Posted on 10/03/2008 7:45:46 AM PDT by Rhinoceros
Biden -"Number two, with regard to bankruptcy now, Gwen, what we should be doing now -- and Barack Obama and I support it -- we should be allowing bankruptcy courts to be able to re-adjust not just the interest rate you're paying on your mortgage to be able to stay in your home, but be able to adjust the principal that you owe, the principal that you owe."
Yes, I heard that and it’s scary as hell.
Absolute idiocy.
Maybe I’ll call my mortgage bank right now and demand they lower my principal. Or I’ll take ‘em to court.
Socialism....
These two loons (Obamaloon and Bidenloon) cannot possibly be this stupid, are they?
Incredible.
More catering to the lowest common denominator of society.
Dare I say race-based. Yes, as a matter of fact, I do.
These two loons (Obamaloon and Bidenloon) cannot possibly be this stupid, are they?
Yes, it was one of the dumbest things I’ve ever heard any politician say.
95% of the people pay their mortgages as is.
But don't you know this will raise "confidence". /Sarc.
Ummm...the heading should be principal...not principle
Exactly...my wife immediately told me to call the bank tomorrow and get the principal lowered by 30% or more...isn’t it going to be great living in a Socialist country? Wake up America !!!
If you think banks won’t loan now...just wait until a court can arbitrarily change the loan agreements and principal amounts.
I don't see how a law that permitted this could be upheld, but this plays well with certain groups, after all they only have to fool them until Nov 4th.
Yes. My wife in I joked that we want our principle balance adjusted to zero and we would then not care at all what our interest rate is.
This is how they will essentially get their “reparations.”
Need to ping the mods and get that title fixed. It tripped me, too.
Not a bad idea if you don't think about it too deeply....
So much for binding contracts. This would open a very wide door for gaming the system.
I am a Mortgage Banker, if these MORONS acheive this BS, investors in MBS WILL requrie higher interst rates to protect their invesment, the result would be HIGHER MORTGAGE RATES
but don’t you know? to own property is theft from the people... or sumpin like that, from the great Karl Marx.
does he really thing that we can throw 500 years of English contract law out the window?
I think it was a gaffe.. he can’t be that dumb. Now if Obama said it, I would believe he meant it.
Unfortunately a very large portion of the American citizenry is ...
I’d like my mortgage moved to $.25, Joe.
My wife and I literally looked at each other with gaping mouths. I was stunned.
What a nincompoop.
This isn't an odd position for a Democrat. It's vote "buying," pure and simple.
I did not know the legislative branch could impair contracts by fiat, just by decreeing that previously entered-into contracts could be denied enforcability.
Delay in payment or discharge in bankruptcy, yes. But to wholesale rewrite it? Hmmmmm.
Yes. Scared me. We are doing okay now, but if they call raise the principle we're in trouble. They cannot even do that. Stretch Biden is a jackal.
Isn't that what caused the worst aspects of the Great Depression, people losing homes because the banks were allowed to call in all the mortgages and people just weren't prepared to pay?
This is the equivalent. The FEDS will own us all, well them and China.
The result will be much higher down payment requirements and some form of prepayment on the loan (if the bank already has the money it’s harder to get it back).
But what if they pass a law and mandate the rates? Maybe I’m misunderstanding you and you’re saying rates would be higher for everyone else not included in the particular group?
If that’s true and businesses and homeowners not covered had to pay higher interest rates to cover the lost money from the mandated loans the economy would just roll right on off the cliff.
Needs to be put in a campaign ad.
Given this debate, the principle of paying back what you borrow is being upset.
The principle that you get a dollar back if I borrow one is now down to getting a dime back if my judge agrees you shouldn’t get the dollar. Call it a fractional bankruptcy.
but-—I see your grammatical point. That gaffe is what brought me to look.
Tell Obama/Biden to apply it to the national debt. But-—That is why we need the 700 Billion. We musn’t do this to the Chinese who bought those toxic packages.
This nonsense is reminiscent of Alice in Wonderland.
I thought I had heard this but tjought it could not be.
I am sure that Joe has no idea of the difference between interest rate and principle.
So the court could say that you bought your house for $100K but now you only have to pay $25k. You paid $300K but you are rich so now you have to pay $450K...Right?
lol, I thought I heard it wrong last night, and I had to rewind it to make sure. They are truly off their rocker to think they have the authority to lower the principle on someone’s mortgage. Just pandering to the low income and people who are about to go into foreclosure!
It will only serve to raise the cost of borrowing for the poor. Like most Marxist policies, the result is the opposite of the intent.
THAT'S JUST NUTS!!!
What if you have a property mortgaged at $200 000 and the gummint decides to adjust that amount for inflation over 20 years?
A contract is a contract. The parties agree to the terms and the consequences as well. Government is responsible to see that these are legally enforced, not to monkey with the arrangement according to somebody's whim after the fact.
Interest being a future income to the bank would not be such a crisis, but if the bank loaned $200,000 and courts said no make that $125,000 who eats the $75,000. Are they planning another bailout??
Thanks for bringing this up. I think I yelled “what?!!!” 7 or8 times at the TV last night.
I am not sure legal redress is such a bad thing if it can be shown a lender did not exercise some level of fiduciary responsibility. If this were life insurance rather than mortgages licenses would already be pulled and folks in court.
I couldn’t believe I was hearing that. Who the hell would ever lend money the day after that one became law??
They really don’t understand that there WILL be a reaction from the lenders.
If you’re going to tell me that the gov’t can interfere with a contract that I’m making with a borrower, to my detriment, I WILL take steps up front to minimize my risk, including NOT LENDING to some people at all.
Yes - I heard that.
I asked hubby “how the heck do you just change the principal on a loan?”
hubby shrugged his shoulders.
A useful change, assuming that your goal is to change America into a Third-World kleptocracy.
I thought that there was no way i heard what I heard.
Its like your dog speaking english. You hear it but you don’t believe it!
Obiden was talking about wiping out principal for their lowlife “reparations” buddies. We OWES it to ‘em!
Count on it if nObama and Obiden get in.
My wife left the room. I shouted at the tube.
Come on McCain. The ball is in your court.
Sheeesh.
“These two loons (Obamaloon and Bidenloon) cannot possibly be this stupid, are they?”
They absolutely are, and all these arrogant elitist snobs who like to bash people like Palin don’t want to see the imbecility in their own candidates.
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