.
If the Government buys mortgages, and then reduces the interest on the paper they hold, so home owners can make their payments, and hold off foreclosure.
My only question is, How do I get "my" mortgage in front of the Government mortgage buyer?
By defaulting on my lone?
My only question is, How do I get "my" mortgage in front of the Government mortgage buyer?
By defaulting on my lone?
posted by madtom at 7:56 PM
7 Comments:
Silly me. When I bought my first home nearly 20 years ago, we scrimped and saved for 4 years to gather the 20% down that was required. Then, when I bought a second home 15 years later, I only had to come up with 3% because the regulations designed to put the 'underserved' population into their own homes had gone into effect, but I did resist the urging of the loan officers to buy a much more expensive home or to let them get another more 'generous' appraisal so I could take cash out on the front end of the loan. And the idiots like Pelosi claim it was deregulation that caused this? It was the demands and misguided concern (pandering) for the 'underserved' that gave us the regulations that made this all possible.
"but I did resist the urging of the loan officers to buy a much more expensive home or to let them get another more 'generous' appraisal so I could take cash out"
What your describing is fraud, a Fraud never intended by the underlining legislation, but allowed to flourish under the lax regulations regimes that have come around.
Both the Clinton and Bush administration used the pyramid of housing values to prop up their economic numbers and looked the other way when it became clear were sever risk involved.
Fraud? Any involvement of the federal government in a private transaction is guaranteed to produce fraud. It was way to easy to manipulate the economy by driving up home values and starts, just as you said, MT. Requiring lenders to lend to those 'under served'(unqualified) and involving community 'organizations'(Marxist thugs) like ACORN to extort money from lenders is the crime committed. The lender should have something at stake--- his job, his reputation, his career, his money. The buyer should have his credit worthiness and his home at stake. Those with something at stake should have to sit across the table from one another and look into each others' eyes for a proscribed time period before signing the agreement. That is the ONLY regulation needed, the rest should rise or fall on its own merits so winners can win and losers can pick up and try again, hopefully wiser for their failures. Government just makes everything much more complicated and impersonal. doing the right thing becomes the foolish thing. Interestingly enough, in some areas these schemes never really took hold. In Texas, which was hit hard by the last financial scandal, we didn't play that game as much and home prices have remained pretty steady while they exploded on the coasts.
But you do understand why the underling legislation was important, you understand that in some areas, like black neighborhoods here in Miami there was like less than 10% home ownership. The neighborhoods themselves were teaming with crime and trash, and the most alarming stat I remember is that the neighborhoods were growing day by day. So something needed to be done, but the fraud you described was never part of it and was mostly used by wealthy people gaming the system, house flippers and land developers alike. Had the regulators not been asleep or paid to look the other way there is no way that these very big fish could have swam up the current with such ease.
So anyway, I have to ask. Are you in favor of the administration bail out plan?
Or, where you jumping for joy when you saw it defeated on the House floor?
I'm a jumper myself.
No, I didn't jump for joy because I knew damn well the Senate would come through for the 'losers' eventually.
The regs that lead to the abuses was intended to serve the crooks in the minority communities, with the expectation that some small good would actually be done in a community that needed it. That was just one of the ways the Dem Party has used racial tensions to pay off their base.
But it didn't stay in that community for long since they made the regs so easily abused that even the Dem Party base could figure it out, so the crooks in the financial community couldn't help but notice, too. And I don't excuse the ignorant assholes who were at the bottom of the pyramid of fraud. You don't have to be a genius to recognize when someone is appealing to your own greed to feed his. Greed is taking what you know is not due you from your own effort, and those who paid a million dollars for a little house in Miami, or Las Angeles, or Raleigh or wherever using a sub-prime loan were being greedy.
the Senate bill is embarrassing, how do you fix a $700 billion financial crisis in the Senate? Easy turn it into an $800 billion fix.
And they are going to fix a credit crunch, by using more credit. Don't you think that the current $9 trillion debt held by the US now might have something to do with credit crunch. The Bush administration has used up all the available credit and now he wants to fix it by borrowing another trillion to put back into the very same credit market??
As soon anyone can, please explain it to me, in small words so that I can understand.
Reminds me of a quote from the Star Wars movies,
"so this is how democracy ends, with cheers and applause"
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