $20k on their books but it was better than a forclosure on their books (and better than forclosure on my friend).
I have eaten so much gold I crapped excellence - drtyfrnk29
Life is either a daring adventure or nothing at all!
Adjustables are not bad - IF you plan on selling or refinancing to a fixed before the adjustable changes. I've considered it with the rates dropping. I plan on selling my house in another 5-7yrs. I might just stick it out with what I've got until then but I won't go into it uneducated. People get sucked into, like we've both said, the "American Dream, white picket fence, 2 cars and 2.5 kids" and they do not consider what is going to happen down the road when their rate changes.
I have eaten so much gold I crapped excellence - drtyfrnk29
Life is either a daring adventure or nothing at all!
There is a lot of responsibility in this whole mess, however, I don't agree with the above statement. If you are purchasing a home (probably the biggest purchase you've made) you have a personal responsibility to eductate yourself. To know what you are getting into. To accept responsibility for your actions and the future consequences. It's a case of greed, pure and simple. On the backs of mortgage companies, investors and consumers. But to say that it's not always the homeowners fault because they don't know what they are getting into is insane. Do research, recognize the product, make sure you can afford it AND live comfortably. Realize the risk involved. Foreclosure/short sales due to job losses, downsizing, death and even in some cases divorce is one thing - but due to being "stupid" is not an acceptable reason.
Albert Einstein (1879-1955)
I saw Hard To Imagine LIVE at MSG!
now I do see a lot of forsale signs
While I mostly agree with you, you've gotta keep in mind that we live in a society where a woman won a lawsuit against McDonald's for the fact that her coffee was too hot.
kevinbeetle: "Yes. When her career washes up and her and Gavin move to Galveston, you will meet her at Hot Topic shopping for a Japanese cheerleader outfit.
Next!"
That's still their fault.
Although I will say the larger fault lies with the companies that got into this mess. The couple buying the home they can't afford only knows about their own situation. The company loaning them the money has a much broader picture of the financial stability of its business.
...are those who've helped us.
Right 'round the corner could be bigger than ourselves.