Anybody else as pissed off as I am about the plan to help stablize rates in the sub-prime mortgage mess? Seems like the government is stepping in to reward stupidity by helping people who should never have owned a house in the first place. The reason I'm so pissed off is that we are trying to buy a house right now and the prices are still way to high. This could result in keeping them there or maybe even increasing them.

Oops, sorry. Wrong forum. Can a Moderator move this to OD please?

- Peter.

__________________
2021 Chevrolet Spark
Formerly...
2000 GMC Sonoma
1981 240D 4spd stick. 347000 miles. Deceased Feb 14 2021
2002 Kia Rio. Worst crap on four wheels
1981 240D 4spd stick. 389000 miles.
1984 123 200
1979 116 280S
1972 Cadillac Sedan DeVille
1971 108 280S

I hate to see stupidity rewarded, too. I don't know what the impact upon the economy overall will be, but sometimes that's the motivation. These things can ripple through the whole economy and hurt people who were NOT stupid or directly involved. Remember the Chrysler loan garantee? S&L bailout? This isn't the first OR the last time we'll see this . . .

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" We have nothing to fear but the main stream media itself . . . ."- Adapted from Franklin D Roosevelt for the 21st century

OBK #55

1998 Lincoln Continental - Sold
Max 1984 300TD 285,000 miles - Sold
The Dee8gonator 1987 560SEC 196,000 miles - Sold
Orgasmatron - 2006 CLS500 90,000 miles
2002 C320 Wagon 122,000 miles
2016 AMG GTS 12,000 miles

The question that must be asked is whether you and I are rewarding this stupidity...........or are the stockholders of the mortgage companies rewarding the stupidity?

If it's the former, I'm smoking mad...........

If it's the latter, I'm fine with that.


So, does anybody actually know the details of this "plan"?

No, I prefer to go directly to opinion-forming. I rarely waste time trying to get the facts.

__________________
" We have nothing to fear but the main stream media itself . . . ."- Adapted from Franklin D Roosevelt for the 21st century

OBK #55

1998 Lincoln Continental - Sold
Max 1984 300TD 285,000 miles - Sold
The Dee8gonator 1987 560SEC 196,000 miles - Sold
Orgasmatron - 2006 CLS500 90,000 miles
2002 C320 Wagon 122,000 miles
2016 AMG GTS 12,000 miles

It's the former so you should be mad and they are not going to take the hit. Basiclly the investors have get the yield from the sub-prime bonds that the bond traders gobbled up a few years ago so the way it is going to be funded is by you conforming mortgage seekers YSP for fannies has lost 1.5 points in the last 3 days.........to the lay person 1/4-1/2%.

Sheer stupidiy, I may be wrong, this may ease the foreclosure rate my in my experience the people defaulting are people that will default at 1% or losing their jobs which is the problems in Michigan. I have seen 1...count em 1 sub prime rate increase where the person was going to lose the house due to increased payments we refi'd into an FHA and they are now in better shape than they were in the first place and I am replacing the angel at the top of their Christmas tree.


This a a corporate bailout...plain and simple...IMO the market was not given ample time to correct itself.

So, if we live an irresponsable lifestyle and make all sorts of stupid decisions someone will always be there to bail us out.

That's how most raise their kids these days.

I'm slowly trying to adapt. Maybe I do need a bigger house.

Here is the message from Ellie Mae.

President Bush Announces Industry Agreement
to Freeze Sub-Prime Mortgage Rates

• The agreement will allow distressed borrowers who are current on their sub-prime loan payments to keep their low introductory rates
• The rate freeze will apply to loans taken out between January 1, 2005, and July 30, 2007, and scheduled to rise in 2008 and 2009
• The rate freeze will exclude the following groups:
  • Borrowers who are delinquent on payments
  • Borrowers whose introductory rates expire before January 1, 2008
  • Borrowers who mortgage companies determine have sufficient income to pay the higher rates

I don't care who it bails out, the lenders or the lendees. It's bailing out someone for their stupidity. I think it's more of a matter of owning/lending for more house than could be afforded.

__________________

1980 300TD-China Blue/Blue MBTex-2nd Owner, 107K (Alt Blau) OBK #15
'06 Chevy Tahoe Z71 (for the wife & 4 kids, current mule) '03 Honda Odyssey (son #1's ride, reluctantly) '99 GMC Suburban (255K+ miles, semi-retired mule) 21' SeaRay Seville (summer escape pod)

Ain't that the truth! That does seem to be very prevalent in our society. Don't get Mistress started, though . . .

__________________
" We have nothing to fear but the main stream media itself . . . ."- Adapted from Franklin D Roosevelt for the 21st century

OBK #55

1998 Lincoln Continental - Sold
Max 1984 300TD 285,000 miles - Sold
The Dee8gonator 1987 560SEC 196,000 miles - Sold
Orgasmatron - 2006 CLS500 90,000 miles
2002 C320 Wagon 122,000 miles
2016 AMG GTS 12,000 miles

I'm bettin' lenders are having a tough time selling those loans now.
Funds tied up that could go towards personal, credit card and auto loans... gotta' hurt.
Say goodbye to free checking, decent MM rates. Hello bigger fees...

Funny about the timing of this post, eh?

Slammed them this morning, btw and a balmy 40 degrees

OK, let's look at it that way.

Does Countrywide get put in a much better position due to this bailout?

Can we double down on Countrywide...........right now? The stock is practically free.

Time to put some money on the table............if Countrywide is going to benefit.

That last bullet is key. Well over 50% of the affected mortgage holders can easily afford the rate increases. So there is no automatic bailout for them.

__________________
1985 380SE Blue/Blue - 230,000 miles
2012 Subaru Forester 5-speed
2005 Toyota Sienna
2004 Chrysler Sebring convertible
1999 Toyota Tacoma

That's how I see it. The only way I would take anything other than a 30 year fixed mortgage is if I were intending to flip a house. In that case I'd have done my homework and would know that there was a reasonable chance for a return on my investment. But thats completely different from owning a house as a place to live which is what I think most homeowners plan to do.

Certainly I do and under those circumstances you make sure you have planned things out responsibly before time and you dont try and get something you cant afford by using funny money loans. If you are that stupid you deserver to lose the house. And I dont see any reason why the government should have to save you from the consequences of your own greed and or stupidity.

- Peter.

__________________
2021 Chevrolet Spark
Formerly...
2000 GMC Sonoma
1981 240D 4spd stick. 347000 miles. Deceased Feb 14 2021
2002 Kia Rio. Worst crap on four wheels
1981 240D 4spd stick. 389000 miles.
1984 123 200
1979 116 280S
1972 Cadillac Sedan DeVille
1971 108 280S

Perfect timing.