This post is in response to the constant critical comments from the capitalists that “think” they are superior and more intelligent than everyone else. Especially the struggling homeowner.
Ron and Joe - Do you really know what “truly” happened in the mortgage industry over the last 5-10 years?
Ron - No, I do not delete opposing views because I am a man and I can “understand” that not everyone is going to have the same “views”. People tell me to f@#k off and I could care less.
Especially when it comes from a homeowner hater.
You say, “Any efforts to artificially prop up the real estate market only delay the day of reckoning.”
You can’t let that type of market just “naturally” run it’s unnatural course!!!!
How the hell are you just going to say, “moe–you and your website are a disservice to all market participants.”
FYI- I am here for the struggling homeowner and NOT the “market participants”.
The homeowner that has a home they can afford, but can’t afford the damn toxic and exploding mortgage that you and your market participants created to get you all filthy, stinking rich and leave them holding the toxic sludge bag.
Joe -Step down from your ivory tower and come down here to the streets of the middle class and take a whiff of the crap. Because Joe, it’s pretty damn $hitty down here right now and that aroma from all the foreclosure feces will reach you and your buddies on Wall Street and in the ivory towers soon.
You say, “This kind of socialist rhetoric sounds like Hillary talking. You can’t take away the discipline and accountability of the free market. If you allow the market to resolve it’s own problems, it will. The banks are in business to make money, no?”
Yes, the banks are here to make money, agreed. The market that you see today was artificially created to begin with. Get with the times. It was based, as I said above, on a ponzi scheme to get everyone rich at the top and leave everyone on the bottom, screwed.
It is quite evident that is what we are seeing today. The rich got rich and now the middle class and the poor get screwed!
The fraud I see and the scams by “market participants” far out weigh by 1,000,000 fold, any type of homeowner fraud.
Again Joe, Ron and all the other homeowner haterz and critics, you have no clue on how the mortgage business operated over the last 10 years.
These people that you call irresponsible were extended credit based on underwriting guidelines by lenders to “determine” their credit worthiness, purchase power based on income and long term risk.
What that means guys, “THE LENDERS WERE IRRESPONSIBLE!” The regulatory agencies were irresponsible as well and turned a blind eye to the problem.
These homeowners were “pre-qualified” by a broker or lender to “determine” their purchasing ability and guided many times by a licensed professional to give them “professional, ethical and honest” advice. In fact they had a fiduciary duty to do so. But we all know that wasn’t the case in most instances.
These are the same borrowers that QUALIFIED for a REAL MORTGAGE using REAL UNDERWRITING GUIDELINES from REAL LENDERS to DETERMINE if the borrower that is APPLYING for a REAL LOAN can AFFORD that MORTGAGE that they are APPLYING for with a LICENSED PROFESSIONAL using UNDERWRITERS that are EMPLOYED by the LENDER to MAKE SURE that the BORROWER can PAY THEM BACK once they LEND THEM THE CASH.
Wow, what a concept! Imagine that? These homeowners had to go through all that to make sure they can afford a loan at the starter rate.
You see, every loan that is originated has to be sold to the consumer before it becomes and an actual secured mortgage. Many loans that were sold over the last few years, as you know, were adjustable rate mortgages.
Consumers never say, ” Please put me in an ARM that adjusts in 2 years.” No they were “SOLD” these loans.
Here was the typical sales pitch by licensed professionals. ” I know that you didn’t want an adjustable rate mortgage but that all you qualify for. But don’t worry Mr. Jones, I’ll be able to refi you in 2 years and get you into a fixed loan, no problem. This is just a band aid loan because you have tarnished credit, can’t prove income and you don’t have a dime to your name.”
Do you think these same homeowners would have been sold the loan if it went like this?
“Here’s your loan Mr. Jones. It’s and adjustable rate mortgage that will shoot through the roof in two years, your payment will double, you’ll be screwed financially, the bank will eventually foreclosure on you, ruining your credit for 7 years and your life will leave you because she’s sick of you drinking cheap scotch on their dirty linoleum floor.”I guarantee that if that was the case then we wouldn’t be where we are at now.
Now, add in the massive fraud (not the homeowners) but the market participants and you have an artificial fraudulently created market that we see today.
Yes, homeowner haterz, many borrowers committed fraud and bought homes they could not afford. They are the minority and will suffer their fate. I am not here for them or do I support them in any way shape or form.
So, don’t group ALL homeowners in your narrow minds as borrowers that made bad decisions and should suffer their fate.
i.e.
I am in the Inland Empire in
Geez, I didn’t need some scientist, CNBC, professor or economist to tell me that.
Why go to
Your viewers and readers are by vast majority, capitalists, greedy market participants. Not middle class homeowners!
Most of these guys do have a clue how these loans work, yet they are “now” talking about them every day like they are all experts on mortgages, loan modifications and foreclosures.
Well, Mr. Capitalistic idiots, there are more foreclosures in these states because that’s where lenders, brokers and predators concentrated their efforts based on;
#2. How big is the population, so they can sell more toxic loans.
Common sense like I have to recognize “reality” and the “truth” of what really happened and why our great nation is in the position it is today.
These mortgages should be recalled NOW!
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Grow Up!
You are responsible for yourself. No one is going to debtor prison, they are just losing gains that were paper gains to begin with and are getting bad credit that will be better within 7 years.
For those who are losing home after buying with 100% equity, consider it a wager lost. You put nothing down and paid what was effectively high rent for a year or two. You never owned the home, you just thought you did. Get over it.
Rent a home. Save some money. Buy again when you are older and wiser.
Quit your belly aching. You could live in Bachdad!
I would vote for you, you are more connected to reality than those idiots in the media, congress and so called mortgage experts. I have been living the same life, it’s like being hit from behind, not knowing who hit you ,then when you figure it out you can’t believe it, and the worse is there’s nothing you can do, the people who ripped you off still have their life, they ride in cars with insurance, they”l be able to go the job Christmas party, I’m planning to be ill, I wonder if they really know how big this really is? I am educated, I’m a grandma, I’m a professional, owned my home for seven years and was going to use the equity for a business venture, these people don’t have contracts that match the loan you end up with! Wake up america, if people open up, your gonna find out that people , smart people, people you know are victims, VICTIMS who can’t believe it, who tried to hide it because they thought they could fix it and no one would have to know. At work they think your doing so much overtime because your going on vacation, you drink water for lunch because your on a new diet where you only eat dinner, your family is worried about your health, for every family function you have a cold or flu, for a year? What will I say when I finally have to admit I’ve lost my home? Grandma’s tired of her yard (that you know was her sanctuary) We read the contracts, I had my home for seven years and could afford it. The bad guys wear suits now, they’re angels with soft telephone voices, the bad guys have left the streets and they are among us and they’re better at what they do than you are at what you do! We know there is no help, your faking out the public to get the votes, the bailout is for the banks to generate new loans, I can’t get help, I owe more than the value of my home(now), I must be current(that makes sense) but have a fico score less than 660. This is not help. We are fighting in Iraq, dying in Iraq for homeland security, excuse me is there a connection here? To fix this would not benefit someone or something, it’s okay for the peon’s to pay the price, lose their home or their life, when they complain we’ll remind them that their stupid or of the honor it was to lose your legs for americas freedom and you’ll get a free electric wheel chair, I hope the doors are up to code at Grandma’s new studio.
Capitalistic Pig, figures! – Open your narrow mind. Not ALL homeowners fit in that class. However, I do agree that people can move on and it IS NOT the end of the world and some homeowners may be off better just renting and not stressing about their mortgage.
Vickie, my heart goes out to you. Stay strong and it is OK that if you are foreclosed on. You are not a failure, you are just a victim of bad lending practices.
It will help you if you talk about and just let it out like you have done here. Check out my forum at http://www.LoanSafe.org. It is for homeowners just like you and protected against capitalistic pigs.
I’d love to see you there Vickie!
This is the response of the pig who brokered my loan to me when I filed a complaint against him with the Mortgage Banking Department.
Dear Ms. X,
Island Equity Mortgage Inc. has researched the file that was closed on October 3rd, 2006. At the time Regina Ferraro was your Loan Officer. In the file for (address ommitted) all of the documents were signed and dated correctly with the precise information regarding your loan. On the HUD 1 Statement on Line 1306 it clearly sates that the YSP is $3,450 not $14,600. The $14,600 is line 1205, which is the mortgage tax. Enclosed is a copy of the HUD1 settlement signed by you at closing. In regard to CountryWide HOme Loans, their closing papers also have the name Americas Wholesale Lender, which is their name as well. Please feel assured that this is the same bank that you have purchased your loan with (MY LOAN APPL. SAID IF AMERICAN WHOLESALES CLOSED THE LOAN THERE WOULD BE NO PP PENALTY BUT IF COUNTRYWIDE DID, THERE WOULD BE. THE FINAL LOAN DOCS HAVE BOTH NAMES ALL OVER THE PLACE — AND OF COURSE, THESE BASTARDS NEVER SAID THERE WOULD BE A PP PENALTY.)
The letter continues:
“When I spoke with you on Thursday, the 17th of October, you were interested in going to another ARM LOAN. (WHAT THE F$&k!!!!! I CANNOT BELIEVE HE WOULD HAVE THE NERVE TO WRITE THIS BS WHY THE F@#K WOULD I WANT THAT?????)
It goes on:
“Unfortunately the banks have changed all of their guidelines. We are still looking into other banks that offer ARM loans. I mentioned a fixed rate to you but the payments where to high (NOT WERE TOO HIGH BUT where to high, IGNORANT BASTARD) for your situation. I then spoke to you on Monday 3rd of December to seee if there is anything that we can do to help with your current situation. I believe we both came to an agreement to have Island Equity Mortgage INc. speak on your behalf with CountryWide Home Loans in trying to find a better alternative for your loan in, in regard to the pre-payment penalty (LIES, LIES, LIES).
Island Equity Mortgage Inc. would like to help with your loan, and in doing so we are prepared to dissolve the broker fee for you. Our intentions to help you find a loan that helps with your current situation. Please feel free to call me at your convenience.”
I CAN’T BREATHE THIS BULLSHIT STINKS SO BAD!!!!
I’d like to point out that the current mortgage reset foreclosure crisis we are currently experiencing is as much about the housing boom and bust as it is about bad loans.
The housing industry just experienced its largest housing boom in history from 2000-2005. The states with the hottest housing markets and new homes built over that period were California, Florida, Arizona, and Nevada. These states also had some of the highest home appreciations in the country. Home values increased in Stockton, CA 113%, Riverside/San Bernardino, Ca 141%, Sacramento, CA 112%, Miami, Fla 133% over a five year period.
The new construction housing boom peaked in 2004-2005 which was driven by speculative building on the part of builders. It was also fueled and funded by cheap money. They were building at a pace much faster than the market could realisticaly absorb. In some areas, speculative buyers were buying 30% of the homes being built hoping to flip them and make a huge profit with the runup in prices that had been taking place.
The builders did not put the breaks on soon enough and built an extremely large inventory of new homes, with no buyers. Once the word got out that the price frenzy had come to a hault, all the speculators who had been holding there properties began dumping them on the market. Thus began the downward slide of home values.
For the homeowners who bought late in the game, 2004-2006, they purchased at the peak of home values. These homes had inflated values and were set for a price correction.
With homes being over inflated in price, people reverted to ARM’s and all the creative financing that the mortgage industry could come up with.
Is the real root of the problem we face now based on that people could not afford the homes they bought with the resets that were going to take place? Or, is it more that the house values are dropping quickly and homeowners who cannot afford the new payments, are not able to sell their homes for the same price they paid for them?
I believe the bigger problem is home depriciation that is occuring in the markets that had the fastest and largest rise in home values in the last five years.
The top ten housing markets for foreclosures include, Stockton, Riverside, Sacramento, Bakersfield and Oakland California, along with Las Vegas, Miami, Ft. Lauderdale and Phoenix.
The bigger short and long term problem we face is housing depreciation. The decrease in home values trigers a whole host of financial troubles that would be the worst we have faced since the Great Depression.
I hear people say that the Federal Government should not be involved with fixing this housing.mortgage crisis. Was it not the Federal Reserve and Alan Greenspan who helped create the housing boom and bubble by providing cheap money for an extended period of time. The Fed kept the discount rate below the inflation rate for 34 months during the boom.
Greenspan said ARM’s were safe and he did not know why more Americans did not take advantage of them. He also said there was no National housing bubble as all housing markets are local.
In late 2004, Grenspan sought to reassure lenders that the housing boom was not over. Greenspan told Community Bankers, “Improvements in lending practices driven by information technology have enabled lenders to reach out to households with previous unrecognized borrowing capacities.”
Sounds to me that he was telling the mortgage industry to create loans
that could help subprime borrowers to become homeowners. Do people still believe that the Fed’s should not be involved in cleaning up the mess they helped create? I’m not going to hold my breath waiting for Greenspan to admit that he helped create our current crisis, as he has been pointing fingers everywhere but at himself.
I got this beauty from ELOANS.
Seems like the Sharks are sniffing blood.
“Fed Cuts Interest Rates Again
Take advantage of the most recent Fed interest rate cut
You may have heard that the Fed recently cut interest rates by .25%, but do you know why this is such good news for you?
As interest rates drop with the Fed cut, E-LOAN\’c2\’ae can immediately pass the savings along to you since we\’e2\’80\’99re a direct lender. This can result in lower monthly payments and a lower interest rate for you.
Act now and see how much you can save.
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Sincerely,
Pete Bonnikson
Senior Vice-President, First Mortgage “
Moe, I want to tell you that everything you’ve written here is pure gold!
Bottom line is that people paid too much for homes that did not justify the price just so they could be part of the action.
People that had equity in their homes borrowed against their equity therfore putting them in the same position as the new home buyer(owing more for the home than its worth)
Homes now cost more than the average person could afford so these homes can not be sold easily, therfore the prices need to reset for the industry to stabalize.
Unfortunatly many people will pay a high price for their actions but i feel they got theirselves into the mess their in.
When else in hisory could you buy a home without a peny to your name.
To Moe Bedard,
Sheesh! So those of us who use proper care when making such a large purchase are labelled “capitalists”, as though that is a bad thing?
Such hateful comments from those ignorant and foolish enough to sign up for bad loans. You made your bed, now sleep in it (until they take it from you since you obviously do not think YOU should PAY FOR IT!)!!!
It is not MY job, my neighbor’s job, or any other person’s job to help you pay for your home. Are we allowed to then live in it? Or do you, an idiot socialist, ascribe to the capitalist notion that you OWN the home?
That was simply the most ill-conceived, ignorant and illiterate thing I have EVER seen posted anywhere on the net!
This is an interesting post:
Facts:
1. No one is forced to purchase a home in the United States.
2. If someone decided to purchase a home, they should have reviewed their paperwork PRIOR to committing to the loan.
3. Two years’ ago when people were making tons of “free” money as the market surged upward, there was virtually no people complaining about the terms of their loan.
This situation is reminiscent of those people who purchased PETS.COM at the peak, and then screamed bloody murder when the stocck went to zero! You get what you pay for!