Economy Update.

[lilb990]

THANK YOU CAPO Someone agrees with me

[S8NSSON]

Heh I on a 5:1 ARM right now. It's about to move onto the 1 section of it.
We only did it to save $100 pre month five years ago. We could afford our mortgage, just wanted to try it out.
We'll have no problem coming out of the ARM.

What we are having trouble with is selling our house in Upstate New York and our house in Fayetteville, Georgia.
As soon as we sell these two houses we will put our primary residence on the market and move about 40 miles west to a much better school district. We'll buy our new home on, what we estimate to be, around $50k mortgage after the down payment.

Our issue is that we need to hold out on our other two houses because the market is down. But holding out will mean we won't get the best deal on our buy when the market turns. Catch 22 there.

[blaa]

80000 people is not most.

s8n is right. Too many people lived over their head.

By that i dont mean that all those 80000 are to blame. Probably most of them had too dumb bosses.

Almost every topic I've made, you were negative.

url or shut it

[Fitz]

Do you know why?

This is caused by people living beyond their means.  If you get an ARM for a house you couldnt afford with a conventional loan, then tuff. 

Owning a house is not a right, its a privilege, and the fact that judges are now going to renegotiate forclosed on homes mortgages so that these people that are living beyond their means can keep their homes really bites.

It's not so much the peoples' fault as it is the banks who gave the loans out in the first place. True, the people should not have taken loans out that they cannot afford in the first place, but who gave them the loans without doing prior background checks? The subprime mortgage crisis can be blamed on banks that did not have proper regulations and checks in place to make sure these loans were not given out to unqualified individuals in the first place.

But of course, every time the dems go and try to put proper regulation in place, those good ol' republicans yell and shout and say let the banks do what they do best. Yeah, let's let those banks do what they want... I mean, look where we are now eh?

[KnacK]

The banks were dictated to by the govt back in teh CLinton days to do the sub prime mortgage lending.  Also, mandating that the banks take loan applications on stated income vs. proved income. The banks didnt have any problem with this as if the paper went bad, they could sell it oof to freddie and fannie, which they did.

[Fitz]

The banks didnt have any problem with this as if the paper went bad, they could sell it oof to freddie and fannie, which they did.

So the banks sold their problems to freddie mae and fannie mac, as the small banks couldn't afford to not get paid. All fine and dandy until mae and mac realized they weren't getting money and now look where they are. Struggling?

[KnacK]

Agreed.

2004 there was a review as to the performance of fannie and freddie. It was reported that all was well even though there were signs of trouble.

Now the former chiefs of those 2 institutions are part of the new administrations cabinet.

I just consider myself fortunate that I live within my means and in an area that for the most part is not being affected by the economic downturn near as bad as the rest of the nation.