Insane America: Obama Wants You to Bailout the Asshats Who Live Next Door
dailybail.com
Have we lost our collective minds America. What the hell is going on. I woke up this morning and apparently now I live in Havana. Team Obama: pehaps you have missed the message the American people have been trying to communicate. Stop The Bailouts. All of them, damnit. And we sure as hell did NOT want you to extend the bailout to homeowners. This is a country of responsibility, and you are giving all of us the middle finger salute. Enough, damnit, enough.
The newest twist on government bailouts commenced officially today with relief for your irresponsible neighbor. You are now paying for his greed and stupidity, and perhaps even the Hummer and Corvette he bought with his home equity loan that he'll never re-pay. Yes, you are footing the bill for his vehicles as well. It's all pooled capital. He purchased near the top with no money down, got a $200k home equity ATM, bought all his toys, walked away from the house and both mortgages last year when prices plummeted. No recourse. Even worse, before walking away, he secured a mortgage on a newer house 2 blocks away that was a short sale. His credit score was still outstanding after all. He got in the newer house for 50% less than he paid for the 1 across the street from you. His credit is damaged now from the walkaway, but in 3 years that will disappear. And guess what, his new short sale purchase now qualifies for mortgage assistance under Team Obama's Plan to Save the Asshats.
Inside we have an excellent 1 minute video entitled 'Don't Bailout Bob, or His Bank.'
What a bunch of arrogant, ignorant rednecks. Falling right into the frame of mind the real estate industry wants. You're calling mortgage fraud victims "irresponsible" and that makes my blood boil. The anger should be directed toward the hucksters of the real estate industry, the brokers, realtors, appraisers and associates who took the opportunity to flood the public with "Lower your monthly payments", then switched people into loans they could afford at the time. Irresponsible is the mortgage broker who steered people into the largest possible loans after telling them their house was worth much more than it was, and then had their pet appraiser overvalue the properties to squeeze as much loan/commission as they could. Ever heard of YSP (Yield Spread Premium)?. That's the kickback the broker gets for sticking people into higher rate loans than they're actually qualified for.
Mortgage brokers are the ones who falsified incomes, Verifications of Employment (they buy blank forms on line), rushed the hapless homeowner through a contract nobody could read in less than a month, lied about it's contents and then altered the numbers after the fact. Brokers hiring their own appraisers is a direct conflict of interest, and an appraiser doesn't work if he doesn't give the broker the number he wants. Standard practice. No wonder prices were skyrocketing. I had many a broker demand I appraise properties as much as 30% over what the comps showed. Take those inflated numbers, put them in the MLS and the compounding begins. Hence, property values climbing by 20% a year. A giant pumpndump. You expect the borrower to know that? Borrowers didn't know that brokers will do ANYTHING for a commission and insiders from the industry have confirmed this time and again publicly.
Those "irresponsible" borrowers were people who thought they were going to lower their monthly payments by 3,4 or 500 a month, were told that a variable rate loan was the thing to do and that they could come back and refi in a year or two. The "irresponsible" borrowers were average Americans with medical bills, old cars that needed repairs, students going to college, handicapped children, single mothers trying to make ends meet and they all ended up victims of predatory lending.
Congress, the FBI, and anybody who has actually studied the situation knows how so many people were tricked into financial destruction by an industry totally devoid of ethics, morals or principles. Borrowers were caught offguard by RE "Professionals" that lie, deceive, cheat and swindle without a blink. Something you don't face with any other industry.
So I suggest you get your heads outta your asses and do a little reading beyond the newspaper, don't listen to what real estate people say and help your neighbor because they are financial crime victims that were not protected by consumer law. Ref: MortgageFraudblog.com, MSFraud.org, FBI financial crimes unit, and type "Mortgage Fraud" and "Appraisal Fraud" into your browser and smarten up.
February 20, 2009 | Stephen
Stephen,
It is not the taxpayer's responsbility to compensate fraud victims, assuming they were indeed fraud victims. Hey, I lost a lot money on dot-com stocks thanks to the Wall Street hucksters etc., can I get my money back? Fraud victims can sue the fraudsters to get money back or demand prosecutors to prosecute the fraudsters. What we have here is taxpayers getting ripped off to pay victims while the fraudsters go free!
Also, people who sign important financial papers that can potentially tie them up financially for the next three decades without actually reading them, well, perhaps they shouldn't own home! The potential cost of signing an annual rental agreement without reading it is much smaller. Everyone has to lear how to walk first before running.
February 20, 2009 | Jim
Please keep boiling your blood, no one cares, one less fool to bail out.
I don't know much, but knew I couldn't afford to buy, or wouldn't. It's simple math, and my father always taught me never to sign anything unless I've both read it top to bottom and completely understand it. I have also been taught not to spend more than 31% of gross income and to plan for a rainy day b/c that great job you have today could be gone tomorrow. I have no use for a hummer or granite counter tops. I look around and all I see is reckless greed and entitlement. I rent a simple apartment with my wife and kid and have been waiting for this bubble to burst so we can finally afford to buy at reasonable prices, something our country hasn't seen since '97. Look in the mirror, there is mucg blame to go around, but it must start with YOU. Suck it up, renting ain't so bad, it's worked for us and will work for you, not the end of the world, although you may be considered less of a citizen and much less important to our government.
Mr. Obama, please reverse course immediately and stop rewarding the foolish at the expense of the truly responsible. For god sakes, our country depends on it. REAL hope and change is what I voted for, not a socialist U.S.S.A. I hope to see you all at the Chicago Tea Party.
February 20, 2009 | Bobby B
Change. Change. Change.
Don't change.
Obama, we hardly knew you. Of course, that is because you are just another lying scumbag politician who is beholden to the true rulers of America. And, whatever you were, you were better than Bush. I, for one, am not surprised, though I am disappointed. Washington is a strange town and politicians are odd creatures. Beliefs and principles don't run the country, money does.
Wait for the next step, allowing recourse on all mortgages. Why not simply have the goverment buy all property at the peak price and hold an auction. Halliburton will get first look and will buy all the homes in California for $38 a piece. JP Morgan will get to buy all real estate on the East Coast for $17 million. Citibank will get everything in between. Goldman sacks will be the exclusive broker for purchases and all sales.
But hey, let's scream and kick and cry, because the government really listens when we do! Is it legal to advocate the overthrow of the US government? By peaceful means, of course. And by peaceful means I mean waterboarding, torture, kidnapping, and execution, all of which are apparently perfectly acceptable. I wonder if Congress would support these bailouts if we waterboarded them instead of writing them letters. I doubt it.
February 20, 2009 | Expat
Where was the SEC when realtors were making investment claims for this housing ponzi scheme?
February 20, 2009 | 3rd worlder
I am one of those poor victims. The evil banks forced me to drain all my equity out of my home via several refinanacings. Then prices dropped and now the joint is under water. So I quit paying my mortgage/rent to the bank figuring it'll take them a while before they get around throwing me out. But that would be cruel, throwing poor me out on the street. Obama to the rescue! With the help of the bailout I'll probably wing it to live mostly rent free for another year, maybe two. I might have to make a few reduced payments to show that I am really trying but then I am sure I'll find better ways to spend my money. See, even with the reduced payment I'd pay more than I would in rent once you figure in insurance, taxes and repairs which tend to come in $10K increments. So I have really no incentive to make my payments but it sure would be nice to stay a while longer at Uncle Sam's expense. Got to love a good sucker!
February 20, 2009 | Mike in Miami
@stephen
i feel your anger, but your obvious bias has caused you to overlook something the rest of us call logical thinking. perhaps you've heard of it.
your argument assumes that the homebuyer is unable to think for himself/herself.
who in their right mind would believe a real estate agent or mortgage broker as the sole arbiter of a home's value? sound like you did.
the reason there are millions of poeple outraged is becasue there were millions of people who made a decision NOT to buy into the bubble. these people were rational thinkers who saw a mania unfolding and knew it wouldn't end well.
they chose to wait, often making their lives more difficult in the process. ever try living with a few kids and a spouse in an apartment?
i bet it's not very friggin' easy sometimes. yet millions of families in the bubble states RESPONSIBLY did exactly this. they made a conscious decision to wait.
also, who is dumb enough to believe in appraised value. (oops sounds like you did) Goldman Sachs has some bonds with an appraised value of par that they would love to sell you. and they're the experts rememeber. but should you believe them? it's called a vested interest on the part of the seller. intelligent people understand how to see through a sales pitch. apparently, you did not.
and finally, do not ever come back to my site and criticize the readers and commentors as you did.
for the record, i personally am very proud of my 5th grade education.
and lastly Stephen, don't feel too badly. you're a winner of something at least. you're now officially the dailybail tool of the month.
your prize is peer recognition that you're an apologist for the idiots PLUS a shiny new craftsman toolbox. call bill miller of legg mason, word is that he's got plenty of room in his shed.
February 20, 2009 | DailyBail
1) I bought a house in 2003. I didn't fall for the "buy as much as you possibly can" BS & stuck with one I could afford easily with a FIXED interest rate.
2) When I signed the contract I told the people there to get comfortable because I was going to read the ENTIRE THING END TO END before I signed it. It took about an hour & I made them cool their heels while I did it.
3) I bought a house for a long term residence, not as an investment vehicle.
4)If I take a loss its my responsibility, not anyone elses.
5) anyone too stupid to be able to read & understand a mortgage contract is too damn stupid to be allowed to vote in elections or breed. They certainly are too damn stupid to be able to have an opinion on anything that anyone should give a damn about.
February 20, 2009 | Bob from Tacoma WA
Stephen, everyone involved is to blame. Bailing out irresponsible homeowners is just as bad as bailing out irresponsible corporations. Everyone wants to be a victim so they can get some sympathy. The reality is that all involved homeowners, brokers, realtors, appraisers, lenders, politicians, and so on are part of the cancer that created this mess and continues to plague the economy. Many of those involved remain in denial about what's actually happened in the real estate market (I'm looking at you, Howard County Maryland). I don't think we should be bailing out any of these people. In fact, I think we should be sending a lot of them to jail. Yeah, those homeowners that used their houses as ATM's to fuel luxury purchases and then bought a second house so they could bail on the maxed-out first house should absolutely be put in jail. The same goes for the real estate professionals that fudged incomes, appraisals, fees, and such to extract the maximum commissions. The same goes for politicians and CEO's that trumpeted the soundness of their companies as the bubble was bursting.
Plan for the worst, hope for the best. Somehow that got forgotten. The sooner prices get down, people get booted out of homes they can't afford, and failures stop getting propped up with bailouts, the faster we can return to economic recovery and growth.
February 20, 2009 | BigDragon
Please STOP throwing ALL appraisers under the bus...There were a few of us that have been SCREAMING "THIS IS INSANITY". We have lost business, clients, and LOTS OF MONEY...to the hucksters and fraudsters. We are left to clean up this unholy mess and are being told our fees are being cut in HALF. A quality appraisal is worth WAY more than $300 bucks. I have been called everything but a child of GOD by BOTH homeowners and lenders. We held our ground and are paying for the mistakes of those with no spine. Blame falls to the majority....the minority always suffers. Thanks....
February 20, 2009 | Ain't Bullshittin'
I saved my money and am renting. I did not leverage myself into a lifestyle that I did not deserve. I do not own a humvee on payments, granite countertops, a glorious master suite or a flat screen TV. I sure as hell did not buy a house that I could not afford. Now Obama wants to tax me to pay for the irresponsible bastards that over-leveraged themselves to a lifestyle they never deserved in the first place. Why should I pay more in taxes to support the irresponsible people that got us into this mess in the first place? Thanks new president. Obama is expanding on Bush's lead in turning the US into a banana republic. He ran on Change and Change is what we are getting Change for the worse. Wait until the rest of the world stops lending us money for our governments fiscal irresponsibility. Obama thinks his FDR approach will save us all and buy him another term, instead he is sending the US to the poorhouse. His big spending approach to win his next term will come back and bite him when the dollar collapses and interest rates are 20% because the rest of the world decides to stop lending to us. Why would any country lend money to a country that rewards the people that have screwed the system the most, such as the banks and irresponsible borrowers? What's next free Guantanamo prisoners and give them all new GM cars to support the auto industry? Wait and see how much love he gets from the young college kids and liberals that voted for him when they are in bread lines and do not have jobs years to come.
February 20, 2009 | Extremely Angry Renter
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