Can someone explain to me why Foreclosures

**Wallruss64** · 02-18-2009, 12:49 PM

Originally Posted by BryceC

That isn't a valid argument in my opinion. You bought the house, you didn't buy the housing market.

My house has negative equity right now but I can still make my payments and I will continue to do so. Frankly I am embarrassed to be an American right now with all of the bullcrap going on like this.

This is another thing I don't get. If you owe more than your house is worth is should have no effect on if you can afford the payment or not. It just means that you are going to have to take a loss if you sell it now or stay in it for a few more years until the market rebounds. I think the media makes too big of deal about this in the current situation.

**cybsball20** · 02-18-2009, 12:49 PM

Originally Posted by GeronimusClone

Wouldn't worry about it if you don't plan on moving.

How many 25 year olds plan on staying in their starter house for 10 years?

**GeronimusClone** · 02-18-2009, 12:50 PM

Originally Posted by cybsball20

How many 25 year olds plan on staying in their starter house for 10 years?

Don't know. We could take a poll.

**Wesley** · 02-18-2009, 12:51 PM

Originally Posted by bostinelosd

When they foreclose, dont we all suffer? If the lending industry tanks from those losses, all of us will feel something Im sure. I really dont know much about this stuff, but it seems like it would screw us all. Its crap, I agree. But this is a country of handouts.

Foreclosed people when forced to move can now expect relocation expenses repayment under the new proposal today. They call that a safety net.

**jbhtexas** · 02-18-2009, 12:55 PM

Originally Posted by clone52

Some are complaining that their taxes shouldn't be used to bail out people who made bad decisions. Valid argument. I can also complain that why should I be punished by being forced to sell my house at a reduced price because the market is flooded by foreclosures. They argument can go both ways.

One of the "risks" of buying a house it that it will go down in value. You aren't being punishished, you are simply experiencing one of the well-known risks of home ownership. That's completely different than "rewarding" poor decisions by bailing out those who bought more home than they could afford.

Speaking of decreasing home values...when I closed my parents' estate 4 years ago, I ended up selling their house for 1/4th of what they paid for it in 1980.

**iowaboy** · 02-18-2009, 12:56 PM

For the most part i don't feel sorry for those who are losing their cars and homes as they shouldn't have had the loans in the 1st place.After all, they signed the papers and for the most part KNEW what they were doing.

HOWEVER< That being said, some people like a lady that was 80 or so years old were told to refinance her home 4 times and adding 20,000 each time I do feel sorry for. Her husband died a few years back and it was open season. She actually didn't qualify but said she could claim her husbands income to qualify which was ZERO as he was gone. NOW< her payments are more than she earns and is in forclousure.
BASTARDS!!!

They need to find out the person-persons who did this and put him in prison with BUBBA. This lady who happens to be a poor black lady breaks my heart. Her face on tv was a face of worry, confusion etc. I don't know if she had any family, but her whole life is wrapped into that home, and to think the "bastards" want to take it away is shameful. The financial institution and heavy on the institution aspect of this, needs to "EAT" the losses and allow her to stay in HER home at the origional payment and chalk up the loss to Being greedy and stupid.

For many years I financed many people on car loans and even a few second chance finance loans. Many times I told people they needed to spend 3,000 instead of 18,000. The people told me that if I didn't want to do it the DEALER down the street would. My 3000 sh!tbox was 150.00 per month but the jerk down the street shows them a 18,000 car for a "LITTLE" more but the people had to make payments till the second coming of ******!! They still wanted the better car knowing that their 3rd grader would be in college before the loan was satisfied. They would have as we call it in the car business "A FIRM GRIP ON THE TRADE IN!" Those people I do not feel sorry for. Thats where two "suckers" met, one for offering, one for accepting!

**abcguyks** · 02-18-2009, 12:57 PM

Originally Posted by cybsball20

How many 25 year olds plan on staying in their starter house for 10 years?

How 'bout this for a concept. Stay in your house until you can afford something better.

You do not have a right to buy a bigger or better house every 5 years. Travel the world a bit and you'll realize how good we have it here. In most of the world a 25 year old has almost no shot at buying a house. At 25, one should feel lucky to have a house - period!

**brianhos** · 02-18-2009, 01:03 PM

Originally Posted by cybsball20

How many 25 year olds plan on staying in their starter house for 10 years?

I bought my house when I was 24, I am still in it.

**matmann22** · 02-18-2009, 01:06 PM

Originally Posted by Wesley

Foreclosed people when forced to move can now expect relocation expenses repayment under the new proposal today. They call that a safety net.

WTF ? Let me guess, the taxpayer (aka the government) is going to repay the expenses.... This means a new federal foreclosure agency !

Do we have any tax cheats left to head that agency ?

**BryceC** · 02-18-2009, 01:07 PM

Originally Posted by cybsball20

What about the 28 year old who bought a house three years ago and it's now work 65% of what they bought it for? They can't move, their stuck in the house untill the market adjusts or they are able to come up with 15 years in payments...

You suck it up. This country used to pride itself on people pulling themself up by their bootstraps. Likely the market won't stay this bad for too long so people may have to just live in their starter houses for another 2 or 3 years longer than they anticipated. Like I said I have negative equity in my house that I've lived in for 2 1/2 years and I'm 27. It happens.

**cybsball20** · 02-18-2009, 01:10 PM

Originally Posted by BryceC

You suck it up. This country used to pride itself on people pulling themself up by their bootstraps. Likely the market won't stay this bad for too long so people may have to just live in their starter houses for another 2 or 3 years longer than they anticipated. Like I said I have negative equity in my house that I've lived in for 2 1/2 years and I'm 27. It happens.

But if all these houses forclose the market will only get worse. That 150,000 house you bought is now worth $100,000 and you can't take the new job you got offered because you can't write a $50,000 check to get out of your house...

**Cyclone90** · 02-18-2009, 01:11 PM

Originally Posted by cybsball20

How many 25 year olds plan on staying in their starter house for 10 years?

Originally Posted by brianhos

I bought my house when I was 24, I am still in it.

What, you mean I don't have to have my housing expenses be 30% of my income? I could actually use my money other ways outside of a big house I don't really need.

**usedcarguy** · 02-18-2009, 01:13 PM

Originally Posted by superman_101680

Can you propose an alternative? Do you allow major parts of our country to go belly-up?

I don't know the answer but I keep seeing tons of negative press on all available steps in attempt to correct the economy.

I have proposed several alternatives in other threads. As for the negative press, when only 25% of the stimulus spending is going to happen in the first year, it is not very stimulating. It's more like pork.

Either way, there is going to be maximum pain for the transgressions of our society. Our choices are to make it short and quick, or long and drawn out. Congress is choosing the latter.

**brianhos** · 02-18-2009, 01:14 PM

Originally Posted by cybsball20

But if all these houses forclose the market will only get worse. That 150,000 house you bought is now worth $100,000 and you can't take the new job you got offered because you can't write a $50,000 check to get out of your house...

Did this person not see the bubble that was forming? I was telling anyone that would listen we have a problem in 2004. Once the prices started climbing that fast, it could only go one place.

**dabendschein** · 02-18-2009, 01:16 PM

I am on the side of allowing companies to fail, and people to fail. If the government continues to step in and bail a select group of corporations/people out, it will cause more pain for us all in the long run. How will anyone learn from their mistakes if they are continually "saved" by the government?

The US is bankrupt, and has been for quite some time. Countries are no longer loaning us money because they know we will not be able to pay them back. So what do we do? We print and print and print. Inflation is a b*tch, and all of us will unfortunately find out how high inflation will be. The money supply has increased over 70 percent since October of 2008...that is huge!

I went through school learning Keynesian economics and am starting to understand and agree with the Austrian Economics more...which is probably why i think the way i do. Is my thinking correct? who knows. All i know is economics is difficult to understand.

And try to listen to guys who are against the main stream media....like Peter Schiff, Marc Faber, Jim Rogers....etc. Are they right in their thinking? Only time will tell...but it will give you another side to the story and will allow you to open up your mind to some new school of thought.