Interesting mortgage bailout idea.

[smackaholic]

This morning while I was getting my marching orders watching fox news neil the dago had some bazillionaire dude on with an interesting idea on helping mortgage holders get out of the mess they are in.

When he started going to the "write down what they owe" card, I was like, who the fukk let bsmack on the show? But then he went on to say that rather than just forgiving a chunk of the mortgage, the homeowner would agree to hand over a chunk of appreciation that may occur in the future.

This is a very simple and, imo, a brilliant idea. Prolly why congress didn't come up with it.

It would provide a means for homeowners to stay in their homes, but, not cause a stampede down to the bank by other owners looking for their bailout. It would also save a shitload of money for banks who might otherwise have to take back a house worth a few hundred grand less than the mortgage.

Hopefully barry or one of his minions watched the show and will steal this dude's idea.

[BSmack]

If the additional amount isn't recapitalized into a newly amortized mortgage, then it sounds fair. But if the new money becomes added principal and everything get's amortized all over again, then the homeowner is even further behind the 8 ball and we're just delaying the inevitable.

[Mister Bushice]

This morning while I was getting my marching orders watching fox news neil the dago had some bazillionaire dude on with an interesting idea on helping mortgage holders get out of the mess they are in.

When he started going to the "write down what they owe" card, I was like, who the fukk let bsmack on the show? But then he went on to say that rather than just forgiving a chunk of the mortgage, the homeowner would agree to hand over a chunk of appreciation that may occur in the future.

This is a very simple and, imo, a brilliant idea. Prolly why congress didn't come up with it.

It would provide a means for homeowners to stay in their homes, but, not cause a stampede down to the bank by other owners looking for their bailout. It would also save a shitload of money for banks who might otherwise have to take back a house worth a few hundred grand less than the mortgage.

Hopefully barry or one of his minions watched the show and will steal this dude's idea.

WTF do you think Bushs "Mortgage Bailout Plan" was?

They convert the distressed mortgage to an FHA loan starting at 10% under market price, and the government gets a progressive percent of the equity, up to 50% of the equity gained after 5 years, then it caps.

The trouble is:

1. Not many people qualify - you have to have a debt ratio that falls within guidelines. Most don't qualify.
2. Most of the banks said "Fuck you" and kicked people out anyway before they even knew about it.

The banks fucked themselves into this twice by a:giving loans to people who ultimately cound not afford them and b:refusing to deal with those people when the reaper came.

Now they're sitting on hundreds of thousands of empty stick homes, some of which could have kept the money flowing if they had been given a choice to renegotiate an ARM that was about to skyrocket their mortgage payment.

Many people who got the ARMS could have stayed at the lower rate, but jumping from 5.5 to 9.5% was too much, and the banks weren't playing.

[Shlomart Ben Yisrael]

So no one likes the idea of just telling those idiots who signed their names to risky loans for houses they had no business being in just to simply fuck off?

Anyone? Bueller?

There are 20 houses on your street. 3 of them get boarded up and their lawns become overgrown with weeds and stray garbage. The value of your property goes:

a) Up

b) Down


Take as much time as you neeed with that one. I know it's tricky.

[Wolfman]

If one of those houses is next door to you wouldn't it be a good idea for you to say use your own lawn mower on that yard and pick up any stray trash ?
In the meantime, I say let's go back to having people buy houses responsibly. If we can get out of Iraq responsibly I'm thinking that we can do the same with the housing mess AND the auto mess. After-all, who started it ?

[smackaholic]

So no one likes the idea of just telling those idiots who signed their names to risky loans for houses they had no business being in just to simply fuck off?

Anyone? Bueller?

You're right, R-jack. Fukk all this bailout shit. Let's just climb into the way back machine ride it back to about 1995 or so and do it the right way.

Problem is my way back machine got repoed last week. I had an adjustable rate loan on it. Can we use yours?

[Rasputin]

So no one likes the idea of just telling those idiots who signed their names to risky loans for houses they had no business being in just to simply fuck off?

Either that or confiscate the assets of ACORN and everyone working for them to pay off the loans. Then move on to everyone working for Fannie/Freddie and do the same. Then everyone in Congress (and currently in the White House) responsible for this shit.

Then tell the rest to fuck off.

[smackaholic]

How about ...

d. let it go downhill a little more, then pick it up cheap and rent it out?

btw, rack "mendoza line of civilization".

[Shlomart Ben Yisrael]

How about ...

d. let it go downhill a little more, then pick it up cheap and rent it out?

btw, rack "mendoza line of civilization".

Nobody is making money off rentals in this economy.

You people know jack-shit about the real estate market.

[Rasputin]

How about ...

d. let it go downhill a little more, then pick it up cheap and rent it out?

btw, rack "mendoza line of civilization".

Nobody is making money off rentals in this economy.

That depends on the location. There is such a shortage around here, you can get tenents in even the shittiest neighborhoods, and overinflated rents anywhere that doesn't totally suck.

[Mister Bushice]

You think that I should go along with my money being used to bail out ignorant fucks just because my house isn't the same inflated value as when said ignorant fucks were running amok?

Your money is being used to bail out the greedy fucks in the banking industry. Little to none of it made it down the ignorant fuck level.

[smackaholic]

How about ...

d. let it go downhill a little more, then pick it up cheap and rent it out?

btw, rack "mendoza line of civilization".

Nobody is making money off rentals in this economy.

You people know jack-shit about the real estate market.

How many rental properties do you own again, donald trump?

If you can pick up a decent place in a decent neighborhood for the right price, you can do it, dumbass. That being said, if you are gonna go out and look to buy rental properties, multifamilies are generally the way to go.

[Rasputin]

You think that I should go along with my money being used to bail out ignorant fucks just because my house isn't the same inflated value as when said ignorant fucks were running amok?

Your money is being used to bail out the greedy fucks in the banking industry.

More like cowardly fucks. Most of them wern't interested in deliberatly making bad loans, they were blackmailed into it by ACORN and their Democrat allies/puppets.

[Mister Bushice]

You are a nutcase.

Greed is far more broad based than that. The banking industry at all levels saw the $$ signs and tossed the rule book out the window.

[Rasputin]

You are a nutcase.

Greed is far more broad based than that. The banking industry at all levels saw the $$ signs and tossed the rule book out the window.

Believe it or not, when banks loan money they generally want to get it back in the future. Of course when you have leftist lunatics suing them, slandering them in the papers, holding protests in their lobby and having their Congressional puppets put the squeeze on them, they might just cave in.

[Screw_Michigan]

Tardly, I know you're in the middle of another hysterical rant, but care to explain how voter fraud (i.e. ACORN) and the bank bailouts have anything to do with each other?

[Mister Bushice]

See my reference to the word "Nutcase"

[Rasputin]

...care to explain how voter fraud (i.e. ACORN) and the bank bailouts have anything to do with each other?

ACORN has three distinct arms, One concentarates on elections, the second on lobbying congress (getting millions of dollars, a good deal of which they give back to their favorite candidates) and the third on home ownership for poor minoities. In order to secure said loans they target lending institutions with threats to label them as racist in the press, sue them in the courts (Obama was attorney on one of said suits), or just plain drive their customers away.

I guess Bushice defines 'nutcase' as anyone better informed than him. There's a lot of lunacy going around...

[Mister Bushice]

Not "better informed" Just "pathetically myopic".

The banks were lending to middle and upper middle income people as well, enticing them with teaser rates and promises without even looking at their complete financial picture.

[Rasputin]

The banks were lending to middle and upper middle income people as well, enticing them with teaser rates and promises without even looking at their complete financial picture.

And yet, they aren't the ones defaulting all over the place.

Personally I say let them all default, let the banks take the houses and swallow any losses due to depreciation.

[Mister Bushice]

The banks were lending to middle and upper middle income people as well, enticing them with teaser rates and promises without even looking at their complete financial picture.

And yet, they aren't the ones defaulting all over the place.

Bullshit.

Personally I say let them all default, let the banks take the houses and swallow any losses due to depreciation.

That's what is happening you dumb fuck. Why do you think there is this massive credit crunch and our tax dollars are being given away to private banking concerns to allow them to continue to prosper?

[Felix]

Nobody is making money off rentals in this economy.

you're an idiot, plain and simple

[Terry in Crapchester]

So no one likes the idea of just telling those idiots who signed their names to risky loans for houses they had no business being in just to simply fuck off?

Anyone? Bueller?

There are 20 houses on your street. 3 of them get boarded up and their lawns become overgrown with weeds and stray garbage. The value of your property goes:

a) Up

b) Down


Take as much time as you neeed with that one. I know it's tricky.

If a house in your neighborhood gets foreclosed on, overgrown weeds and stray garbage will be the very least of your concerns. Trust me, I know.

A house in our neighborhood got foreclosed on a few years back. Of course, we had the overgrown weeds and stray garbage in the lawn. But it was much worse than that.

The previous owners, on the way out, managed to trash the inside of said home. Then a group of teenagers who were unhappy living in the respective abodes of their parental units caught wind of the fact that there was a vacant house in the area. You can guess what happened next -- said teens began squatting in the house. Of course, the inside of the house got trashed even more.

Eventually, the bank started to get a little smart and tried to board up the house. Even then, the teens managed to find a way in. Eventually, the bank got the police involved, and only at that time were they able to get the teens out. Damage more than done by that point.

One day, my wife and I were taking a walk around the neighborhood, and just out of curiosity decided to look inside the house. The interior looked like something you might expect to see in Baghdad, not in the U&R.

Eventually, the house sold. I don't know what it sold for, but factor in the costs of foreclosure, interest, etc., and I figure that the bank would have been very fortunate to recoup 15-20 cents on the dollar from its original investment. It looks like the new owners have done some work to try to clean up the house, but it's a Herculean task and they're not making a ton of progress.

[smackaholic]

terry,

Even public defender type lawyers should have enough coin to not have to live in the ghetto.

I suspect you probably could afford to live in a better area, especially in upstate NY. My guess is being a well meaning progressive type, you feel you can homestead there and bring the place up. And maybe you can, if you get enough others in the neighborhood to do so.

Me, I'm kinda selfish, and maybe a bit racist. I'll stay out here in cowtown where the concept of private property still has some relevance.

BTW, my house was one of those foreclosed properties. It needed some work, but, as far as I can tell, the only squatters were a few rats squirrels.

[Terry in Crapchester]

There's a whole lotta whitey living in the town where I live. Indy Frisco provided a link awhile back where you could search by zip code, and mine came back something like 95.2% white.

Point is, it's not just the ghetto where homes are being foreclosed.

[smackaholic]

There's a whole lotta whitey living in the town where I live. Indy Frisco provided a link awhile back where you could search by zip code, and mine came back something like 95.2% white.

Point is, it's not just the ghetto where homes are being foreclosed.

no doubt. plenty of pads in the burbs being foreclosed on. but, atleast around here, they aren't instantly converted into crackhouses.