Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
When does or will this plan roll out? I was "duped" into that dang a.r.m. thing as well. I had no idea that my payment would go from $864.00 to $1,651!!! I am on the very vurge (spell check) of losing my home, like today!!! They (the mortgage co.) told me that the payment could easily go down, who knows, but if it did go up, it would only be like a half a percent or something. That is not, and was not the case!!
Why aren't you able to refinance? Did the value go down or did you miss some payments etc?
The federal govenment knew exactly what was going on when these loans were being handed out like candy to people who should never had been able to "qualify" for a mortgage.
The people signing the ARM agreements "knew exactly what was going on" as well... they had the exact words in front of them with the full disclosure on what could happen to the rates.
If this passes, I guess I'll run out and buy that half-million dollar beach house on 100% financing 1-year adjustable. Then maybe I'll quit my job.
Hey Sponger--
It passed, and I'm with you! After all, our wise political leaders are giving us the go ahead. Why do without or live within our means when everybody's so eager to bail us out?
I think we can still get 125% financing if we fib well enough. I'm hoping for that 1.9% teaser rate with closing costs rolled into the loan, so I'm not out any money. I can ride that rate for a year, then that teaser freezer should kick in for the next five or maybe even seven. If I can pull enough wool over their eyes, find a greedy enough lender and count on anxious politicians to bail me out, I can enjoy my beach house for at least seven or eight years before somebody pulls the plug on me. But they'll have new entitlement programs by then, so I'm not worried. Maybe I can even trade up. Actually, half a mil doesn't really buy very much. A cool mil would buy so much more and, after all, I'm worth it. I deserve the best, whether I can afford it or not. Fine print-- what's that? Thanks, politicians! Thanks, taxpayers! You're the BEST!
How is it going to help? Isn't it just delaying the inevitable? Or are we just spacing out the crash in hopes it doesn't impact the rest of the economy?
george bush is not my favorite president however, in 5 years the housing market will not be in a nosedive and prices will be back up. its not a horrible move. it is a short term fix, it will stagnate investment but this will be offset by termination of the war. this is of course assuming we terminate the war soon. i think one of either party will do this soon. if they do not terminate the war, all bets are off.
Last edited by Huckleberry3911948; 12-05-2007 at 08:09 PM..
Reason: typo
How is it going to help? Isn't it just delaying the inevitable? Or are we just spacing out the crash in hopes it doesn't impact the rest of the economy?
This has little, if anything, to do with helping homeowners IMO (other than the usual political posturing of course)
It's all about giving the big banks time to secure capitol before coming clean with all the toxic debt on their books. They're in trouble right now and the last thing anyone wants is a widespread failure of the banking system.
So yes, I think the powers that be are trying with all their might to prevent an economic meltdown. But the problem as I see it is that an economy built on borrowed money is an economy built on borrowed time.
Here's a scary stat for you...
According to Federal Reserve data, consumers have taken about $3 trillion in equity out of their homes in the past five years, adding about 7% to disposable incomes every year. That boost kept the economy humming and has driven the personal savings rate below zero for the first time since the Great Depression.
Yikes!
One suggestion I heard today was to go ahead and freeze interest rates for the prescribed period of time (I agree that 5 years is too long) so folks are able to keep their homes; but tack the amount they should be paying, as per their signed contracts, onto the back end of their loan.
The problem that occurs to me most about any sort of "bail-out" is: what about the folks who've already lost their homes (and backsides) because of the ARM's? The bailout comes too late for them. Doesn't it?
And no, it's not fair to the folks who could afford to be responsible and didn't need to rely on an ARM to get their home - but whacha gonna do?
When does or will this plan roll out? I was "duped" into that dang a.r.m. thing as well. I had no idea that my payment would go from $864.00 to $1,651!!! I am on the very vurge (spell check) of losing my home, like today!!! They (the mortgage co.) told me that the payment could easily go down, who knows, but if it did go up, it would only be like a half a percent or something. That is not, and was not the case!!
There were plenty of people warning against ARMs -- and wouldn't your lawyer have pointed out that your rates could go up higher than a half percent? You need a different lawyer next time who will look for things like that in the contract.
How is it going to help? Isn't it just delaying the inevitable? Or are we just spacing out the crash in hopes it doesn't impact the rest of the economy?
Or the elections?
It won't help. It only rewards those big spenders and irresponsible lenders. The home buyer with the fixed rates is still in a home they can't afford.
Why is Bush getting the government involved at all? The lenders could work out their own deals with the borrowers. You'd think it would be better for the lenders to fix the interest rates on their own, keep people from foreclosing, houses from becoming empty.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
