Quote:
Originally Posted by swazworth
but if the gov didn't bail out the banks they would all shut down and we would be putting our cash underneath our beds.
That's a little extreme. In my opinion the market competition will determine who survives and who doesn't there will always be a bank to put your money. And the bank that has your saving and checking accounts isn't normally the bank that holds the loan to your house.
i just think the whole mess could have been avoided if they (the banks) would have
1. be more cautious about who they lent money to
You and I agree here. I would only add that the way to do this is let the banks pay for their own mistakes and not use taxpayers dollars to do it.
2. made all homeowners get a normal loan(30 year, or 15 year). unless they were investors.
I don't agree, If you have good credit and you can accept the risk of an ARM then that should be your prerogative. However, your credit score should determine what loan you qualify for. Today the banks probably feel that a high 600 qualifies for a aggressive ARM. When the 200B hits the market the banks may change the qualification to high 500's. So in the end your ability to borrow money has less to do with your actual credit score and more to do with how much revenue that bank has to work with. In short. More money to lend than people to borrow it.
i have heard rumors of a 30 day or 60 day time frame where the banks are thinking about stopping foreclosers. that is great just make it possible for all those people to refinance there loans. i called a month ago or so i wanted to refinance my house to a 15 year from a 30 year fixed. they told me i couldn't because i was to far upside down on my house.  eventho my credit is like gold. i was shocked, upside down?? 2 years ago i had 50k in equaity, now i'm 25k upside down, because of all of the foreclosers. i have had 4 or 5 in my neighborhood in the last 2 months. the banks that gave all these bad loans are killing the people who pay thier bills. the house nextdoor to me didn't foreclose, but it is now section 8. there is another hit on my house.
something has got to give. |
This sounds like you've got compounding problems making this a bigger problem for you than most. Even in today's housing/lending market that many foreclosures within a mile or so of your home is a lot. And I don't think foreclosures count as comparables in the housing market. I'm not sure on that. But I don't think appraisers can use short sells and foreclosures and comps. But I'm not qualified to answer that.
I'm not saying this is a simple problem. And there's no easy way out. I'd just like to see everything stabilize then fix the cause of the extreme fluctuations. If we can do that, 90% of the property owners in this country will see steady continuous growth overtime. I don't like it when the housing market act's like the stock market... There is way too much at stake.
Good conversation.