Letting lying borrowers who can't afford their McMansion off the hook is nothing to encourage. Housing prices must drop. This does nothing to help that happen because it doesn't show up as a comp, does it? So prices stay out of reach for buyers -- you know, the prudent people who didn't jump on the greed liar-loan bandwagon and wouldn't sell their soul for a stainless steel stove. People who can't afford their houses must move. Speculators must take their losses and their credit must suffer.
Letting lying borrowers who can't afford their McMansion off the hook is nothing to encourage. Housing prices must drop. This does nothing to help that happen because it doesn't show up as a comp, does it? So prices stay out of reach for buyers -- you know, the prudent people who didn't jump on the greed liar-loan bandwagon and wouldn't sell their soul for a stainless steel stove. People who can't afford their houses must move. Speculators must take their losses and their credit must suffer.
punstress...
First of all, no one is in favor of helping people who can't afford their McMansions or those who speculated in real estate. We're talking about homeowners... regular people who made decisions they believed were the right ones. The worst of the sub-prime loans have long since been foreclosed on, the loans going into foreclosure are just people caught up in a meltdown caused by the banks and Wall Street... not by homeowners.
The banks and Wall St. are blaming the borrowers... the mortgage brokers... the politicians... the regulators... anyone but themselves. It's total B.S. Did the borrowers break the bond market? Did they build fraudulent mortgage backed securities and get them rated AAA when they knew they weren't AAA because they were the ones that built them? No one should be able to default on a mortgage they can't afford, because no one should be able to get a mortgage they can't afford.
You're all upset about a homeowner who bought a house... or refinanced their home to fix it up... what about the bankers on Wall St. who paid themselves $18 billion in bonuses last year while the whole financial system and markets were melting down? Why aren't you mad at them? You'd rather be mad at some family who bought a house at the worst possible moment in time?
Look, I don't think you understand what's happening here:
Remember the toxic assets on the banks balance sheets?
Well, we need to get them off of their balance sheets, but if the government pays an amount that would allow taxpayers to make a profit, then it will leave big holes in the bank balance sheets and the taxpayers will have to give them billions more money.
If the government pays what the banks want for these assets, then the taxpayers will lose billions more.
Do you see what's happening here? As housing prices drop, the toxic assets become more toxic. And no matter what you and I are going to end up paying for the drop... not only in our own home values, but through our tax dollars too.
Foreclosures breed foreclosures... every foreclosure lowers your home's value... which reduces consumer spending... which leads to higher unemployment... which leads to more foreclosures, which lowers housing prices even further, which makes the toxic assets more toxic... soon we will ALL be in serious financial trouble... ALL of us.
You focusing on borrowers paying for their bad decisions is costing you as much money as them... more in fact. You're thinking on this is harming you. And me. Think this through... it's not the borrower. It's the banks.
And until we stop the foreclosures... we're all paying the bill for every dime it's costing in decreasing values. It's not costing the borrowers that have no money, because they have no money to lose. It's costing you... you're costing yourself money... think it through...
And for the record... I don't like it any more than you do. I didn't get involved in the bubble... my wife and I have owned our home for 19 years. I see the same McMansions you do.
Martin,
Thanks for relaying what appears to me to be the first and only large scale solution to the dillemm of home owners in default due to the greedy lending and shameful eforcement of illegal loans and the market meltdown. After your illumination to me as to the scale of the problem (23 years worth of loan modifications was it?), it is evident that this type blanket coverage of groups of homeowners is the only possible real solution.
Now, if you can sucessfully get this message and solution to the robber barons at Chase and Wells Fargo, and California's Attorney General, to rectify the massive dilemma placed on the millions, yes millions, of CA homeowners who took out Washington Mutual and Wachovia Alt-A Option ARM loans and are now within 2-3 months of losing their homes. Thanks for the help.
_________________ Dave Van Waldick
President
Western Mortgage
“We Make Home Loans Easy”
888.930.4223
www.wrfco.com – Home Loans Nationwide
www.ePrequal.com Get prequalified in 5 Minutes online, 24/7.
For homeowners with loans held by Goldman entities
Problem here is that Goldman holds very little of the original securitization. They sold it all off. Don't kid yourself. Goldman has much more power than a State AG. This is a nuisance suite to them.
You and Tobby understand this like few others. Time is not on our side. WAKE UP AMERICA! Your pocket is being picked. Because of misinformation and sleight of hand, you've been tricked into believing the crook is your neighbor.
Uncle Sam is very close to becoming (literally) our landlord.
Let's pick it up people! I'm thinking 6 months and the damage will be irreverserible.
I pray I'm wrong.
Last edited by lotzahomes on Mon May 18, 2009 5:49 am; edited 1 time in total
Martin,
Thanks for relaying what appears to me to be the first and only large scale solution to the dillemm of home owners in default due to the greedy lending and shameful eforcement of illegal loans and the market meltdown. After your illumination to me as to the scale of the problem (23 years worth of loan modifications was it?), it is evident that this type blanket coverage of groups of homeowners is the only possible real solution.
Now, if you can sucessfully get this message and solution to the robber barons at Chase and Wells Fargo, and California's Attorney General, to rectify the massive dilemma placed on the millions, yes millions, of CA homeowners who took out Washington Mutual and Wachovia Alt-A Option ARM loans and are now within 2-3 months of losing their homes. Thanks for the help.
Dave...
One step at a time, that's all I can do... one step at a time... she still totally rocks for thinking of it, don't you think?
You and Tobby understand this like few others. Time is not on our side. WAKE UP AMERICA! Your pocket is being picked. Because of misinformation and sleight of hand, you've been tricked into believing the crook is your neighbor.
Uncle Sam is very close to becoming (literally) our landlord.
Let's pick it up people! I'm thinking 6 months and the damage will be irreverserible.
I pray I'm wrong.
lotzahomes...
I know exactly what you mean... few understand it, but I'm about to publish an article about it and I'm making it simple so that anyone can understand it. PLEASE, when it comes out on line this week... spread the link to every single homeowner you know... not just in the industry... everyone. Usually, I write to industry people... but this is for every single person in the country.
We've been deceived and misled. People need to know that:
1. "Bailing out homeowners" has nothing to do with paying for your neighbor's kitchen remodel.
2. It was never a "sub-prime borrower" problem. It isn't now and it wasn't then. To call it a sub-prime borrower problem is like calling a fuse, a bomb.
3. we are paying for every single dime of drop in real estate prices... every single dime. Stop the foreclosures... NOW, or we will all be broke.
If anyone is the slightest bit uncertain about this, please get in touch with me. I'll walk you through any and all of it. Slowly and simply. There's no shame in not understanding this... it's arcane and complex nonsense. I'll walk you through any part of it... really.
Rick Santelli is a jackass of monumental proportion. And I want to make it known right here and now that I would like to kick the feathers out of him and would be happy to fly in and meet him anytime and anywhere. (I'm trying to figure out how to send a letter to his parents too.)
I know exactly what you mean... few understand it, but I'm about to publish an article about it and I'm making it simple so that anyone can understand it. PLEASE, when it comes out on line this week... spread the link to every single homeowner you know... not just in the industry... everyone. Usually, I write to industry people... but this is for every single person in the country.
What article that you've written since contains this explanation? Guess I missed it.
On a side note: let Santelli know that he can bring Cramer along and we'll take 'em on in a Tag Team Death Match...
I know exactly what you mean... few understand it, but I'm about to publish an article about it and I'm making it simple so that anyone can understand it. PLEASE, when it comes out on line this week... spread the link to every single homeowner you know... not just in the industry... everyone. Usually, I write to industry people... but this is for every single person in the country.
What article that you've written since contains this explanation? Guess I missed it.
On a side note: let Santelli know that he can bring Cramer along and we'll take 'em on in a Tag Team Death Match...
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