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Bear Sterns

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mailbox said:
We live in an instant world. .... Hey , the government owes us!!! :eeek:
Click to expand...

:iagree:

And this is just as true for the lenders that helped create this mess. Who surely ought to know a lot better, but THEY can well and truly walk away with all their bonuses, pensions and the rest secure, leaving others to clean up....

For every impecuinous borrower there had to at least one (and usually there were dozens pushing loan and credit card applications) short-sighted, quick-buck creditor anxious to lend to them....

Just look at your junk mail.... :devilgrin:

Easy credit existed ONLY because the lenders also saw it as easy profit, gambling that the losses they'd inevitably take would be more than offset by profit they might make.... Opps..... :frown:
 
Banjo said:
Unfortunatly I have very mean means... We live in a very low cost home that we own, I have 3 cars, one paid, one almost paid and cheap payments, one newer but has low payments. we don't live extravigantly, but rising costs are putting me behind. Savings account wiped out. bills steadily coming in, costs rising all the time. Everything is going up but my pay. (course that's why I'm job hunting right now.)
Our area isen't known for big $$$ jobs, and the chain stores are popping up all over. I don't see how the local economy is gonna hold out when 80% of the people aroud here work in retail stores for $10 an hour or less
Click to expand...

Ben,

You have a PM.

Dave
 
nutmeg, if hes got an adjustable arm mtg. his payments keep going up and hes not paying any principal if hes making minimum payments, if he also has a prepayment penalty that is also rising, so he cant gain on the equity on the property all the while the value of his home continues going down, his only advantage in bailing out of his present situation in my thinking would be #1 the new house is nicer and actually worth more in a stable market then the one he owns and will pay less for it because its value is now lower, #2 get a now available new lower fixed rate mtg., and no prepayment penalty, as far as his getting away with defaulting on his existing mtg.? he may have to use his own resources yet put the place in someone else's name?, can he get away with it? dont know but arent that what lawyers are for?, what a way to live! :nonod: p.s. one of the guys working for me got a phone call from his wife at lunch time telling him shed just been layed off.
 
Hi Anthony. I think in most cases of "walking away" just because the house value has dropped, the owner doesn't realize he's turning his credit record to toast. Most likely he/she won't be owning another home for many years, unless he's got a lot of money saved up.

And of course, if he's got a lot of money saved up, why wouldn't he just pay on the mortgage until the property regains value in a few years.

Jeez - does everything have to be "quick and easy" these days?

Just seems that walking away due to dropping value is a really stupid thing to do. I wish Dale would give a bit more detail on why all those homes in his gated community are for sale.

Tom
 
Tom,

The high rate of home sales in my gated community is because
so many younger families got into homes they really couldn't
afford. My neighborhood is a prestige place for the younger crowd. Now they have to pay the piper and can't.

I am thinking we original owners are baby boomers and the
folks in trouble and selling off are Gen-Xers.

Just my take on my particular location.
My home is paid off and I'm happy with that.

d
 
Dale - Thanks for the details. Wondered if that might be what was going on in your neck o' the woods. Living the "good life" on someone else's dime, but only having 9¢, gets a lot of young'ns into a peck of trouble.

Your home is paid off. Bet that feels GOOD!

Thank heaven there are still folks who believe in being responsible.

T.
 
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