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Modification, Refinance, and Short Sale Program Enhancements

Ok, so the government and the banks of a new thing that will reward people for their bad decisions. I understand that some people have been screwed by the banks and some people have had unfortunate events happen to them and loss of jobs etc... So, let's preclude that group from this discussion.

That leaves the rest of the people that did make the bad decision of buying a home they couldn't afford or those that walked away from their mortgages or otherwise worked the system. They will see their mortgages reduced, refinanced at lower rates or even given free money...

What about all the other people who took responsibility for their homes, accepted a smaller home because that's what they could afford and have never missed a payment? What do the responsible people get out of this deal except a good hard screwing?

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[+3] - Cycloptichorn - 02/10/2012[quote="roger"] I've seen headers in WSJ indicating that the most recent is very good for the banks in spite of the dollar amounts. Not so good for the average mortgagee. I haven't had...

@McGentrix,

I don't think you get the level of illegality that was winked at by this deal, that will give many who were screwed out of their houses, their down payments and their credit as much as 2000 dollars for their loss and trouble; and it is going to suddenly through many properties on the market that the banks were holding out of fear of consequences... Just another bj for the Obama administration to get the people to swallow... If there is one thing worse than a reactionary republican it is a suck ass democrat doing what a republican would do, and calling himself for the people...

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@McGentrix,

McGentrix wrote:

Modification, Refinance, and Short Sale Program Enhancements

Ok, so the government and the banks of a new thing that will reward people for their bad decisions. I understand that some people have been screwed by the banks and some people have had unfortunate events happen to them and loss of jobs etc... So, let's preclude that group from this discussion.

How convenient! How do you tell who is in what group?

Quote:

That leaves the rest of the people that did make the bad decision of buying a home they couldn't afford or those that walked away from their mortgages or otherwise worked the system. They will see their mortgages reduced, refinanced at lower rates or even given free money...

What about all the other people who took responsibility for their homes, accepted a smaller home because that's what they could afford and have never missed a payment? What do the responsible people get out of this deal except a good hard screwing?

They don't get anything at all.

Perhaps next time, you'll be on board with supporting effective regulations and regulators to watch over our financial markets. The simple fact is that banks and mortgage lending institutions knowingly and willfully violated laws left and right in order to make tremendous profits. Without regulation, they will continue to do so as much as they possibly can. Much of the blame for the current mess lies in the political mindset that says regulation is an evil and unnecessary thing.

If you don't agree with me, answer me this question: how did people get financing to BUY homes they couldn't afford? Isn't it the job of the bank or lender to make sure that the people they are lending to CAN afford the house? Or is the risk carried entirely by those who seek the loan from the bank?

What about those who bought houses - not extravagant ones, but regular houses - but then lost their jobs in the recession? That's millions of people. Were they also irresponsible?

Cycloptichorn

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@McGentrix,

Quote:

Ok, so the government and the banks of a new thing that will reward people for their bad decisions. I understand that some people have been screwed by the banks and some people have had unfortunate events happen to them and loss of jobs etc...

I'm not sure that you do understand at all. A great deal of those people that took out these hideously rotten loans could afford their respective houses when they were boondoggled/brainwashed into believing the loans that the banks were offering were in fact the best loans available to them.

When the housing bubble burst and the economy collapsed, that's when these people couldn't afford their respective houses. The banks themselves in pursuit of the greatest profit at all cost cost the economy to collapse and they pulled down everyone with them, including those who held these (should be illegal) subprime mortgages.

In fact, many homeowners (of minority status) who could afford above and beyond the subprime mortagages were driven to these risky and dangerous loans by the management of these banks. Let's call it like it is. Institutional racism.

Then we have the robo-signing. Not sure how you lay this at the feet of the mortgage holders rather then the banks. Too many people were wrongfully caught in these (should be illegal) bear traps even when their mortgage was completely paid off in its entirety.

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I think banking, finance, loans, mortgages, interest, pensions, retirement savings and so on should be taught in highschool. Many, many people don't understand these terms or how the processes work. Many lending institutions were using math/algorithiums that very few people understand, including those who approved the loans.
The amount of personal debt in N. America is astounding. The recent recession in the US was second only to that of the great depression. People weren't prepared for their banking institutions to be so greasy, or for a rainy day. Many of them had never experienced the catastrophic failure of standards that they were forced to deal with. It's easy to sit back and judge people when you are well set up, but when you live paycheck to paycheck and you lose a job or your home or in the case of way too many, your health it's much easier to blame them than the thieves who ran the show. And by all accounts, they have not been punished for their part in the disintegration of the economy.

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@McGentrix,

I've seen headers in WSJ indicating that the most recent is very good for the banks in spite of the dollar amounts. Not so good for the average mortgagee. I haven't had much interest in finance these past few weeks, so didn't follow through on reading the articles and commentary.

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@roger,

roger wrote:

I've seen headers in WSJ indicating that the most recent is very good for the banks in spite of the dollar amounts. Not so good for the average mortgagee. I haven't had much interest in finance these past few weeks, so didn't follow through on reading the articles and commentary.

It's not even a slap on the wrist for the banks. The amount of money involved is trivial compared to the over Trillion dollars in profits they collectively earned in the servicing of all these shitty loans.

They are essentially getting fined 2% of the profits they made breaking the law. Some punishment!

Cycloptichorn

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