Alright, someone please clarify this for me………….
Now let me see if I’m getting this straight. Everyone is blaming this economic depression we’re in on the housing industry. The main problem is that people with scores in the 500’s and even the 700’s, used an Adjustable Rate Mortgage to buy a home that was only a fixed rate for 2-5 years. They used an A.R.M. simply because the rate was usually 2-3% lower than a fixed rate, therefore making a mortgage payment more affordable. The idea behind these loans was that the housing market would appreciate more and more each year, which would allow those borrowers to repair their credit, and be able to refinance their home into a low FIXED rate before their payments adjusted. Now, those people who were irresponsible to begin with didn’t make their payments on time, and the bank is foreclosing on their homes due to too many missed payments. This forces the housing values to decrease within a certain neighborhood/area instead of appreciating because the banks are selling the foreclosed home for pennies on the dollar. Now, multiply that by the millions of irresponsible people using A.R.M.s to buy a house, and we have a national crisis. Remember, this is what I’ve been hearing on the news for the past couple years now. How Mortgage Brokers and Banks were lending out money to people who didn’t deserve it in the first place. Which, I must agree completely that the banks should have never lent that money to people who can’t even keep up with their utility bills. Regardless of whom to blame, I think we can all agree that this is basically what happened to the real estate market in the U.S. Now, there are millions of “homeowners” out there who can’t keep up with their payments, and who are upside down on their mortgages because their house is worth less than what they owe.
So, what’s Obama’s big plan to fix this you ask??? HE’S GOING TO USE OUR TAX MONEY TO PAY THE BANKS INCENTIVES TO GIVE THESE IRRESPONSIBLE BORROWERS, WITH 500 SCORES, WHO HAVEN’T MADE CONSISTENT ON TIME PAYMENTS FOR ANY OF THEIR BILLS FOR YEARS, AN ADJUSTABLE RATE MORTGAGE FOR 5 YEARS FOR 105% OF WHAT THEIR HOUSE IS WORTH!!!!!!!! ARE YOU SHITTING ME?!?!?!?! Am I the only one seeing that he’s using the same exact formula that has destroyed this market to try and fix it?? Someone please get back to me on this and tell me I’m wrong. Maybe if I bash my brains in with a brick and lower my IQ by 100 points, this will actually make sense.
Congrat’s President Obama! You have just shown you’re not even capable of balancing a checkbook let alone running the USA.
Yutsnark, & Mona Lisa, thank you for having intelligent answers. No, I do not think we should sit back and do nothing. But throwing billions of dollars at a problem and “letting it ride” on a gamble isn’t the answer either. Fannie & Freddie, and Gov’t Loans…aka…FHA loans have already changed their guidelines so that borrowers are now required to have a 620 minimum score, and put down at least 3.5% of their own money. This makes it so that only responsible people are now buying homes and refinancing. So in a way, the banks are now slowly fixing any future problems that could arise. As far as “forgot about Bush?” NO, I haven’t. It was actually the democrats pushing the banks to lend out to borrowers with lower scores. For some reason they belive everyone should have part of the American Dream. Even if they aren’t willing to actually work for it.