Mortgage Rescue, am I nuts or ???
 

Saw a thing on Nitely News, couple trying to refi at one of these Mortgage rescue workshops.

They have a 7% mortgage (I didn't catch / they may not have mentioned Fixed or ARM), they want to refi at 3%.


HOW DO I GET MY MORTGAGE REFI'D LIKE THAT ??????????????????


And assuming a 7% fixed, even variable, WHY IS THE GOVERMENT HELPING PEOPLE LIKE THIS ???

When I bought this house, we took a 9 or 10% ARM, fixed were 14ish as I recall at the time.

AM I NUTS ??????????????

OR

Are people just that irresponsible ???

(I want to say STUPID, but I am trying, trying, to be polite).
OK I wasn't.


Just Venting !!!

So what's your point? What's wrong with trying to refinance at 3%? They want to rescue their home, what's so nuts about that? It's an attempt to make ends.

So when MY taxes go up because of them, I assume you'll kick in extra because you think the Goverment should help out people that from everything I saw, their only problem was they made a mistake. So it can't be their fault.

Remember, if they get 3%, who pays that diff YOU AND I.

Why would our taxes go up by someone refinancing their mortgage?

Let's see

For a start the latest rescue plan, I believe our great goverment just passed, is only estimated (goverment estimate - real world x5 +) to cost the tax payers 25 Billion. Yes with a B.
I'll let you do the math, thats how much for each and every person in the US, per homeowner, how about per taxpayer.
We won't even add in the Countrywide mess, IndyMac, BSC, and ........ and .... and .........
Oh, thats 25 B in todays dollars, add 50% $ in interest too, although inflation will kind of wash some of that out.


The real point is there is ABSOLUTELY NOTHING wrong with their mortgage, they got in over their heads and expect us to bail them out. Oh, wanna take a bet on how little they put down (0).


For about 80% of the mortgages issued, that sums it up. Yes their was some fraud etc, and I have my own opinion on that. But MOST people KNEW exactly what they were getting in to. Well as long as housing prices keep rising, and my income keeps rising and the economy doesn't go into the tank.


Well I'm buying a MacLaren and going to the gov when I can't make the payments.
The goverment changed it from a privilege to a right to own a house, so I think high end sports cars should be next.
OK, make it a Tesla, I'll be environmentaly conscience (?).

Actually, this violates capitalism itself. Now someone else won't be able to buy that house at a good price. And yes, we do pay for it, because in the future, the possibilities of failures and bailouts will be baked into the initial rate that everyone pays. You can see this happening already on 30-yr loans. Barring a total economic collapse, you will never see 5.5%/30 years again.

These people took a risk, and they lost. They bought the house probably assuming that they could refinance at a lower rate in a few years by having much more equity from increased house value. A lot of people in CA did just that 2-5 years ago, except they took out the cash and blew it. Not my fault.

Well I suppose if one believed Pres. Bush, it shouldn't affect the taxpayers:rolleyes:. Then again, perhaps the bailout is just another one of his deceits that I bought into. Silly me, I should know better.

http://www.mortgage-bailout.com/what_is_the_mortgage_bailout_plan.html

Well if you believe Bush, actually ANY polititian ..

The goverment does a great job of bailing people out that make mistakes, as strife said "They took the risk", they have to accept the consequneces.

Just like these people that recommend you just turn over your keys to the back when you are "Under Water" (House or Car).
If you loose money on the house, the bank eats it, if you make money you pocket it.
Sounds fair to me :(:(:(:(

We need to return to the understanding, that they loaned YOU the money, they used the house or car as collateral. Just because the collateral is worth less then the loan, doesn't mean you own less, YOU borrowed the money.

How about if the goverment sets up a booth outside Vegas, "You lost how much, here's a check ...".

Although, it will change sometime, we've had these foriegn goverment funds bailing out our various companies in the past year. Won't be long and one will have to bail out Uncle Sam, OK maybe a consortium.

To the "let them sleep in the bed they made" crowd...your tune would change quickly, were you paying your mortgage, but living in one of the many neighborhoods where foreclosures have resulted in 30-40% of the homes being neglected and abandoned. You would be fighting for any plan that kept your "irresponsible neighbors" in their homes.

Blight and crime are the immediate result of mass foreclosures, and the ball gets rolling very quickly...recovering from such a situation may never occur. Much as a bailout from whatever source might seem unfair, the alternative is far more costly, and has serious negative impacts on the remaining responsible homeowners in the community.

You would, I'm sure. I wouldn't.

I'll go out on a limb, and suggest your willingness to have your neighborhood turn into a slum is not universal.

Probably, you are right. OTOH, we do give in to hostage situations too. We get a great short term benefit and we don't worry about the long term implications. So you want the govt to help these people out of this mess and so they can move on to another mess? Just like a hostage situation. You get the hostages out today with some tricks. Well, somebody else comes along with a counter-plan to take hostages and get away with it. Now you endanger another bunch of people. OTOH, if the hostage idea didn't work from the get-go, people are less likely to try that same trick again. If it almost work, they will come up with a new angle that might work. No thanx. Govt intervention has not had the greatest history, has it?

Government pays the difference, between market and whatever they are offering. Correction, we the taxpayers pay it.

I wouldn't live in a new subdivision.

Waiting for Howitzer to chime in.....