I was reading this Smart Money article yesterday and I couldn’t help but notice a phrase that Paulson said a couple times.
WASHINGTON (Dow Jones) — U.S. Treasury Secretary Henry Paulson said Monday the administration is working to ensure that the subprime mortgage crisis doesn’t lead to a “market failure,” while urging Congress to pass bills to help troubled homeowners refinance their loans.
In prepared remarks for a speech to the New York Society of Security Analysts, Paulson warned that about 1.8 million subprime mortgages will reset to mostly higher interest rates over the next two years, “raising the potential of a market failure.”
“Market failure”, is used twice by Treasurer Paulson. Not recession, not a bad, bad market. MARKET FAILURE!
Are these clues that they know something you don’t (Moe knows)? Is Wall Street and our banking system a sinking ship and these are all tell, tell clues that a “market failure” is coming if these mortgages and this housing crisis isn’t somehow corrected?
People sometimes accuse me of being a conspiracy theorist. A commentator said this yesterday;
This site has devolved into a bastion of crackpot theories. Look out – the black helicopters are coming for you. It’s the New World Order & the Illuminati all rolled up into one…
It’s as if people are saying that I think aliens run the US Treasury, Hank Paulson drives a environmentally safe space ship and the Hope Now initiative is really a pact between planets in our solar system to take over peoples homes. Come on! Yes, I do have a tendency to put my theories out there, but these are based on facts.
Epistemic bias?
From wikipedia;
Another epistemic ‘rule of thumb’ that can be misapplied to a mystery involving other humans is cui bono? (who stands to gain?). This sensitivity to the hidden motives of other people might be either an evolved or an encultured feature of human consciousness, but either way it appears to be universal.
The counter to “cui bono?”, and a generally useful mind-set when assessing a conspiracy theory, is a corollary of Occam’s Razor. “Never attribute to conspiracy what can be set to incompetence.” That is, major events are more likely to stem from a person or groups failures and oversights, than from their efforts and planning.
When I said recession months ago, I was Mr. Doom. When I said we are heading into a “depression”, I was Captain Negative and now Paulson utters the words “market failure” and he is no conspiracy theorist because he is the US Treasurer and plus he dressed those words up with all kinds of great ideas and plans. Moe is just a blogger and conspiracy theorist.
More from Smart Money;
Noting that the mortgage industry isn’t equipped to handle the volume of resets, Paulson said the administration is fostering an effort to “prevent this market failure,” citing its plan to help fast-track a large number of refinancings for borrowers able to afford their current mortgage rates but not the reset rate.
The administration estimates that as many as 1.2 million subprime borrowers could be helped by its initiative, either through refinancing or a workout. Those that can’t pay the reset rate and are unable to refinance will be eligible to receive a freeze on their starter rates for five years. Most mortgage services are expected to start fast-tracking borrowers in coming weeks.
Paulson defended the streamlined process against criticism that it is breaking mortgage contracts, saying mortgage servicers are fulfilling their contractual obligations by “pursuing all loss-mitigation options when it is the best interest of investors, as they normally would.”
Are servicers really following “contractual obligations” or is this more lip service for the media?
However, he added, “There is no single or simple solution that will undo the excesses of the last few years.”
Thus, he urged patience as the administration deals with the short-term consequences of the housing downturn first and “thoughtfully evaluates next steps.”
“Our most immediate goal is to minimize the impact on the real economy,” he said, adding that the administration is also evaluating a number of longer-term policy concerns, including securitization, risk management and credit rating agencies.
President George W. Bush is considering an economic stimulus package that could be unveiled in the State of the Union address later this month, while Democratic legislators are formulating their own proposals.
Paulson called the repricing of risk occurring in global credit markets “a healthy return to fundamentals,” and said it will take additional time to work through given the complexity of the instruments.
He acknowledged renewed risk aversion, but said actions by the Federal Reserve and other central banks to inject liquidity into markets are “having their desired effect,” citing a narrower spread between the London interbank rate and fed-funds futures.
Recent moves by banks to bring troubled structured investment vehicles, or SIVs, back onto their balance sheets are a sign that the asset-backed commercial paper market is recovering, Paulson said. Major banks decided last month that a planned rescue fund for SIVs, which suffered big losses from the subprime mortgage crisis, was no longer needed.
The Treasury secretary also welcomed recent moves by major financial institutions to write down troubled assets or make other moves to strengthen their balance sheets. Financial firms raised $83 billion in equity during the second half of 2007, a 20% increase over the year-earlier period.
“This is market discipline in action and should enhance market confidence over time,” he says.
Investors shouldn’t be disappointed in the balance sheet-related moves or concerned that much of the new capital is from overseas, said Paulson, encouraging other firms to follow suit.
– Tom Barkley, Dow Jones Newswires
I wonder what is the supposed crackpot conspiracy theory?
Paulson is funny with his “market failure”. More like “regulation failure” which got us into this mess. Now we’re actually seeing realistic values take hold in home prices and portfolio values — the market is actually starting to work again, for the first time in a while!
Unfortunately the reality its waking up to isn’t a pretty one.
This story really hits home. While I am not a single mother, I might as well should be. My husband is a full time police officer. He works 12 hour shifts, and at times, many more than that, just to bring in the overtime. I run a home daycare, and work as a waitress on my husbands days off. I never see my family of 5 together, never.There are days that go by in a row when my husband doesn’t even see our children, and to think that in a blink of an eye, he always has the risk of not coming home. We live in a society where police are widely disrespected rather than respected. Having a lot of foreclosures in my husbands town has the potential to become life threatening to not only him, but his “brothers” on the street.
We are now facing foreclosure. We never financed a luxury lifestyle. We have 2 credit cards with a total debt of under $600. We have 1 vehicle which is 4 years old, and that is about it. We live a very basic lifestyle, and have very average things. I would love nothing more than to go blow a ton of money on myself, but I am responsible, and don’t. So, to all the homeowner haters, do we deserve to be in foreclosure? No, we don’t. We got into a bad loan, with a broker who had HIS best interest at heart rather than ours. Mind you, he came highly recommended. I have realized that owing the “American Dream”, is nothing but a lie. The lie about being able to refinance in 2 years. The lie about having equity in your home if you pay your bills and don’t use it as an ATM. The biggest lie I have heard yet, is the lie from our “Elected Official”, Mr. George W. Bush. He ensured homeowners that relief was on the way. I have yet to see it. That relief was designed to fail, just as these mortgages were. It was enough to say, “Hey I did something”, which in reality, he did nothing.
But thats okay, you play with fire, you get burned, and I am on fire. I will fight this foreclosure every step of the way. I intend to use the laws that are designed to protect me to the fullest.
I offered the mortgage company a modification, a modification that would yield them 9.5% for the next 28 years. But my friends, that was not good enough. Apparently, my loan was packaged and sold in a pool of investments that “aren’t able to be modified”. So, this mortgage company wants to own my house with negative equity, and in the end that may happen, but if they think I will lay down and die to them, they are wrong, totally wrong.
Beware when people have nothing left to lose. People have suffered greatly at the hands of an industry in anarchy and the law has failed to protect them. The future will be interesting.
You are a strong woman Mom, thank you for sharing your story with us. I know you speak for many, many others!!!
Emotionally, foreclosure is a terrible experience for people?? Foreclosure is a necessary evil for folks who can’t pay their bills. Death of a loved one is a terrible experience for people. Perhaps the government should put a moratorium on that. The government has no business interfering with the mortgage industry! Read the U.S. Constitution! Mortgage bailouts are not listed in any of its Articles. (Bush has no business bailing out anyone.) The government should give me this…the government should pay for that. Give me a break! Crybabies!!! What the government should do is stay the heck out of our lives.
The lady who is married to the police officer, come on. I commend your husband for his career choice but it is his job to put his butt on the line every time he puts on his uniform. He chose his career either because he loves what he does or it is the only thing he is qualified for.
Stephen: “Beware when people have nothing left to lose. People have suffered greatly at the hands of an industry in anarchy and the law has failed to protect them. The future will be interesting.”
Stephen, we already have enough laws on the books intended to protect people from their own ignorance and stupidity. The consequence of laws like these is they only make people more ignorant and stupid. 0% down? A couple of wise people (my parents) once told me “If it sounds too good to be true, it probably is.”
Ed, the insensitive, capitalist forum is the other way. You made a wrong turn.
Ed – You are absolutely right that my husband did indeed choose his profession. Just remember this, if you should so happen to be so unlucky to need an officer because of an extreme circumstance, and that officer is battling a squatter living in a foreclosure and gets to your need just a minute to late, your life or a loved ones could be lost….Also, no one as parents asked for lead to be in their childrens toys, some have gotten ill or worse. The lucky ones got a refund for the purchase price of the item bought. Why am I not entitled to have my loan resturcted because it was given to me under false pretenses? I am NOT asking for the government to give me money (there are plenty of those people out there already), I am simply asking the government to do what is RIGHT and and step in with these banks/servicers. If my bank modifies MY MORTGAGE, you pal, have NOTHING TO LOOSE, nor does any other tax payer.
Oh come on MomOf3Boys – what false pretenses? The false expectation on the part of your lender that you would honor your obligations? At last count (loansafe.org), you refinanced that house 4 times and twice took out cash. You had problems (not paying your property tax) well before your loan ever reset. Now you’re caught in a market correction – too bad, but shit happens. To me, the more interesting question is that, does your husbands department know how financially incompetent he is? I wouldn’t want to be protected by a cop that can’t pay his bills. How do I know he is not going to take money from bad guys to get out of the mess he made?
LMAO, follow Ed to the RIGHT forum for your negativity.
What in the hell does being a good cop have to do with the financial position one might find themselves in?
All it takes is a sickness or another serious emergency to put most Americans in a whole.
Wrong – We did not refinance 4 times. It was 2x, thanks. And only 1 time cash was taken out for a repair that an insurance company would NOT cover…We are still in appeals for that….My husband can pay his bills, hence the reason we have 2 credit cards and 1 vehicle…We can’t pay the adjusted mortgage amount, bottom line….False pretenses??? I have a forged deed, inflated appraisal, and now after finally getting my appraisal, they have lied about the condition of my home…False pretenses, EXACTLY…Their are LAWS to protect homeowners in this country, and believe me, I will surely use them…You wouldn’t want to be protected by someone who can’t pay their bills? How does his ability to stop a drunk driver, apprehend a murder suspect, or revive a dying victim relate to his ability to pay bills??? How do you know that he won’t take money from the bad guys? Educate yourself a bit about law enforcment. When they apprehend someone for, lets say drugs, they must account, and log any and all drugs, money, material items etc. It must me documented in a case log book, and the police report. Do you honestly think that a suspect wouldn’t say exactly how much money he had if an amount was forged just to get a cop in trouble??? He would. Scum bag criminals will use ANYTHING they can to bring a cop down, ANYTHING. Not to mention, do you think that police work by themselves? No, they don’t. There are AT LEAST 2 officers on each call, but if it is a call that would entail evidence, etc, you are talking 6+ officers not including prosecutors officers, and detectives. I’ll be honest with you, I haven’t paid the mortgage for 4 months, BUT, I have each and every payment in my account…This way, if the bank does modify my loan, I will need nothing other than a rate adjustment. I mentioned my husbands job for 2 reasons, so that people would understand that their are HARD WORKING AMERICANS in this mess. People that work their ASSES off, just to pay the bills. And to give an example of the effect that foreclosures could have on police that have to handle the properties for the towns/cities. Like I said before, if you have police tied up trying to clear squatters out from a foreclosure, there could be genuine victims that NEED help, and here the police are, trying to secure a foreclosed property. EDUCATE YOURSELF about the realities that foreclosure will have on EVERYONE in this country.
Keep the faith MO3B. I assume LMAO means “laugh my ass off”. Why he/she picked that moniker should speak for itself. The post was unkind and mean spirited. Victims should always stand up and fight for what is right using every legal tool available. Victims shouldn’t have to defend themselves against this type of venomous attack. I would say a forged deed is pretty good evidence along with an inflated appraisal that fraud was committed in your case. Just know, that appraisals are done in one moment in time and are subjective values based on closed comparables, property size and condition and neighborhood conditions. One month it could be worth one value and the next month it could have dropped or risen 10%. Good luck to you and your family and tell your husband “thank you” for choosing to “protect and serve”. Also, please believe that there are very good, honorable people in the mortgage industry who sincerely want to help people…..
Virginia – Thanks so much! I have not lost faith in the mortgage industry, and I believe that one day again, if this loan mod doesn’t work out, we will be homeowners. About the appraisal, from what I am reading I can tell you are involved in the mortgage industry. I have a question about my appraisal. I understand appraisals can change all the time, I was referring to some things she put in my appraisal. The appraiser stated that we had a new kitchen (ours is 20+ years old), new flooring (again, NO new flooring whatsoever), New 6 panel doors (we have 1 out of 15), and did not mention that our detached garage was falling down due to storm damage. I am sure there are other things, but I have yet to finish reading it. Would that constitue a forged appraisal?
how do you equate his profession to his personal situation? If his profession was in the mortgage industry I might have some concern. LMAO your’re retarded
Yes, MO3B, that is a fraudulent appraisal. Appraisers in CA are licensed by the state. If an appraiser in CA performed an appraisal like this, I would immediately report both him and the LO to the appropriate Departments to have their licenses revoked (minimally) and to the federal government as well. Nothing will change if we don’t make it change….
Chris, MO3B
While I think LMAO could be a little more tactfull in his/her posting, it is a good point about personal and professional lives overlapping. Organizations such as police forces do monitor for personal crisis as it does affect job performance. As JacMac has clearly covered in her original post, facing foreclosure has major impacts on people’s lives. The last sentence of the first para :”The possibility of job loss purely because of an inability to function is real.” Why should a police officer be immune to this? Luckily most police forces have mental health staff on call, and if MO3B’s husband is having a hard time he should ask for help.
Al~
You are correct in that personal finance is increasingly playing a large role in employment. It depends on the employer and if you are currently working and then have a financial crisis. I would imagine, as you indicated, that there are a lot of support systems in place for a police officer who may be going through that. The biggest problem, I see, is going to come from people who are looking for employment and show foreclosures, NOD’s and BK’s on their credit reports, especially in the banking, mortgage industry and I would think public service employment as well. I am not expert but would love to hear what people have experienced out there regarding credit problems and employment.
I think it’s true that emotionally, the financial difficulties MOM’s husband might be facing can affect the way he DOES his job, but it will never affect his ethics — unless they were largely compromised to begin with.
That he was ethically and characteristically flawed is what LMAO was implying, I think.
I think it’s true that emotionally, the financial difficulties MOM’s husband might be facing can affect the way he DOES his job, but it will never affect his ethics — unless they were largely compromised to begin with.
That he was ethically and characteristically flawed, just because he couldn’t “pay his bills” is what LMAO was implying, I think.
Actually, I never involved my husband emotionally in this whole mortgage mess. What I was implying was that his job is going to become a lot more dangerous because of the havoc a foreclosure can have in an already drug/gang infested town. Not to mention, the every day citizens will suffer because police are going to be tied up handling people living in vacant properties. This was from my original post “Having a lot of foreclosures in my husbands town has the potential to become life threatening to not only him, but his \’e2\’80\’9cbrothers\’e2\’80\’9d on the street.” Get it???? Could become life threatening, nothing about emotions here. And again, here is another one of my comments ” I mentioned my husbands job for 2 reasons, so that people would understand that their are HARD WORKING AMERICANS in this mess. People that work their ASSES off, just to pay the bills. And to give an example of the effect that foreclosures could have on police that have to handle the properties for the towns/cities. Like I said before, if you have police tied up trying to clear squatters out from a foreclosure, there could be genuine victims that NEED help, and here the police are, trying to secure a foreclosed property. ” Where is it that you see me playing into emotions??? Emotionally, my husband doesn’t want this house, he never did. I owned it prior to him. I am just trying to preserve his credit from a foreclosure. His credit wasn’t horrible until now. You people need to stop twisting what I am saying and read the truth. JacMac spoke about the emotional aspects, I am speaking about the effects it could have in a community, crime wise. JacMac and Virgina, please know this post is NOT directed towards either of you…Both of you have been very supportive~
Some folks just need to realize that this crisis isn’t business as usual, and the frag pattern will fall a little further from the center of the box. Which yes, will certainly have both an emotional effect and affect on its victims.
I agree that an individual (especially one in a position of authority) needs to have a good credit record, as well as an absence of other skeletons in their closet that would make them more susceptive to bribes, cons, or even committing unethical acts on their own.
LMAO – I think he’s like Elvis and left building, but perhaps not and we’ll hear from him again. And just in case we do, answer this question for me.
My client:
PRO’s
Excellent credit scores, 720ish
-No late pays in 7 year credit history
-No judgements
-No collections
-Never took cash out of home
CON’s
-Job relocation is forcing move, upside down in home by excess of $100,000.
-Rents won’t cover mortgage payment as home was bought in 2004.
-Doesn’t have 100k plus in liquid assets to cover loss of home sale.
Okay, you’re the financial advisor on this one.
“Debt is the new four-letter word. As the credit-fueled housing bubble comes ever closer to bursting, Democrats in Congress and on the stump are denouncing predatory lenders and their “Wild West” ways. The potential industry blowback extends far beyond NINJA (no income, no job, no assets) mortgages and “liar loans.” A whole new debt-industrial complex — high-interest payday loans, deceptive credit card practices, creditor-friendly bankruptcy laws, and an oversubsidized (sic) student loan business — is undermining Americans’ economic security.” (The American Prospect, 9-17-07)
No, FlipSide, I have not left the building. I work for a living and am a full-time student in a very demanding PhD program, so even though I make time to read, I can’t always respond.
As for your client – what can I say? H/she comes closest to being a true victim in this mess and unless they can stick it out over the long term (by long term I mean 10-15 years) their best option is to walk away from that house – either through a short sale, deed-in-lieu, or foreclosure. When I purchased my first home – pre bubble – I devoured every bit of information I could about real estate and how to manage that “investment.” The first question I asked was “how long will it be before I see any return on this or can get a better house.” Everything I read then said you should expect to hang onto a house for at least 7 to 10 years before trading up or getting out. I have two brothers in the military who both insisted on buying properties at every place they were stationed (once every three years). One had to pay two mortgages for over a year before he got out of his property in Arkansas. The other is still paying two mortgages, one on a $1M property in Fairfax, VA that is currently rented. So, my advice to your client is to get out of that house by whatever means necessary and not buy again until they are certain it is for the last time.
Of course, there are some other options; find another job that allows them to remain in the area and keep the house, get one of the sharks over at loansafe.org to examine the loan docs so you can claim predatory lending, or burn it down. What do you think should be the outcome? Does the lender simply say “sorry house values took a dump, let us take that loss for you and you have a nice life. By the way, we got a property at your new location – you interested?”
Mom – you are really confusing me. The thing you have to realize is that when you put your business on a public forum, people read it and they remember. For example, “Emotionally, my husband doesn\’e2\’80\’99t want this house, he never did. I owned it prior to him” is what you say today, but in October your story was “Since my husband had recently filed chapter 7 (thanks to a nasty divorce), I had a friend that agreed to buy a house with me (to lower the DTI and interest rate).” You say you never used your house as an ATM or took cash out, but you refinance twice after that and the reasons change on a daily basis – “to get it into husbands name and take cash to pay bills, “to put new siding on the dream house that isn’t so dreamy anymore,” and the latest “to pay for damage not covered by insurance.” WTF! I am “reading” what you’re saying and it keeps changing! On top of that, you’ve got accusations flying all over the place about fraud, phony appraisals, that bad old lender forcing you to pay your property tax, the nasty government liening this and liening that … All the while, you remain the poor, hardworking American that us haterz want screw out of your house. My next question is – do you ever listen to what you say with anything resembling an objective mind? Add this to the question I asked previously – do your husband’s employers know he cannot manage his finances? Try to focus here and answer my questions.
Now to you JacMac
“I think it\’e2\’80\’99s true that emotionally, the financial difficulties MOM\’e2\’80\’99s husband might be facing can affect the way he DOES his job, but it will never affect his ethics \’e2\’80\rdblquote unless they were largely compromised to begin with.”
Many would argue that the financial difficulties this person is facing are a direct result of his ethics already being largely compromised. And if the emotional burden of facing foreclosure affects the way an individual DOES his job then my point is made.
Now to you JacMac
\’e2\’80\’9cI think it\’e2\’80\’99s true that emotionally, the financial difficulties MOM\’e2\’80\’99s husband might be facing can affect the way he DOES his job, but it will never affect his ethics \’e2\’80\rdblquote unless they were largely compromised to begin with.\’e2\’80\’9d
Many would argue that the financial difficulties this person is facing are a direct result of his ethics already being largely compromised. And if the emotional burden of facing foreclosure affects the way an individual DOES his job then my point is made.
LMAO — you said it “argue” — which means it is not fact, and so therefore, just your opinion. The “many” you site does not in fact exist, as a fact, you’re just using that term to try to lend some authority to your opinion.
It’s a nice trick, though.
You got that right, new siding….Ever hear of a storm causing wind damage and the insurance company not cover it???….Recently filed chapter 7, yes you got that right, in 2003 I believe….5 years ago now….Recent as in it is still on his CBR…Yes, 1st time refi to get husbands name on the deed, remember he didn’t own it…Paid bills, yes the bill of the person who owned the house with me, did you think my friend wouldn’t want to be compensated for his 1/2 of the house that he just signed over??? I don’t have accusations of fraud all over the place, but I paid for a service and dammit, I want what I paid for…I paid for a fair market analysis of my home (my appraisal), and the appraiser added things to my home that have NEVER existed!!! That was NOT what I asked for! The government isn’t nasty by leining this or that, they are doing what they are paid to do…We owe taxes, big fucking deal! We are paying them monthly, ever hear of things not being handled in a divorce correctly??? Well, it happened and now we are paying for it. The lender didn’t force me to pay the property tax, YOU NEED TO READ!!! They paid my taxes this year, when EVERY OTHER YEAR, WE WERE PAYING it at the end of the year. That was our intention AGAIN this year, but they paid them before we could! That is why the ESCROW department contacted to me. They had it all handled. I do say things with an objective mind. If you are so busy reading the loansafe forum, why don’t you start offering solutions rather than being a “blog tough guy”, throwing around accusations, reading what you want to read, cutting a pasting things to reflect the way you want them to read, etc???!!! Oh, and to answer your question, does my husbands department know his inabilities to handle his finances? Not sure about that one, but his job has nothing to do with finances, nor are credit reports required. BUT, what he does have to show is that there is 5+ months worth of mortgage payments sitting in my bank account right now. There is no inability to pay, there is no desire to pay if they are not going to fix my rate. Why prolong the inevitable? If they won’t modify, we will loose it, so I would rather loose it and have plenty of money in the bank to provide housing for my family. So I have answered your question, LMAO, now you answer mine…What brings your here? What is your objective? What does this housing crisis have to do with you? Have you gotten laid recently? LIGHTEN THE FUCK UP!!!
Oh, by the way LMAO, did you learn this spelling : All the while, you remain the poor, hardworking American that us haterz want screw out of your house. from your “Demanding PhD” course??? I may not spell perfectly or use puncuation correctly, but I certainly don’t put myself on a pedestal, especially to belittle others as you have…..But, then again, I need people like you in my life…Your accusations are the fuels to my fires…..People like you make me want to fight….Even if I loose, because no matter what, I will have $ in the bank and the mortgage company will be stuck with a house that they bought with fake and fraudulent docs….
Another interesting discrepancy:
“I am just trying to preserve his credit from a foreclosure. His credit wasn\’e2\’80\’99t horrible until now.”
and
“\’e2\’80\’9cSince my husband had recently filed chapter 7 (thanks to a nasty divorce), I had a friend that agreed to buy a house with me (to lower the DTI and interest rate).\’e2\’80\’9d
If he had chapter 7 I would bet his credit is as bad as from foreclosure. Was it really worth it to preserve credit that has already chapter 7 on it ?
I would think wife of police officer should have know how to create a plausible story that wouldn’t have so many holes in it.
No discrepancy at all….After the chapter 7 banko, my husband busted his ass to restore his credit….With 2 credit cards, and 2 car loans (1 paid off 2 years early, and one that we still currently have), his score was NOT subprime worthy….680 or 690 (when we refinanced into my husbands name) if my memory serves me right….There IS life after a bankruptcy, whether you choose to believe that or not is up to you….Up until September of this year, his score was close to 700 ( I hadn’t checked it after June)….Getting a refi done prior to Sept. was impossible…I have a foreclosure across from me, and a soon to be foreclosure right next door…(The owner killed himself over his mortgage, so I am sure no one is paying it now)….Personally, all you homeowner haters will crucify ANYONE that tries to get help legitimately….If I was here with brand new cars, debt up to my ears, gold on every finger, and clothing off saks fifth ave, I should be attacked, but alas, that is not me…I have a 2004 Durango, a 94 thunderbird that is not even registered, insured, nor does it even have an engine in it, 2 credit cards, and normal expenses, ie: utilities, food, and insurance. But, keep the criticisim coming, like I said before, your negative energy FUELS my positive energy. I am fighting for what is right, same with Jac Mac, and ALL of the others on the loansafe forum…Ya know, all the others that you people refer to as “sharks”…Why are you so against homeowners getting help from THEIR mortgage company??? If my mortgage company modifies my loan, it will have nothing to do with you or any other tax payer, NOTHING AT ALL!!!! Seems to me, you homeowner haters are RENTERS that want the market to CRASH so that you can finally afford a home, afterall, the prices were RIDICULOUSLY inflated, and all of us HOMEOWNERS will now pay the price both financially, emotionally and physically….
Well,
I’m no PhD, but those are the same things I came up with – thought I’d ask. First thing that came to mind was “You’re fooked!”
FlipSide,
None of my comments were directed towards you…My apologies if you took it that way….
all you people crack me up. Picking on a poor girls problem. Everyone here is a victim and no one will win. The bank is a victim of giving out bad loans, the borrowers are victims of loan officers/brokers selling them bad products, ectera. The biggest victim will be our economy, but no one wants to talk about that. Wait and see folks the worst has yet to come.
“Everyone here is a victim and no one will win. The bank is a victim of giving out bad loans, the borrowers are victims of loan officers/brokers selling them bad products, ectera. The biggest victim will be our economy, but no one wants to talk about that. Wait and see folks the worst has yet to come.”
This is true enough, Homeownersupport, but what is the economy?
Defined: An economy is the system of HUMAN activities related to the production, distribution, exchange, and consumption of goods and services of a country or other area.
So we come right back to people, individuals who are suffering.
If those who are so quick to condemn and judge would start to have a little humanity — realize that the lives of people will be significantly changed NOT for the better but for the worst, then maybe, just maybe, their outlook and opinions would change.
Company A comes up with a competitive advantage (new product, process) and is able to make excellent profits. They give raises to the employees and pay the CEO a big bonus. But then Company B comes along and copies that advantage. Company B starts making a decent profit, and Company A has to layoff some employees and settle for a decent profit, and pay the CEO a big bonus. This is how things always work, over and over again.
The Western world began the industrial revolution and was able to provide an excellent standard of living for their population. But then the developing world copies that advantage. The developing world is beginning to provide a decent standard of living for its people and the Western world is having to learn to settle for a decent standard of living.
This is what is happening. Wages have been stagnant because the developing world has copied our advantage and levelled the playing field. We have tried to use debt to maintain the excellent standard living, but that is not sustainable. If we in the Western world had been quicker to share our bounty with the rest of the world then we would have had a more realistic of what “normal” or “middle class” should be.
The compassion that JacMac is looking for needs to come from the rich. They will need to share their wealth with the rest of the world to minimize the damage. Given the excellent example we have set for the rest of the world, compassion could be hard to come by.
“Share?” Says the rich, “Why that’s un-American!!”
Waah waah! People who bite off more than they can choose deserve the foreclosure. Luxury or not, if you are not ready to buy a home, don’t.
The people who scrimped and saved for years, planned responsibly, and only bought (or have not yet purchased) a home when it was affordable should not have to bail you out. It is YOUR fault. Not anyone else’s! YoOU borrowed the money. YOU should be made to pay it back, regardless of whether or not the home is repossessed.
Nobody held a gun to your head and made you buy the home. Nobody forced you to lie for a liar loan. Nobody forced you to bite more than you could chew.
YOU made that mistake. YOU should pay for it.
Sorry about your situation MomOf3Boys. But have to tell you, you can blame nobody but yourselves. You have too many kids for you to support, which is your fault, not anyone else’s. You took a loan you should not have. You purchased a home you could not afford. And you blame anyone and everyone for your situation simply because the market changed.
Obviously you are not unintelligent people, being that you run a daycare business and your husband is a policeman. But you blew it big time. You simply can not afford the home you bought or the loan you signed for.
You choose to blame a politician and a loan officer? Haven’t we all been told to not make large monetary decisions without consulting an accountant or legal advisor? Did you never learn to expect the worst case – in this case that you would not be able to refinance?
Like many Americans who work hard and did not make such mistakes, I see no reason to bail you out. If as you claim you only want a lower rate, I do believe the government should do something intelligent like allowing all Americans (not just the ones who made the dumb decisions on liar loans and subprimes) to refinance at 5% fixed for 30 or 40 years, no matter what is currently owed. Except for the ones who were idiotic to borrow over 100% of the home’s value, or who purchased luxuries (you say you do not fit into this category) such as expensive cars. They deserve what they get.
Your crime is you made a simple financial mistake. It may cost you. At the minimum, your credit is shot. But that is temporary. At the most, you may lose a few years and a home, but being that your husband is a cop, you have other resources in police unions.
While I can feel sorry for those who face foreclosure, understand something. Bush can do nothing. Congress has to present him with the tools to face this crisis (a crisis due to predatory lending and gullible and many times greedy borrowers).
I am a single mom with 3 kids divorced for 10 years. I have a good job– but that has always not been the case. I bought an older home in need of repair because it had the space I needed for my kids. I made those repairs as needed to the best of my ability. I never had an ARM. I refinanced when rates lowered to a 20 year fixed rate mortgage. I paid twice per month with the goal of paying off the house in 17 years. Twice I was laid off from my job and forced to access a home equity loan for expenses while I looked for another job. I raised my kids and paid my bills. Property taxes and interest in my equity loan began to go up– in the end I was paying 1700.0 per month– far more than I could afford. When the place developed a crack in the foundation and the promise of needing new sewer pipes in the yard – I knew I was done. There was just no way to keep the place. As long as I could– even though I moved out – I kept the lights on there and the grass cut for the sake of my neighbors– even though it continued to impact me financially.
I continue to work full time and continue to pay my bills. I am surprised at some of the nasty replies I see here. Everyone has a stumbling block in life– it may be financial, emotional or physical. I treat cancer patients who never thought they would be fighting for their lives) This is not something I would have chosen or planned. And the consequences will be with me for a long time. I never asked anyone to bail me out. I do feel that lenders are not exempt from needing to deal honestly with their clients. I did try to sell my home for two years before it foreclosed– I could not sell it for what it appraised for in my refinance and I did not have 20,000$ to bring to the closing.
My daughter recently married and my gift to the two of them is a session with a financial planner. I fear for the financial climate they are entering as young newlyweds. And my advice to them– ” live well below your means”.
My advice to LMAO– write back when you have emerged from your self acclaimed superiority and your doctoral program ( I merely have a masters degree. . . ) and have existed in the real world for a while.