Mortgage Relief Plan: An Unfair Solution to the Mortgage Crisis

[pampchefrhondab]

Those who take offense to my post, please understand I HAVE BEEN THERE. I lost 40% of my income over 7 years ago after 17 years with the company I worked for. My bills were based on what we made. I'm still paying the price, but I can pay my bills. I just don't think the government should come and bail me out on the backs of others or future generations - my kids and grandkids.

We just keep slowing down the inevitable in this country - which has been going on since the Carter administration. We need to just let the chips fall where they may and let the free market adjust. It will be hell on earth for a while, but it's coming anyway. We can't keep borrowing from Peter to pay Paul!

If you all think things are bad now, just wait until the inflation hits from all this debt we are taking on. If you thought the late 70's and early 80's were bad (I know some of you don't remember), you haven't seen anything yet. We will have to up the interest we pay to foreign countries in order to get them to buy our bonds. And God help us if foreign countries stop buying our bonds all together!

I understand some like to blame the banks, realtors, etc. Where is the responsibility of people reading their contracts before they sign them. If they don't understand, hire an attorney to explain it to you! They are spending thousands of dollars over 30 years - good grief! They just had a single mother as an example on CBS this morning. She purchased a house for $560,000! Come on, how did she ever think she could afford that! I live in a small ranch house. If anything ever happend to my husband I have always said I would live in an apartment. I would not try to stay in my home! I know I can't handle it on my own.

I agree it's greed, but greed on many in this country. When is enough enough. I watch HGTV like Property Virgins and these people say things like, the appliances are old, they aren't SS, etc. I agree people today want what their parents have as soon as they are out of the house - even more then their parents have actually! Luckily I have had examples in my own family for my children to see mistakes they have made. We have tried to tell them to spend within their means. Hopefully they will listen to us.

My husband and I also could have been a statistic and lost our house several times. First time would have been the first year we moved in. He had been with his company for 2 years and always worked over time. When we went to get our mortgage we could have based the loan on his two-years pay average, but we didn't. We based it on 40 hours a week - we figured he would at least work that. The week after we closed on our house he was cut back to 32 hours a week! This lasted for 2 1/2 years! Luckily we didn't listen to the bank. We had a cushion built in and we survived. Oh, and I forgot to mention I was also pregnant for our first child when we moved in as well! We found out a week later! There have been other bumps, like me losing my job.

We purchased a small ranch home, would have loved to move into something bigger after having 3 kids, but we didn't. We would have loved to have at least a basement on the house, but we couldn't afford the extra money on the mortgage! We have lived within our means.

I know there are many who have been in their house for a lot of years. They probably are the ones who need help, unfortunately they probably will not qualify. It's only those who purchased way above their means that will get help.

 

[legacypc46]

My thoughts, for what they are worth .

People who took a mortgage and fudged anywhere on the application (regardless of what the broker told them), shouldn't get one penny of our tax dollars.

Brokers who did not execute verification of the applicant's stated income (ie. did the old 'wink-wink'), should face civil suit to recoup the commissions earned...the practice was grossly negligient. Same with loans approved when the total mortgage-related payments exceeded 28% of income. Use any recouped commissions to help fund mortgage assistance for those in a legitimate crisis (ie. job loss).

Bank CEOs who allowed their instutitions to then buy and sell these type of loans, should be personally sued for gross negligence. And if there are legal grounds for criminal prosecution due to reckless endangerment...go for it.

Members of congress (on both sides) need to own up to the fact they directly contributed to this fiasco by allowing Freddie Mac and Fannie Mae to underwrite loans for which applicants were truly unqualified...backed by our tax dollars. (Especially Mr Franks, since that fell under his committee's purview.) Let's return to the ethic of taking responsibilty.

Use pre-bubble prices to determine equitable home value for underwater mortgages. For example, we built our home under 2003 prices...had we built it just three years later, it probably would have cost at least an extra $200,000 due to the speculation-driven market. I admit this begs the secondary question of what becomes of the difference...and may cause some banks to go bankrupt...but some banks won't, and new ones will open for business. [I'm probably being a little naive and simplistic, but propping up over-inflated mortgages with our tax dollars isn't the answer either.]

Two thoughts for the top guy: tune in to the Dave Ramsey show and govern from your home office more (the estimated cost for Air Force One runs between $40K and $60K per hour...our tax dollars.)

 

[AnnieBee]

Two thoughts for the top guy: tune in to the Dave Ramsey show and govern from your home office more (the estimated cost for Air Force One runs between $40K and $60K per hour...our tax dollars.)

Love this. DH was wondering why he had to fly to Denver and the AZ to sign some papers... And please, I'm not saying that no other president has not made unnecessary travel, just that shouldn't we ALL be tightening our belts, starting at the top?

 

[ChefBeckyD]

My thoughts, for what they are worth .

People who took a mortgage and fudged anywhere on the application (regardless of what the broker told them), shouldn't get one penny of our tax dollars.

Brokers who did not execute verification of the applicant's stated income (ie. did the old 'wink-wink'), should face civil suit to recoup the commissions earned...the practice was grossly negligient. Same with loans approved when the total mortgage-related payments exceeded 28% of income. Use any recouped commissions to help fund mortgage assistance for those in a legitimate crisis (ie. job loss).

Bank CEOs who allowed their instutitions to then buy and sell these type of loans, should be personally sued for gross negligence. And if there are legal grounds for criminal prosecution due to reckless endangerment...go for it.

Members of congress (on both sides) need to own up to the fact they directly contributed to this fiasco by allowing Freddie Mac and Fannie Mae to underwrite loans for which applicants were truly unqualified...backed by our tax dollars. (Especially Mr Franks, since that fell under his committee's purview.) Let's return to the ethic of taking responsibilty.

Use pre-bubble prices to determine equitable home value for underwater mortgages. For example, we built our home under 2003 prices...had we built it just three years later, it probably would have cost at least an extra $200,000 due to the speculation-driven market. I admit this begs the secondary question of what becomes of the difference...and may cause some banks to go bankrupt...but some banks won't, and new ones will open for business. [I'm probably being a little naive and simplistic, but propping up over-inflated mortgages with our tax dollars isn't the answer either.]

Two thoughts for the top guy: tune in to the Dave Ramsey show and govern from your home office more (the estimated cost for Air Force One runs between $40K and $60K per hour...our tax dollars.)

Sure wish they'd ask for your ideas about a recovery plan!:thumbup:

 

[Jean DeVries]

My thoughts, for what they are worth .

People who took a mortgage and fudged anywhere on the application (regardless of what the broker told them), shouldn't get one penny of our tax dollars.

Brokers who did not execute verification of the applicant's stated income (ie. did the old 'wink-wink'), should face civil suit to recoup the commissions earned...the practice was grossly negligient. Same with loans approved when the total mortgage-related payments exceeded 28% of income. Use any recouped commissions to help fund mortgage assistance for those in a legitimate crisis (ie. job loss).

Bank CEOs who allowed their instutitions to then buy and sell these type of loans, should be personally sued for gross negligence. And if there are legal grounds for criminal prosecution due to reckless endangerment...go for it.

Members of congress (on both sides) need to own up to the fact they directly contributed to this fiasco by allowing Freddie Mac and Fannie Mae to underwrite loans for which applicants were truly unqualified...backed by our tax dollars. (Especially Mr Franks, since that fell under his committee's purview.) Let's return to the ethic of taking responsibilty.

Use pre-bubble prices to determine equitable home value for underwater mortgages. For example, we built our home under 2003 prices...had we built it just three years later, it probably would have cost at least an extra $200,000 due to the speculation-driven market. I admit this begs the secondary question of what becomes of the difference...and may cause some banks to go bankrupt...but some banks won't, and new ones will open for business. [I'm probably being a little naive and simplistic, but propping up over-inflated mortgages with our tax dollars isn't the answer either.]

Two thoughts for the top guy: tune in to the Dave Ramsey show and govern from your home office more (the estimated cost for Air Force One runs between $40K and $60K per hour...our tax dollars.)

Here here.

(Well, except for the Air Force One thing....I don't want the leader of the free world flying commercial. Mostly because I don't want to be on a plane that gets taken down by some kookoo because the president is on it. And the security screening is already laborious enough...I don't want to add extra time for me just because the president is on board my plane. Yes, as a matter of fact, it IS all about me

 

[ChefBeckyD]

Here here.

(Well, except for the Air Force One thing....I don't want the leader of the free world flying commercial. Mostly because I don't want to be on a plane that gets taken down by some kookoo because the president is on it. And the security screening is already laborious enough...I don't want to add extra time for me just because the president is on board my plane. Yes, as a matter of fact, it IS all about me

She didn't say for him to fly commercial - just to govern from his home office more.
Example in Annabel's post of flying to Denver just to sign a bill. $60,000 for a good photo opp?

 

[jrodeo]

So, some are suggesting that if you have been "pressured" into buying something that you couldn't afford, that I should end up having to pay for it? How many of you have been on a car lot and felt pressure to buy a car you really couldn't afford? Are you suggesting that I should have to pay for you who were "coerced" into buying a new car? Well, a house is no different, just a higher price tag. Where do you draw the line? Do you want me to bail out your hum-v purchase too?

As KG stated in a previous post the banks/lenders were forced to make loans to people who shouldn't have gotten them. Then there were the "salespeople" in the middle who were gleeful about this decision. I know personally someone who made a lot of money off these bad loans. He was a middle guy. He's destitute now. So, see, it all works out if you just let the markets take care of themselves. Oh, I forgot, that can't happen now, can it?

This is not directed at anyone on this site, I am just so upset about the bailout and the possibility that my daughter will not ever see the great country I saw. My parents' generation was truly the "greatest generation" and I didn't realize until now the truth of that. The hippies are bringing us all down to their commune-style of living. I am so sad. I really didn't think this would ever happen, but it has.

 

[chefsteph07]

This is what I have been saying throughout this thread about being "approved" for something and knowing if you can actually pay for it.
I don't think keeping up w/ the Joneses is worth all this.

 

[Jean DeVries]

She didn't say for him to fly commercial - just to govern from his home office more.
Example in Annabel's post of flying to Denver just to sign a bill. $60,000 for a good photo opp?

But then it can't be all about me

I know what Annabel was saying. I just would rather have the Pentagon spending $185 million a year (a paltry sum compared to what the banks and car companies have been given) on keeping the president (regardless of who he/she is and what party he/she represents) alive than using it on guns and bombs and other destructive toys. Because, let's face it, they ain't giving it back if they're not spending it, they'll just redirect it somewhere else (I hadn't put anything in parenthesis for at least a sentence, so I'm throwing this in here to keep my streak alive.....)

The fact of the matter is, when the money was all given to the fat cats on Wall Steet and the mismanagement in Detroit, people screamed "Where's the help for Main Street?" Now Main Street is getting some relief, and we're still not happy. I'm glad I'm not in charge, there's no making us happy

Those who pay their bills on time will never get relief. That's the reality. We'll just have to settle for our own personal satisfaction. I mean, really, if I heard on the news that "People who are paying their bills on time, or are being responsible with spending are receiving a bailout" I would seriously have to question the sanity of those in charge for wasting my hard earned tax dollars.

Wait. I already do question their sanity. Not because of decisions they made, but because they volunteered, nay, FOUGHT for the impossible job.

I say, rather than criticize or laud any single decision made, or automatically doom future generations to a vast wasteland that used to be our cozy little country, we wait it out and see how it all ends up in the big picture. It didn't take us 8 weeks to get here (or 8 years, Becky, before you jump , it certainly isn't going to be 'fixed' or 'doomed' by one stimulus package to homeowners. Patience my friends. As a wise woman on this board says in her siggy, "Everything will be OK in the end. If it's not OK, it's not the end."

I'm gonna reserve final judgement for someday in the distant future.

Now I'm gonna take my liberal, bleeding heart out to Mr. Burger for an olive burger (THANKS BECKY!)

 

[ChefBeckyD]

But then it can't be all about me

I know what Annabel was saying. I just would rather have the Pentagon spending $185 million a year (a paltry sum compared to what the banks and car companies have been given) on keeping the president (regardless of who he/she is and what party he/she represents) alive than using it on guns and bombs and other destructive toys. Because, let's face it, they ain't giving it back if they're not spending it, they'll just redirect it somewhere else (I hadn't put anything in parenthesis for at least a sentence, so I'm throwing this in here to keep my streak alive.....)

The fact of the matter is, when the money was all given to the fat cats on Wall Steet and the mismanagement in Detroit, people screamed "Where's the help for Main Street?" Now Main Street is getting some relief, and we're still not happy. I'm glad I'm not in charge, there's no making us happy

Those who pay their bills on time will never get relief. That's the reality. We'll just have to settle for our own personal satisfaction. I mean, really, if I heard on the news that "People who are paying their bills on time, or are being responsible with spending are receiving a bailout" I would seriously have to question the sanity of those in charge for wasting my hard earned tax dollars.

Wait. I already do question their sanity. Not because of decisions they made, but because they volunteered, nay, FOUGHT for the impossible job.

I say, rather than criticize or laud any single decision made, or automatically doom future generations to a vast wasteland that used to be our cozy little country, we wait it out and see how it all ends up in the big picture. It didn't take us 8 weeks to get here (or 8 years, Becky, before you jump , it certainly isn't going to be 'fixed' or 'doomed' by one stimulus package to homeowners. Patience my friends. As a wise woman on this board says in her siggy, "Everything will be OK in the end. If it's not OK, it's not the end."

I'm gonna reserve final judgement for someday in the distant future.

Now I'm gonna take my liberal, bleeding heart out to Mr. Burger for an olive burger (THANKS BECKY!)

Make sure and get onion rings with that!:chef:

 

[Jean DeVries]

You've seen my a$$.

Does it look like I skip many onion ring opportunities?????

 

[Kelly8]

I'm really glad that some of you see the gray area in this and know that some people truly need the help! I've seen so many, especially in the area where I live, struggle BECAUSE OF THE ECONOMY. These are not lazy, uneducated people. These are highly-educated, put-themselves-through-college, work-hard kind of people. I am reading a lot of, "Well, I hit a bump in the road and I didn't need help." That's great-for you! Sometimes our troubles can't-and shouldn't be-compared with others. Just because you made it through doesn't mean that someone else is going to automatically find their way out JUST LIKE YOU DID. The circumstances could be completely different. I live smack dab in the middle of GM country. If GM goes under, we all go under! We aren't talking cyclical recession here. We're talking a huge devestation and the fact that Michigan will have to undergo major changes. We've been an automobile-producing state for the last almost 100 years, and ow that's an issue that might have to be changed. So help shouldn't be given to those who deserve it while this extremely difficult transition is made?

 

[cakepampered]

I think the compasion is very low in this group. It only takes one terrible illness, one or two out of work people, and just plain old bad luck to put people in an awful situation. Looking in the rear-view mirror of the past years isn't going to help us now. All I want is for people to understand that we can't afford to live in a "ME FIRST" society anymore. It must be WE. If you don't want to feel the suffering of others so be it. Like the movie Benjamin Button says: "YOU NEVER KNOW WHATS COMING FOR YOU" To blanketly reject the Mortgage Relief Plan because you think people are lazy or were greedy wanting more house than they can afford, is really narrow minded. We are all in this TOGETHER, if you have a BETTER plan let's hear it. Country First my.....

 

[pampchefrhondab]

Actually I'm smack dab in GM country (the plant is right down the road - many of my neighbors work there), and Harvester, RV, Chrysler, Pontoon Boats, you name it!! My husband has worked for the RV industry, Pontoon Boats and now works for a Chrysler/Mac Truck supplier.

I keep trying to tell everyone I understand the struggles - I just don't think the governement should bail me or anyone else out.

I guess with age things change. I would probably feel the same as many of you when I was younger. When I was in high school my father worked at International Harvester. Guess what, they closed the plant in Fort Wayne. He had to travel for the last 10 years working to Springfield, Ohio, every week and live in an apartment (after being laid off for 18 months) . He also had to retire years before he wanted to due to my Mother's health. My Father was one of the lucky ones to be able to even work. Most of the people in my old neighborhood worked for Harvester. Guess what happend when it closed - yep, a lot of homes went on the market. House values dropped. The neighborhood is not the same anymore, but the poor got some great houses at a great price. It's free market. The school system also lost a lot of money from Harvester leaving, but guess what, they survived.

 

[Shawnna]

I see these elderly people who won't open a bank account...well until the government forced them to in order to receive their SS direct deposit...because they are afraid of the banks and I used to think they were just silly. Why keep your money at home and hide some of it to avoid giving the government money...well, now I can see their point...lol. I am really tired of working my tail off and my husband working his tail off and our kids suffering because we can't spend a lot of time with them, driving 10 year old cars and living in a home that you freeze in in the winter and burn up in during the summer and none of the appliances working correctly, but I can't afford anything else because I have to pay so much in taxes and then the family with tons of children who receives my tax dollars in the form of food stamps, Sooner Care insurance, and a welfare check living in a better house than me, driving a new car, and gets to spend the school day watching soap operas while I work and then spends the evening with her children at all of their activities...while I work.

My husband lost his job 5 years ago. His income was 80% of our total income. We had bills to go with everything we earned. For 2 years I worked full time and he did odd jobs until he found a good job. When I had used all of our savings I went to apply for food stamps for 1 month hoping that we would be back on our feet by the end of that time. What did they tell me? "Sorry, you leased some land 2 years ago and so we still use that income until the lease is up...another year." Now, this was pasture land and the bank got every dime of the lease money because it was mortgaged...we didn't see one penny of it. The next thing they said was "come back next year and we will see what we can do." We managed to stay afloat by robbing from peter to pay paul...skipping this payment one month and that payment the next...its a vicious cycle and by turning off our central heat and using a wood stove...which meant sleeping on the floor or couch so everyone would be warm. I had a friend whose husband was injured and couldn't work. She didn't work but promptly went out and got a job...which wasn't enough to support them. She worked while the kids were in school and got her MIL to babysit the baby during school time because hubby couldn't take care of himself let alone a child. Then she went home and took care of the family as best she could. The lovely welfare system told her to sell her home...which had a payment cheaper than renting...and sell her car...which was payed for...and then they would help her. So, she was suppose to rent a home, not work at all because she wouldn't have a car to drive herself to work, etc. so that the government could use her tax dollars to help her out. The whole system stinks. And it is every government program out there...child welfare, sooner care, food stamps, etc. They all stink. But...what is the answer to fixing them?

I think if every able-bodied American citizen would go to work and actually work while they were there...I own a business and workers think they should be able to come and go when they please and work if they feel like it...and send all the illegal aliens back to their own country and quit giving them our tax dollars, tell women who are legitemately on our welfare programs to stop having kids...many have more kids so they can get more money...its a fact I have seen it and heard them myself...and stop hiring out our work to other countries because it is cheaper and stop buying things we don't need, we might see some improvements. We have to all get off our tails and go to work to improve our situations. My car has nearly 200,000 miles on it, the hatchback won't open, the headlights keeping blowing bulbs, etc, but it's down to the last 4 payments. I would love to have a new car but I can't afford another payment so I'm not buying one. My car is still usable. It still gets good gas mileage. I'm taking care of it for as long as the motor holds out and then we will see what happens.

 

[pampchefrhondab]

I hear ya Shawna! All of my cars have over 100,000 miles, one close to 200,000. But they are all paid for!

 

[Shawnna]

I just keep telling myself...1 less payment after June. I hope I can put that $400 into my mortgage payment and soon be debt free...well until my next child goes to college...lol

 

[Kelly8]

To blanketly reject the Mortgage Relief Plan because you think people are lazy or were greedy wanting more house than they can afford, is really narrow minded.

Well said!

 

[cakepampered]

This is for the person who started this thread. I just want you to read about a real American tragedy. Then I want you to really think about what you wrote. I have been beside myself since I logged on here and read your offering today. I hope that you will start getting your "talking points" from different news sources in the future!

Today's testimonial comes from a military family. Carol Ann Smith has a son serving in Iraq and a husband who served in Vietnam.

I have a daughter who is mentally ill and my husband and I are raising her two children. The cost of her treatment and the care of the children made it difficult to pay the bills. My husband taught Algebra and Geometry in the public schools and I am a second shift computer operator.

In desperate circumstances we refinanced our home with HSBC at a 12% rate, thinking that we could refinance in a year. Then, my husband had a stroke and had to take early retirement. We quit paying our mortgage and filed bankruptcy.

HSBC has offered an 8% rate, but they added $18,000 to our $180,000 mortgage, raising the loan amount to $208,000. The house would not appraise for more that $180,000.

We received this offer in a letter. The payment is still too high. I have tried to call HSBC and left at least 20 or 30 messages, but they do not return my calls (we have signed a waiver through our attorney allowing direct contact.) If they would work with us on the payment, we would be able to stay in our home. It is just frustrating that they won't return my calls.

No one placed a gun to our head and made us make this terrible loan, but we are willing to pay back every cent if they would only lower the rate to make the payment something we can afford. Otherwise, HSBC will own a home that needs quite a bit of work, in a neighborhood where several homes are already for sale.

My husband is a Vietnam veteran and my son is currently in Iraq. We are good citizens that have faced life changing events. I pray for everyone going through the anxiety and stress of losing a home. Ultimately, we are all in this together.

 

[pampchefrhondab]

Well obviously if you think I'm heartless you don't know me. My post of course cannot address every situation or every person's financial problems. If you read through all of my posts you will see I said there are those who have been in their homes for a long time and tried to do everything right who need help, but sadly they are the ones who will not qualify or get help. It's those who purchased a home they knew they could not afford. The government will help them out and then in a few years they'll be in trouble again.

My FIL was a Vietnam vet as well. He lost his job 3 times in the 25 years I knew him (he died 3 years ago). My in-laws had to sell their home and move into a smaller less-expensive one. They didn't get any assistance either. He died of cancer being treated at the VA hospital because they could not afford health care - he lost it when his company went bankcrupt. His cancer was caused to his exposure to agent orange in Vietnam. Not once did he or my MIL say the government should be bailing them out.

Sh** happens in every life. It's not the governments responsibility to save everyone from everything. It is their job to protect our personal liberties and freedoms.

 

[Crystal Patton]

I agree with Rhonda, the first amendment says we have the right to pursue happieness, we do not have the right to happieness. There is a difference.

 

[Kelly8]

I don't think anyone is saying that it's the government's responsibility to save everyone from everything. But obviously there's a larger problem when a huge amount of people are losing homes-and these are people who have previously never had financial problems. Look at it this way: If you send your straight A student into a classroom, and the whole class is failing, including your student who has never had problems before, wouldn't you question the teacher? It's the same principle. There's something more wrong here.

 

[Crystal Patton]

I don't think anyone is saying that it's the government's responsibility to save everyone from everything. But obviously there's a larger problem when a huge amount of people are losing homes-and these are people who have previously never had financial problems. Look at it this way: If you send your straight A student into a classroom, and the whole class is failing, including your student who has never had problems before, wouldn't you question the teacher? It's the same principle. There's something more wrong here.

That is a good analogy (like I can spell that LOL), and this is why I like to read these threads. To try to see things from another point of view.

 

[candiejayne]

looks right to me, but i am a horrible speller, so you could be wrong and i'd never know it.

 

[susanr613]

Crystal you spelled it right.

Here's my take on this thread. I think that the initial posts were made from reading the headline (bailing out homeowners, forestalling forclosure) and letting a sense of frustation overwhelm. When I first read the headlines I was upset too, then I read more and realized that this plan is designed for people who are responsible but got knocked sideways by health or the economy.

It seems to me from skimming the subsequent threads that many are in agreement that there are many people who take advantage of the system (welfare), that not everyone in default is irresponsible, and that the impact of doing nothing is a big ripple effect.

I'm not defending anyone who posted anything that offended anyone (well unless you're offended by what I've posted, then I will defend my posts ;-)) Just trying to get the big picture here.

 

[candiejayne]

I agree, Susan, the more I read about it, the more I like the plan. It might not be the exact answer to the problems right now, but I think that it just might be a good start to things.

 

[Crystal Patton]

Upon further reflection on the school analogy (BTW thanks to everyone for the spell check LOL) I have a thought, it's rare and there was smoke involved LOL. If your straight A student was failing a class that all the other students were failing, yes you would then look to the teacher. However, you wouldn't pass the whole class, you would find a new teacher.
I hope that is what the Mortgage Relief Plan is all about.

 

[Intrepid_Chef]

Deep breaths, deep breaths ....

I am single, bought my home 9 years ago when I had a higher income. My mortgage is modest and the payments are roughly equivalent to the rent on a 2-bedroom apartment.

I am now struggling and am one payment behind on everything, but am not on the brink of foreclosure. I do not expect this measure to help me. My interest rate is fixed and I did not get socked with any "balloon" payments.

I do, however, expect it to benefit people who got stuck with skyrocketing payments due to predatory lending or bank error. People like a friend of mine who lost their job and are only now getting back on their feet, and who just need a break. People who would be OK if they could just negotiate reasonable terms on their mortgage.

I do find it amazing that the people who applauded the stimulus and spending under the previous presidents are now lamenting this one.

 

[pampchefrhondab]

I don't have a problem with loans being re-negotiated to a lower interest rate - as long as the entire loan is paid back to the bank by the home owner. This should have happend with this banks way before the government asked (forced) them to do it.

I do have a problem with the government paying a difference of the mortgage payment monthly to the bank.

The example they gave on CBS yesterday was a man who had owned his home for several years, was working two jobs to pay the mortgage but couldn't keep up. His house was worth $150,000. The specialist they had on said he would get no help from the plan because his payment was already below the 31% of his montly income before taxes and was at a fixed rate. Then there was the single mother with the $560,000 house who would get help and only have to pay the 31% of her income toward the payment. Tell me what part of this is fair when this women knew she could not afford a $560,000 house before she even purchased it. This is an inflated house price and if it were just left to go into foreclosure the price would drop and someone would purchase it at a better price. Again - free market.

You're right something is wrong - too many people have gotten over their heads and lived on credit cards. Now they can't get any more credit. Or many of these people paid the "pick a payment' at the lowest rate - not even covering the interest - thinking they would move in a few years and then get equity out of the house. Guess what when you go gambling sometimes you lose. That is what happend to them.

Again, I'm for the banks working with the home owners, just not the governement picking up the tab - with my tax dollars. It is not the governments money. It is tax payers money, and I don't agree with my money being spent this way. Our tax dollars should not go to social programs. Social programs should be in the private sector like Habitat for Humanity, food banks, etc. Tax dollars should pay for roads, schools, defense, etc.

Again, I have been there as well. I was 2 months behind on my house payment when I lost my job as well as a month behind on many of my credit card bills. I had a notice put on my front door by the mortgage company of foreclosure warning and to make my payment (this was after I tried to call them and work out a payment arrangement) - I had paid my mortgage on time for 12 years at this point. I was hammered with late fees on my credit cards - $30-$35 for late fees, some went into overdraft fees. These late cc payments just fell off of my credit this year! But I signed on the dotted line and agreed to the terms. I wanted that money (actually needed it). I did nor do I expect the governement to give me money to bail me out. I worked hard to do it myself - part of the reason I started selling PC! My husband and I still do not make as much money as we did before I lost my job - we probably never will. We have had to give up a lot of things, but we have survived.

This is my opinion. I understand others don't see it the same way as I do, but there are many who do.

 

[candiejayne]

I do find it amazing that the people who applauded the stimulus and spending under the previous presidents are now lamenting this one.

I had that thought too. I didn't really agree with that stimulus, but I was more than happy to spend the money I got. I didn't spend it the way they intended it to be spent, but it helped me get caught up on bills one month.

 

[chefsteph07]

I had that thought too. I didn't really agree with that stimulus, but I was more than happy to spend the money I got. I didn't spend it the way they intended it to be spent, but it helped me get caught up on bills one month.

I think this is because the MAJORITY of taxpayers benefited from the stimulus, where this bailout stimulus will not. Only my take on it.

 

[candiejayne]

But not everybody did benefit.

 

[jwpamp]

Not sure on my thoughts on this yet, I am trying to list the pros and cons...it has so much more to do with than just helping out those who bought more house than they could afford, it has to do with stabilizing a faltering economy.

However, I did tell my son to remind his very negative minded econ teacher the difference between Democrats and Republicans begins in Kindergarten....

The Democratic Kindergartener will share his crayons with his classmate, and the Republican one would tell the classmate to go get a job and buy his own.

Awwwww, come on, it's just a joke -- no backlash, please. This leftie took a lot of flack during the election!!!

 

[candiejayne]

Thats cute lol! Not sure it will be much appreciated on the other side though, but thank you for giving me a laugh.

 

[jwpamp]

Oh, and it's not the "Fault" game, you can't blame just one person in this....there are homeowners whose eyes were bigger than their bank accounts, bankers who took advantage, and the government who didn't keep an eye on programs that they were insuring. Added to the bubble bursting and good, hard working people who COULD afford nicer things getting slammed by the economy. What a mess!

 

[chefsteph07]

But not everybody did benefit.

That's why I said the MAJORITY benefited...I know that's not everyone, but it's MOST people who filed taxes last year. "I" am not in trouble w/ my house, but I have to foot part of the bill for people who are? I'll gladly pay back money that my family received last year...I consider that more of a "cash advance" to me. There's a big difference.

 

[chefsteph07]

Not sure on my thoughts on this yet, I am trying to list the pros and cons...it has so much more to do with than just helping out those who bought more house than they could afford, it has to do with stabilizing a faltering economy.

However, I did tell my son to remind his very negative minded econ teacher the difference between Democrats and Republicans begins in Kindergarten....

The Democratic Kindergartener will share his crayons with his classmate, and the Republican one would tell the classmate to go get a job and buy his own.

Awwwww, come on, it's just a joke -- no backlash, please. This leftie took a lot of flack during the election!!!

The Democat kindergartner would MAKE the Republican kindergartner GIVE his crayons to the others and leave him w/ none. Leaving the Republic kindergartner crying and confused as to why he had to be made to give up something that was HIS in the first place and his parents probably worked very hard to get for him.

 

[esavvymom]

My father-in-law had a great idea. He researched and found that there were about 250 million people who filed taxes last year. Instead of wasting BILLIONS on special-interest "stimulus", the government should write a check to every tax payer for $1,000,000- tax free. That would equate to $250 million. We can then spend that money as WE see fit and stimulate the economy the old-fashioned way, by spending it! Maybe we should all write our representatives with this idea. It would save SOOOOO much money, and it would actually work! First thing I'd do, pay off my mortgage, and then you would be free to spend money on travel, 'stuff', and INVESTMENTS into the markets again.They could even give money to those who DIDN'T file taxes and still not come CLOSE to the $1 billion mark!They would never go for that idea, because they'd lose the opportunity to tell folks HOW to spend the money or to get their hands in areas they've been itching to for years (like making health care decisions on treatments).

 

[chefsteph07]

There is a story running on Yahoo right now about a 90 yr old man who lost 700K and has to go back to work making $10/hr ....now THAT is someone we should feel sorry for. I couldn't even watch the rest of the story, it was a video clip. And, I think HE OWNED HIS OWN BUSINESS.

 

[pampchefrhondab]

My father-in-law had a great idea. He researched and found that there were about 250 million people who filed taxes last year. Instead of wasting BILLIONS on special-interest "stimulus", the government should write a check to every tax payer for $1,000,000- tax free. That would equate to $250 million. We can then spend that money as WE see fit and stimulate the economy the old-fashioned way, by spending it!

Maybe we should all write our representatives with this idea. It would save SOOOOO much money, and it would actually work! First thing I'd do, pay off my mortgage, and then you would be free to spend money on travel, 'stuff', and INVESTMENTS into the markets again.

They could even give money to those who DIDN'T file taxes and still not come CLOSE to the $1 billion mark!

They would never go for that idea, because they'd lose the opportunity to tell folks HOW to spend the money or to get their hands in areas they've been itching to for years (like making health care decisions on treatments).

Nice idea, but 250 million times 1 million is more then 250 million!

 

[Kelly8]

That's why I said the MAJORITY benefited...I know that's not everyone, but it's MOST people who filed taxes last year. "I" am not in trouble w/ my house, but I have to foot part of the bill for people who are? I'll gladly pay back money that my family received last year...I consider that more of a "cash advance" to me. There's a big difference.

I hope that for your sake you are never in trouble and you if you are that you find more compassion.

 

[ChefBeckyD]

The Democat kindergartner would MAKE the Republican kindergartner GIVE his crayons to the others and leave him w/ none. Leaving the Republic kindergartner crying and confused as to why he had to be made to give up something that was HIS in the first place and his parents probably worked very hard to get for him.

LOL - that's probably the more accurate scenario.

I don't mind sharing - but when it's taken from me even when I say no, I consider that stealing.

 

[BadGirl]

I don't think we should be bailing out anybody (person, bank, or employer). Not a single dime should be shelled out....

People take risks all of the time (expecting their employement to be "guaranteed", buying a house certain that the value will increase, assuming that they will always have good health, etc.). Sometimes these risks work to our advantage, and sometimes they don't.

98% of the mortgages are still being paid on time. The economy can't be *that* bad if the majority of people are still making their payments.

 

[ChefBeckyD]

I don't think we should be bailing out anybody (person, bank, or employer). Not a single dime should be shelled out....

People take risks all of the time (expecting their employement to be "guaranteed", buying a house certain that the value will increase, assuming that they will always have good health, etc.). Sometimes these risks work to our advantage, and sometimes they don't.

98% of the mortgages are still being paid on time. The economy can't be *that* bad if the majority of people are still making their payments.

Actually, the statistic I heard on the news this morning is 92%.

And the person who was giving the statistic was saying the same thing you are. It's very sad that people are losing houses, but it's always happened - and it always will happen.

I am not heartless, as people who think this stimulus is a good idea would have you believe. In fact, we as a family have personally helped out friends of ours who we know are struggling right now. Lending a helping hand is a value I hold very highly.

I still think this stimulus package is completely wrong. But only time will tell.

 

[BadGirl]

Thanks for clarifying the statistic, Becky. I heard my husband mention it this morning....and it was in one ear and out the other.


My DH and I are about *this* close to putting in an offer in on some property to build a house. This excites me and terrifies me at the same time, because of a lot of reasons. We both have a great job, we both have substantial 401K investments, etc. But we're both realistic: we both drive vehicles with over 210,000 miles on them, both now live in a house that we'd have to sell, have jobs that could go away, despite how cushy they seem now. All of the positive things that we share now could be gone in an instant...and we're infinitely aware of that. Do we take the risk on this new property and new home? I'm still not sure. But you can guarantee that we'll not make the mistake of buying something that we can't afford to pay back, even if that means that we sacrifice our retirement fund. I would never expect anyone (an individual person or our government) to pay for my mistake in taking on a loan that I could not afford.

 

[chefsteph07]

I hope that for your sake you are never in trouble and you if you are that you find more compassion.

I consider myself VERY compassionate, but I am not going to ask the entire country and generations of children to help me out of my mess either. And I was just responding to the comment about what's different between THIS stimulus and last years.

 

[chefsteph07]

I don't think we should be bailing out anybody (person, bank, or employer). Not a single dime should be shelled out....

People take risks all of the time (expecting their employement to be "guaranteed", buying a house certain that the value will increase, assuming that they will always have good health, etc.). Sometimes these risks work to our advantage, and sometimes they don't.

98% of the mortgages are still being paid on time. The economy can't be *that* bad if the majority of people are still making their payments.

Groceries have gone up a lot in the last year, I have to go out and get some, but I have alot of other bills to pay this week...would someone mind buying them for me? Or can I just go in your fridge and take yours?

 

[esavvymom]

Nice idea, but 250 million times 1 million is more then 250 million!

Duh...yes..You are right. I didn't check his math. forget I said anything...*lol* Long week.

 

[pamperedlinda]

Duh...yes..You are right. I didn't check his math. forget I said anything...*lol* Long week.

I liked your math better....

 

[Kelly8]

I don't think I ever heard anyone ask for someone else to pay for their mortgage. What people asking is a restructure of the loan! Stop being so judgemental!!!

 

[esavvymom]

I liked your math better....

*hehe* sorry about that- the idea sounded so good, I didn't even try to multiply it out, but shoot...even if you DID give each tax payer only $10,000 (that comes out to $2.5 trillion (I think...it's hard to track that many zeroes!)....the stimulus would probably work more effectively than the almost $1 trillion in the proposed and most recent stimulus packages combined.

Oh well, we shall see where the chips fall. Obviously Wall Street isn't too crazy about the fabulous stimulus monies either...course they blame it falling on the job market still looking bad (as if it would have rebounded that quickly).