Is this for all?

iVillage Member
Registered: 08-16-2005
Is this for all?
119
Sun, 09-05-2010 - 9:42am

Wow, we all get to have our mortgages lowered??


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iVillage Member
Registered: 07-15-2010
Sun, 09-05-2010 - 9:55am

The day I support a program like this is the day they I see offered some sort of relief/reward to everyone who has paid for their house in full. I'm so tired of the responsible people being hurt/dismissed. Where is their reprieve? They've actually lost their own money--not essentially stolen someone elses.

Do I feel bad for those who made bad investment choices? Sure. But do I think they the less responsible group should be rewarded at the expense of the more responsible group. Nope.

>>Luck is what you call it when preparation meets opportunity<<
iVillage Member
Registered: 08-14-2010
Sun, 09-05-2010 - 10:20am
ITA, also what adds insult to injury is the Obama administration not only continues to demand taking the most expensive
iVillage Member
Registered: 08-16-2005
Sun, 09-05-2010 - 1:15pm
Absolutely agree with you both.


iVillage Member
Registered: 09-01-2010
Sun, 09-05-2010 - 1:45pm
It is futile to try to prop up housing. It won't help our economy. Prices in many areas are still too high, so protecting the asset value of homes does nothing the make housing fall in line with our lower incomes/standard of living. I'm afraid that millions upon millions of homeowners who bought while the market was high are going to have to feel the pain. That means massive forclosures and significant problems in the banking arena. My former employer just bought a 2100 sq ft home on a double lot near New Smyrna Beach, Florida for $112,000. The home was foreclosed, so he had to wait a long time to finally get his offer approved. The home was originally sold for $103,000 in 1989. It sold sometime in the mid-90's, then sold again in 2005 for $329,900. Once the housing bubble burst, the owners who the bank had lent $295,000, simply walked away. They're out of there, and according to my former employer, they've bought a slightly larger home about 1/2 mile away for $125,000. What homeowner is going to stay in over-priced real estate? What are we doing by propping them up?
~Opal~
~Opal~    
iVillage Member
Registered: 03-03-2009
Sun, 09-05-2010 - 1:49pm

There's a death spiral which can start in neighborhoods, particularly newer ones. Many were built in the boom days of the real estate bubble. I've mentioned before that if a neighborhood reaches critical mass of short sale, loan default, foreclosure and subsequent vacancy or dereliction, ALL houses in that neighborhood decline in value.

Obama may be trying to get a floor under the tumbling values of housing. Whether conservative posters realize it or not, the converse of "rising tide" is also quite possible. An ebbing tide leaves lots of boats stranded, both liberal and conservative.

Before condemning a program out of hand, I'd take a long hard look at the ramifications of doing NOTHING. They could well be dire.

Jabberwocka

iVillage Member
Registered: 09-01-2010
Sun, 09-05-2010 - 2:06pm
The ramifications of doing nothing might not be worse than the ramifications of doing something. By doing this, we're *indirectly* supporting banks which have drug this country into the deepest/longest recession since the Great Depression. And, then the bankers are giving themselves very, very high compensation for having done so. All the while, people are over-extended on their real estate investments. This intervention might help. More likely, though, it will further line the pockets of the ultra-wealthy bankers who are working very hard to assure that their tax rate won't go back to those in the 1990's.
~Opal~
~Opal~    
iVillage Member
Registered: 03-03-2009
Sun, 09-05-2010 - 2:52pm

Interesting op-ed.

http://online.wsj.com/article/SB128363537276934523.html?mod=WSJ_PersonalFinance_PF4

Am soooo fed up with banking shenanigans. I feel like the nation is being held for ransom and would very much like to see the banks experience true accountability.....for a change.

Jabberwocka

iVillage Member
Registered: 07-16-2008
Sun, 09-05-2010 - 3:01pm
Photobucket

iVillage Member
Registered: 09-01-2010
Sun, 09-05-2010 - 3:02pm
Yup...it is a vicious cycle where we wake up each day, facing the same problem and offering the same solution - every day. The bottom line is that Americans cannot afford the homes they bought. Banks have done a great disservice by approving, accepting, bundling and selling mortgages.
~Opal~
~Opal~    
iVillage Member
Registered: 07-15-2010
Sun, 09-05-2010 - 3:48pm

But really...blaming the banks does get old. You had to have had a customer asking for the product. They are the ones who accepted the risk, signed on the dotted line, made the commitment. Ignorance, stupidity, etc.....is not an excuse.

Borrowers who made the choice to buy a house they weren't willing to pay for---they are the ones who did everyone else a disservice except to the ones whose houses they bought. I really get sick of the attempts to blame anyone else.

I bought houses that have dropped in value. My choice. My risk. My responsibility. Period.

>>Luck is what you call it when preparation meets opportunity<<

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