The Government involvement in Real Estate started a ball that rolled down the hill…across the plains, hopped a boat, a car, a plane and spread like wild fire, and floods…through everyones homes…. It has not ended…the clean up that is! Katrina has been blamed on the Government… Well no..that certainly was Mother Nature!, but I can assure you this. This flooding fire of a mess that sits on EVERYONES doorstep is real. This was the Government standards for Freddie Mae and Freddie Mac being dropped to make those that were not credit worthy to buy a home…and the Greed that comes along with money..came 100 fold x infinity.
Okay…so the first step of dropping the Fannie Mae and Freddie Mac Standards. I can say that I am pretty sure it was not done to hurt anyone or with the intention of making the United States a foreclosure haven. If it were then we would have a bigger issue than this on the line. http://www.freddiemac.com/news/pdf/cbo-final-pearcemiller.pdf
Basically Freddie Mae and Freddie Mac back loans given…like insurance. Banks and Mortgage Companies follow their guidelines so that they can sell their loans to FM&FM. When the standard guidelines were lowered that opened doors to understandard loans to be basicallybought/ insured by FM&FM. More loans could be written without proper loaning process. People were given loans that were not really qualifiable. People received loans without documentation, for MUCH more than they could afford.
Who is the greed offender? Anyone who knowingly provided a loan, processed a loan, got a loan, helped in the purchase of a property in anyway….Knowing the loan could not be afforded by the loan applicant.
Example: You receive a loan ad from X company/bank/loaning institution
you call. they give you a preapproval based on your word that you make x amount per year.
you go out with the preapproval knowing it is out of this world …NOT believing that you can afford the properties that you are seeing for sale on the internet and in the papers. You go to the open house or call a Realtor that by the way in those days was most likely a sellers agent (but we will keep it simple…that is another story among this one).
They see your preapproval to make an appointment….take you there. You want to make an offer. They know you only make $40,000 a year…because you told them and now you are making an offer on a home with a preapproval for $450,000.
The offer is accepted. you go and close on the loan
Anyone involved should have seen this as a bad loan. Anyone.
now its a variable rate. 3/1 arm In three years…not only will that loan most likely go up…but the buyer will be getting foreclosed on…the bank will take the house…and with x1,000,000 foreclosures…anyone is affected/afflicted and effected and more.
This is inflation! Hiway Robbery, Larceny, fraud, and more.
How should it have happened: Proper Preapproval, Proper guidance by a REALTOR, proper processing of a loan, proper appraisal, proper HOME provided… less foreclosures..less problems for all of us.
Okay…lets compound this further.
We can fix this! with buyouts!!!! Taxpayers we need to dig the criminals out. Yes Criminals.
Is it not true that we can not claim ignorance of the law?
so now we the taxpayers get to buyout Bank of America (Europe), Countrywide (bought by Bank of America: Europe), GMAC who was GM who was one of those corporations who saw the money being made by all…and had to get involved to make more, and the rest of the offenders.
but wait….why do they get tax money to fix their businesses? Why do they deserve to get our hardworking made money that is going to help them out of their bad business decisions?
Would I? NO I am not a big enough company/corporation.
Wait..lets look further: where are most of the deeds going? EUROPE
and why didn’t the government stay out of it?
do you know what would have been a good solution? I think I do. The banks should have refinanced the loans like a credit card company would have. You call..you can not afford the loan (truly and honestly…because of the new rate) you are trying very hard to pay the mortgage…but it went up $1000 a month. okay…Bank: lets put your payment back down to the -$1000 a month point and give you a shot at it.
What would this do? anyone?
Right…keep the loan in pay status: PAID
Bank gets their money (picture an amortization table) for the next 27 years or more.
Houses stay lived in..tax payers are safer,
EVERY NON OFFENDER is paying less taxes for others criminal activity of GREED.
House prices (although higher) are stabilized
American DEEDS are not in Europe
we wouldn’t be finding out about all of the foreclosures that were illegally taken
and we all wouldn’t be in this Recession or worse than depression times in the making.
So lets move on…you should see that picture!
First time home buyer tax credits. What does this really do?
it stimulates the buying process for a short time, causes higher tax defecits and it is not a solid for the future Fix.
What is?
Refinance people…it is for the bigger, larger whole of the pie. Wake up America!
your deeds are overseas, your taxes are going to corporations, the laws are getting to big and grey
its not about affordable housing. Tell the government to stay out of business. We need our money.. We the workers and tax payers can not afford to keep big business (especially overseas), welfare, unemployment and anyone who doesn’t work afloat. We can barely keep ourselves up…and whats more.
We the the workers and taxpayers will be the ones who can not receive free care (but we paid)
We will not be helped…we make too much money
Why should we work to pay for the GREED, the immorality, the non workers?, the ILLEGAL immigrants?
we do whats right by working…and these taxes added, here there and everywhere…are killing this country from the inside out.
HARSH? should I keep my mouth shut?
NO, Wake up america…your life is now the governments
vote taxes down…tell the government to make cuts. PERIOD
