Subprime Mortgage Crisis
- Thread starter tech2101
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local 12 proud
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My Heart Bleeds.... 😛
You will be affected, as will I.
It is a shame that those of us who know better will end up sharing the holding of the proverbial bag.
Tech, your slide show lays the blame mostly on the lenders.....many sign and don't bother
to read the fine print.Many kited houses from one mort to another then couldn't cover later...
I don't feel a gov't bail out is the answer either.
Everyone wants out of responsibility for their actions.
Garfield1966
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I do not know much about banking or the housing market aside from what I learned when I bought my first and 2nd house. So perhaps someone will correct me if my logic is faulty.
I look at this as two separate issues. First the banks are responsible for making loans to people who they should have known could not pay them back and were getting in over their head. I think I saw a segment on the tube about banks making loans based on a persons word as to what they make or their assets. If I loan someone something, I will do my best to verify that they have the assets to cover their purchase. It seems to me that the banks for what ever reason did not care whether the loan could be covered. Perhaps they thought that the house would increase in value and they would be covered that way I do not know.
As for the purchaser, it seems that the threat of bankruptcy is not an adequate deterrent to defaulting on a loan. Companies like www.youwalk away.com (I think… this POS 8 yr old mac at work crashes when I go to the site) crop up and teach/help people walk away from their obligations.
IMO, the banks are the ones who bear a majority of the responsibility. They made loans to people that were way beyond the peoples ability to pay. Just because someone asks to borrow $100k or $200k does not mean they can afford to borrow that kind of money.
If I had my druthers, I'd say screw the lot of them. The banks can go stuff it along with the people they loaned the money too. The people who are defaulting can go live in apts and wait 7 or 8 years till the bankruptcy disappears. The banks can take the homes they just acquired and sell them at a loss. Unfortunately, when the bank sells the house at a loss, my house value goes down as a result. Banks are laying off people, construction companies are laying off people, contractors who supply construction are laying off people… and soon you have an avalanche of a cluster phuck.
Did I miss something?
I look at this as two separate issues. First the banks are responsible for making loans to people who they should have known could not pay them back and were getting in over their head. I think I saw a segment on the tube about banks making loans based on a persons word as to what they make or their assets. If I loan someone something, I will do my best to verify that they have the assets to cover their purchase. It seems to me that the banks for what ever reason did not care whether the loan could be covered. Perhaps they thought that the house would increase in value and they would be covered that way I do not know.
As for the purchaser, it seems that the threat of bankruptcy is not an adequate deterrent to defaulting on a loan. Companies like www.youwalk away.com (I think… this POS 8 yr old mac at work crashes when I go to the site) crop up and teach/help people walk away from their obligations.
IMO, the banks are the ones who bear a majority of the responsibility. They made loans to people that were way beyond the peoples ability to pay. Just because someone asks to borrow $100k or $200k does not mean they can afford to borrow that kind of money.
If I had my druthers, I'd say screw the lot of them. The banks can go stuff it along with the people they loaned the money too. The people who are defaulting can go live in apts and wait 7 or 8 years till the bankruptcy disappears. The banks can take the homes they just acquired and sell them at a loss. Unfortunately, when the bank sells the house at a loss, my house value goes down as a result. Banks are laying off people, construction companies are laying off people, contractors who supply construction are laying off people… and soon you have an avalanche of a cluster phuck.
Did I miss something?
777 fixer
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It's called a stated income loan, otherwise known as a liar loan. I'm a bit familiar with it not that I used one but I have a family member, through marriage, who did. We tried to warn them not to do it. Actually warn is putting it lightly, we pleaded with them. However they thought that they were smarter than the rest of us and went ahead with it anyway. A year and half latter they are in the process of foreclosure.
The funny thing is if they had listened to us they would be in a good position as first time homebuyers. If there's any group that is making out right now its first time buyers. Instead they are in the position of having their credit and ability to buy a home wrecked for the next seven years.
That is the whole of the issue in a nutshell......both sides were greedy.So we should pay for their ignorance?
Garfield1966
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NewHampshire Black Bears
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I've "TRIED" repeatedly...to WARN anyone who will listen, about ...capitalism-"At ANY CO$T" !!!!!!!!!!!!
local 12 proud
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SO,Bears.......Your solution is what, SOCIALISM?
I saw people who took advantage of this 'dilemma' and bought properties and rented/leased them over time...they based the whole of their entrepreneurial experience on the ability of the renter/lessor covering the mortgage.It didn't take a rocket scientist to see that when you have 7-15 properties survival depending on 'good tenants' that a couple of 'bad tenants' could bring down the house quickly in domino fashion.So where the hell are the rocket scientists when you need one?It happened here in Pittsburgh and its gone down across the country.Like the Bear says....everybody wants to make it quick...at who's peril?
local 12 proud
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dell, that wiley coyote was my favorite on saturdays.
Toss in some Stooges and now you're talkin'
Famous last words
local 12 proud
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NewHampshire Black Bears
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OK,...."12",
THIS is going to take some DEEP thought(But I know your up to the task)
Who EVER thought(years back), that Humans would be using BOTOX in their bodies, without detriment ?
(By now your scratching your head, thinkin'...."WTF..is that old geezer trying to say) ??
Some of our BEST Cuisine is made with "some" Ingredients that if people "knew" what was in the "stew", that they would NEVER eat it again !
So, the BEST recipe for Capitalism for "ALL", IMHO, includes a "pinch" of socialism !
Yea, unthinkable I know, ......in OK.
