8.31.2007

WHAT A MESS

So, the President is proposing a way to help people who are being foreclosed on. This irritates me to no end. A key element of his plan would allow homeowners with good credit histories, but who cannot afford their mortgage payments, to refinance into mortgages insured by the Federal Housing Administration to keep from defaulting.

Of course, if I was being foreclosed on, I would probably jump at the chance to take advantage of Bush's plan. However, there needs to be consequences for taking out stupid loans! Everyone is trying to find a scapegoat in this situation. The lenders want to blame the government for not regulating them. The borrowers want to blame the lenders for not informing them appropriately. The government wants to blame people for not reading the fine print on their loan documents.

Did I mention that I am so irritated at this right now?

8 comments:

  1. Luckily congress will never pass it. what really ticked me off is the quote from Bush, "Anybody who loses their home is somebody with whom we must show enormous empathy". That is like saying, "anyone who is in debt over their ears because they didn't have the common sense to stop buying things on credit... we must all help bail them out now".

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  2. I am breaking my silence...You don't know me, but I love your blog! I am Elisa Smith's sister-in-law, so I am not some completely random person, but I really do enjoy reading your blogs and I cannot agree with you more about this housing mess. I do feel bad that people will lose their homes over this, and I probably should be more willing to help them out, but if they took out some RIDICULOUS loan amount without stopping to wonder how in the WORLD they qualified for it in the first place or wondering how they were going to be able to keep making payments in the future, well then that is just someone with really bad common sense. And usually the best way to learn from your mistakes is to experience the consequences. Not to have someone else come in a fix everything for you!!

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  3. Amen Cristin! The only way that Andrew and I were able to buy our condo was through a county 1st time homebuyers program where they sell properties for a very low, controlled price. When we went to get preapproved for a loan, it killed me what they approved us for! I don't think people really understand what it means to have a mortgage. This is very un-Christlike of me, but I don't have any sympathy for people who got stupid mortgages and now want me to bail them out. Ain't gonna happen folks!

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  4. Love this post. I'm right there with you.

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  5. Thank goodness that nobody in American has to be RESPONSIBLE for anything now a days. I say lets blame anyone we can for anything we can. I stubbed my toe the other day and I totally blamed......Mother Teresa. She had it coming.

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  6. I work for a title and escrow company and Zach helped passed anti predatory lending laws in Ohio last year as a law intern for the attorney general....so I am more than a little bias BUT I say there is more than enough blame to go around.

    It's not as simple as taking out a stupid loan to make extra $$. Lenders will have appraisers appraise your home above market value and a lot of people don't know they've been predatory lended until it's too late. Not everyone that this effects even knows they're living on credit.

    Our good friend worked as a predatory lender and he got out even though he was making a great income b/c he said he had to salvage his soul.

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  7. Oh, and for the record...I'm not for a gov't program to get us out of this mess - those never work. But, I do agree with stricter regulations on the housing market and stricter penalties for predatory lending.

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  8. Let me point out a couple things. First, one of the main drivers for the "Bubble" in the past few years have been the creative financing. Since more people who in fact cannot afford a house are able to buy a house, the amount of potential buyers have gone up. More demand equals higher prices. Second, if Bush passes a law that saves the idiots, supply will stay low, prolonging the overinflated housing market. This will in turn increase our taxes dramatically. Then all the people who are not in the market yet will still have higher prices and less money due to taxes.
    Don't get me started on the national debt. It is at $30,000 per citizen.

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