Re: How do you feel about this? "Subprime help: Some loan rates to be frozen"

Re: How do you feel about this? "Subprime help: Some loan rates to be frozen"

Re: How do you feel about this? "Subprime help: Some loan rates to be frozen"

In short it's a band-aid on a stab wound.

Re: How do you feel about this? "Subprime help: Some loan rates to be frozen"

I did not read any of the replies but here's my take.
First off the mad cowboy is at it again.
A FIVE year freeze???? Is he effing kidding me? Five years is a HUGE amount of time in economic cycles, so essentially the people that didn't read the loan agreement they signed & didn't take anytime to calculate how the higher rate would effect them will now now get a FIVE YEAR COUPON to not pay more than the teaser rate they have now? Some of the people that will quailify are still locked into less than 5%!!!!! So in five years when their house is worth what they paid for it in 2005 again & they lived in it practically for free for seven years they'll be they wealthiest people around. Meanwhile they rest of us that took prime LOCKED interest rates are getting effed up the arse as our taxes & insurance & everything else goes up.
The azzclowns that listened to the advice of SALESPEOPLE not financial advisors will be paying way less then we are!!!!
How is that fair????
If that ******** moron in that big white house gets this to go through I will have given up all hope for this country.

Re: How do you feel about this? "Subprime help: Some loan rates to be frozen"

and let me also say that even though "it isn't going to cost taxpayers" it WILL affect our financial markets-tons of these loans were bundeled into investments sold overseas. As it is now the dollar is going so poorly China is considering no longer doing worldwide business in the dollar-they may switch to the Euro. They day that comment leaked the Dow took a 233 drop!
As usual the moron is effing us all in the arse, our ecomony will suffer, our money will be the equivilent of the peso soon. He is ruining us.
In 1987 when the market crashed the tristate area & especially LI took a major housing hit...foreclosures EVERYWHERE. We rebounded & so did the housing market, its a cycle.
When grumman closed its calverton plant 15 years ago there were foreclosures on everystreet in my neighborhood when people that worked there forever lost their jobs. This is life, people need to assume responsibilty.
I personally vote for all of the brokers & bankers that preyed on the uneducated people in poor neighborhoods to sell their rolexes & BMWs to help pay the mortgages.

Re: How do you feel about this? "Subprime help: Some loan rates to be frozen"

Re: How do you feel about this? "Subprime help: Some loan rates to be frozen"

Posted by SweetestOfPeas

Posted by KellyFG

I personally vote for all of the brokers & bankers that preyed on the uneducated people in poor neighborhoods to sell their rolexes & BMWs to help pay the mortgages.

I vote for that too.

btw - just wanted to add that Hillary and Senator Schumer are also proposing something like this. it's not just Bush.

Re: How do you feel about this? "Subprime help: Some loan rates to be frozen"

Posted by KellyFG

Posted by SweetestOfPeas

Posted by KellyFG

I personally vote for all of the brokers & bankers that preyed on the uneducated people in poor neighborhoods to sell their rolexes & BMWs to help pay the mortgages.

I vote for that too.

btw - just wanted to add that Hillary and Senator Schumer are also proposing something like this. it's not just Bush.

I'm a little surprised by Schumer but hilary is a straight up jackazz so no surprise there. I guess she figures she better try to get something to pass before she leaves office in NY she hasn't done a damn thing yet.

Re: How do you feel about this? "Subprime help: Some loan rates to be frozen"

we started discussing this crisis almost two years ago around here. I'm no economist, hell I don't even have a Bachelor degree in anything so maybe I'm just 100% clairvoyant but if you go back & read these threads & see how many of us here on LIF KNEW this would happen how the frig can the country, the lenders or the President says they didn't know it would happen?

for your reading pleasure-its spooky actually

the future being told

more

another

Even then there were people that were brainwashed to believe "you can just refinance"....NO YOU CAN'T!!!
And why the hell would I WANT to keep paying upwards of 10k every few years to do so???

Message edited 12/7/2007 8:42:41 AM.

Re: How do you feel about this? "Subprime help: Some loan rates to be frozen"

Re: How do you feel about this? "Subprime help: Some loan rates to be frozen"

sweetest, you were a little snippy

Re: How do you feel about this? "Subprime help: Some loan rates to be frozen"

Posted by KellyFG

sweetest, you were a little snippy

Message edited 12/7/2007 8:55:33 AM.

Re: How do you feel about this? "Subprime help: Some loan rates to be frozen"

Posted by SweetestOfPeas

Posted by KellyFG

sweetest, you were a little snippy

I couldn't stand that DJ pill guy (he was banned from this site for those of you who don't know). he was so arrogant

Re: How do you feel about this? "Subprime help: Some loan rates to be frozen"

Re: How do you feel about this? "Subprime help: Some loan rates to be frozen"

Message edited 12/7/2007 11:46:35 AM.

Re: How do you feel about this? "Subprime help: Some loan rates to be frozen"

Re: How do you feel about this? "Subprime help: Some loan rates to be frozen"

Message edited 12/7/2007 12:05:28 PM.

Re: How do you feel about this? "Subprime help: Some loan rates to be frozen"

Posted by SweetestOfPeas

Posted by KellyFG

sweetest, you were a little snippy

I couldn't stand that DJ pill guy (he was banned from this site for those of you who don't know). he was so arrogant

Re: How do you feel about this? "Subprime help: Some loan rates to be frozen"

very interesting article on Yahoo this morning.

~~~~~~~~~~~~~~~~~~~~~~~
What the Mortgage Bailout Means for You


On Dec. 6, Treasury Secretary Henry Paulson, with the support of President George W. Bush, unveiled a plan to aid certain homeowners who face the prospect of higher mortgage rates in the next few years. Paulson worked with banks and other mortgage companies to develop the initiative, and thanked them for their involvement. "We have worked through an evolving process to help minimize the impact of the housing downturn on homeowners, neighborhoods and the U.S. economy," he said. While the plan is ambitious and is designed to bring stability to the shaken economy, it will affect only a narrow slice of homeowners in the U.S. "This is not a silver bullet," said Paulson. Here are some answers to questions you may have.


Can you get your mortgage payments lowered because of the bailout?

It depends. If you've got an adjustable-rate mortgage, you may qualify under certain conditions. If you've got a standard mortgage with a fixed interest rate, you're not affected.

Which adjustable-rate mortgage holders are affected?

Only a small group. To qualify, you need to have received your loan sometime between Jan. 1, 2005 and July 31, 2007, and you need to be facing a reset of your interest rate sometime between Jan. 1, 2008 and July 31, 2010. If you're within this range, you may be eligible to have your interest rate frozen, so you can keep your current, lower rate for five years.

Who qualifies within that range?

The bailout is really designed for homeowners who could run into trouble if their mortgage payments are raised sharply and face the prospect of losing their homes. If you're well enough off that you can afford the higher mortgage payments after a reset, you won't qualify. And if you're in bad enough shape that you can't handle the current low interest rate, you won't qualify. For example, if you've already fallen behind on your mortgage payments, you're not eligible for the rate freeze.

Do you need to live in your home to qualify?

Yes. The plan excludes people who don't live in the homes for which they have mortgages so that speculators can't benefit.

Why is there going to be a bailout?

Bush, Paulson, and the Administration are concerned about the fallout from the housing slump. If many people fall behind on their mortgages and have to give up their houses, there will be a series of negative repercussions. First, tens of thousands of Americans could be forced to leave their homes. They would lose whatever equity they had. Consumer spending more broadly would likely slow, hurting the economy overall. In addition, home prices could fall even more quickly than they are now. That could hurt consumer confidence well beyond those people directly affected.

Is the bailout going to be enough?

It depends on your definition of enough. The deal will add some stability to the housing market, but it won't stop all the problems in the troubled sector. The same day Bush unveiled his plan, the Mortgage Bankers Assn. said that foreclosures had reached a record high in the third quarter. The share of mortgages that have entered foreclosure hit 0.78% in the quarter, up from the previous high of 0.65% set in the previous quarter. At the same time, delinquencies for all mortgages rose to 5.59%, from 5.12%, in the second quarter. None of the people who are delinquent or facing foreclosure will be helped by the plan.

The deal almost certainly won't stop the decline in housing prices. Investors are betting that there will be double-digit declines in home prices in nine of 10 major markets over the next year. The only exception is Chicago, and there the estimate is for a 5.6% drop in home prices.

So why not go further?

Some Democrats are criticizing the Bush Administration on that exact point. Senator Hillary Clinton (D.-N.Y.), among others, is arguing for a more ambitious approach, including at least a seven-year freeze on interest rates.

Who stands in the way of such an effort?

Investors in mortgages and mortgage-backed securities. If homeowners are going to pay less on their mortgages than originally planned, then somebody is going to lose money. These aren't just fat cats on Wall Street—although many such firms have invested in these securities—they're also pension funds for teachers, firemen, and police, as well as mutual funds whose clients include all sorts of individual investors. They probably even include homeowners who are facing the prospect of higher payments on their adjustable-rate mortgages.