How do you feel about the Governemt bail out for people who homes are being forclosed??

Question

I personally am against this idea, b/c I feel it's not the governments job to bail people out not being able to pay there motgage. If they are bailing people out of there house payments whats next, car payments, credit cards.

I also feel that most of the people put themselves into this jam with some blame on the banks for approving the loans but ultimatly the peoples faults for signing the final contract.

Is it the governments fault that people took out motgages with zero down payment and at a 120% finance. No!!, but now its the tax payors problem to deal with.

This country need to get more conservative and needs to go back to the at least 20 % DP, and not getting a house more then 2.5x your income. alot of these forclosed house are speculators who were trying to make a quick buck in the restate boom, but ripping off people who wanted to own a home.

What are your views on this?

Answer 1

It's money better spent then funding a war on the other side of the world

Answer 2

Only if the loan company did something illegal. A lot of these bad loans were based on bad judgement and greed by speculators. We should not bail these people out.

Answer 3

If you are dumb enough to buy more house than you can afford than you deserve to lose it.

Answer 4

I'm all for helping people. I'm not for helping out businesses. There are a lot of criminals in the business sector in the housing situation. Some are being held accountable and I hope to see more of that. You cannot blame the homeowner. They got the loans, didn't they? There is a procedure for qualifying and approving someone for a mortgage. There is a lot of corruption that came from the top down. The people are the last people to be blamed. They never should have been able to get the loans in the first place. The reason they got them was GREED.

edit: A lot of people are uneducated when it comes to managing finances. They went to professionals that knew better but were greedy and under a lot of pressure from management to perform. So they used very aggressive tactics to get loans to people to make themselves look better. I know this firsthand. It was not just the poor or even the middle class. The wealthy was involved too. You better believe it. Greed is all around. The blame goes with the professionals. They are educated and trained. They know better. They took advantage of the naivete of people.

edit: Countrywide is a huge problem. The CEO should be in jail. He might go to jail. They did a lot of shifty things. Why? Greed. Real estate was appreciating pretty well for a while that was very unusual. No one questioned it? I know that I did.

Answer 5

"This country needs to get more conservative?"  It is the conservatives who want to deregulate everything.  I do agree with financial responsibility - and no one has been responsible with respect to sub prime mortagages.  The buyers took on obligations they could not afford, and the financial organizations issued mortagages that the buyers cold not afford.  But this fits well with Republican emphasis on 'old fashioned values' - in this case, and many others - greed.

I feel sory for those who lost thie homes.  I hope now that people will wait until they have a stable job and enough experience that they get more than an entry level salary before taking on a morgage.

Also, in my jurisdiction, it is impossible to buy a smaller new house - greed again.

Answer 6

i think the government should focus on getting new first time buyers into homes, giving them a chance.  i sympathize with people who may have lost their homes in this mess, but no matter how shysty lenders may have been, people should've had the sense to know what they were getting into.  with the exception of the people who were actually conned, i don't see why we're bailing all these people out.  especially when there's so many vacant properties now due to builders over building or bailing out half way through- it's far more important to fill up those vacant homes for the sake of the neighborhoods, communities, etc.

Answer 7

"I personally am against this idea, b/c I feel it's not the governments job to bail people out not being able to pay there motgage."

I agree, for that reason, but this is not why the government is doing this.  If they were allow all the foreclosures to take place, it would further damage our housing markets.  To allow that system to fall without correction would be ignorant.

"I also feel that most of the people put themselves into this jam with some blame on the banks for approving the loans but ultimatly the peoples faults for signing the final contract."

It's also the fault of politicians from the Clinton and Bush eras that relaxed regulations to allow this to happen.  And the fault of people in the lending industry that misrepresented the value of mortgages.

Answer 8

Yeah!  Bail me out of my payments to my credit cards!!

Answer 9

Normally I would agree that people who take economic risks should also be responsible for the consequences.  However, financial institutions deliberately went after high credit risks and even the Fed Reserve created the environment and supported the subprime mortgage industry.  So, if the government is going to bail out the financial institutions involved in this, then they should also bail out the people taking the loans.  There is also evidence (see Countrywide) of loan manipulations the borrowers were unaware of.

Answer 10

if you feel that the state that this country is in right now is bad, then you need to realize this all started with this morgage crisis, as it is called. Its just another instance of big companies trying to squeeze as much as possible from the unsuspecting average person. No normal person is going to fully understand all the terms of a huge contract/loan. And it doesnt help when the people who you would seek advice from work for those same companies that are trying to make a profit. Im not saying all this cuz im struggling, im well off, but i like to look at all view points of a topic so i can fully understand the situation. This country is screwed, and its all becuse of companies like countrywide.

Answer 11

My views on this are that you made an oversight: if the government and the Fed doesn't try to give relief (Fiscal: "bailing" people out of debt and Monetary: Lowering the Interest rates and the buying of treasury notes/bonds) then it will have an enormous negative impact on the economy.  Especially if the people with prime mortgage rates, the wealthy, are seeing an increase in foreclosure.  That is never a good sign.  It is the individual's for signing the contract, most definetly...but that doesn't mean the Government shouldn't help them out.  

And even if you don't put down 20% DP, you still have to pay the 1% points until that 20% is reached, so that really doen't make that much a difference.  But people thinking their income can cover certain costs...yeah, that is a problem.

Answer 12

the republican based government has made it rough on everyone.  We have never in our nations history paid nearly 5 dollars for a gallon of gas.  People have to cut back and and many are losing their jobs.  It is a blessing when Uncle Sam comes to a family's aid.  I wonder this Christmas season how many people will miss out