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Reply #15: A very simple solution. [View All]

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Wcross Donating Member (1000+ posts) Send PM | Profile | Ignore Tue May-15-07 07:55 AM
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15. A very simple solution.
This would be applied to OWNER OCCUPIED homes only (Screw the flippers & speculators).
Convert the adjustable rate loans to a fixed rate loan at the going rate for each individuals credit score. Increase the loan term to a point where the payment does not exceed 28% of the homeowners gross monthly pay. Even if it meant they would have 100 year mortgages they would still be able to live in the home. They would be able to refinance if their credit score or income improves in the future.
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  -115 CA Consumer Groups Call Upon Home Mortgage Lenders to Halt Accelerating Foreclosures TexasLawyer  May-14-07 07:42 PM   #0 
  - I don't understand, people gambled and lost so why shouldn't they pay? Would they have shared their  jody   May-14-07 07:57 PM   #1 
  - This is what I see on a daily basis  Jacobin   May-14-07 08:12 PM   #2 
  - OK but do you want government to evaluate people and determine whether they should be allowed to buy  jody   May-14-07 08:20 PM   #3 
     - That's not the point  Gman   May-14-07 08:34 PM   #4 
     - If people shouldn't have qualified for a loan, then should government approve their loans? n/t  jody   May-14-07 09:15 PM   #8 
        - Of course not... what's your point?  Gman   May-15-07 07:10 AM   #12 
           - If govt approves loans, IMO the associated bureaucracy will be much less effective  jody   May-15-07 07:18 AM   #13 
              - Government does not do things less efficient than private business  Gman   May-15-07 08:18 PM   #25 
              - Note I said effective not efficient. I see we disagree on whether government is more effective and  jody   May-16-07 04:54 PM   #33 
              - A rare visit outside of the Gungeon ?  Trajan   May-15-07 11:02 PM   #30 
                 - What's your problem? n/t  jody   May-16-07 04:55 PM   #34 
     - I don't think I said anything like that  Jacobin   May-14-07 08:49 PM   #5 
        - I know you didn't say that but if people should be protected against borrowing when they shouldn't,  jody   May-14-07 09:13 PM   #7 
           - The government's role should be to level the playing field for borrowers  Gormy Cuss   May-15-07 10:35 PM   #28 
              - What part of our Constitution says government should level the playing field for borrowers? n/t  jody   May-16-07 04:57 PM   #35 
                 - What part of our constitution says that it shouldn't?  Gormy Cuss   May-17-07 07:54 PM   #37 
                    - What part of our constitution says that it shouldn't? Answer: Amendment X  jody   May-17-07 08:00 PM   #38 
                       - You are missing the point. STATES are governments too.  Gormy Cuss   May-17-07 08:10 PM   #39 
                          - I've not missed the point but you insist that government should approve loans. What other business  jody   May-17-07 08:32 PM   #40 
                             - I did not insist that government should approve loans, only that the lender should not  Gormy Cuss   May-17-07 08:40 PM   #41 
                                - Clearly congress has a right to regulate commerce but the loans to buy houses in question are to  jody   May-18-07 05:38 AM   #42 
  - On NPR today mortgage brokers confessed that they did things such as  1932   May-14-07 10:19 PM   #9 
  - I believe that's the buyers fault under contract law. IMO, many people sign loan contracts who  jody   May-15-07 07:27 AM   #14 
  - If the mortgage company admitted they did that, it's fraud and the buyer could  1932   May-15-07 10:23 PM   #27 
  - letter vs spirit. . . . . not "technically" illegal . . (familiar arguments)  annabanana   May-18-07 06:45 AM   #44 
  - Perhaps the cover sheet should be the "fine print".  SimpleTrend   May-15-07 11:17 AM   #20 
  - Those aren't legally binding documents  Rage for Order   May-15-07 10:57 PM   #29 
     - not a fax cover sheet.  1932   May-15-07 11:04 PM   #31 
     - If they don't, they've broken the law. Fair Trade Act of 1968  shrike   May-16-07 09:14 AM   #32 
  - The "house" never loses. Predatory lenders have told  annabanana   May-18-07 06:43 AM   #43 
  - I wonder what % of foreclosures are from speculators  CharmCity   May-14-07 08:52 PM   #6 
  - Asking them to shut the barn door after the horse already got out.  tanyev   May-15-07 06:41 AM   #10 
  - Does anybody benefit from a foreclosure?  western mass   May-15-07 07:08 AM   #11 
  - Depends on the property/equity, but usually no.  flvegan   May-15-07 08:36 AM   #17 
  - The homeowner loses, lender is lucky if it recovers its principle  slackmaster   May-16-07 05:19 PM   #36 
  - A very simple solution.  Wcross   May-15-07 07:55 AM   #15 
     - Great idea.  PassingFair   May-15-07 08:09 AM   #16 
     - If Banks Want to Do That, Okay, But It Shouldn't Be Legislated  Crisco   May-15-07 08:47 AM   #18 
     - The lender could come after the borrower for the shortfall.  Wcross   May-15-07 10:25 AM   #19 
        - Very Bank-Friendly Then, Indeed  Crisco   May-15-07 07:05 PM   #24 
           - Win-Win?  Wcross   May-15-07 09:52 PM   #26 
     - You might even get lender buy-in if they were allowed  flvegan   May-15-07 11:45 AM   #21 
        - Banks wouldn't be stuck with a 1% rate.  Wcross   May-15-07 12:28 PM   #22 
           - They could be if it's based on this:  flvegan   May-15-07 12:37 PM   #23 
 

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