Who is most responsible for the housing crisis?

[Sold8/06]

I came on LoanSafe to commend the great work of their forum team.......Moe, ***, Andrew........and everyone else involved in this great forum!!!!

Keep up the good work guys!!!!

I Love this Place!!!!






BYE BYE CASH KING!!!!!!!

[nitag]

I guess you are not understanding what this forum is about...

It is about helping homeowners like me save their home from foreclosure!!!

I think you will be getting the boot here shortly...

Moe, *** someone???????? Its time for bye bye to this one!!!!

nitag

[schwefls]

I agree he has to go NOW

[nitag]

Soon..... Bye bye bye

[schwefls]

I'm actually having fun with this moron; IT still can't happen to soon for me,

BANNED SOLD8/06 MOMENTARILY

[Moe Bedard]

Go back and reread his new post..........I think you guys will agree.....

[nitag]

Thanks ***!!!!

So was he/she two different people??

nitag

[schwefls]

Gotta love it, thank you ***, boy these badboyz/girlz have been keeping you busy today. Thank you again for watching out for us.

[Moe Bedard]

Nitag,

No not two people.........he just kept signing his stupid moniker.........cash is king.....

I am glad you guys liked it......

[thxmiker]

I am not disagreeing with the fact that Brokers mislead many consumers. I am not disagreeing with the fact that many large companies mislead many consumers. I am not disagreeing that GREED caused the problem.

I am trying to state the fact that Greedy Consumers as well as Greedy Companies caused the problem.

Obviously home owners whom decieved loan companies about their income are not the problem!

The problems in the mortgage business are multiple!

Many people whom could not afford a house purchased one under the Freeddie Mac and Indy Mac programs.

Greedy people took equity out of their homes and used the money to purchase non durable goods. (New cars, vacations, Home Theaters, etc...) Therefore they have no equity, and now they can not afford their loan. They assumed that they could just keep refinancing and the new loan could some how pay for the old loan! Obviously this Ponzi scheme would eventually fail.

Many unscrouplous brokers filled out the paperwork to make people seem like they could afford a house and then sold the paper to large companies.

Negative Amortizing Loans are NEVER a good thing! One can not pay tomorow for what they borowed today! This approach will almost always end in a bad way!

Large companies deceived their investors that these broker loans were good paper!

Stock Portfolio companies misled their investors that these negam, no background check loans, etc... were good investments and rated them top notch paper instead of giving them risky at best ratings.

One positive thing about loan comapnies.: They are in the LOAN business and not in the property ownership business. They do not want to own your property. They want to work out the loan some how. You are in the driver's seat as long as you are making your payments. Work out your payment problems before you get behind in payments!

[Moe Bedard]

thxmiker,

Are you a distressed homeowner who came to our site......loansafe.org for help?

Or are you just here to post your opinion on a forum that is strictly a safe place for distressed homeowners to come without being judged...........and to tell their stories...
If the forum was called Lets Have a Debate about who is responsible then I can completely understand..........but it isn't and the person who started this thread is gone..........so

Do tell............

[Maia7]

Listen thxmiker, it's important to understand a few things, I think you've lost the plot on what's happening with people on this board:

1) We live in a consumer realm, where we are encouraged to take on debt. When there is a national crisis, we're told the patriotic thing to do is spend.

2) Most folks that are in trouble right now are not in that place due to the situation of equity suckage you describe. Most are in the situation because housing prices have fallen and it's impossible to sell, refinance, or otherwise move an inch.

3) Buying a home is enormously complicated. I am an intelligent woman who writes contracts for a living. The way my contracts were explained to me were incorrect. The home buying process needs to be simpler one that folks can understand.

I think ultimately it's important to recognize that this isn't happening because we are ALL bad people who can't manage our money. That would be a little silly to think wouldn't it? Millions and millions of people who can't control themselves on this level?

No, a crisis of this magnitude can only mean THE SYSTEM IS BROKEN.

Now - try to dig deep and find some compassion for your fellows.

[schwefls]

Let him go *** he's about as distressed as my dog is, he doesn't seem to grasp the concept that we tried to work out payment problems before we got behind but some friggin lenders didn't see those worksouts as a two way street

[penniandmondo]

You know loansafe has gotten more attention since newspaper carried Countrywide Jerks comments.
I think the web site is getting some Jerks from media attention.
MAYBE COUNTRYWIDE THEMSELVES?

[Reality]

Originally Posted by schwefls

some friggin lenders didn't see those worksouts as a two way street

The lenders are holding out for a government bailout. If they can pin their hopes on being made whole by the government, they don't need to write down anything. With government out of the way, then perhaps we can talk about loan re-negotiations. In the normal course of business, loan re-negotiation is a two-way street only if the borrowers is willing to pick up and walk from the collateral. It doesnt make any sense for a lender to even pay for the staff to renegotiate the loan if the borrower is emotionally attached to the houes and is willing to squeeze out every penny to keep the house. It's a little like used car sales: The only fair deal is that which the most eager buyer gets what he wants and the seller can maximize his profit; that's why don't go to a car dealershp with a fixation on that "blue car" unless you are loaded and don't care about money :-)

[thxmiker]

I heard about this forum from a friend whom is in a bad loan and wanted help. I hope that in this forum people help others with good information about how to solve each other's personel crisis. I do wish everyone in trouble can find a happy and equitable soloution to their home loans.

I do not in any way work in the Home loan business nor am I affliated to the business. I own an Electrical Contractor Company that specializes in Installing Sound Systems for the Entertainment industry.

I do understand business. I stand behind my statements, and in no way meant to insult anyone.

Unarguable that many home owners got in to a bad loan because of greedy
brokers and greedy loan companies.

Unarguable that home loans are complicated documents.

Unarguable that Loan companies steered consumers in to more expensive loans then the customer should have been put in. ARM and NegAm loans were meant for short term customers to turn the homes for short term investments.

I believe that federal government regulations in complicated business transactions need to be put in place. There needs to be Federal regulations instead of each state having it's own set of rules. The banking industry is the only industry that can legally change their contracts with out the consumer's consent! Maybe the place to start changing the rules of Mortgages is with our politicians?

[Moe Bedard]

Well thanks for clarifying.............

[Reality]

There is no way any lawmaker, or collection of lawmakers, can come up with a set of rules so comprehensive as to prevent all forms of greed and stupidity. People are very good at gaming the system. Do we really want the government to ban private home ownership at all? that everyone should work a certain number of years, then get assigned a slab apartment by the government just to be "fair"? Even then, the government officials themselves would get the better apartments earlier, followed by those who bribe them with cigaretts, vodka and sex.

There is very good punishment for financial institutions that under-wrote those dumb loans: drastic shrinking and even financial death for the company. As for the inexperienced individuals caught up in all this mess, there is bankruptcy proteciton: yes, the person got to live in a far bigger house than he could have afforded, and for that mistake, he is out of the borrowing game for a couple years until he is better at risk assessment and financial planning next time. That's how people become wiser and the reckless exploitive companies get weeded out. Bailout would only serve to reward mistakes and the reckless at the expense of those who made correct choices, ultimately leading to more unscrupulous financial insitutions ready to exploit inexerperienced people next time.

I do believe there should be some kind of vestment period for executive pay or even loan origination, period. Say, the executive and loan originator only get 20% of the bonus/fee each year for the five years following the deal/annual report, so the there's incentive to keep the business model viable for at least five years after the ink is dry . . . so there is less incentive to goose the performance through accounting shenannegans. However, the proper deferment duration may have to be up to the private market place and work out differently for different industries.

BTW, all term contracts are inherently modifiable at the conclusion of the initial fixed term: rent/lease can be adjusted after the initial rent/lease period; revolving credit can have different interest rate at each billing period; mortgage rates can change after the initial fixed period; magazine subscription fee can change too after one year. The consumer is free to buy/rent money, house or magazine from someone else. It's a two-way street. There are all-fixed products, they are just more expensive as the underwriter would have to undertake all the future interest/cost risks.

[Andrew]

Kinda like Relity said, but its no one person its just GREED.