If you lied on your mortgage application I will gi

[coadie]

Originally Posted by Ferd

... Drilling down a bit...


1. People who lied on their loan apps and are now going to get government help staying in their homes are stealing from those of us who are paying taxes. Period.

2. People who got homes and are now "under water" but didn’t lie are not necessarily in need of government assistance. If they can still pay their mortgage, they still have a home and regardless of the actual value of the home, it can still be lived in, appreciated, and be paid for by the home owner. This is no different than a person who is upside down on their car. If the individual is seeking government help simply because they are upside down on the home (owe more than its worth), then they are stealing from those of us who pay taxes.

3. People who were mistreated by professional loan sharks and convinced to take bad loans (interest only/ARM/Interest only ARM etc) and now they are looking for help from the government, then two things are at work. First they have some culpability for not being better educated on the matter, second, the sorry no good who sold the loan needs to go to jail, and third, It doesn’t sit well with me that those of us who worked thru hard times and sacrificed and did our due diligence are going to be asked to pay for these poor folks. I am sorry for them but I don’t know that I really agree that my tax dollars (actually the future tax bill that my kids will have to pay) should be the answer.

4. People who for what ever reason have been hurt by the economic downturn and either lost their job or lost part of their income, are in a real pickle. This one is a major conflict for me. While I generally say that there is already a process in place to deal with this (bankruptcy law), at the same time, these are the folks that I could actually see getting some kind of help from the government.

5. In general, it seems to me that the government ought to back down, and the actual banks that own these loans should see that it is in their own best interest to find a way to keep the folks in these houses.

Most of the nastier subprime debt is for folks that are impossible to deal with for traditional loans. They do have fine print they go by so it is almost impossible to find a lender that committed fraud.

[Ferd]

Originally Posted by coadie

Most of the nastier subprime debt is for folks that are impossible to deal with for traditional loans. They do have fine print they go by so it is almost impossible to find a lender that committed fraud.

yea, I know. its one of those "crimes" that really isnt going to be looked at or even if it was, there is no way of really telling who did what.

Sad.

I still dont know that a tax payer bailout is the answer.

[coadie]

Originally Posted by Ferd

yea, I know. its one of those "crimes" that really isnt going to be looked at or even if it was, there is no way of really telling who did what.

Sad.

I still dont know that a tax payer bailout is the answer.

I had the FDIC as a next door neighbor in an office building during a season of their closing many banks. I take it they are low on insurance funds for reason of closing a few more today. The spreads and margins are still ok. Citi is doing fine on fee revenue today.