scooterbug44
SoWal Expert
I would LOVE to hear someone explain to me why someone who gets foreclosed upon/declares bankruptcy should be able to buy a house or get a loan within 3 years.
I sure as hail don't think they should be able to.
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Mortgage contracts and moral obligation
- Thread starter 30ashopper
- Start date
I would LOVE to hear someone explain to me why someone who gets foreclosed upon/declares bankruptcy should be able to buy a house or get a loan within 3 years.
I sure as hail don't think they should be able to.
Here4Good
Beach Fanatic
scooterbug44
SoWal Expert
So why can't they just pay their grocery bills w/ decent loan risks? 
Here4Good
Beach Fanatic
So why can't they just pay their grocery bills w/ decent loan risks?
Oh, that's so old economy.
I shouldn't really blame the brokers, SOMEBODY at the actual lender had to approve these pieces of doo-doo.
Lynnie
SoWal Insider
Ditto. You can ask the now defunct hedge funds and go back to fannie/freddie to inquire why guidelines were relaxed.
Because mortgage brokers gotta eat too, ya know.
Brokers are a thing of the past.
scooterbug44
SoWal Expert
Basically I feel that there was a monumental amount of stupidity and poor financial planning at many levels/locations and I want there to BE SEVERE CONSEQUENCES so that we don't just keep repeating the same mistakes.
There needs to be some major fiscal biatch slapping and accountability and I just don't feel like we are getting anything but excuses and more enabling.
There needs to be some major fiscal biatch slapping and accountability and I just don't feel like we are getting anything but excuses and more enabling.
Lynnie
SoWal Insider
Some more information for you so you'll be fully armed when you start the fiscal biatch slapping:
Some hedge funds that backed subprime lenders knew their loans were poorly written, but if a conforming loan (under conforming loan limits by fannie/freddie standards) was written outside of fannie/freddie guidelines, no sweat.......they would buy the toxic loan in a pretty package of good loans 12 mos. later. Why? The toxic loans were only 1-3% of the total pretty packaged loans. Should fannie/freddie have ever bought those?
It's done now. Take comfort in and faith that it's not something that will ever be repeated in our lifetime. We are trying to clean up. One issue I see for the next wave of foreclosures is that these people most likely would not be in default had the economy truly been stimulated.....i.e. small businesses and individuals......not billions of dollars given to a handful of major corporations.
I think we have about 18 mos. of this (maybe less), then as we have been slowly correcting out of the contraction, we should be in good shape on the other side.....except for the trillions of debt we carry as a nation.
Some hedge funds that backed subprime lenders knew their loans were poorly written, but if a conforming loan (under conforming loan limits by fannie/freddie standards) was written outside of fannie/freddie guidelines, no sweat.......they would buy the toxic loan in a pretty package of good loans 12 mos. later. Why? The toxic loans were only 1-3% of the total pretty packaged loans. Should fannie/freddie have ever bought those?
It's done now. Take comfort in and faith that it's not something that will ever be repeated in our lifetime. We are trying to clean up. One issue I see for the next wave of foreclosures is that these people most likely would not be in default had the economy truly been stimulated.....i.e. small businesses and individuals......not billions of dollars given to a handful of major corporations.
I think we have about 18 mos. of this (maybe less), then as we have been slowly correcting out of the contraction, we should be in good shape on the other side.....except for the trillions of debt we carry as a nation.
scooterbug44
SoWal Expert
The sad thing is that I really don't have faith that it won't be repeated - the same players are still there making the same dumb decisions and being richly rewarded for it! :angry:
Lynnie
SoWal Insider
This has to be new dumb decisions or lingering ramifications from old ones. As for lending, the guidelines are changed forever and are hardfast rules. I have faith that they are changed forever.
scooterbug44
SoWal Expert
I was thinking more in terms of mortageg backed securities & hedge funds & Wall Street on that one. Though people walking away for the heck of it and the continued need to keep prices inflated and bend the rules to get people to buy are certainly part of that equation.
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