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sub prime loans/federal bail outs
- Thread starter rnch
- Start date
needtogetarmy
CEO of Project Mayhem
rnch said:
I think it is hilarious that people who CAN afford their mortgage payments are deciding to go into foreclosure because they do not want to make payments on homes they have negative equity in. Did you know the feds plan who also bail these people out? Freaking unbelievable.
With risk comes reward. Not anymore, the feds want to remove the risk and let everyone try to make money without sustaining any risk.
The really bad thing is that if the govt does this it will take five times longer for the housing market to recover. Just like in Japan in the 1990's, the market needs to crash before it can go back up again. Any controls they stick in place may make people feel better but in the end it will only prolong the misery.
Razorguns
Well-known member
Dont' worry it's not your taxes. Your taxes have already been spent on the war.
It'll be Saudi and European and Chinese loans that'll bail out your banks. Ever wonder why Bush was in SA? To have tea and say hi?
But you'll pay for it by foreigners having more say in our 1) wars 2) contracts (didn't our air force jets get destined to be european made not by boeing? hmm?) 3) increased lop-sided trade (China wins!).
This is good news for Banks. Bad news for 9-5 warrior americans who are getting poorer and more in debt every year. And seeing their skilled jobs leaving by the boatloads. Even in Hollywood, foreigners stole all the big oscars this year. Slap!!
r
It'll be Saudi and European and Chinese loans that'll bail out your banks. Ever wonder why Bush was in SA? To have tea and say hi?
But you'll pay for it by foreigners having more say in our 1) wars 2) contracts (didn't our air force jets get destined to be european made not by boeing? hmm?) 3) increased lop-sided trade (China wins!).
This is good news for Banks. Bad news for 9-5 warrior americans who are getting poorer and more in debt every year. And seeing their skilled jobs leaving by the boatloads. Even in Hollywood, foreigners stole all the big oscars this year. Slap!!
r
needtogetarmy
CEO of Project Mayhem
mrplunkey said:
racist lol
jnevin
New member
75th said:
The only people that will have a chance to be bailed out are people that actually qualify. I've only done a handfull of loans over $300K where people gave me income docs. All the rest said they had unverifiable income and had to state their income. If their cash reserves supported what they stated and it looked ok on mysalary.com, I'd do the loan.
This really sucks.
http://bloomberg.com/apps/news?pid=20601087&sid=aTrrFyHtd_mQ&refer=home
Ya it does suck. Its also a bad idea to bail out more than 0 of these people.jnevin said:
How long have you been in the mortgage business? I met a lot of brokers over the past few years, and the majority of them were 19 year olds with no education. They were fucking dipshits. You dont sound anything like them. Thats probably why they all got fired or quit recently.
jnevin
New member
75th said:
I'm going on 9 years. I just focused on purchases instead of ass raping people in a boiler room environment selling sub prime loans. It was a bitch for a while but got really beautiful once it started to pay off. Now my realtors have gotten out of the bidness and I'm back to beating the goddamn pavement for deals.
javaguru
Banned
Like the mortgage companies bear no responsibility. Giving 0% down loans to people without income verification.75th said:
Just like the S&L crisis in the 80's ...here comes the Fed to help bail out incompetent businesses. Then you have the high credit score and high income peeps that had pay option arms....
I think the mortgage companies are pieces of shit for this as well.javaguru said:Like the mortgage companies bear no responsibility. Giving 0% down loans to people without income verification.
javaguru said:Like the mortgage companies bear no responsibility. Giving 0% down loans to people without income verification.
We got a Hybrid Option ARM (5 yr fixed) back in Dec. 2006. Took $ out to remodel kitchen, and we bought a new Acura MDX for wifey's baby hauler. We got the loan because we were trying to get preggers (which we did about 10 months later), so we'd have the option to pay a lower payment for a few months in case we needed or wanted to (depending how long she wants to take off work).
We don't really need the lower payment option because our mortgage is the only debt we have and we can probably live for a year off savings alone (more if we really cut back on some extras). But, it's nice to have the option...ya know? We still have over 20% equity too.
All these various loan products out there aren't "bad"...IF they're UNDERSTOOD and USED PROPERLY. The problem is, they're easy for people to sell, and make a TON of cash selling them. They sound GREAT, "lower your payment from $3000 to $1300!" Who wouldn't want that???
The LO's selling them either don't understand them fully or don't want to explain them fully to their borrowers in a lot of cases, and borrowers end up getting into a loan they don't understand and might not be right for them in their situation. The borrowers lose, the lenders lose...but the 19 yr. old LO walked away with $10,000 or $15,000 from that transaction. And they don't care about the borrower, the lender or anyone but themselves and their new M3.
digimon7068
New member
the worst part is that the "bailout" will artificially allow all these friggin' houses to retain "value" that doesn't really exist, which will in turn allow the cost of friggin' building materials to stay artificially inflated. . .fuggin' $20 for a 2x4?? this shit's gotta cease. . .it's gonna be a long cold winter. . .metaphorically speaking. . .
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