That was low, even for Republican bathroom pickeruppers.

Which you are not!

Reading through this thread, I’m not sure which side individual posters are on, other than SpaceyG.

I see the underlying issue as being very, very clear.

The market mechanisms have been voided by the reselling of mortgage paper. IF the mortgage lender were properly holding loans that they originated, meaning they could not shift the risk, then they would have an incentive to take only reasonable and prudent risks with capital.

I’ve heard it called Moral Hazard as well as unintended consequences.

“A moral hazard arises if lending institutions believe that they can make risky loans that will pay handsomely if the investment turns out well but they will not have to fully pay for losses if the investment turns out badly. Taxpayers, depositors, other creditors have often had to shoulder at least part of the burden of risky financial decisions made by lending institutions.”

When the mortgage originator has no liability, there’s the hazards of immoral lending.

Or, if lenders have no liability, everyone suffers from the increased risk taking behavior.

Also known as the law of perverse incentive.

Lenders under the current “sell the paper fast” system have a perverse incentive to make horrible loans, as many as possible, as rapidly as possible.

Some examples from …. the CIA and wikipedia

“In CIA jargon, “blowback” describes the unintended, even undesirable consequences of covert operations. Examples include:

* Operation Ajax, which contributed to the 1979 Iranian Revolution & the Iran hostage crisis
* Covert funding of the Contras in Nicaragua, which lead to the Iran-Contra Affair
* Covert funding of the Mujahideen, which led to the rise of the Taliban”

Bill, am I making some sense to you?

After all, she done said she has tried some of that Communist “Manifesto”………..talk about “kiss and tell”. Plus she’s bragging on Putin’s “bod” instead of Al Gore or John Edwards even, go figure.

As for me, it says something in the Bible about the Good Lord looking after fools and children. All I know, is I have long grown out of one catagory, so I know where I fit……..lol

All that said, borrowed money is to always be paid back. When you borrow money to pay back borrowed money, a red warning flag should go up.

The loan officers make good revenue from processing loan papers. They need a client, to acheive this, and we’re talking about a very competive market. Especially now with junk mail solicitations, TV ads, and the internet prowling the masses hunting for easy prey.

If they get fired for making to many dubious loans, they usually have collected their fees for such loans, and simply go to work for someone else.

One note worth noting. A friend one time told me, ‘That little fine print on the note, it took a while, but I read every bit of it”.

I told him, that little fine print ain’t what really kicks your ass, it’s the typewritten exhibits, the little check boxes and such that tears you a new one. That fine print is a diversion.

The type-written stuff, it lists your property, most of the time has phrases like “Any and all other acounts……”, “any and all other assets…….”, basically, gives a reach into any other assets you have when it comes time to collect their debt.

This gives access to a lot more stuff than you really intended to pledge as collateral. They won’t really “tell” you this, but it happens all the time.

Most mortages and such are for 20 to 30 years, and a lot of stuff can happen in that length of time to anybody. They’ll sell your stuff just as fast for one of the last year’s payments, as they will for the first year’s.

It’s kinda like your friend who always “makes” money trading up to a newer vehicle, that rekkoning day always comes.

Spacey probably celebrated all those videos of people in New Orleans looting the stores and stealing stuff. Yeah, Spacey dreams of the day when everything can be declared “free” and no one needs to earn a living to afford anything.

To her comment on “forget the sex trade,”..yeah, let’s just forget all about those sleazy adults who traffick in child prostitution, eh?

So, Spacey, when are you going to put your daughter up for services with whomever, eh? Or, perhaps you already do…

Let’s call this the “President Bush upstages Michael Vick to rescue the 13,000 Georgians that lost their homes last month due to Scooter Libby’s Pardon and Karl Rove & Alberto Gonzales resignations while the Georgia Legislature’s Banking Committee Members continued to allow Title Pawn lender Billboards to litter our Highway and truth in Bill Naming Act.”

http://www.fha.gov/
“Bush Administration to Help Nearly One-Quarter of A Million Homeowners Refinance, Keep Their Homes
FHA to implement new “FHASecure” refinancing product

WASHINGTON – PresidentGeorge W. Bush today announced that HUD’s Federal Housing Administration (FHA) will help an estimated 240,000 families avoid foreclosure by enhancing its refinancing program effective immediately.”

The only problem is that the families in foreclosure need good credit ratings to qualify for the Bush in the Bird in the Hand, Banking Industry Bailout Program…

i’ll buy you all a diet coke if you meet me at the FHA offices in ATL and show me your questionable credit history:

U.S. Department of Housing and Urban Development
Atlanta Homeownership Center
Five Points Plaza
40 Marietta Street
Atlanta, GA 30303-2806

I also don’t get why, on the other side, lenders are able and willing to make such loans. It is pretty evident that a loan that costs half of the borrower’s income isn’t sustainable. It also wasn’t possible or common for that lender to make that loan a few decades ago.

So, in short, insanity’s been ruling on both sides. A question for the “just rent” crowd — why would one “just rent” when “just renting” is more expensive than “just buying”?

All of the information about rates, payments, the trigger date for the adjustable rate–every major detail that plays into the monthly payment amount, is in the TIL statement. Willful blindness and refusal to deal with reality is at the root of the problem. Back to my example, I’m screwed if I don’t plan for a transaction, either a refi or a sale of the land, before a date certain.

The fact that the market has tanked and that folks who bought houses with ARMs that are now triggering can’t sell for their loan amount is a tough spot to be in, no doubt. However, it was spelled out to them what the rates and payments would be (or how they’d be calculated).

You said “if your answer is that they wouldn

That being said, there is a distinct lack of knowledge of economics in the world. Look at what people do with cars, gambling, lotteries, the housing boom, the housing bust, the stock market bubble, etc.

One’s first priority should be economic stability and not a new car, an expensive house, vacations or plastic surgery.

Dogs and cats, living together. Mass hysteria!

http://www.ajc.com/search/content/business/stories/2007/08/31/housing0831.html

Dang, we’re excelling at misery in record amounts lately. Vote Republican though; they’ll fix it all… when they get out of the bathroom.

In California, there is talk among legislators of declaring a moratorium on foreclosures. That should be an absolute must-do here in Georgia.

Huh? We’re going to allow people to take out loans, not pay them, and not allow the lender to repossess? What sort of interest rates would responsible borrowers have to pay as a result of taking that action?

As Mark Taylor once said, “Cry me a river.” If you can’t afford the payments …. rent!

When I went to buy my house nearly 5 years ago, the mortgage company told us we qualified for a $350,000 mortgage. Did we run out and buy a $350,000 house? No. We bought one for half that, at a reasonable and fixed rate. Though we felt we could make the payments of a more expensive house, we wanted to play it safe in case there was a problem (like job loss). Plus, we wanted to have more cash at the end of the month to do things we love, like travel.

Nobody “deserves” to own a home. But everyone deserves the opportunity to attain one. If you can’t swing it, then you need to make some adjustments in your life so you can. It’s simply not fair to take money from tax payers who’ve played by the rules and give it to people who gave into greed and overbought.