Uncle Sam to the rescue

[Ziner]

Thanks to all the assholes out there who wanted their 400K homes on a single teachers income with a no money down, interest only, balloon arm. Thanks for sticking it to everyone else. Thanks to the government for bailing out the public and private sectors to not let them see and feel the true repercussions of their recklessness and greed.

I hate this. You are a business, if you dont run your business properly than you go out of business. Except in some cases if you are United, Delta, GM, Ford, or Banks who made shitty loans (heres looking at you Nat City and Key). Those companies get to be run like shit and still get uncle sam to take care of them. Make sound decisions and you will be rewarded... make shitty ones and Congress and the President will bail you out but you sure did make a ton of money for those few years huh. Sorry just needed to bitch

[Mr. MacPhisto]

Ditto.

[jfiling]

Agreed. I would love a sound explanation to know why my tax dollars have to rescue these greedy a-holes. I suspect I'll be waiting for a while.

[Mr. MacPhisto]

Agreed. I would love a sound explanation to know why my tax dollars have to rescue these greedy a-holes. I suspect I'll be waiting for a while.

Not all of them are greedy. Some of them are just stupid homeowners that thought nothing of $700 a month for a $300K+ home. They didn't read the fine print or didn't comprehend what an ARM meant for them.

[jfiling]

Agreed. I would love a sound explanation to know why my tax dollars have to rescue these greedy a-holes. I suspect I'll be waiting for a while.

Not all of them are greedy. Some of them are just stupid homeowners that thought nothing of $700 a month for a $300K+ home. They didn't read the fine print or didn't comprehend what an ARM meant for them.

True enough, although I think that greed and stupidity are kin in some cases. Like "I can have this house I can't afford and only pay a tiny amount? Sign me up!"

[Ziner]

Agreed. I would love a sound explanation to know why my tax dollars have to rescue these greedy a-holes. I suspect I'll be waiting for a while.

Not all of them are greedy. Some of them are just stupid homeowners that thought nothing of $700 a month for a $300K+ home. They didn't read the fine print or didn't comprehend what an ARM meant for them.

True enough, although I think that greed and stupidity are kin in some cases. Like "I can have this house I can't afford and only pay a tiny amount? Sign me up!"

Jfil, I am with you on this one. Seriously people all of a sudden could afford a home twice as nice as their current one and pay less... yeah nothing to cause alarm there. But dont worry a house always appreciates so your cool there....oh shit... wait nevermind...

I would love to laugh at these assholes who did this (banks and consumer) but they got bailed out so there is nothing to laugh at. Additionally if they didnt get bailed out they would have stuck it up the ass of the honest person living with in their means. All these foreclosure properties and more restrictive lending are driving prices down on everyone.

Here an idea, live with in your means, put money down on a home, dont take an interest only and pay your fucking bills...oh and if you cant pay your bills get another job so you can. But then they would have to get off the couch they bought on credit in their nice home they cant afford watching their 60 inch plasma that they will be making $29 payments for 45 years.

[Mr. MacPhisto]

Jfil, I am with you on this one. Seriously people all of a sudden could afford a home twice as nice as their current one and pay less... yeah nothing to cause alarm there. But dont worry a house always appreciates so your cool there....oh shit... wait nevermind...

I would love to laugh at these assholes who did this (banks and consumer) but they got bailed out so there is nothing to laugh at. Additionally if they didnt get bailed out they would have stuck it up the ass of the honest person living with in their means. All these foreclosure properties and more restrictive lending are driving prices down on everyone.

Here an idea, live with in your means, put money down on a home, dont take an interest only and pay your fucking bills...oh and if you cant pay your bills get another job so you can. But then they would have to get off the couch they bought on credit in their nice home they cant afford watching their 60 inch plasma that they will be making $29 payments for 45 years.

They already kind of stuck in in the ass of the honest person because these bad loans are what drove the rapid rise in the price of homes. They're coming back down to Earth now but it was ridiculous what the prices were going up to only a few years ago. I'm amazed that anyone was willing to pay those prices, though I should have learned by now to realize PT Barnum was right; a sucker is born every minute.

My parents always bought houses when the housing market was in the crapper, so I learned from them. They saved and struck when they could get good value. They place they live in now is good-sized but they go into it for under $100K while all the houses now are going for over $250K in the area now because of the growth in the Tampa Bay market - and this is after the housing boom. They decided to live there long term and not get into a silly loan all those years ago. I wasn't able to get in so cheap, but I was able to get in at a price far under the current values by being smart and not rushing into things. Too many people want to just rush out and buy the expensive car, pricey house, the boat, the TV, etc without really thinking about the impact of those things down the line.

[buckeye319]

I agree with everyone so far, but you can't place all the blame on homeowners. This starts from the top down, and perhaps most importantly on the middle men in all of this.

I do, however, have problems with everyone getting bailed out for horrible decision-making.

[Mr. MacPhisto]

I agree with everyone so far, but you can't place all the blame on homeowners. This starts from the top down, and perhaps most importantly on the middle men in all of this.

I do, however, have problems with everyone getting bailed out for horrible decision-making.

There are problems across the board. I just get tired of the homeowners being painted as victims. They signed the contracts and they should have read them or, even better, hired an attorney to let them know what was actually in the contract. I've heard so many that whined about someone lying to them about the loan, etc. You'd think with something so important they wouldn't just trust these people that they hardly know.

I think a lot of them were well aware of the terms of their loans and have used the "they lied to me" excuse down the line to make it seem like it's not their fault.

Listen, we can blame the salesmen, the lenders, or whoever all we want. In the end they take advantage of stupid consumers. If these people had actually read the fine print and realized these loans were not for them then they'd not be in this problem. Yes, the lenders shouldn't give ARMs like those out to just anyone either - and that's because it can blow up in their face like these have. They caused the housing market to boom and they thought it was great. It was going to get them A LOT of money from interest, BUT they also trusted the wrong people.

How stupid does a lender have to be to no do due diligence on a client?

I think these idiot banks and homeowners deserve whatever they got, but now the government steps in. No lesson learned and the idiots come out of this free to continue to make bad decisions. They incurred little to no penalty for their mistake other than some anxiety for some of them.

How can you hope to learn from this situation. I'm tired of the government bailouts. That's not the purpose of government.

[dmiles]

I moved to San Diego at the height of the Bubble in 2005.

You cannot begin to comprehend the outright fraud that's been going on. If I could explain very simply, the primary means of fraud was to find a house that was tough to sell for whatever reason, and bring in a buyer. Get the price of the house as high as possible (ex. sell a home for $600K that sat on the market at $500k).

Find some idiot who will finance it, squeeze the seller, split the proceeds. Payments on the home are completely optional of course. Slowly the FBI is catching up to some of these yokels. One group in Murrieta convinced a ton of people to leverage and buy 4-5 homes at a time on this scam. Anyway it just pisses me off to no end.

[jfiling]

I moved to San Diego at the height of the Bubble in 2005.

You cannot begin to comprehend the outright fraud that's been going on. If I could explain very simply, the primary means of fraud was to find a house that was tough to sell for whatever reason, and bring in a buyer. Get the price of the house as high as possible (ex. sell a home for $600K that sat on the market at $500k).

Find some idiot who will finance it, squeeze the seller, split the proceeds. Payments on the home are completely optional of course. Slowly the FBI is catching up to some of these yokels. One group in Murrieta convinced a ton of people to leverage and buy 4-5 homes at a time on this scam. Anyway it just pisses me off to no end.

Like I said earlier, and agreed after corrected, it's an incredible combination of greed and stupidity. Anyone who invests in anything without understanding the market, whether it's some hot new stock, or houses, deserves to fail if they don't know what they are getting into. I'm yet to understand why my son is going to be paying taxes to pay for these greedy idiots and their foolish mistakes.

[Naxos]

I absolutly agree. It drives me crazy thinking that the banks and the home owners are both going to get bailed out of a situation that they put themselves in.

Is this simply a case of the vocal minority? I can't believe there are that many people that stupid. Then again...

[BDFD]

Double ditto. Just please do not get me started on all the lazy asses that sit around all day and watch The View or Cartoon Network and are completely capable of holding a job but are on unemloyment because they'd rather have Uncle Sam (i.e. ME) support them. They say 'I'm just getting back what I put in.' They need a hotline to turn these people in (I know of a few... people, not hotlines).

Sorry to temporarily change the topic but that was my Uncle Sam bail-out vent.

War fixed-rate mortgages.