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  1. #1
    Join Date
    Dec 2005
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    California/Nevada
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    3,638

    Home Ownership next on the hit-list

    say goodbye to home ownership as we know it


    http://finance.yahoo.com/loans/artic...mod=loans-home

  2. #2
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    Dec 2005
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  3. #3
    Join Date
    Jan 2001
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    7,817
    Hey, if only people who can actually afford to purchase a home are allowed to purchase a home.......whats the big deal.

    Letting in all those losers who had no means of ever paying off a mortgage has costed me and you and every other working stiff in this nation a pocketfull of cash in increased taxes for having to back those bad loans up.
    YOU SHALL REAP WHAT YOU HAVE _______ SOWN

  4. #4
    Join Date
    Jan 2006
    Location
    Near Atlanta, GA.
    Posts
    14,531
    Mixed feelings on this.

    I really don't blame Freddie and Fannie so much as I blame the government. They used mortgage lenders as a political tool, and implied that they (the government) would guarantee any risks that were taken. That was much of the cause behind the housing bubble and the banking crises.

    I do like the idea of letting the free market dictate lending policy, though there might be some problem in the short term until the economy rebounds and housing prices stabilize and even recover some. I suspect we need to keep Freddie and Fannie in place for a few years, and then start to phase them out in favor of a privatized mortgage system.

    No doubt there needs to be some tightening up of policy in mortgage lending, but it has to be reasonable or it could further hinder any economic recovery.

  5. #5
    Join Date
    Nov 2001
    Location
    Seattle, WA
    Posts
    7,763
    This would be a good thing. FHA got into the home lending business way back in 1934, I think, and it was straight forward and responsible for first time home buyers. The VA got into the business to help the returning GI's after WWII, and that was a good thing.

    But both systems raised the cost of housing, raised the cost of money, and created a false demand for housing that we, as Americans, came to depend on. Our house became an investment in place of being a place to raise our families and build a strong community.

    Freddie and Fanny use to be private organizations and the house market was mostly strong. Then the idiots in the Federal Government said they needed to be in charge and that is when the problems started. And you can see how they are running the business now with your tax money.

    It's a good thing but a lot of people are going to have a hard time breaking loose from the dependency they have with the Gov't doing everything for them.
    "The American Republic will endure until the day Congress discovers it can bribe the public with the public's own money.
    - Alexis de Toqueville, 1835

  6. #6
    Join Date
    May 2000
    Location
    Rochester, NY, USA
    Posts
    14,307
    the root of the problem is in the early 20th century a home was place to live. A place to have children and eventually retire.

    In the 60's or so, a bunch of folks got the idea that home ownership was means to wealth.

    And for many it turned out that way. They bought a house for 16K, and sold it for 30K and sold that for 60K and so on.

    Owning a house became a means to an end.

    I think that ship has sailed. Home will once again be a place to live and grow a family, not a means to wealth.

    It will be up to local banks to loan money to buy a home:

    People are finally figuring out what Tom Jefferson meant when he said "Be more afraid of a central banking system than a standing army" (or something to that effect)
    The Last four letters


    American = I Can, Republican = I Can, Democrats = Rats


    any questions

  7. #7
    Join Date
    Dec 2005
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    California/Nevada
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    3,638
    the government is talking about some scary sht.

    there is a rumor that health care taxes will be pulled from your home sales.

    now they want to screw around with 30 year loans.

    a couple of years ago they started talks about having judges go in and change your home loans.


    if anyone thinks the government is up to something good, you're sadly mistaken.
    ...and people aren't going to realize until it's too late ...as usual.

  8. #8
    Join Date
    Nov 2001
    Location
    Seattle, WA
    Posts
    7,763
    I'm assuming that you have been raised in the generation of abundance and guarantee's of some sort or another hench your attitude and knowledge. Maybe that's why you don't relate to the fact that the government has screwed things up more then they have helped.

    The first mortgages were for 5 years and placed with a local "Savings & Loan" bank that was in and familiar with that community. It made the community very strong with no dependence on some government program of some sorts.

    The actual percentages of income vs. mortgage & home expense is just about the same today as it was in the 40's. The only reason people need lots more income is that the homes cost a lot more due to the false demand placed and guaranteed by the Federal Government though such mortgage guaranteed programs.

    The average 1/4 million dollar home today across this nation is not worth a 1/4 million without the Federal governments backing to the lenders. All homes would be at a lesser and truer value which would have resulted in a stong community and a solid financial foundation for the communities in which the homes are located.

    And a lot of the newer home loans were not 30 years but as long as 40 years in some cases --just to get the borrower in the home to get the interest and all the servicing fees. A 30 year loan is actually new in this age as the "standard" loan use to be 25. And before that it use to be 20, 15 and 12 years.

    What lengthened the loan out in years was the fact that so many marginal to less then marginal borrowers could get a loan simply because the Federal Government would and did back the loans up to the lender using you money.

    The lenders money was not of the Federal Governments as many believe. But of private investors who were willing to take a minimum risk since the Federal Government would and did back up the loan with your and my money. You already paid for a lot of houses that you never owned or lived in.

    You need to do a lot more research so you can see that the 30 year mortgage is not the sacred cow that you think it is; and to how much damage has been done by the influence and stupidity of our Federal employees.
    "The American Republic will endure until the day Congress discovers it can bribe the public with the public's own money.
    - Alexis de Toqueville, 1835

  9. #9
    Join Date
    Mar 2003
    Posts
    7,326
    Imagine that shi*, actually having to be ableto afford to buy a home! I remeber whe I bought my first one in 1986 how they busted my balls to get a mortgage. how I have to identify every bank deposit and withdrawal, and WRITE LETTERS to explain anomolies. as an example, I think i got bakc like six hundred on taxes. That deposit was "An anomoly", so i had to document where it came from. This included a letter of explanation, and a copy of my tax return. Tis was to get a small mortgage with a bunch down, like thirty percent.

  10. #10
    Join Date
    Nov 2001
    Location
    Seattle, WA
    Posts
    7,763
    When I was heavy into real estate in the 80's one couple I sold a rental too ended up bringing more cash to the closing table then was agreeded too thinking it was an easy thing. And they wanted to reduce their montly payment too.

    So the lender had to start all over and certify where the cash came from. Ended up his or her grandmother gave them the cash as a gift. So the lender had to verify that the grandmother had the cash in the bank for at least 6 months before she gifted them the money. And she had to write a gift statement to the lender stating this was not a loan and it was not expected to be paid back.

    Asked the lender how come all this toughness and it was and is because of drug dealers buying properties with cash in the USA as a way to clean the money. So they were instructed by the Feds to verify where all large sums of cash were coming from when homes were purchased. There actually were a great number of homes purchased with drug money, interestingly enough.
    "The American Republic will endure until the day Congress discovers it can bribe the public with the public's own money.
    - Alexis de Toqueville, 1835

  11. #11
    Join Date
    Dec 2005
    Location
    California/Nevada
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    the houses that my parents bought are the ONLY reason i have a semi-comfortable life, considering that companies don't pay for employment anymore.

    when they start screwing around with home loans, a lot of people are going to hit hard times

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