Posted on 03/15/2007 12:58:07 AM PDT by Graybeard58
>>In this lies potential for a true economic crisis.<<
Yep. Not guaranteed, but it is there. It could be one part of a "perfect storm".
>>Everybody who was paying attention knew this was going to occur.<<
I disagree. A LOT of people on FR the last couple of years have been talking about this and they were labeled "doom and gloomers" by people that would keep blathering about how THEIR home was worth more than it used to be.
They forgot the phrase "no man is an island". When all your neighbors are in foreclosure, it will impact you whether you like it or not, especially if you are in sales.
>>Victims? You want victims? Wait until the value of houses owned by those with good credit ratings start sinking like a stone.<<
You nailed it.
It's a mad, mad, mad world.
How can you carry a 350K mortgage on 72K/yr?
But wait until the Federal government makes you and me bail those people out for their poor decisions.
It is the government who fosters that "lifestyle", starting with public school through grade 12, teaching them that they are "entitled" to a college education, then giving those same kids bucket-loads of money and guaranteeing the loans to lenders. If the ex-student defaults, why should the lender care? The taxpayers end up paying the lender and get stuck with the bill. Suckers.
You nailed it.
They will continue to jack up tuitions, books, etc., so long as the sky is the limit.
Colleges are profit-motivated institutions, and they will raise their price to whateever the market will bear.
And at this point, there seems to be no ceiling on that.
Yes and when they started being offered to people who are not self employed.
Yeah, but employees of the sub-prime companies sometimes encourage it. I irked a client last year (I'm a lawyer) because I refused to move ahead with the sale of a tract of land with a trailer. The trailer needs some work, too much work to quailify for a HUD loan. The (sub prime) mortgage broker's solution was to raise the sales price by $20,000, then have my client kick the $20,000 back to the Buyers under the table, so that the Buyers could perform the repairs, and bring the trailer up to the condition the Buyers were already representing that it was in.
I said no, and several heated conversations with my client, who was all for it, failed to convince him that he would be committing a felony when he signed the HUD-1 form at closing, because it showed the money going to the Seller, not the Buyer.
I think that all that kept me from getting fired -- so someone else could close the deal -- was that I further pointed out that my client would get a 10-99 for the entire sales price. The IRS wouldn't care if he kicked $20,000 back to the Buyer, they would want their capital gains tax on it. The thought of having to pay capital gains tax on money he didn't have finally got him to see the light.
Lenders ought to be professionals. Maybe "victim" is too strong a word, but who is in charge of the money? Who is abusing the system?
You were making all the non payers look bad! Shame on you.
It wouldn't bother me if real estate values dropped. I'd get a break on taxes.
huh? think again. The tax bill is prorated over the values of all property. As all values go down, your tax bill will stay the same. But you didn't mind the high tax bill when the value of your house was going up, now you will.
Good points there.
>But you didn't mind the high tax bill when the value of your house was going up, now you will.<
Go back and read my post. We're in our house to stay. I don't want my property values to skyrocket. It's not right that young people have to take on outlandish debt to get a starter home.
The tax bill might be pro-rated, but if you don't think your county commissioners (or city council, etc.) aren't getting drunk with greed over these illogically high real estate prices, you might want to reconsider.
Many of the now beleagured home buyers the agency sees were conned into buying homes they could not afford by fast-talking mortgage brokers, ..., often filled out the paperwork and pulled job titles and salaries out of thin air.
Did these losers think that somehow they wouldn't ever have to make the payment? It sounds like the fraud is on the part of the home buyer buying something that they can't afford and have no intention of paying for. How many people are so stupid to think that if they make $600 a week, then can pay a $3000 a month mortgage and still make payments on their 22 inch rims, buy $100 worth of lotto tickets each week, and still have money left over for a couple of cases of beer on the weekend and a couple of sixpacks on week nights?
John McCain of presidential aspirations was one. Haven't heard about this from the MSM since he went ballistically liberal
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