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The Ranting Room Got a gripe about life? Want to sound off about the unfairness of the universe? Does something just REALLY piss you off? Well, come on in and talk about it! |
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02-23-2009, 11:24 AM
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#11
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Member
Join Date: Jun 2006
Location: Stuck in Paradise
Posts: 314
Name :
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Quote:
Originally Posted by THOR
The financing institutions, even though they were forced into this mess in some cases, need to startt figuring out how to help rather than just demanding and foreclosing.
JMHO
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What's not right is that everyone starts to value comparable properties based on the distressed ones, everyone does it, buyers, realtors, appraisers, lenders. When I go to Lowe's and see a damaged refrigerator priced at 25% off, I don't now assume all comparables should be similarly marked down. Yet we do this with real estate, one house is “damaged merchandise” so now everyone expects all the homes in that neighborhood be similarly devalued.
The banks did not know how to handle the sudden rise in foreclosures. Standard operating procedures of threats of and eventually foreclosure that always worked well in the past really backfired on them. Now the borrower is threatening the lender with the foreclosure. Then banks were not equipped to work fast on accepting short sale offers so properties that could have avoided foreclosure didn’t. The end result, banks ended up with far more out of pocket than they would have been had they acted faster in the beginning.
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02-23-2009, 03:14 PM
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#12
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Internet Sanitation Engineer
Join Date: Mar 2006
Location: Crawfordville, FL
Posts: 15,133
Name : Rich Zuchowski
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If you think it is bad now, wait until word gets out that homes are now mortgage *free*. That is going to be the way that a lot of people take this. And trust me, this WILL percolate down into rental properties as well. Why wouldn't it? Yeah, it's one thing when people are just in a bad way, but like welfare, this will be abused beyond belief.
People got loans they didn't deserve because they didn't have the financial backing to be realistically able to afford it. And now they expect to be bailed out of thier poor choices as well as the banks being pretty much forced to take those loans regardless of common sense. So when push comes to shove, MY taxes will go up in order to foot the bill, or else the value of MY savings will go down when the money supply is inflated, forcing ME to help pay for this crap.
EVERYONE knew the housing market bubble was going to bust, but how many of them prepared for it by making sound decisions in the face of that probability?
Quite frankly, what this all boils down to is that people need to have the authority to make their own choices, and along with that the responsibility that goes along with this to either reap the rewards of prudent choices, or suffer the consequences of those decisions that were not quite so prudent.
THAT was what made America great in the past. But the current nanny state of government controls will be making the United States of America pretty shortly into a has-been country with a failed economy.
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02-23-2009, 09:27 PM
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#13
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Member
Join Date: Jun 2006
Location: Stuck in Paradise
Posts: 314
Name :
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Quote:
Originally Posted by Shadow
I agree with most of what your saying, esoecially the last part
But the "owner" (ie: builder, former owner, et al) has already been paid. It happened when the mortgage was signed and the checks handed over.
It's the bank or finance company whose sucking hind teet on this package.
But as I mentioned before, I don't think this is going to happen on tenant evictions. It seems relative only to foreclosures for now.
And some people, as previously stated, are in financial binds not of thier own design
The financing institutions, even though they were forced into this mess in some cases, need to startt figuring out how to help rather than just demanding and foreclosing.
JMHO
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It's the lenders that are the property owners and they are being kept from that property by thugs as our gubmint stands by and watches.
So after they were forced into lending the money they are now being forced to legally take possession of it.
What country is this again?
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02-25-2009, 06:00 PM
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#14
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Member
Join Date: Jun 2006
Location: Stuck in Paradise
Posts: 314
Name :
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02-25-2009, 06:09 PM
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#15
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PW Pimp, keeper O' 'da thread
Join Date: Sep 2006
Posts: 311
Name :
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02-26-2009, 09:51 AM
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#16
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Member
Join Date: Jun 2006
Location: Stuck in Paradise
Posts: 314
Name :
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Quote:
Originally Posted by Brad@TheCorvetteShow
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Me either.
Did you have to make that decision?
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02-26-2009, 02:36 PM
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#17
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Senior Member
Join Date: May 2006
Location: port of indecision
Posts: 5,604
Name :
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Quote:
Originally Posted by Coastal
It's the lenders that are the property owners and they are being kept from that property by thugs as our gubmint stands by and watches.
So after they were forced into lending the money they are now being forced to legally take possession of it.
What country is this again?
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While it's true that the some lenders were forced into making subprime loans, as we're seeing now, many lenders and mortgage brokers actually committed fraud when dealing with the banks and such.
I agree that the banks/mortgage companies that were forced into subprimes should have access to thier property; however, it's getting harder and harder to separate the wheat from the chaf out here
Then again, as I mentioned in my earlier post, if an otherwise upstanding citizen should suddenly and without cause or effort of thier own, fall upon financially hard times, should the banks and lending institutions at least try to work with them?
It's like the credit card companies...we want, we want, we want....but you only have so much blood.
A little negotiation would or could have prevented a huge part of this financial mes we're in....among other things....
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Artificial Intelligence is no replacement for Natural Stupidity!
Be Polite, Be Professional...and have a plan to kill everyone you meet.
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02-26-2009, 03:47 PM
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#18
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Member
Join Date: Jun 2006
Location: Stuck in Paradise
Posts: 314
Name :
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Quote:
Originally Posted by Shadow
While it's true that the some lenders were forced into making subprime loans, as we're seeing now, many lenders and mortgage brokers actually committed fraud when dealing with the banks and such.
I agree that the banks/mortgage companies that were forced into subprimes should have access to thier property; however, it's getting harder and harder to separate the wheat from the chaf out here
Then again, as I mentioned in my earlier post, if an otherwise upstanding citizen should suddenly and without cause or effort of thier own, fall upon financially hard times, should the banks and lending institutions at least try to work with them?
It's like the credit card companies...we want, we want, we want....but you only have so much blood.
A little negotiation would or could have prevented a huge part of this financial mes we're in....among other things....
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It is true, some mortgage brokers (not lenders) did break the law but those were isolated cases and there were/are laws that they were prosecuted under. Who else should pay for their crime, the honest ones or the tax payers? And in most cases the extent that they broke the law was by request of the borrower. But that in no way was contributing the our current situation in any significant way.
Should lenders try to work with the borrowers? ABSOFREAKINLOUTLY! Lenders never worked like that before. Don’t pay, get out. But now because of the number of defaults they are working a little harder to try other options. It’s better for everyone if something can be worked out, or at least tried to. They are only now figuring that out, too late for some and too late for us who were sitting on the sideline watching this collapse around us. But as you have seen, even changing the terms of those loans didn’t help as most of those still ended up in default.
Now, our wonderful gubmint is trying to crap up the works even more with the “cram down mortgage” bill being discussed. You loan $200,000 secured by real estate, the borrower doesn’t pay. You ask the judge to allow you to foreclose and take back the property. The judge decided that not only is he not going to grant you that foreclosure but he thinks that the mortgage principle should only be $100,000 because that’s all the borrower can afford. Sucks to be you and you then get out of the very risky mortgage business. That’s going to go a long way to help us who play by the rules.
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02-26-2009, 05:16 PM
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#19
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Internet Sanitation Engineer
Join Date: Mar 2006
Location: Crawfordville, FL
Posts: 15,133
Name : Rich Zuchowski
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I think a lot of people are expecting a collapse of the banking system in general. The banks are being buffeted on all sides. Loans going into default, government regulations hamstringing everything they do, and now customers who aren't putting their money in the banks, and even drawing out some to cram under a mattress instead.
Speaking of which, someone told me the other day on the phone that the entire country of Iceland has gone bankrupt. Anyone heard anything about this? Kind of scary when you think of it, if it's true. How long has the USA been operating in the red? Think of all those checks our government sends out that could suddenly just STOP. Not to mention that cash money is really only a promissory note that the GOVERNMENT will make good on the value of those dollar bills. They really are not backed by anything of tangible value that they can be redeemed for from the government.
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