Renters should get a big check from the Gub'ment

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Xericx said:
A home is not a liquid asset. It is an investment, investments can go up and can go down. They are not guaranteed to be able to be sold at what the seller thinks is a fair price. They are dictated by the market, and right now the market is terrible and people are underwater and can't pay because they never could have afforded the house in the first place.
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I don't disagree with you; my own opinion is that they every salesman or bank teller that wanted a $600,000 house can go fuck themselves . . . but then you hear about the fraud that induced many to purchase above their means in the first place. That's where the problem is.
 
Dumpy said:
I don't disagree with you; my own opinion is that they every salesman or bank teller that wanted a $600,000 house can go fuck themselves . . . but then you hear about the fraud that induced many to purchase above their means in the first place. That's where the problem is.
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Fraud came from multiple angles. From realtors who pushed people into investing in "hot neighborhoods" to mortgage brokers that looked the other way to homeowners who lied on their applications about the income they had.

Problem is multi-facted, only way to catch people is to screw over those that were involved in the process and that is to let the system fix itself.
 
The bottom line is that no one ever promised that you'd make money on your house. Owning vs. renting offers all kinds of advantages that can't be expressed in dollars and cents. As long as you can afford your mortgage and you're unwilling to take the loss, the prudent move is to stay in your house until the market comes back up to meet you.
 
Xericx said:
Fraud came from multiple angles. From realtors who pushed people into investing in "hot neighborhoods" to mortgage brokers that looked the other way to homeowners who lied on their applications about the income they had.

Problem is multi-facted, only way to catch people is to screw over those that were involved in the process and that is to let the system fix itself.
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It's called "fraud in the inducement." Victims are entitled to damages . . . but again, the perpetrators are gone.
 
I am a homeowner -- just bought my first home about a year ago. Or was it 2 years -- jeez time flies. Anyway -- I could have gone with an interest only, or ARM, and perhaps qualified for more, but I was responsible and selected a good fixed rate loan that was affordable. If you renters get a gub'ment check, can I get in on that too? :ghoti:
 
maxiep said:
The bottom line is that no one ever promised that you'd make money on your house. Owning vs. renting offers all kinds of advantages that can't be expressed in dollars and cents. As long as you can afford your mortgage and you're unwilling to take the loss, the prudent move is to stay in your house until the market comes back up to meet you.
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You are absolutely right, and that's why you should be skeptical whenever someone says that they "took a loss" on the sale of their home. If they bought their home for $500,000 and sold it three years later for $450,000, did they lose $50,000 (as they'll claim)? That would ignore tax deductions for mortgage interest (and on the other side, property taxes, but that is deductable as well), any tax benefits from taking out a second mortgage or home equity loan and using it to buy a car or pay off a student loan, and, more to the point, the inherent value of just having a place to live (i.e., the avoided cost of renting an apartment). It also probably ignores transaction costs, which can be pretty high. The whole calculation is very complicated, if you want it to be accurate.
 
maxiep said:
But what about actual data? What percentage of the 1% who have defaulted on their mortgage were "defrauded"?
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does it really matter? does the number of people who have been defrauded affect whether they should be helped by the government? Leave out, for the moment, people who have knowingly purchased homes outside their means, or knowing what their 3/1 ARM would eventually do.
 
Dumpy said:
does it really matter? does the number of people who have been defrauded affect whether they should be helped by the government? Leave out, for the moment, people who have knowingly purchased homes outside their means, or knowing what their 3/1 ARM would eventually do.
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I went to the casino and bet $100 on red. I lost, and when I asked for my $100 back, they laughed.
 
The next day, I took another $100 to the casino. There was this big giant sign over one of the slot machines, "102% payout." I think to myself, how do these casinos stay in business! An hour later, my $100 was gone. I asked for my money back and showed them the sign, and even asked for the extra $2 it advertised. They laughed at me again.

I think I'm staying away from these RISKY propositions.
 
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