Mortgage bailout for the idiots - whats up with that?

[ShamsWoof10]

You like that? I went back and forth between dufus and douchebag...glad I made the right choice.

Like I said "hate" is emotion and you have so much emotion for me...

Here is one for you guys... A friend of mine almost two years ago asked me my opinion on housing which I have no f*ckin' idea why he asks since I have been preaching housing down since 01' he should already know my opinion....

In any case he bought this house and a BIG one for 215K and put 265K ...yes that's right 265K into it and hoped to sell it for 550-700.... Granted he put quality work into the house and it looks nice but when he asked me my opinion and I told him that he should get a shovel and start digging...

It is still for sale and it's a nice BIG house in one of the best parts around here (Ottawa Hills) but this also means taxes of 1200 A MONTH!!!

Here is a shot of it...

http://www.visualtour.com/shownp.asp?SK=13&T=1122008

[RageWizard]

Geez Shamanator that's a lot of house. I liked most of it except for the queens bathroom and the master bed and bath. It would be way too much house for me. Do you have any pictures of the outside facade and the yard?

OT-- Like I mentioned this morning people. Start buying stocks now. There is going to be a rally for the next couple of months. Start with the financials and the small to midcap stocks. If your a little scared then try the ETFs like xlf, bkx, iwm, things like that. Now that everyone is scared and people think that the sky is falling, this means that it is time. Earnings start tonight and believe me the hype machine will be in full swing with the beat the street by a penny story.

[reno cool]

If the people who are about to get foreclosed would get a lucrative contract to rebuild Iraq maybe they could pay off their loan. Now that would be a free market.

The only reason they are passing anything is because the banks will lose in case of foreclosure. They will end up holding property of little value. AND SO THEY SHOULD
It not some poor shmo whose lobbying for this.

[Bet Shooter]

I agree with most of the posters here about this new Mortgage bill.

Rage you are spot on about the Ponzi scheme. I like to think of it as musical chairs. Most home owners have profited from the constant rise in housing for the past decade and used it like an ATM to finance their lifestyle. Then moving up with their interest only loan to a larger and larger house. Well that works great until the music stops. Then they start to blame the lenders for putting them at risk! I have made the money this way too, but with a conventional mortgage and a payment that I can afford. I know the music has stopped, and I have to wait a few more years to see my equity start to increase again, but I have the patience to wait it out. Once this market bottoms, I will take all my existing equity in my properties and buy some more income properties at the low. When there is blood on the streets, it's time to buy!

As far as the Bear Stearns bailout, that was a neccesity. The general public has no idea how close we came to a collapse of our countries currency over that weekend. The banks worked all weekend with the Fed to come up with a way to prop up our currency. The unraveling of those financial commitments by Bear Sterns would have sent those markets into a death spin! That was no joke. It could have been ALOT WORSE!!! This was on par with the LTCM (Long Term Capital Management) fiasco. The sad part is we used to be the smart ones to stick all the other countries with these risky trades. Now they are learning and can out trade us. They are turning the tables on us and the American people are getting left holding the bag.

My two cents.

[element1286]

Im surprised as usual that when it comes to helping out our very own citizens people cry foul but when Bear Stearns got bailed out with the very same tax dollars (ours)there hasn't been a peep. In my mind they are both wrong but why is it when it is the people in this country that get the break all hell breaks loose, but when the airlines and the Bear Stearns of the world get bailed out there is no mention at all?. Like i said i think its wrong both ways but if you have to spend money do it with our people instead of that shit hole called Iraq.

A very good point, no private companies or citizens should be given bailouts for making poor decisions.

[ShamsWoof10]

Geez Shamanator that's a lot of house. I liked most of it except for the queens bathroom and the master bed and bath. It would be way too much house for me. Do you have any pictures of the outside facade and the yard?

OT-- Like I mentioned this morning people. Start buying stocks now. There is going to be a rally for the next couple of months. Start with the financials and the small to midcap stocks. If your a little scared then try the ETFs like xlf, bkx, iwm, things like that. Now that everyone is scared and people think that the sky is falling, this means that it is time. Earnings start tonight and believe me the hype machine will be in full swing with the beat the street by a penny story.

Yeah that is a lot of house and a lot of property taxes... I don't know if that site still has the pictures from outside but it's got a nice size front and back yard... I feel bad for him.. His payment is 3500 a month (-taxes) and you know most of it is interest regardless of if it's an ARM or fixed... It's fixed but the "COST" of his investment gets higher and higher each month and he has it listed for 500K and still can't get any serious bids... He can't even drop the price because the bank won't let him drop it below what is owed on the loan (488K) until it reaches foreclosure status.... He still tells me IT'S WORTH this and that much... I tell him it's WORTH what someone will pay you for it and right now it's not even worth 500K...

What everyone must understand is this boom along with most others are simply artifical and when the wealth disappears it wasn't really there to start with.... Flippers like my friend are a big part of why the market ran up and low interest rates and some other factors allow it to happen... It's not just people deciding to take out loans that they can't afford... Sh*t a HUUUUGE percent of our population lives above their means and that's what keep our economy going....

If we didn't spend then we also wouldn't borrow thus an economy the size of Lebanon's.... Listen to yourselves talk.. you can't have your cake and eat it too.... That's what you want...

[purecarnagge]

buying these ****ers out of loans they shouldn't have been able to get pisses me off...

I just bought a townhouse for about 135k. Put about 28k down on it. Yeah I can afford more doesn't mean I have to. Its a nice little spot for a starter home and If I want to stay there and get into rental property later I can.

I'm still confused on rental property. I think it would be hard to get good people in there to rent it to on a regular basis. I mean how often does the actual rent cover the mortgage payment? So technically I'm paying someone to live in my house and I pay taxes on it and they trash it? While it goes up in value this is nice, but if its not going up in value I'm losing cash on it.... Until the loan is paid off...

unless its a major multiple property like a 12 plex I don't see getting into a home or duplex rental property unless its as a 15 year loan...

[Cappy]

Why would you be so pissed about this, corporate bailouts and government/industry cross-overs hurt the american people and the economy way more

[pavyracer]

I love this. I have some $100,000 in a Swiss bank that I transferred in 2002 when the dollar was trading Euro 1 to 1. Now I have $160,000 over there (not including compund interest). The more the dollar sinks due to Feds stupidity the more my Euros in Swiss bank gain value.

[Thor4140]

Why would you be so pissed about this, corporate bailouts and government/industry cross-overs hurt the american people and the economy way more

Because he doesn't hear stuff like this from our media. It is easier to go after the citizens then billionaires

[Cappy]

You like that? I went back and forth between dufus and douchebag...glad I made the right choice.

I would have said douchebag