Be Easy- Obama to fix housing crisis

Forum: Politics Page 1 of 3  1 2 3  
Author: [Politics] Topic: Be Easy- Obama to fix housing crisis
ClubDirt PM ClubDirt
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Posted: 2/1/2012 12:11:15 PM
you better take back all that bad garbage you said about him and get onboard.
promark12 PM promark12
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Posted: 2/1/2012 12:18:05 PM

Obama says he wants a "Homeowners Bill of Rights"

What does Obama know about the "Bill of Rights?"

DiscoD69 PM DiscoD69
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Posted: 2/1/2012 12:21:31 PM
Here we go....

captjohn67 PM captjohn67
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Posted: 2/1/2012 12:29:08 PM
it will never happen...
djbrow PM djbrow
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Posted: 2/1/2012 12:51:37 PM

I don't have a problem with his intentions, but why is it that the government has to guarentee the protections?

Why not just create a structured scale on the banks instead? Place the burden on the banks, ensure the loans, and give the banks the ability to set REASONABLE interest rates pursuant to credit solvency and ability to pay.

All he appears to do from this is set up more homeowners into situations they may not ultimately be able to afford and set up future bank bailouts.

esplanade PM esplanade
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Posted: 2/1/2012 1:05:36 PM
How about you take responsibility for yourself?
djbrow PM djbrow
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Posted: 2/1/2012 1:16:43 PM
QUOTE

Originally Posted by esplanade:

How about you take responsibility for yourself?

The idea is to prevent mass foreclosures.

Why you ask?

Well, pretend that you are a homeowner instead of renting in your parent's guestroom.

Imagine what happens to the value of your home if there are mass foreclosures. No guess what you can't do with that reduced value? You got it...borrow and sell, from the largest asset that 90% of the population has...their home.

ClubDirt PM ClubDirt
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Posted: 2/1/2012 2:45:17 PM
goldman sachs is in trouble.
KOAJ PM KOAJ
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Posted: 2/1/2012 3:01:32 PM
QUOTE Originally Posted by djbrow:

I don't have a problem with his intentions, but why is it that the government has to guarentee the protections?

Why not just create a structured scale on the banks instead? Place the burden on the banks, ensure the loans, and give the banks the ability to set REASONABLE interest rates pursuant to credit solvency and ability to pay.

All he appears to do from this is set up more homeowners into situations they may not ultimately be able to afford and set up future bank bailouts.




wallstreetcappers PM wallstreetcappers
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Posted: 2/1/2012 3:22:48 PM
The banks need to hold the bag..they inflated it.
esplanade PM esplanade
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Posted: 2/1/2012 4:57:13 PM
QUOTE Originally Posted by djbrow:

The idea is to prevent mass foreclosures.

Why you ask?

Well, pretend that you are a homeowner instead of renting in your parent's guestroom.

Imagine what happens to the value of your home if there are mass foreclosures. No guess what you can't do with that reduced value? You got it...borrow and sell, from the largest asset that 90% of the population has...their home.



Riiiiiight!!! Because major government involvement in the housing market has been great so far. Thanks Barney......after all everyone deserves a house even if they can't afford one.

When are you moving out of your mom's basement? It's a long way from there to ownership in Manhattan Beach, buddie...


lordspoint PM lordspoint
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Posted: 2/1/2012 5:29:00 PM

Together, Fannie Mae, Freddie Mac and the FHA own or guarantee nine out 10 new U.S. home loans

doesnt that basically mean that tax payer money guarantees these?

Republicans have also rejected Obama's call to pay for the program with a bank tax that Congress has turned down twice before.

Does any one think a tax on banks would be passed on to consumers and businesses?

 

 

And I agree, the banks should hold the bag but it also starts at the individual level - ppl need to be responsible for their actions and know what they are signing when they buy a house. The economy will rebound and the housing market will correct itself. Should the goverment really step in and try to correct the pendulum?

 

lordspoint PM lordspoint
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Posted: 2/1/2012 5:29:52 PM

I dont have the answers, I am asking questions

djbrow PM djbrow
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Posted: 2/1/2012 5:32:14 PM
QUOTE

Originally Posted by esplanade:



Riiiiiight!!! Because major government involvement in the housing market has been great so far. Thanks Barney......after all everyone deserves a house even if they can't afford one.

When are you moving out of your mom's basement? It's a long way from there to ownership in Manhattan Beach, buddie...


Perhaps you should re-read my initial comments. I certainly did not advocate for major government involvement.

I am suggesting that the government can do things that will reduce foreclosures.

Notice why you didn't respond to my assertion on those? Do you know why that is?

lordspoint PM lordspoint
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Posted: 2/1/2012 5:34:38 PM

and weren't home values inflated before the crash anyways?

kinda like the dot com bubble

lordspoint PM lordspoint
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Posted: 2/1/2012 5:39:47 PM

and wait a second

this program is for people who are current on their payments but are underwater. OK, if they have a mortgage, are current on their payments, why do they need a goverment backed relief program?

They cant refi bc they owe more than the value of their house but they could afford the payments when the purchased the house so unless they have lost a job etc why does the govt (we) need to back their loan so they can refi??

what am I missing?

jinvegas PM jinvegas
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Posted: 2/1/2012 5:43:56 PM
heres a novel idea, dont have a govt agency thats willing to buy any and every mortgage thrown its way.  make the banks either hold on to the mortgage.  it doesnt take a rocket scientist to see the problem when a bank can give out a mortgage to anyone, make their money and sell the liability to the govt.

just look at 2 of the recent economic meltdowns and whos at the root cause

housing bubble- freddie and fannie
enron-SEC

could there be a correlation????
djbrow PM djbrow
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Posted: 2/1/2012 5:49:33 PM
QUOTE Originally Posted by lordspoint:

and wait a second

this program is for people who are current on their payments but are underwater. OK, if they have a mortgage, are current on their payments, why do they need a goverment backed relief program?

They cant refi bc they owe more than the value of their house but they could afford the payments when the purchased the house so unless they have lost a job etc why does the govt (we) need to back their loan so they can refi??

what am I missing?

As I understand, the proposal pretty much applies to anyone, and is not limited to those who are behind or underwater. It is more about saving families money.

As I said, i agree with the intent, but not as the government providing insurance to the banks. If a family can refinance and save $1000 per year as opposed to $3000, but it creates less potential cost to the government (because the banks do not need to refinance as many to compensate for less money being paid), I think it makes more sense.

lordspoint PM lordspoint
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Posted: 2/1/2012 5:54:56 PM
whats the incentive for the banks?
lordspoint PM lordspoint
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Posted: 2/1/2012 5:56:56 PM

didnt they already write off or sell these toxic assets or do many banks still hold alot of subprime loans on their books?

djbrow PM djbrow
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Posted: 2/1/2012 6:04:33 PM

The banks should have had incentives as a condition of the bailouts to act as banks. Lending only to those who have an 800 credit score and above is ridiculous.

The banks have a strong incentive to reduce foreclosures as well. They merely lessen the asset solvency of those who do indeed have higher credit scores.

As I said earlier, there is a middle ground between giving too much and not giving at all.

lordspoint PM lordspoint
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Posted: 2/1/2012 6:17:31 PM

i agree, 800 and is a bit high

didnt we already give the banks a garbage load of cash that they are basically sitting on?

if someone has a higher credit score than they are less of a risk and the banks dont need to worry as much about their solvency whether or not their home is underwater or not.

I am just struggling with the question of what incentive there is for banks to take on this type of plan on their own "goodwill"

I am not saying its a bad thing - more money in the consumers pocket is a good thing but what would motivate a bank to refi a loan for someone who has been making payments and probably will continue to make their payments?

If the banks do not have a monetary incentive they wont do it. If the govt guarantees it then they prob would be more inclined to do it because they just dumped more loans onto the feds (you and I)

 

 

SarasotaSlim PM SarasotaSlim
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Posted: 2/1/2012 7:02:48 PM
Many of these 10 million borrowers that Obama want's to help...   owe more on their mortgage than their home was worth... used their homes as a ATM machine

 These underwater homeowners converted equity they had in their homes into cash to spend it on other stuff... Home equity loans reduce the cushion borrowers have against price declines....

 More than 40% of all underwater homeowners (4.5 million) have home equity loans............

So it's only "Fair" that taxpayers who didn't put themselves in this position should share the burden ...and pay their fair share for those who "acted foolishly"... "it's only fair ...level the playing field ...

atlheatholder PM atlheatholder
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Posted: 2/1/2012 7:11:59 PM

*Off topic

dj -

Your RSI rating is ridiculous - well done.

lordspoint PM lordspoint
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Posted: 2/1/2012 7:33:57 PM
QUOTE Originally Posted by SarasotaSlim:

Many of these 10 million borrowers that Obama want's to help...   owe more on their mortgage than their home was worth... used their homes as a ATM machine

 These underwater homeowners converted equity they had in their homes into cash to spend it on other stuff... Home equity loans reduce the cushion borrowers have against price declines....

 More than 40% of all underwater homeowners (4.5 million) have home equity loans............

So it's only "Fair" that taxpayers who didn't put themselves in this position should share the burden ...and pay their fair share for those who "acted foolishly"... "it's only fair ...level the playing field ...

is this factual Slim?

if it is I am feeling kinda queasy

 

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