Mortage Bail out

[JMack]

     One reason for any mortgage bailout, is so that banks would continue to loan money.  The banks were making it harder to get loans after giving them to anyone.  Also american banks tend to want to keep ownership of their business instead of loosing them to other countries through massive stock buys.  Ah who knows?  Why anyone would borrow 100% to 120% on their home and hold no equity is beyond me.  This is also happening in Europe too.  I have a few friends in the banking field who say that the same thing has been happening there.  Keeping up with the Jones, has caused homeowners to over borrow and over spend.  They can't afford to pay the mortgage and to save face, the owner goes to the bank and hands over the deed to the bank but, with an agreement, they continue to pay rent to stay in the building.  I'm sure most banks who gave these jumbo loans also pmi'ed or applied mortgage insurance to people who borrow 95% to 120%.  If not too bad.

[SLCPUNK]

Why should they be helped? Should we help people who can't make their car payments as well? Who run up credit cards they can't pay off?

They had a contractual agreement they signed with a lender. I bet if house prices were still zipping up at a 20% rate, they wouldn't be complaining now would they? Give me a break.

A bail out is not needed, more oversight is needed. We had lenders giving out 110% loans to people with poor credit, so they could buy boats and a new Lexus for Mom. When their ARM is twisted, and their home value is now flat or declining, they want help? Shit man, get real.

Right now over 96 percent of notes are performing, that's pretty good. Yea, some banks are eating their shorts, that's why it's called investing. I use ARMs all the time, but I understand that they will jump a few points when the initial period is over. How can anybody claim ignorance? They explain it to you at the closing table every fucking time, and you sign about 50 pieces of paper in the process.

[JMack]

I agree with the distinguised Madam Taint!  Some of these people were thinking with their taints.

[SLCPUNK]

I agree with the distinguised Madam Taint!  Some of these people were thinking with their taints.

hahaha!

Well, ironically, I just got a foreclosure notice, sent to me (a copy), for a lady I sold a house to last Feb. She got one of these nutty loans, and hasn't paid on it since June!

[JMack]

I agree with the distinguised Madam Taint!? Some of these people were thinking with their taints.

hahaha!

Well, ironically, I just got a foreclosure notice, sent to me (a copy), for a lady I sold a house to last Feb. She got one of these nutty loans, and hasn't paid on it since June!

Ah that sucks man.  She assumed the original mortgage and took another out?  If so you've got a rental and have to take out another ARM, I guess.

[SLCPUNK]

I said I would carry a second on the house to make the deal work. She satisfied the second, but paid little of the first (90 percent-all sub prime) note. The second was all profit, I no longer owed the bank a thing. I think they included my name in the suit against her, to make sure they are first in line to get the house. They have nothing to worry about, since I no longer have a vested interest in the property and have not for months now. Still scared the shit out of me to see a big lawsuit packet with my name on it. I'm thinking about buying it again.....

[JMack]

Yeah man I've had a few packages handed to me with "paper" in them but nothing stuck.  I recently got a friend to sell off some properties just because of the headaches.  I still own 3 props but no worries as of now.  I'm probablly going to get rid of one in early 2008?  I only owe on the one I live in and that's enough as it is.  The others are just taxes and I can handle that for awhile.  Who knows?  I keep telling the wife we're selling but she says no and the kids back her up.  I guess I'm stuck till 2 at least are out of college.  That would be approx 8 years and then 1 more go around.  The pre med is killer.  Hey whatever at least they have the choice of going.  I didn't until I could pay for it myself over several years.  It is what it is though.