Mortgage Mess: What A Bad Trip!

Discussion in 'Politics' started by righteousdude2, Sep 28, 2008.

  1. righteousdude2

    righteousdude2
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    We did a refi on our house 18 months ago. We got enough money to fix up our 14 year old home, nothing else, nothing exotic. The problem is, our home was appraised at $370,000.00, and it has fallen to $160,000.00. That means, even if we can meet the payments, we are paying for a home that is no longer worth the money we payed for it.

    This bail-out is wrong. It will keep our home at upside down values, and make it impossible to sell in order to get our money out. We lose all the way, and I can't help but feel that someone was out their pushing up the prices to get people to refi and borrow to the point where they would eventually have no value in their homes.

    Something doesn't smell right in DC.....and I blame everyone, not just one party, or one POTUS. This problem is everyone's fault, and I wish I hadn't been sucked into the real estate lie.:tonofbricks:

    I am sure there are many BB folks like us, and I'd be interested in knowing what you plan to do. We love this house, and it is like our dream home, but, the plan to sell it when I turn 65, and use the earnings to enjoy retirement have all but went up in smoke...:tear:
     
  2. KenH

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    I am sorry to hear about this, RD2. May God bless you with a way out of this situation.
     
  3. righteousdude2

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    Thanks Ken...

    It'll take a miracle, and that is what God is in the business to do. I just wish I'd bought a motor home with the refi money, and i'd have a place to go should I lose my home :laugh: [only kidding, I felt the money was for repairs and updates, and that is what it went for].
     
  4. ajg1959

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    Well, hopefully this crisis, like all the others before it, will pass and the market will recover. I remember in 1987, my wife and I had all of her retirement from the company she worked for in stock. She got a hefty discount on the stock for investing in her company. Anyway, she called me on black Monday all freaked out saying that she had lost her retirement because the DOW dropped down below 1800 points. We didnt didnt sell out when the market was low, we held on to it. Well, since that day, the DOW has grown to as much as 14,000 and her stock has split several times over.

    My point is, be patient and pray, and surely the home real estate market will recover.

    Also, many investors are trying to buy up real estate now because of the low prices. Just like oil, the speculators are bound to drive the prices back up.

    AJ
     
  5. righteousdude2

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    Thanks aig

    This is the kind of miracle I am looking for...it just needs to happen before I turn 65 [three years left], because my income will drop severely. This is why we were going to sell the home. It is a reall nice home, and everything is near new. It just seems like a crime has been committed, and I have no one to report it to.
     
  6. LeBuick

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    I believe just the opposite, without the bailout there will be tons of foreclosure properties on the market that will drive your homes value even lower.
     
  7. poncho

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    What? You mean let the market correct itself and bring prices back down to where they should be? :eek: Can't have that.

    "We risk committing the same errors that prolonged the misery of the Great Depression, namely keeping prices from falling. Instead of allowing overvalued financial assets to take a hit and trade on the market at a more realistic value, the government seeks to purchase overvalued or worthless assets and hold them in the unrealistic hope that at some point in the next few decades, someone might be willing to purchase them."

    SOURCE...
     
    #7 poncho, Sep 29, 2008
    Last edited by a moderator: Sep 29, 2008
  8. North Carolina Tentmaker

    North Carolina Tentmaker
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    Yes but with the bailout the opposite will occur.

    Hang in there RD2, once the government owns 800 million dollars worth of loans backed by half that in equity we will see double digit inflation and soaring home prices. That way the government will not only make trillions of dollars, but they will also end up owning a larger share of the country's land. We the people will pay for it of course, but not in taxes but instead in the lost value of our savings and higher cost of living.

    How would you like to were a $5000 suit, smoke a $200 cigar and live in a $1,000,000 home? You can, we all can with the help of our friend inflation.:tonofbricks:
     
  9. Revmitchell

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    The problem is home values were hyper inflated. They were based on a market driven by junk loans that never should have been issued to begin with. Unless the tax payers are willing to continue to subsidize loans of those who are not actually credit worthy home values will never go back up. They never should have reached the level they are now. And they should not ever go back up based on junk loans.
     
  10. poncho

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    In other words our loss is their gain. No wonder they're pushing so hard for this bailout.
     
  11. LeBuick

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    I agree with all you guys about how the bailout will hold prices high and add to inflation. I was responding to RD statement about his property value.

    There are some people who bought homes at the peak of this explosion who will now be upside down for a long time to come. I believe in the end they are the true innocent victims of this entire crises. RD, our prayers go out to you and people like you.
     
  12. poncho

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    Quite the system we have isn't it? It steals your property and then expects you to pay the thieves back + interest.
     
  13. North Carolina Tentmaker

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    But why is always seem to be my loss and somebody else's gain?

    The idea that scares me even more than the government bailout is the concentration of wealth in the hands of just a few corporations. We are down to 3 mega banks now, Citigroup, JP Morgan, and Bank of America.

    You know I have always been taught that in the end times the world would be run by 10 nations with 7 kings (Rev 17 and all). What if instead of 10 nations the way we know them now it is instead 10 corporations with 7 CEOs?
     
  14. Dragoon68

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    Excellent point, Poncho, and that's exactly what needs to happen. To do this we've got to get the government out of the business of social re-engineering in the housing market such as started with the Community Reinvestment Act and even before. The whole thing needs to be dumped!
     
  15. righteousdude2

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    Thanks for the Prayers.

    Actually, I want to thank all of you for your kind words of hope, and prayers. This is a bad situation, and it appears that there were crimes committed against most Americans. All I can do is hope that my home edges close enough to the $300,000.00 range so I can sell in three years.

    Again, I know a few of us don't always agree, but your prayers and kindness have demonstrated what it means to be a Christian.:godisgood:
     
  16. righteousdude2

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    You May Have a Point!!!

    I believe you are close to the answer, actually, I submit to you, what if the 7 kings is figurative to institutions that hold the power through money?

    Also, I believe the NAU will eventually join with 9 EU partners to make the number 10. We will have to see some juggling, merging, etc. to get there, but, with all the things happening so fast the last few weeks, I'd have to say we are close to seeing the 10 nations/7 kings come to power.

    Maranatha, come Lord Jesus, come!:jesus:
     
  17. poncho

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    You're on the bottom of the food chain just like me. I'm sure it's nothing personal. We just have what they covet most.

    Yeah and there's only five or six mega media corps. So here we are in the great game of global monopoly and we're on the losing end. Can't say we we're warned in advance though. 230 years in advance.

    Hey! I was always taught that too! I dunno but it's something to ponder.

    Oh I agree Dragoon, I agree.
     
  18. LeBuick

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    We're down to 3 banks? Isn't there 10 banks that make up the federal reserve?
     

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