Is Obama preparing a trillion-dollar, mass refinancing of mortgages?

Discussion in 'Free Speech Alley' started by Cajun Sensation, Jan 6, 2012.

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  1. DoctorDave

    DoctorDave Guest

    I guess not, but I don't quite understand your point.
     
    DoctorDave, Jan 9, 2012
    #31
  2. Cajun Sensation

    Cajun Sensation I'm kind of a big deal Staff Member

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    I think, for the most part, that the ones that y'all are thinking of that bought mini-mansions that they had no business buying in the first place have already been foreclosed upon. Y'all are talking about the folks that did sub/prime stated income loans to buy way more house than they could afford.

    In my dealings, especially in LA, MS,AL...those have already purged themselves out of he market. I really think the ones that are left are good families that the housing market crash affected and they could use the elbow room of refinancing into the lower rates that are available.

    I don't feel sorry for the homeowners that y'all are referring to....not an ounce of sympathy toward those folks.....I honestly think that they have largely been purged out of the market.
     
    Cajun Sensation, Jan 9, 2012
    #32
  3. Cajun Sensation

    Cajun Sensation I'm kind of a big deal Staff Member

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    My point is that just because the relaxing of the guidelines doesn't benefit you doesn't mean that you are being penalized.
     
    Cajun Sensation, Jan 9, 2012
    #33
  4. DoctorDave

    DoctorDave Guest

    By guidelines, if you mean the new government regulations, I agree.
     
    DoctorDave, Jan 9, 2012
    #34
  5. Cajun Sensation

    Cajun Sensation I'm kind of a big deal Staff Member

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    Guidelines.

    VA has them. FHA has them. Fannie and Freddie have them.

    But then again those are all Federal Guidelines now since the government takeover of Fannie and Freddie....so yeah....basically.
     
    Cajun Sensation, Jan 9, 2012
    #35
  6. martin

    martin Banned Forever

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    no, but it doesnt mean they should get any help from the government. it they cant refinance, too bad. things you buy sometimes change in value. deal with it. if you buy a house to live in, dont pay more than you can afford. if you buy a house as an investment, eat the loss. investment isnt without risk.
     
    martin, Jan 9, 2012
    #36
  7. mobius481

    mobius481 Registered Member

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    Responding to you and CS but Martin already touched on it. Can you guys explain what kind of plan they could come up with that is not a government bailout? The plan described in the first post is a massive bailout.
     
    mobius481, Jan 11, 2012
    #37
  8. red55

    red55 curmudgeon Staff Member

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    The first post is not an actual plan, but pure anti-Obama political speculation.

    A plan that would allow people to take existing lower interest fixed mortgages or to suspend foreclosures while good-faith efforts to refinance or renegotiate mortgages are ongoing, I can support.

    I cannot support tax dollars being used to pay off underwater loans. The lender and the borrower assumed the risks, would have taken the profits alone, so now must take the losses alone.
     
    red55, Jan 11, 2012
    #38
  9. mobius481

    mobius481 Registered Member

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    Lower interest fixed rate mortgages on houses that are underwater would expose the lender and guarantor (US govt) to more risk while limiting their upside. That to me is using taxpayer money to help people who are underwater on their houses.

    Suspending foreclosures would be up to the banks so if you tell them they can't foreclose, they're going to take a financial hit through deterioration of the house over that time, loss of interest on their money, etc. That hits their bottom line and costs investors/taxpayers and will hold down the overall market.

    The bottom line is, to get someone out of a financial mess, it takes money. Somebody, somewhere has to come up with the cash so you're just passing the buck. Politicians like to pass the buck to less visible places so people think it's not happening, but it is.
     
    mobius481, Jan 11, 2012
    #39
  10. red55

    red55 curmudgeon Staff Member

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    Only half of the mortgages out there are fannie and freddie.

    This report by the harvard business school suggest that both government guarantees of mortgage-backed securities and privatization of them have drawbacks. They recommend that both be used under careful regulation, to take advantage of their virtues without falling completely afoul of their faults.
     
    red55, Jan 11, 2012
    #40
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