"If these people fall, everyone falls."...no, actually only those people fail
For the msot part, the people who are getting foreclosed now have only themselves to blame...not that it matters as here comes big government to the rescue with 300 billion dollars which we'll all have to be paying back plus interest for the next 40 years just so that someone could live the dream...the dream they should have known they couldn't afford in the first place
I agree with IKE, this is the fault of the people who signed for loans, granted there is fraud and speculation that exacerbates the problem, but it ultimately comes down to personal responsibility and accountability first!
Anyone who enters into any type of agreement is expected to read and understand what they are signing, if they don't then they should seek help to understand before they sign. I learned when I was very young that if something is too good to be true, then it probably is, in fact most elementary school kids can tell you that is the case. Unfortunately for all Americans, there is a minority of Americans who are front and center in this mess because they thought that they were beating the system by signing for adjustable rate mortgages and exorbitant home equity loans. The "get it now and pay later" credit culture doesn't work for anyone, but that should be common sense. We learn at a young age that stealing is bad, that debts must be paid, and that you don't bite off more than you can chew. So why are we giving adults who entered into a contract, knowingly and willingly, a free pass on their obligations? Why is the government, the very entity that created this mess (thank you Mr. Clinton), stepping in to make it worse?
Let the people lose the homes that they couldn't afford in the first place, let the market correct itself with minimal intervention. No one is owed anything in this life. You have to work for what you get and you only get what you can afford. People are over their heads in credit and mortgage payments because they were greedy, and that greed caught up with them. Oh well, let someone buy the house and rent it back to the family who can't afford to pay for it out right.
If you want to channel the help in the right direction, then help those people who are doing things the right way. Reward those who have taken responsibility for their actions instead of perpetuating the "give me" society that Buffalo is famous for. Let people learn that there isn't always a safety net underneath that risk, if you are over your head then it is your personal responsibility to get back on top, not the governments, not your neighbors, yours.
I was looking at a BMW Z8 the other day. It is a little out of my price range but the dealer told me that he could make it work for me, he is going to lower the payment for the first 2 years so they are more manageable, but then I have to pay double the payment for the last 3 years. I love the car and it is part of the American Dream to own a nice car, so I figure what the hell. If I can't make the payments after 2 years, you'll all pitch in to help me pay it, won't you? After all, this is a car and it is something that I've always dreamed of having, just living the dream that I am owed, just like everyone else.
I am looking forward to your assistance with payments in 2011.
To Joy McDuffie: re: what loans are most likely to result in foreclosure.
Answer: Sub-prime mortgages sold to people who can't pay them.
What is being done?
The House of Representatives has proposed HR 3221, the American Housing Rescue and Foreclosure Prevention Act, to assist homeowners with refinancing to prevent foreclosure and to lock in favorable interest rates for 20+ years. The assistance will be offered to any homeowner facing adjustment of their mortgage rate or foreclosure. It will be offered regardless of income and financial need.
I am going to take advantage of this program as soon as it is passed.
Though some of your comments are true for many, there are some scenarios you're not thinking about. A lady I work with is going through a foreclosure. Her husband left her last year, and she has 2 kids to support. She can't afford the mortgage payments on her salary alone, and the bank refused to change the terms of her morrtgage. How about all those Delhi employees? I have owned my house for 10 years. I found out recently that in 3-5 months my job is moving to India. If I can't find a comparably paying job, will I be able to keep my house? Not so sure. Bad things happen. I don't agree that someone with terrible credit is deserving of an interest rate 3 percent lower than mine, but it's also not right to generalize.
Is this a "me" society or a "we" society? In the City of Good Neighbors, you'd think this would be an easy answer.
We all know that there is a housing problem and that more foreclosures on top of foreclosed homes, vacant homes, dilapidated homes, and vacant lots is not exactly going to help Buffalo. So, instead of playing "blame the victim" and oversimplifying the situation to kick others while they're down, maybe we should be applauding people's efforts to get a hold of the housing crisis in our city, state, and nation.
Politicians in all levels of government on both sides of the aisle recognize that there's a problem that goes far beyond an absence of personal responsibility and have passed or are passing legislation that will help more people stay in their homes, strengthen communities by lessening vacant and abandoned properties, and benefit lending institutions and, in effect, the American economy by retaining performing loans.
Most legislation is aimed at regulating a vastly under-regulated mortgage industry, bringing judicial oversight into the refinancing process, and strengthening housing counseling agencies to better educate homeowners about the ins and outs of buying and owning a home.
Buffalo needs all the help it can get and if people care about this city, it's time for them to stop pretending there's not a housing problem here and accept that some people were just plain screwed, not out of any fault of their own...other than wanting to provide a roof over their family's head.
P.S. Where's the personal responsibility of a lender who makes a subprime loan that is destined to fail, then immediately sells it on the secondary market? Out of sight, out of mind, I guess.
Apocalysekirk - You are right on the money! Mortgage companies are in the business of raping and pillaging poor and unsuspecting residents out of their money and they must be stopped. These companies continually victimize consumers by making them pay interest and fees on one of the essential requirements for survival. They lure in their victims by offering deals on interest rates and then zap people with PMI fees, late payments, and foreclosures if the borrower runs into problems. The mortgage companies should protect the consumer in the event that they have a personal problem or life changing event, they should forgive payments up to a year, and should lower interest rates if the borrower is a single mother with children. It makes me sick to think that these companies are getting rich off the struggles of single mothers. I can't believe that they don't have programs in place for people like Draw, I mean how is he supposed to predict that his greedy company is going to send his job to some foreigner who works under slave labor conditions for pennies a year. It is a shame that the mortgage companies don't protect consumers like Draw. Maybe the government could step in to pay part of the mortgage for him until the government is able to create better jobs for people who have lost theirs. After all, that is what government is supposed to do for us, they are servants of the people and should be looking out for our best interests.
I cannot believe that someone who is passionate about the future of Buffalo would be thrown out of their house because life threw them a curve ball. It is not their fault that jobs are moved to India, that men abandon families, and that our health care costs are so high that families have to choose between insurance and a house. It is just sick that we live in a society where companies are not looking out for the health and well being of citizens before profits. It is a shame that we are expected to manage all of the things that life throws at us without help from the government and companies. After all, it is their responsibility to ensure that we are not making major mistakes like signing for a mortgage that we cannot pay, gambling our paychecks away at a casino, or spending our money at a bar. Compulsive spending, gambling, and drinking are all illnesses, and we have no control over the devastation that they can cause in our lives, it is up to the government to help us avoid these temptations.
If only there was some way to use Heather's powers to get Buffalo out of all these messes. Maybe a Satire Museum next to the Beach Without Swimming or in the Broadway Market Without Shoppers. With appropriate museum charters and paperwork, of course.
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