Intervention with other people's money in forclosure hasn't worked

http://www.smartmoney.com/Investing/Economy/The-Plan-to-Stop-Foreclosures-Has-Failed/?hpadref=1

 

I'm shocked I tell you - SHOCKED!!!

 

but the experts...

 

Easy there cowboy, he saved or created 123,164,854,873,578,385 jobs just this morning by NOT nuking the entire globe till it glows! Just give him more time and more money! Thats all! He can do it! Hope! Change! OOOOOOOOOBBAAAAMMMMAAAA!!!! YEAAAAAAAAAAAAAAAAAAHHHHH!!!


fuck my life.

 

Must need more money....

 

The whole mortgage scenario is a crock of shit. Banks are getting money in and doing nothing. We've paid our mortgage without fail throughout the length of the loan. We've been trying to refi to lower our interest rates and can't do shit because they want to base everything on foreclosure values on appraisals instead of doing alternate appraisal methods, taking homes from supposedly "artificially high" to "artificially low". End result, our credit clears, everything clears, up to the damn foreclosure values, then we get screwed.

In the meantime, friend of ours is late on one months mortgage payment. Same bank, mind you, and the bank calls them saying they will adjust their rate or help lower their payments.

This is just a load of shit. We're penalized for paying on time and doing things right. Amazing.

 

Man, don't feel that way. Don't worry, be happy. Turn that frown upside down. These are the most exciting times in our miserable lives.

 

I'm still confused why foreclosures are bad? I thought you weren't supposed to keep stuff you can't or didn't pay for.

 

Totally with you.

I think most of us are too.

Aren't we all playing on the contradictory nature of our government's actions?

Individuals buy homes with mortgages. They are unable to pay for them. Rather than let the foreclosure process function in the freemarket because the buyer isn't fulfilling their contract, the government involves itself with the money taken from others in an attempt to "reduce foreclosures".

Again, they ain't payin', get them out. Talk to your family and friends, and, if they won't help, well, get out of the house. Nothing unreasonable about it.

 

Its a bit more complicated than that because you'll end up with millions and millions of foreclosures and no one to buy them, thereby hurting the banks... also remember, someone has to pay the property taxes right? so the banks are getting double whammied...

Not that I care about the banks or anything, but when that happens they end up going out of business, then those foreclosures get bought up by another bank and so on and so on...

Unfortunately, its not as easy as "you arent paying so gtfo"... I wish it were tho...

And no, I dont know what a good solution would be, or what the proper course of action is. All I know is at some point everything corrects itself w/o gov influence, and I'm concerned we're just digging the hole deeper in an effort to "help".

 

In Wisconsin, the individual still owes the property taxes. I asked.

Why would one "end up with millions and millions of foreclosures"? Even then, why is that bad if the people aren't paying?

The banks are in the business of making money, and they are in the business of risk. You are claiming that you want to ensure that they have no risk? Why are you generating new opportunities for them? Do they have more rights to someone else's money than the person that worked to make the money?

 

Is it possible quite a few of the people with mortgage shortfalls had budgeted themselves from paycheck to paycheck? To me that equates to living beyond their means. Instead of struggling to pay for big homes and toys and having babies they should have saved some money. Set aside the toys and save enough loot to survive six months minimum should everything fall through. I know a TON of people who skip this part in favor of owning things NOW. It's all about image.

As for the big banks suffering, well so what? Healthy banks who did not indulge in risky behaviors will still survive. Banks who played roulette to make their books look good should indeed fail. They certainly should not be allowed to continue in the same manner. That's lunacy. The Big Bank spin machine is in overdrive and realize they are in the pockets of every media outlet and quite a few politicians. There are more options than their spin doctors would have us think.

http://baselinescenario.com/2009/06/18/too-big-to-fail-politically/
"...corporate governance within these large banks failed totally."