Aces High Bulletin Board
General Forums => The O' Club => Topic started by: ghi on May 09, 2012, 12:35:56 AM
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I hope the canadian banks start doing this also; :pray :rock
http://finance.yahoo.com/news/bank-america-starts-mortgage-reduction-100202589.html
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I hope the canadian banks start doing this also; :pray :rock
http://finance.yahoo.com/news/bank-america-starts-mortgage-reduction-100202589.html
Ghi, you know this will be locked.
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Is financial news a no-no now on the forums?
Regards,
Sun
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I had no money before the recession and have none now :old:
"Nothing like debt to get a man up in the morning"
"Your investment may go up or down" = "We might make you more money but we are not sure" :rofl
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Ghi, you know this will be locked.
Opps, Sorry! have to go through forum rules! :bolt:
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In
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The article is more financial than political, unless you categorize the BofA offer as roadkill, then the offer is like a political campaign promise and that is against the rules.
:old:
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Great, more rewards for those that bought more than they could afford. Nothing like encouraging irresponsibility.
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Real shame that banks were forced to loan to folks who did not qualify then have to forgive the loans because the person could not pay them.
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Great, more rewards for those that bought more than they could afford. Nothing like encouraging irresponsibility.
Yep, but 3-4 weeks ago Iceland did the same, well this is a small country with a popualtion of 300,000;
http://www.youtube.com/watch?v=uyxzg58JkYI
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That money is not just lost. It will filter into what paying customers have to pay. So in reality we are paying for the deadbeats.
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That money is not just lost. It will filter into what paying customers have to pay. So in reality we are paying for the deadbeats.
pretty broad brush you are sweeping with there. :(
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pretty broad brush you are sweeping with there. :(
Facts are facts. You don't stay in business long if all you do is lose money.
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Facts are facts. You don't stay in business long if all you do is lose money.
I took it you are saying all those in forecloser are deadbeats....maybe I took it wrong....if that's what you are saying...well I stand by what I said.
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Why did I bought a house I could actually afford ... I could have bought a mansion. Not that I needed it, but you know to impress my friends ... with money I don't have. I should have bought that big screen TV last month rather than making my house payment :joystick: Dang I suck at life :(
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Love to reply but I figure it will be considered political. All for personal responsibility and all but.... A well run financial system would never be on the brink of collapse because of home mortgage defaulters. Metaphorically speaking the mortgages were the horses at the track and the collapse was in the OTB parlor. Lot more money tied up in OTB then horseflesh. No way to run a railroad thats for sure.
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The ramifications of these debt forgiveness measures is going to trickle down (as previously mentioned) into higher costs for those that do not default and the expectation of future forgiveness measures in the future. In fact, my bet is that this forgiveness has exactly the opposite effect and actually encourages more people to over extend in the hopes of potential debt forgiveness.
It is no wonder that personal responsibility is at an all time low.
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That money is not just lost. It will filter into what paying customers have to pay. So in reality we are paying for the deadbeats.
So you blame the 'deadbeats' but not the 'money dummies' that loaned them the money? Or the 'suit dummies' who "forced" them to loan the money to people with no income, or fixed address?
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Can i borrow $10 of someone? :)
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I hope the canadian banks start doing this also; :pray :rock
http://finance.yahoo.com/news/bank-america-starts-mortgage-reduction-100202589.html
Wont happen as there is no need,Canadian banks didnt get into the trouble that the US banks did.
However if you hear they are thinking about it let me know,I'll go get a mortgage so I can be forgiven too..... :devil
:salute
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I took it you are saying all those in forecloser are deadbeats....maybe I took it wrong....if that's what you are saying...well I stand by what I said.
Not all but most. My point was that the banks were forced to ok loans to individuals that would generally have been turned down. These are the ones that usually might make one or two payments then find out they also have to pay taxes, upkeep... etc. They then quit paying and get mad when the bank wants it's money.
Some folks lost jobs and then there are the general lot for one issue or another (like medical). Those are not the ones I am refering to.
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Real shame that banks were forced to loan to folks who did not qualify then have to forgive the loans because the person could not pay them.
THIS is the root cause of the mortgage/housing crisis. The standards were LOWERED and hence the problems we have today. Fact.
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Its shocking forcing people to borrow money :rofl
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Love to reply but I figure it will be considered political. All for personal responsibility and all but.... A well run financial system would never be on the brink of collapse because of home mortgage defaulters. Metaphorically speaking the mortgages were the horses at the track and the collapse was in the OTB parlor. Lot more money tied up in OTB then horseflesh. No way to run a railroad thats for sure.
This is pretty much it. When the investment bankers found that they could collateralize subprimes into derivatives with investment grade ratings, take a cut and sell them on the open market it was off to the races, they were clamoring to the brokers to produce more paper. Then we allowed commercial banks to merge with investment banks which put the commercial banks at risk and strapped the FDIC in the end.
shamus
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I believe Chrysler remorgaged all thier real estate :old:
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Ever gone to the bank for a small loan only to have them try and talk you into a much larger loan?
It was typically how everyone's loan process worked before the crash.
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Ever gone to the bank for a small loan only to have them try and talk you into a much larger loan?
It was typically how everyone's loan process worked before the crash.
Not really the same as forcing, is it?
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It was a little different than being talked into a larger loan.
People were financing 105% or more through fancy mechanisms, getting interest-only loans, and then couldn't pay them when they adjusted after the 5 year period was up.
In order to even afford these interest-only payments, putting nothing down, they were avoiding PMI through other mechanisms as well. So a lot of these people couldn't have afforded more than what they had.
The lenders were also slicing and dicing the mortgages so many ways, packaging bad loans with good loans, that it was bound to crash and burn, which it did. This is where the bank bailouts came into play a few years ago.
It's so widespread that it's become everybody's problem now. Normally, the bank would take the home and the family would have to vacate the premise, but when it's hundreds of thousands of families, it can't happen that way.
So the responsible ones, who didn't borrow more than they could afford, are really the ones who get screwed.
I'm not talking about the percentage of folks who lost value on their houses after buying during the height of the market. I know several people that did that -- bought condos for $180K and they're worth under $30K right now (South Florida). However, they could afford the $180K. That was a bad decision on their part.
I'm talking about the percentage that bought more than they should've bought in the first place.
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The thread that plots a perilous course around the shoals of politics, piloted by a dead horse. I gotta say this mortgage thing is a red herring. The thing that killed us was a financial crisis. You can blame deadbeat borrowers but thats like blaming the horse for losing the race and causing you to lose your kids college fund. Mind you I'm totally p.o.ed at my idiot neighbors and their borrowing. The worst are people in no recourse states that bought a slew of 'investment' property and played the game until it ran out and then walked away. But frankly these are just the little scummy leaches and they are always with us. I think its just a distraction. The amount of debt directly at risk of default was not the problem, the big numbers were the derivatives that were based on the debt, and the big problem was that you couldn't really know who was in trouble. Credit Default Swaps are the most famous and easiest to understand of these trades. The structural problems are still substantially there and I predict we will have another disaster within the next 20 years. You can take that to the bank, its up to you if you want to deposit it.
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The ramifications of these debt forgiveness measures is going to trickle down (as previously mentioned) into higher costs for those that do not default and the expectation of future forgiveness measures in the future. In fact, my bet is that this forgiveness has exactly the opposite effect and actually encourages more people to over extend in the hopes of potential debt forgiveness.
It is no wonder that personal responsibility is at an all time low.
I feel robbed ..............come and get me John Galt!
:salute
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$5 then?
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The thread that plots a perilous course around the shoals of politics, piloted by a dead horse. I gotta say this mortgage thing is a red herring. The thing that killed us was a financial crisis. You can blame deadbeat borrowers but thats like blaming the horse for losing the race and causing you to lose your kids college fund. Mind you I'm totally p.o.ed at my idiot neighbors and their borrowing. The worst are people in no recourse states that bought a slew of 'investment' property and played the game until it ran out and then walked away. But frankly these are just the little scummy leaches and they are always with us. I think its just a distraction. The amount of debt directly at risk of default was not the problem, the big numbers were the derivatives that were based on the debt, and the big problem was that you couldn't really know who was in trouble. Credit Default Swaps are the most famous and easiest to understand of these trades. The structural problems are still substantially there and I predict we will have another disaster within the next 20 years. You can take that to the bank, its up to you if you want to deposit it.
Well, they can't walk away from it on their income taxes. The deficiency will show as income.
I have a friend that was talked into buying a second home as an investment property. He paid $350K for something that ended up being worth less than half of that. However, value aside, he couldn't afford to hold the property in the first place. His other 'friend' was telling him how easy it was to flip houses, and talked him into buying it.
So, my friend has to let it go to foreclosure, since he can't afford his current home and this investment property on his $50K/year salary. He couldn't get renters into the house to cover the mortgage, so he was always losing money. What he didn't think of was that he now has an approximate $180K figure (value of loan - what the bank received at a foreclosure auction) that is income to him.
He's been ignoring it, like it would go away, but the IRS never goes away. It makes me wonder how many other people are just excluding this part of 'walking away' from their properties, and subsequently getting into a bad tax situation.
An other problem is that people have stopped paying their mortgages yet stay in the properties for over 2 years. Once again, this in South Florida. People can afford to pay the mortgage, but because they value of their property is so upside down, they just stop, pocketing the cash. Their plan is to save enough money to take a credit hit with a short sale or foreclosure, then buy another place (usually a condo, since they're cheap down here) for cash. We know several people doing this. I find it immoral.
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Ever gone to the bank for a small loan only to have them try and talk you into a much larger loan?
It was typically how everyone's loan process worked before the crash.
I have obtained many loans over the years from numerous banks and credit unions. I have never had anyone during the loan process ask me to borrow more than I was asking for.
Fred
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$2.50?
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Ever gone to the bank for a small loan only to have them try and talk you into a much larger loan?
It was typically how everyone's loan process worked before the crash.
actually, no. in fact, when i went to the bank where i do my shop business, they even told me that they'd not be able go even come close to the interest rate ford motor credit gave me. nor could they match or beat the interest rate i have on my mortgage.
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See Rule #14
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$2.50?
:lol still no takers?
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:lol still no takers?
He is too high risk and without the pressure of feds in suits we are free to decline such an extravagant request.
:P
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That's funny, they tried to foreclose on my house over $941 not being paid in February. $941 doesn't seem bad right? Yeah my Mortgage is only $475 a month.
Nothing but lying cheating little pole smokers, they said they would extend my financial information for 3 months to bring it up to date - then slapped me with a foreclosure letter.
/paid off my mortgage already, ditched every BOA credit card and Debt card I had and went to a Credit Union.
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:lol still no takers?
I need pies Bruv :cry
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I need pies Bruv :cry
ill lend you the $5, but you can pay it back to me over 25 years at 1000% APR and you will have to pay the extra hot pastry tax on top too. :banana:
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Unfortunately, banks were giving loans to people that obviously couldn't stay current with the payments much less maintain the property they purchased. However, it allowed everyone, even those that didn't have the solid credit rating to move into a house. Heck, one company was advertising how to move into a property, pay one month of the mortgage, live there for 6-9 months and do it again somewhere else!
Now, the pendulum has swung completely 180 degrees. Now, you need to have a credit rating so good, the bank should borrow money from you. Along with the price of fuel, this lack of lending is stifling the economy.
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That's funny, they tried to foreclose on my house over $941 not being paid in February. $941 doesn't seem bad right? Yeah my Mortgage is only $475 a month.
Nothing but lying cheating little pole smokers, they said they would extend my financial information for 3 months to bring it up to date - then slapped me with a foreclosure letter.
/paid off my mortgage already, ditched every BOA credit card and Debt card I had and went to a Credit Union.
Bank Of America, Chase, and Wells Fargo have been fined heavily for some extremely crooked doings the past few years.