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It's not the homeowner's fault if their house is worth in some cases half of what they paid for it. We paid a reasonable amount for our home in 2004 ($218k), houses are selling for $130k-$160k in our neighborhood. We couldn't refinance if we wanted to.
 

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I don't think the people that brought more house than they could afford, those who went after the inventive financing, etc., should be bailed out. I remember when I went apartment hunting in Sacramento, I met up with a woman who was on my horse forum. Both she and her husband were in real estate. I was eating dinner at their house and her husband was telling me how I could get into a house with no money down, just pay interest, etc., etc. I will admit my credit is less than stellar and they knew that, but he said that wasn't a problem. It sounded too good to be true. I was not that desperate to own a home. Greed is what got us into this mess in the first place, IMO.
 

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Stupid loan companies/banks should of never gave those loans to people who couldn't afford them!

Now I understand if you lost your job and THEN couldn't make your payments...that is different.
 

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No, If I have to make my mortage payment, so should they. They never should have bought a house they couldn't afford. Lose the home and go back to renting.
 

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Discussion Starter #7
It's not the homeowner's fault if their house is worth in some cases half of what they paid for it. We paid a reasonable amount for our home in 2004 ($218k), houses are selling for $130k-$160k in our neighborhood. We couldn't refinance if we wanted to.

So if you want to stay there.....but refinance at a lower rate, you can't because your house won't appraise for that amount.

I say you should be able to refinance.....that hurts no one and doesn't cost me anything.


(unfortunately I am not in charge.......or fortunately. :))
 

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Discussion Starter #8
Stupid loan companies/banks should of never gave those loans to people who couldn't afford them!

Now I understand if you lost your job and THEN couldn't make your payments...that is different.
true......although some of the changes were forced by the government.......so everyone could realize the american dream.
 

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I don't think the people that brought more house than they could afford, those who went after the inventive financing, etc., should be bailed out.
Ditto that!!!!
A couple of miles from where I live, they built a development of McMansions that went for half a mill. They were bought up almost immediately. Paul did some work for some of them and was amazed how many of them were barely furnished, some of them had completely empty rooms. Most of them are now in foreclosure, they obviously bought way over their means....

I'm not sure how I feel about the rest though. Is it fair that one guys gets his mortgage paid, but if I'm able to pay mine I get squat? I dunno....
 

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No. Buying a home comes with risks. I don't think people should get welfare because they:

made a bad investment

were unlucky

were greedy

didn't understand what they were getting into

used the "savings" from going with an interest only loan to buy an SUV or bigscreen TV

chose to live beyond their means; all but the dumbest people know that if
you make $50,000 a year you cannot afford a $500,000 house
 

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true......although some of the changes were forced by the government.......so everyone could realize the american dream.
True, but people were not forced to "take advantage" of these new loans. I'm sure I could have purchased a bigger more expensive house using an interest only loan. But I didn't.
 

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I'm just not in favor of bailing out individuals. I think you have to support the system enough to keep it in place, but I just don't believe that giving Fannie and Freddie even more power is the way to go.

People make bad choices, and sometimes bad **** happens and what seemed like a good idea isn't. Personally we are fine in our primary home but we bought a second "retirement" home in Arizona in early 2006 because prices were going up so fast there that we weren't sure we would be able to afford it when the time to retire actually came. Turns out that that decision was a big Oops. House is worth less than we paid for it and writing that mortgage check every month makes me feel like an idiot. We know several other people there who are in the same position. We gambled and it didn't pay off; should the government step in and protect us from our own decisions? I don't think so.
 

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Apparently, personal accountability means nothing today. I bought a house that I could afford and pay my mortgage...and I bet if I missed a payment or two, no one would come to my rescue...
 

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I wasn't thinking of those aspects.. i was relating to the guy at GM who lost his job and now can't pay his mortgage and there's nobody left in Detroit to buy his house, anyways.
 

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Apparently, personal accountability means nothing today. I bought a house that I could afford and pay my mortgage...and I bet if I missed a payment or two, no one would come to my rescue...
I agree.

It is very frustrating to be one of the always-on-time-within-my-budget mortgage payers watching the non/can't "payers" receive benefits for their irresponsibility.
 

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Stupid loan companies/banks should of never gave those loans to people who couldn't afford them!
Now I understand if you lost your job and THEN couldn't make your payments...that is different.
EXACTLY! Irresponsible lenders. Yes, it is up to the homebuyer to research, budget, know what they can afford, but the bottom line is, the LENDERS have to have the final say, and not lend money to people who are borrowing more than their debt ratio deems prudent. JUST SAY NO!.

Yes, I say bail them out. I wouldn't want to see anyone homeless. What a devestating thing, that many can never recover from. And what about their children, if they have any? is it their fault their parents are bad with money? They deserve to be on the streets? No. If you can bail out big business, abd irresponsible lenders, that absolutely bail out the people who were screwed by the lenders, or lost their jobs from the big-businesses.
 
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