SUBPRIME CRASHEES: THE ONE THING THEY DON'T SAY WHEN THEY TELL THEIR STORIES......
.........."When I showed this agreement to my lawyer, he told me it was safe"
So, Bubba, as your payments go up from $850/mo. to $2500/mo. and the deficiencies pile up, and even when the foreclosure auction takes place and your wife is reminded that 125% of FMV was probably not the right amount to borrow, just smile and know you beat the system.
By God, you didn't pay any damn lawyer $150 or so to review these documents and tell you that you were taking your family over a future cliff. Attaboy, you don't need no stinking lawyers.
For your next trick, how about you take out your own appendix?
posted by UMRBlog @ 06:43
6 comments
6 Comments:
Almost sounds like a right-leaning take personal responsibility for your actions kind of post. And W is proposing a left-leaning solution.
Yeah, standing alone, it looks that way, The Shrub to the left of The Basin. So let me explain:
I think there are three distinct categories (with the usual shades of gray). First there is the guy just looking for a loan who got upsold. Nobody made him any promises about future interest rates and he didn't borrow beyond FMV. He didn't have anybody look over the agreement but nobody lied to him about the agreement. He should be left with the risk he assumed. Then there is the guy who was induced into the mortgage store by advertising he could borrow enough to pay off his plastic. No other lies were told him. He also didn't get his papers checked by a professional. I think he is entitled to be put in the position advertised. It would be OK with me to do some kind of lender "cram down" (although I know the lender is not the one who did the fraud because the loan's probably been sold four or five times.) Finally there is the guy who wanted to consolidate his first and second and was just trying to get one low rate mortgage. I'm not sure that guy didn't get what he bargained for. Ya take the chicken, ya take the feathers, kind of thing. If he say a professional and the professional didn't tell him Armageddon would result, maybe he can get relief there, but I don't see why it's a taxpayer or even a governmental problem.
Oh, yeah, and as to the argument that it's dragging down the market and the worth of our holdings: The real estate market and the stock market each have incredible vitality and cleanse themselves regularly. I guess ya either believe in free markets or ya don't. I do.
TYFCB
I am just interested in the whole melt down . I would drive in St Louis or chi-town burbs and see 1 million new homes , yet I always wondered "wth" ?????
Now we see the results of my "WTH" ......
The problem is the melt down could poise a serious risk to an already hurting economic status. High fuel , food , energy & now the melt down of housing .....
pretty dire straights indeed .
But just for once I would love to see the president of a Jp Morgan mort division say"yes we knew it was risky , but we could foreclose & make a killing in the housing market " .........
Then see his ass go to jail .
That is the rub that always pisses me off . We send Pols to prison , but rarely do we send the Hedge fund guys from Wall Street to have their prostrates checked.
Abuse of credit cards and now this housing headache will be the ruination of the middle class.
Just a possibility ....
20-30 years ago the avg american spent X% on automobiles and fuel, Y% on food, and Z% on housing. It seems that part of the housing bubble is that Z% got a little bit out of line (relatively speaking) with the rest. The housing bubble burst is going to bring those relative percentages back closer to where they were historically.
Yes, I'm paying more for gas and food, but I just bought a nice (for me) new auto for less than 20% of my yearly gross and one can get a home now for cheaper than they could a year or two ago.
I don't think hedge funds are making money on the housing mess nor do I think JP Morgan wants to foreclose properties. JP Morgan cannot profitably liqiudate most of its mortgage loans. The financial institutions supplied too much money to a housing market they thought nearly riskless and are getting burned badly.
A home inspector costs around $300. An attorney to look over your real estate transaction was around $200. Money well spent. Thanks UMR. Should I ever buy another house I will be sending you some more business. Hopefully the blind fools that got themselves into these loans will heed this next time.
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