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eds
11-05-2007, 02:55 PM
Interesting quotes from the article:

"Nelson feels cheated and has little sympathy for people who she believes weren't as careful as she was. "Everybody was seeing dollar signs," she said, "and let their greed get the better of them. So, no. No bail-out, no assistance with my tax dollars. Not one red cent."

"With some of the refinancing slack being picked up by FHA and the government sponsored enterprises like Freddie Mac, Keegan does not think the funding of these organizations will last without significant infusions of public money."

"Despite the recent collapse of the subprime lending market, Bailey said, 70 percent of hybrid ARM borrowers still paid off their loans. "These loans take a beating as predatory but they saved [borrowers] millions."

According to Bailey, before these loans are approved, the lender's, the investor's and the community's interests must all be considered. If all those are advanced, then concessions will be made.

"And, the program's not designed to be easy, according to Bruce Marks, chief executive of NACA. "It's an arduous process, a sacrifice," he said. "Borrowers have to change their lifestyles, tear up credit cards, lower car payments. We're putting people through hoops. Then, they have to document their spending and make payments on time for six months before the restructurings become permanent."

"She said, "The American taxpayer has been paying through the nose for corporate handouts for too many decades now." She does not think we should help cover the losses brought on by business decisions of big bankers or greedy consumers that thought they'd get rich in property speculation."


The complete article:

http://money.cnn.com/2007/11/01/real_estate/Countrywide_bail_out_bashers/index.htm?cnn=yes

SgtSludge
11-08-2007, 12:26 AM
They put little or no money down on a house they couldnt afford! Subprimes were made for the wealthy and the lenders knew that! So now they expect we the people to correct their Greedy lending scam! I say bring the Lenders to court and run them all bankrupt like the people they scammed! Why should I pay for someone elses scam...

eds
11-08-2007, 08:00 AM
It is a double edged sword. The subprime lending companies loaned money to risky people. The people who used these financial vehicles accepted the contract and the covenants in that contract. The borrower accepted the risk that the payments could go up at a later time. Hence the term ADJUSTABLE. The lenders also accepted the risk of lending to that person.

I say its between the person and the lending company. If the person becomes insolvent then the lending company takes their house. Its a plain language contract between two parties. That's fair. Everything was spelled out and if they used an attorney when they bought the house it was explained to them.

If the lending company was not wise in who they lent to, then the lending company should eat the cost and if necessary, go out of business.

I don't see why my tax dollars should bail out a foolish person who took out a loan for something they should not have, and a foolish business who lent money to people with poor credit, no liquidity, and little ability to pay.

Chris P
11-08-2007, 08:45 AM
This reminds me of when I went to England way back and saw lines of youth at the ATM machines. I was told that these youth were given the cards by the banks and they could take this money out on credit (no assets needed). So what happened was the cards wereexcessively abused causing enormous debt and some sort of bailout or loss occured.

The same principle happens when people live beyond their means no matter what.

I bought a condo in 1994 and could not get a $7000 mortgage. $30,000 was lowest I could get. The girl at the mortgage company told me to use the excess to buy a new car and furnish the place. Thankfully, finally, a bank gave me an equity loan.

Its simple human corruption and its destroying our country's economy and setting a bad example of human behavior.

Chris P
11-08-2007, 08:54 AM
In Cleavland, a lady fell behing on her mortgage and evwntually made good on her payments, but the bank took her house anyway.

Well as soon as she vacated her house, druggies moved in temporarily and vandilized the house to a worthless value along with a few other house on the street. Now the bank owns a blighted property that needs to be torn down.

eds
11-08-2007, 09:29 AM
The decision to foreclose is a risk the bank takes and decision the bank makes.

Every decision has consequences to both parties.

Chris P
11-08-2007, 10:03 AM
I bet the person making the decision to foreclose didnt really care as now banks are foreclosing as carelessly as they were lending.

eds
11-08-2007, 12:42 PM
You are correct Chris. It just keeps getting worse. And you know what? No one is without blame in this, unfortunately.