"Our journey is not complete"Obama says

[ElectraMaddox]

-Passed health care reform ( I think this country absolutely needs health care reform, but I opt for universal healthcare plan for everyone in the US, something like Australia has would be perfect in my opinion)
-Passed stimulus (Signed $787 billion American Recovery and Reinvestment Act in 2009 to spur economic growth amid greatest recession since the Great Depression- thanks BUSH)
- Passed Wall Street Reforme- Which is needed because I think wall street rapes the people of America daily
-Ended war in Iraq
-starting to get out of Afghanistan
-Eliminated Osama
-Turned US Auto industry around
-Recapitalized banks (In the midst of financial crisis, approved controversial Treasury Department plan to lure private capital into the country’s largest banks via “stress tests” of their balance sheets and a public-private fund to buy their “toxic” assets. Got banks back on their feet at essentially zero cost to the government.)
-Don't ask don't tell was repealed which is a huge step with social change in this country
-Toppled Moammar Gaddafi
-Told Mubarak to Go
-Reversed Bush Torture Policies
-Improved America’s Image Abroad (IMPORTANT)
-Kicked Banks Out of Federal Student Loan Program, Expanded Pell Grant Spending
-Created Race to the Top (With funds from stimulus, started $4.35 billion program of competitive grants to encourage and reward states for education reform.)
-Boosted fuel efficiency standards (I think that was smart considering one day our dependent asses will be out of oil)
- Passed mini stimulus
-He increased Department of Veteran Affairs budget, also signed new GI bill with billions of more dollars in tuition assistance to vets
- tightened sanctions on Iran
-Clean Energy!!! (began shutting down dirty power plants... this did cost jobs... and beside solar and wind energy, most ways of making energy are horribly dirty)
-Passed credit card reforms (makes credit card companies notify you before increasing rates/fees)
-Expanded National Service
-Expanded wilderness and watershed protection (I love that he did this, I am an avid outdoors person)
-Pushed federal agencies to be green leaders
-Is crafting next generation school tests because the way the US teached their kids is an absolute joke... Hence the reason why we are not even in the top 15 smartest countries
-cracked down on bad for-profit schools... A lot of thee online schools you see commercials for on TV are not even accredited by the states in which their schools are in
- Improved school nutrition
-hate crimes protection
-expanded healthcare coverage for children
-expanded stem cell research
-provided payment to wronged minority farmers


I think he is doing a lot of things right in this country, obviously within the last 3 decades there has been a large shift and a polarization of parties. People are split now more than ever, which I think is dangerous. Politics are getting crazy. I am happy he is taking a stand on social issues in America. I love that he supports the LGBT community and equal rights for all, I like that he is trying to fix our FVCKED up healthcare system... NO ONE should have to lose everything because of medical bills... I still think he could do better when it comes to the health care system, but at least he is trying to do something. It is nearly impossible for anything to get pushed through congress or the house.

I agree!

[dan991]

I do think there is a false story being portrayed that house market is recovering. It is but only because the banks are sitting on empty homes so they dont flood the market.I am in the process of buying now because we moved out of state. I cant tell you how many homes I ride past daily that are empty and have been since we got here 6 mos ago but the banks have not released them for sale.

Of course. I don't think that we've even begun to see the real numbers of houses that are empty or in foreclosure. Right now the banks are doing damage control and sitting on them. The whole "Robo Signing" deal was just 4-5 months ago. The housing market isn't at its lowest yet and won't be until the banks catch up and start processing all these foreclosures again. They've had them all on hold for a year now avoiding further scrutiny from the media. From early 2000 up to 2007-2008 it was a free for all with housing. All of that eventually is gonna catch up and a lot of people are still fighting to keep their homes. Once interest rates rise again; round 2 starts for foreclosures. There are a lot of dumb people on this planet that don't take action until its too late. They live month to month and they aren't sweating that 5 year ARM because today their payment is the lowest its ever been. They'll sweat it again when rates go back up and it'll start all over again.

[ElectraMaddox]

So we all get to bail him out because he is not a man of his word, not because of a uneducated decision? Thats even worse. I hope he doesnt have the balls to bitch about the housing market or bank bailouts. Sounds like a real stand up guy. Tell him I say thanks for adding to my countries debt.

In the end we all end up accountable

[Rwy]

Actually that's inaccurate 2008 the stock market lost 56 percent and has since en done a double meaning we are in an expansionary trend, stocks are under valued and bonds are at premiums bc interest rates are low as qe3 comes to an end this year you'll see the same trend you've seen with stocks and most likely bond prices will tank b.c they lose value when interest rate rise.

It's not banks that push that on people there used to be loans call no doc loans so at that time they didn't have to verify anything if someone had a 720 credit score and said they made 100k they would qualify for 1 million dollar mtg. That's why today you have to go through so much paperwork to get a mtg bc now everything has to get verified. That goes to show you how many people lie.

LOL try it was 500

Stated loans the bank verified a job and you stated the income to make the debt ratios work. Those loans were known as liar loans.

NO income meant they verified no job and soley went off equity

[ElectraMaddox]

Of course. I don't think that we've even begun to see the real numbers of houses that are empty or in foreclosure. Right now the banks are doing damage control and sitting on them. The whole "Robo Signing" deal was just 4-5 months ago. The housing market isn't at its lowest yet and won't be until the banks catch up and start processing all these foreclosures again. They've had them all on hold for a year now avoiding further scrutiny from the media. From early 2000 up to 2007-2008 it was a free for all with housing. All of that eventually is gonna catch up and a lot of people are still fighting to keep their homes. Once interest rates rise again; round 2 starts for foreclosures. There are a lot of dumb people on this planet that don't take action until its too late. They live month to month and they aren't sweating that 5 year ARM because today their payment is the lowest its ever been. They'll sweat it again when rates go back up and it'll start all over again.

I think next quarter this is going to be the topic of discussion bc some kind of stimulus has to get implemented to fix this.

[canesfan804]

Yea- cause that does a damn thing. I have a guy that works with me whom bought a condo for $110K in 2005 and today its worth $20K because half his building is foreclosures/short sales. He called the bank and went through all their 99 questions only to find out that there's nothing they can do for him and they really didn't want to talk to him because he wasn't late on his mortgage. They can't help him that he's upside down $90K on his place.

Thats why they call it a CONTRACT. Im sorry about his situation but the fact is he is maning up and paying it because he signed his name to the contract. A man only has 1 name.

[ElectraMaddox]

LOL try it was 500

Stated loans the bank verified a job and you stated the income to make the debt ratios work. Those loans were known as liar loans.

NO income meant they verified no job and soley went off equity

I know that... I used 720 as an example not the bridge point

[dan991]

That's not the harp program that's the modification program... If he's in that situation and he lives in area that's a harp hub, he sounds like he maybe the perfect person for that I think they refi 125 percent of home value or something like that

He doesn't wanna refi- he wants a reduction in balance to the current market price, lol. His condo was built in 1970 something... he'll never see $110K on it again. He's paying a $110K mortgage on a place worth $30K not by his doing. Its even a conventional fixed FHA. His neighbors short selling and foreclosures are the ones that caused the price in his building to go to crap.

[ElectraMaddox]

He doesn't wanna refi- he wants a reduction in balance to the current market price, lol. His condo was built in 1970 something... he'll never see $110K on it again. He's paying a $110K mortgage on a place worth $30K not by his doing. Its even a conventional fixed FHA. His neighbors short selling and foreclosures are the ones that caused the price in his building to go to crap.

Refi, lower payment pay down the mortgage sooner, save money on the interest portion. Stay there mtg free for a few years save money and hedge his losses

[dan991]

So we all get to bail him out because he is not a man of his word, not because of a uneducated decision? Thats even worse. I hope he doesnt have the balls to bitch about the housing market or bank bailouts. Sounds like a real stand up guy. Tell him I say thanks for adding to my countries debt.

What would you do? You're 50 years old, worked your ass off, did it all right- and ended up with a big cock in your ass in return. This wasn't someone who took a no doc or bought over their head. He could afford a $600K house... but he was supposed to pay for $600K and eat $300K of it because of his neighbors and banks? No way in hell. How long would it take you to make $300K......

[Rwy]

Bullshit... on my first house I didn't have 20% down and still got a loan without PMI. The appraisal had to come back 20% higher than I was trying to borrow and I didn't have to pay PMI. Ironically- it came back at 21% and I also didn't come out of pocket other than paying half the closing costs. This was back in 1999/2000.

Only conventional loans above 80% require PMI. It could have been alt a or even sub prime loans had good rates.

[dan991]

Refi, lower payment pay down the mortgage sooner, save money on the interest portion. Stay there mtg free for a few years save money and hedge his losses

How about hand it to the bank, buy the one across the hall for sale by the bank for $20K and let the bank eat shit? That's his plan and I don't blame him a bit. His place is worth what it is because the same bank that is selling the one across the hall is the same bank that holds his mortgage.

[ElectraMaddox]

What would you do? You're 50 years old, worked your ass off, did it all right- and ended up with a big cock in your ass in return. This wasn't someone who took a no doc or bought over their head. He could afford a $600K house... but he was supposed to pay for $600K and eat $300K of it because of his neighbors and banks? No way in hell. How long would it take you to make $300K......

Well unless he paid cash that 300 loss doesn't apply... You'd have to calculate the down payment and mtg payment to see how much he actually paid into the home, then see what it would have sold for.

Walking away def affected his credit so hell be paying for that in other ways like the next time he gets a credit card or car etc

[dan991]

Only conventional loans above 80% require PMI. It could have been alt a or even sub prime loans had good rates.

Oh no.. why do that when you can take a second mortgage to finance the 20% down, lol...

[ElectraMaddox]

How about hand it to the bank, buy the one across the hall for sale by the bank for $20K and let the bank eat shit? That's his plan and I don't blame him a bit. His place is worth what it is because the same bank that is selling the one across the hall is the same bank that holds his mortgage.

This sounds like hes in florida

[canesfan804]

Refinance the place and lower payment then rent it out. Even if it takes a coule tries to get a good tennant its better than a default. The value will eventually rise, maybe not to 100+ again but lets say it gets to 70 in the next 10-15 years. Say he can rent it and make $100.00 a month for the next 15 years thats 18k. Then he can sell it for what he owes basically. Still a loss of 22k but thats over 20 years so not too bad.

[ElectraMaddox]

Oh no.. why do that when you can take a second mortgage to finance the 20% down, lol...

B.c the interest rate is higher... Second now you can't go above 80 percent ltv even with a second

[ElectraMaddox]

Refinance the place and lower payment then rent it out. Even if it takes a coule tries to get a good tennant its better than a default. The value will eventually rise, maybe not to 100+ again but lets say it gets to 70 in the next 10-15 years. Say he can rent it and make $100.00 a month for the next 15 years thats 18k. Then he can sell it for what he owes basically. Still a loss of 22k but thats over 20 years so not too bad.

Exactly

[dan991]

Well unless he paid cash that 300 loss doesn't apply... You'd have to calculate the down payment and mtg payment to see how much he actually paid into the home, then see what it would have sold for.

Walking away def affected his credit so hell be paying for that in other ways like the next time he gets a credit card or car etc

He paid $600k for the house on a 30 year fixed. He bought a house the same size on foreclosure across the street for $300K. Because all the houses in his subdivision were foreclosures/short sales he couldn't sell his for what he owed. He had two choices; stay and pay the mortgage on a $600K house, or buy the same house across the street for $300K and if the market come back you have equity but if not you got the same house for half the price. Reality is- most people cannot save $300K in their life time. Having to wait 20 years to break even on a house because your neighbors did wrong is not something you should pay for. He wasn't even looking to sell but no point in keeping it because your throwing money out the window.

[dan991]

Exactly

Why? I'll tell you what my co-worker is doing. He stopped paying his mortgage last month. He's putting his mortgage payments aside to pay cash for the unit down the hall and not have a mortgage payment at all. Why would he refinance his for $110K when he can just not pay his and get the same thing accross the hall and pay cash?

[dan991]

This sounds like hes in florida

Nope- Chicago area. BUT... it happened in FL and MI first. Then AZ, NV, TX... and now its spreading like wildfire which is why I don't believe for a second we've even seen the beginning of the house crash.

[ElectraMaddox]

Why? I'll tell you what my co-worker is doing. He stopped paying his mortgage last month. He's putting his mortgage payments aside to pay cash for the unit down the hall and not have a mortgage payment at all. Why would he refinance his for $110K when he can just not pay his and get the same thing accross the hall and pay cash?

Hell pay for it in other ways like when he has a major delinquency on his credit and goes to buy a car

[canesfan804]

What would you do? You're 50 years old, worked your ass off, did it all right- and ended up with a big cock in your ass in return. This wasn't someone who took a no doc or bought over their head. He could afford a $600K house... but he was supposed to pay for $600K and eat $300K of it because of his neighbors and banks? No way in hell. How long would it take you to make $300K......

It takes me about 4 years to make that. Thats why I dont have a 600k home. Its all relative. If he makes enought to afford a 600k pmt then make the payment. Its not the amount its the fact that someone could and chose not to because its not FAIR. Well sorry to break the news but life is not fair. If I had bought my home and got under water then I would suck it up and tread as long as I could. When you gamble and lose do you pay or not? Is he one of those people screaming about the people on welfare living off the government because he is no different. He used the govt to bail him out too.

[ElectraMaddox]

Nope- Chicago area. BUT... it happened in FL and MI first. Then AZ, NV, TX... and now its spreading like wildfire which is why I don't believe for a second we've even seen the beginning of the house crash.

There's more to come for sure unless we get some kind of stimulus

[ElectraMaddox]

It takes me about 4 years to make that. Thats why I dont have a 600k home. Its all relative. If he makes enought to afford a 600k pmt then make the payment. Its not the amount its the fact that someone could and chose not to because its not FAIR. Well sorry to break the news but life is not fair. If I had bought my home and got under water then I would suck it up and tread as long as I could. When you gamble and lose do you pay or not? Is he one of those people screaming about the people on welfare living off the government because he is no different. He used the govt to bail him out too.

That's exactly my thoughts. I purchased my condo three years ago and I'm in a similar situation but I wouldn't leave my home and dumb it plus I'm pretty much even right now

[dan991]

Hell pay for it in other ways like when he has a major delinquency on his credit and goes to buy a car

Oh no... these days bankruptcy is normal on your credit and every underwriter out there will understand just by looking at the dates. "Credit Score" is a fictitious number by a computer algorithm. When you start talking hundreds of thousands of dollars- nobody cares about 7 years of bad credit. People will kill their own mothers for $100K these days. They don't care about bad credit. There's more bad credit credit cars and car loans than there are for people with good credit. When you only make $50k a year and can barely save $100 a paycheck; $80K is a lot of money to play with. Even if it does screw him over on credit- does it really if 5 years from now the housing market bounces back and he has a $100K place again? He'll make a profit if that happens to absorb the high interest car loan delta.

[ElectraMaddox]

Oh no... these days bankruptcy is normal on your credit and every underwriter out there will understand just by looking at the dates. "Credit Score" is a fictitious number by a computer algorithm. When you start talking hundreds of thousands of dollars- nobody cares about 7 years of bad credit. People will kill their own mothers for $100K these days. They don't care about bad credit. There's more bad credit credit cars and car loans than there are for people with good credit. When you only make $50k a year and can barely save $100 a paycheck; $80K is a lot of money to play with. Even if it does screw him over on credit- does it really if 5 years from now the housing market bounces back and he has a $100K place again? He'll make a profit if that happens to absorb the high interest car loan delta.

Who's to say that will happen?

[dan991]

It takes me about 4 years to make that. Thats why I dont have a 600k home. Its all relative. If he makes enought to afford a 600k pmt then make the payment. Its not the amount its the fact that someone could and chose not to because its not FAIR. Well sorry to break the news but life is not fair. If I had bought my home and got under water then I would suck it up and tread as long as I could. When you gamble and lose do you pay or not? Is he one of those people screaming about the people on welfare living off the government because he is no different. He used the govt to bail him out too.

He's a retired Chiropractor..... he has money. What he's not is stupid. He's 50 years old and he's not making anything anymore other than social security or whatever. The more money you have- the cheaper you get. Just because he lives in a $600K home doesn't mean that its relative because he's a cheap skate. Again- I don't blame him a bit and I'd do the same thing.

[dan991]

Who's to say that will happen?

You don't know... but what he knows is that his place isn't worth what he owes and he can buy the exact same thing for $20K and never make another mortgage payment. The move will take 10 minutes because he doesn't even need to go on a different floor, lol.

[ElectraMaddox]

You don't know... but what he knows is that his place isn't worth what he owes and he can buy the exact same thing for $20K and never make another mortgage payment. The move will take 10 minutes because he doesn't even need to go on a different floor, lol.

At least that's one good thing

[dan991]

At least that's one good thing

But see.... if your condo did the same thing... what would you do? If you could buy a place for 1/8th of what you owe on yours and not even have to hire a moving company.... do you stay or dump it... and who's fault is it? The banks are the one's selling these houses for pennies on the dollar and approving these short sales; which in turn burn people like you.

[gearbox]

Who cares about don't ask don't tell... for real?

Health care reform my ass! That idiot cost everyone money on that deal... who wins- those one welfare.

You're nuts... Obama is worse than Bush x 3 and both of them destroyed this country. We need Bill back.....

Couldn't agree more!
Health care bill is costing people with jobs more money!

And wait he is changed the secret service protection for presidents after there terms ended. Thats going to cost us MILLIONS. but he had good reason, we have had a lot of presidents killed after being in office.

[ElectraMaddox]

But see.... if your condo did the same thing... what would you do? If you could buy a place for 1/8th of what you owe on yours and not even have to hire a moving company.... do you stay or dump it... and who's fault is it? The banks are the one's selling these houses for pennies on the dollar and approving these short sales; which in turn burn people like you.

I can see what you mean I personally wouldn't take that avenue but to each is own.

[Rwy]

B.c the interest rate is higher... Second now you can't go above 80 percent ltv even with a second

what do you mean?

[ElectraMaddox]

what do you mean?

A second mtg ie. a home equit loan or line or credit ( which converts to a Heloan after a certain duration) can not exceed 80 percent loan to value in majority of cases.

[dan991]

I can see what you mean I personally wouldn't take that avenue but to each is own.

Ah ha... so its a morals thing.... you don't want to be "Ms. Bad Credit" and you're willing to eat the money on your own. Unfortunately- you're the only one that is gonna pay for it.... which bring us back to accountability... because these banks that wrote these mortgages don't give two shits. Not only did they not care when they wrote them; they don't care now selling these houses for pennies on the dollar of the original mortgage or approving the short sale. They have insurance to fall back on and for the home owner; its either a cock in the ass to go with your morals or you dump it to join the bad credit crowd and find something better for less money.

[ElectraMaddox]

House value 100k
Mtg 60k
Available eq for a second mtg... 20k

Scenario two
Value 100k
Mtg 96k
Eq 4k not enough equity ltv is too high

[ElectraMaddox]

Ah ha... so its a morals thing.... you don't want to be "Ms. Bad Credit" and you're willing to eat the money on your own. Unfortunately- you're the only one that is gonna pay for it.... which bring us back to accountability... because these banks that wrote these mortgages don't give two shits. Not only did they not care when they wrote them; they don't care now selling these houses for pennies on the dollar of the original mortgage or approving the short sale. They have insurance to fall back on and for the home owner; its either a cock in the ass to go with your morals or you dump it to join the bad credit crowd and find something better for less money.

No it's not so much that, I would rather rent it out purchase another property and use it as an investment home over my lifetime. I'm sure it will pay the mtg, I'll recoup my loss plus cont collecting rent but my situation I have a long time horizon

[Rwy]

Ehhh without getting into too much detail and bore the shit out of people. I am a loan officer. I have been doing this for over 10 years. Both parties have made some serious mistakes but the bottom line is both parties are owned by Wall Street. I am no where near as smart as osme of these guys out there and I knew the shit was going to hit the fan in 2008. The loan programs got worse and worse and you knew the banks were looking to bundle and sell as much as we could put together que credit swaps derivitives etc but the interesting part was the one sided reform the dodd frank presented giving power back to the banks.

Anyhow I saw the writing on the wall and when the shit hit the fan I diversified into purchase business and reverse mortgages. While everyone was trying to squeeze out those last sub prime loans I went in a new direction. Reverse Mortgage has now become the new sub prime loan and Wall Street has just helped bankrupt FHA through the reverse mortgage program. There will be a bail out needed for FHA one day its just under whose watch and who the blame will be put on is what is interesting.

[Hoggage_54]