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Why do I have to pay my neighbors mortgage?

4K views 65 replies 23 participants last post by  TITTIES AND BEER 
#1 ·
This plan does nothing for 75% of us other then inevitably increase our taxes and create burden and hardship for future generations (our children)


How will the homeowner bailout affect responsible borrowers such as myself? I purchased my condo two years ago, borrowed what I knew I could afford considering my budget, and am not at risk of foreclosure. It seems unfortunate that we are bailing out those who did not borrow responsibly or did not truly understand their mortgages before signing them. So on top of me not seeing any advantage from the housing bailout, my taxes will most likely increase as well.
— Lars M., Evanston, Ill.

You’re not alone in wondering why your taxes should be used to help your neighbor make their mortgage payment.

The Obama administration’s plan to use $75 billion of tax dollars help some homeowners pay their mortgages touched off a huge backlash. Apart from a flood of mail to the Answer Desk inbox, the outrage was galvanized by CNBC’s Rick Santelli, who covers the commodity markets in Chicago. On Thursday, Santelli gave voice to that outrage in an on-air rant that — among other things — called for a “tea party” this summer to protest the administration’s plan to “subsidize losers’ mortgages.”

It was apparently a rant heard ’round the world — or at least ’round YouTube. On Friday, White House press secretary Robert Gibbs felt the need to respond directly to Santelli’s attack on the Obama's foreclosure relief plan by noting that many homeowners facing foreclosure won’t be eligible for help, including investors and people who “long ago knew they were in a house they couldn’t afford. Instead, he said, the plan is targeted toward helping people “who aren’t yet in trouble keep from getting in trouble.”

Gibbs also pointed out that millions more Americans will benefit from the government’s comprehensive effort to drive down mortgages rates, allowing homeowners who aren’t in trouble refinance to a better rate and save money.

Preventing foreclosures also pays benefits to anyone who owns a home by slowing — and possibly stopping — the ongoing slide in home prices. Each new foreclosed property — sold at fire sale prices — drives down the value of every other home on the street.

“If you live in a home that’s near one that’s been foreclosed, your home value likely has dropped by about 9 percent, which for the average home is about $20,000,” Gibbs told reporters Friday.

According to the U.S. census, there were about 75 million owner-occupied homes at the end of 2008. By our math, that means that the $75 billion being spent to prevent foreclosures works out to about $1,000 per owner occupied home. Which means you’re spending $1,000 in taxes to head of the loss of $20,000 on the value of your house. These days, that doesn’t seem like such a bad investment.

Gibbs invited Santelli to the White House to go over the plan and explain why it helps all homeowners.

“I’d be happy to buy him a cup of coffee,” said Gibbs. “Decaf.”
 
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#4 ·
Just another example of what "Change" is all about.

HusseinO has a pattern going. The recent "Screw the American Taxpayer" stimulous package was passed "Unread" by the congressional idiots that voted for it. In the same manner O was elected by people that knew nothing about him and cared little about what they did know, they just hated Bush and the Republican party and wanted this phoney "Messiah" for, what I will somewhat politely call, "questionable" reasons.

He seems to be able to get a free pass on whatever he desires so far, except by the real taxpaying citizens that see him for what he is, a Liberal Socialist. More and more rumblings and a refusal by Wall Street investors to be fooled will eventually be his demise. We can only hope the damage can be corrected.......:mad:
 
#5 ·
Folks it's all part of where the US has been heading.

There can't be any losers, you don't have to be accountable for your actions, we don't keep score and everyone gets a shiny trophy for being present.

Stores let us return anything we bought for fear of a customer hissy fit and while we are getting off on the little **** that is catering to our ego at Starbucks the rest of the world is eating our lunch.

Safety nets for everyone!
 
G
#7 ·
It all goes back to the 90-95% who can, taking care of the 5-10% who won't. They claim if they don't help, it will make things worse for all of us. So explain this logic to me. If the 5-10% go under, it will make things worse for the 5-10% who are afloat. So to summarize:

Increase taxes on the 90-95% who are surviving.
Take that money and give it to the 5-10% who are struggling and hope they use it...what, responsibly? Actually, no, give the money to the responsible people who lent it to the irresponsible people and hope they use it responsibly. And by doing that it will help the 90-95% people who have been responsible.

Gotcha. props to our gov't brilliant minds and leaders who figure they need to help someone. If they really want to help, they can start by leaving us 90-95%'rs the hell alone.
 
#8 ·
I just closed on a nice re-fi at 4.5% which Tamalewagon helped me acquire. Next week, I am going to call the lender and demand a "free" loan mod down to 3% based on the economic struggle that I am in along with every other tax paying middle class American. I am curious to hear what their answer is when I demand the loan mod which is part of the housing bail out package. They are supposed to lower your payment to a nice comfortable level in order to stay in your house. Now if some dirtbags who bought houses they never could afford to begin with get this benefit then I should be able to also right?

I will keep everyone posted on the reply from the lender but I think you already know what the answer will be...
 
#19 ·
Damn.. my dumb ass told the truth when they asked me what my income was. Then I bought a house that I could afford rather than buy a more expensive one that bank had me approved on but I knew I could NOT afford.

Silly me..... ;) next time I will lie, cheat, deceive and get in over my head then cry foul on my next home purchase.....:p
 
#21 ·
Damn.. my dumb ass told the truth when they asked me what my income was is. Then I bought a house that I felt I could afford rather than buy a more expensive one that bank had me approved on that I knew I could NOT afford.

Silly me..... ;) next time I will lie, cheat, deceive and get in over my head then cry foul on my next home purchase.....:p


Might be the only way to get any money love from the Government
 
#20 ·
Really, a tax break, a fixed lower mortgage rate across the board, lower rates or cash rebate on new car purchase, lower gas price, etc....the government has the power to do these things and significantly more which will help us (the American people) as a whole. I do not see how you could not be in favor of any idea that will help EVERYONE in this troubled economy.

p.s. if you are in Cali, (like me) then you just got screwed as of last week...
 
#25 ·
A 2.5-5% increase in state tax, double veh registration fee's, .01 increase in sales tax, I wouldn't classify it as a screwing, more like a full on anal assault... some basic math calculators indicate a minimum of 200 - 300 less a month in my account. Just what I needed during troubled times.
 
#32 ·
G
#30 ·
The only thing a real estate bailout is going to do is delay the inevitable. Why not cut to the chase and get it over with already? Either way we pay. No bail out, we pay now. Bailout, our kids and grandkids pay later. It doesn't matter if you drop someone's payment from $3000 to $2000 if they're unemployed, they will eventually end up losing it anyway. Why bleed a slow death, get it over with and move on.
 
#34 ·
The only thing a real estate bailout is going to do is delay the inevitable. Why not cut to the chase and get it over with already? Either way we pay. No bail out, we pay now. Bailout, our kids and grandkids pay later. It doesn't matter if you drop someone's payment from $3000 to $2000 if they're unemployed, they will eventually end up losing it anyway. Why bleed a slow death, get it over with and move on.


sounds like you have it all figured out...... maybe you should be Ron Paul's running mate :)bulb :D
 
#33 ·
Toby, I paid for my 4.5 rate. It was a good deal and it helped lower my payment but I still PAID for it, it was not given to me for free or by loan mod. If they left everything alone, the market would self correct in time. Foreclosed houses would be purchased at reduced prices by first time buyers and families who could afford them based on accurate income reporting. Over time everyones home value would slowing rise again in proportion to the corrected economy. Government intervention needs to be applied unilaterally across the board if is applied at all. I had a foreclosed house right next door to me. Group of crip gangsters bought it on a nice loan fraud/flip scheme and when the market finally went stale in 2006, the house foreclosed. Sat vacant for long while and then a nice young couple bought it at reduced price and fixed it up again. All I saying is everyone should catch a break in some way not just the small percentage select group.
 
#38 ·
They say the "cram down" will push a loosers mortgage payment to about 35% of their monthly income. What the heck is the average ratio these bums are at now? 40-50%!! I'm at about 20% now and I could not comprehend having to pay 35% of my monthly income for a mortgage payment. Let's say they cram down your mortgage from 600K to 400K. What happens in 3-5 years when the house is worth 500-600K again. Do they actually get to keep the equity or does any of it make it back to tax payers?
 
#40 ·
They say the "cram down" will push a loosers mortgage payment to about 35% of their monthly income. What the heck is the average ratio these bums are at now? 40-50%!! I'm at about 20% now and I could not comprehend having to pay 35% of my monthly income for a mortgage payment. Let's say they cram down your mortgage from 600K to 400K. What happens in 3-5 years when the house is worth 500-600K again. Do they actually get to keep the equity or does any of it make it back to tax payers?


Loosers and bums....nice. MANY of my clients didn't buy or have big expensive home, many have been laid off via the nation wide cut backs. And many of us know that finding a good job is tougher than ever. MOST lenders are NOT reducing the principal balance of the mortgage. MOST are giving / lowering interst rates which are more competitive with current rates. I have a few mod's in underwriting where the rate was over 8% at apx Million dollar loan balance. I can save these people apx $ 4,000.00 a month.... thats a huge difference!
 
#47 ·
HAHA, not only the reg increase Edog but look what your liberal brothren are doing to truckers across the board at the ports. Something about not letting trucks older then a certain year into the port for business. Only supposed clean running newer trucks are going to be allowed down there for work and how about are ever friendly Mexican visitors (NAFTA) coming across the border to make deliveries in trucks that could never pass a safety inspection. Do they get a free pass while honest hard working American truckers have to abide by the laws. Bring back the Teamsters, I mean the real Teamsters and this and high diesel prices would never have occurred.
 
#48 ·
The port deal is a monster in itself. i don't run out of the ports. Border hoppers have ruined that industry. They have undercut it so bad you can't afford to do business. I think it is good that they are making them get their trucks updated. They run cab over's from 1979, that you can pick up for a $1,000. The NAFTA deal will never make it. All this talk with the Mexican Ports taking away business from LA will never fly. The ports in Mexico can't handle the flow of business, or the security. If the unions in Long Beach keep it cool. They will have the business for years to come.
 
#52 ·
Let's Recap--
1, The American people elect a black president with a total of 42 days experience as a U S Senator from the most politically corrupt state in America whose governor is ousted from office. The President's first official act is to close Gitmo and make sure terrorists civil rights are not violated.

2, The U.S. Congress rushes to confirm a black Attorney General, Eric Holder, whose law firm we later find out represents seventeen Gitmo Terrorists.

3, The CIA Boss, Leon Penetta with absolutely no experience, has a daughter Linda we find out, that is a true radical anti-American activist who is a supporter of all the Anti-American regimes in the western hemisphere.

4. We got the most corrupt female in America as Secretary of State; bought and paid for.

5. We got a Tax Cheat for Treasury Secretary who files his own taxes.

6. A Commerce Secretary nominee who withdrew due to corruption charges.

7. A Tax cheat nominee for Chief Performance Officer who withdrew under charges.

8. A Labor Secretary nominee who withdrew under charges of unethical conduct.

9. A Secretary HHS nominee who withdrew under charges of cheating on his taxes.

And that's just the first two weeks. . . but who's counting.

America is being run by the modern-day Three Stooges ~ Barrack, Nancy, and Harry ~ and they are still trying to define stimulus.

Stimulus is where the government gives a smidgen of your tax dollars back to you making you feel so good about yourself [stimulated] that you want to run out to Wal-Mart and buy a new Chinese-made HDTV and go home and watch Telemundo
 
#53 ·
So your telling me that the buddy i know that is trying to get his loan modified after he pulled 100k out of his house on an interest only adj refi, and spent that 100k on a boat, truck, toyhauler and motorcycles, and paid a very low payment for 3 years, should be eligible for these programs? This is someone that bought well before the peak, just pulled every penny out along the way, and still has all the toys to show for it.

He HAD a loan to value of 70% in 2003, fixed 30 yr loan of 300k(house was worth 500k).....got a heloc for 100k in 2005, spent it on all the toys, now owes 420k, on a home valued at 300k, was an interest only loan for 2 years, now wants to be bailed out because later this year the interest rate will be 9%. Hes gonna stop making payments next month and if he doesnt get bailed out he will walk away. He only put 10k down on this house to begin with, and will walk away with all his toys paid for. Thats BULLSHIT in my opinion.
 
#55 ·
Ya know, we have a few friends in Third world Countries.
Saipan and Guam, (US third world of course) and a few other places.

They tell us when we or my kids visit please don't give hand-outs. Not money, not items like balls or make-up, nothing to the poor.

"It encourages an entitlement mentality that grows on itself" is the consensus.
Good take.


-----
But back here at home:

So my wife and I decided to stay in our home, the cracker box palace.
It's a place that we could afford rather than moving into something bigger and nicer that would stretch the budget.
We pay our bills on time, but we get screwed anyway.
 
#62 ·
Oh for you guys that say that the rules of this program exclude the "irresponsible" borrows... just fucking wait. Seriously.

I be willing to bet at some point in the very near future after all the so called "responsible" homeowners have been given a chance to renegotiate their loans and get back on track the Government will step in and buy the remainder of the "troubled loans" from banks (for all those "irresponsible" people) :|err

So it may take some time but the taxpayers will eventually have to foot the bill. I will be surprised if this is not the case.

shit the government already took over fannie and freddie which insure the majority of crap already out there. So the taxpayers are already on the hook anyway for most of it.
 
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