The Observation Deck

Stephen,

Raspberries!

They use to say that on the Little Rascals..

Just wondering Justine where did I mention gay people and their marriages in my post?

If you are PRESUMING to know my stand on gay marriage from a post about mortgages I'll could PRESUME that you are engaging in the typical leftest agenda of attacking anyone whose views you disagree with.

But seeing as how I will not stoop to making PRESUMPTIONS about people I'll just assume that in the course of busy, gloomy Tuesday afternoon you mistakenly read something into my post that was not there and we will keep the debate on mortgages and government intervention.

Todd,
It had nothing to do with your views on gays. It had to do with the opinion that government should not govern agencies that deal with consumers' biggest investment and investments that the country needs as a whole, in world that issues such as gays not being allowed to marry exists. It is a general comparison to highlight the priorities in this country and what is legislated. Had nothing to do with your personal views, which I know nothing about.

I've seen a lot of mortgage loans of between 200 and 450 thousand dollars advertised in mainstream places in the past few years. They advertised monthly payments between 500 and 1500 a month. Obviously they would be variable interest and the like.

If these loans were made they would have been made to higher income bracket people than the present crop of foreclosures. A few ten thousand dollars a year higher. but they'll still be hurting when their monthly payments go up 500 to 1200 dollars a month. It will decrease their quality of life. They'll have less money for better restaurants, clothes, cafes, cars, and other stuff. They will have to change their buying habits, Ryan Salo! It will significantly affect the economy. Many of them will end up getting divorced or foreclosing. Most of them work in knowledge economy jobs of the 21st century. It will hit westlake and avon and medina.

When this happens they'll be able to articulate their grievances in a way taken more seriously by the media and politicians. Their advocates and solicitors will articulate their grievances in a way taken more seriously by the media and the politicians. Many of them work in knowledge economy jobs of the 21st century.

Salesmen have never approached me with a deep interest in explaining the terms of the financing to me. They promote the thing for sale, and financing is as easy as signing. And then they get their commissions.

These variable rate and interest only loans and the like shuffle upwards into giant pools of receivables and other assets. Men who reshuffle them into stuff and trade it have been the heroes of Forbes Magazine, the Wall Street Journal, etc. Billion dollar gains and megamillion dollar bonuses for the top managers.

It was a lot of money, so they had a lot of money to endow chairs and fellowships at the best universities. To endow think tanks and lobbying groups to say it was all good. When the etch a sketch factory closed it was all good. When the parts factories and mills and assembly plants and 20 year old shopping malls closed it was all good. The easy credit chased up real estate prices and the incentive to build more malls and mcmansions, and that was proof of our "economic growth". everybody got their cuts. the realtors, title agencies, builders, expectors, banks, hedge fund managers, etc.

As someone else mentioned earlier, the new mortgages are sliced up into several abstract layers and dealed out differently. It is tricky telling who has the rights to the foreclosed property.

We don't have to worry about walk-aways getting another home loan in a few years. That's the whole point of calling this a "crisis". It means it will be much more difficult for people to borrow money for homes. The Great Depression was caused by the Roaring Twenties. Fortunately we're all much smarter than then. The folks funning the show are all much smarter than then.

Ryan,

The main reason most of the foreclosures are not happening on the higher end home is because most of them have higher credit scores and got interest only loans or arms for investment purposes. When you can leverage your equity to triple your return in the stock market it is a wise trade. This is one of the reasons why the pay option arm was so great. You could have deferred interest and take the cash now to invest and still get the tax benefits of the interest. The state of Ohio has now banned those loans because dumb loan officers sold them to people needing the extra low payments just to survive. A few bad apples destroyed a great product.

Many of the alt-a type interest only and ARM loans are really beneficial in the correct circumstances. The key is know when to use them.

ryan costa wrote:We don't have to worry about walk-aways getting another home loan in a few years. That's the whole point of calling this a "crisis". It means it will be much more difficult for people to borrow money for homes.

I missed this in my first response. I hope you are correct. FHA hasn't changed any of its requirements yet. Still only have to be 3 years out of foreclosure 2 years out of BK and 12 months of somewhat on time payments and you can get a house with $0 in the bank.

I help people get into homes everyday and I am still amazed at how easy it is for people to qualify.

Todd Shapiro wrote:Let me take my stab at solving this problem. We have two factors in play A. Bryan has a 4.0 GPA so he must be smarter then most. B. Sharon thinks that Big Brother (ie. the government) should protect people from themselves because they are either too ill-informed or uneducated to read the contracts they sign. Solution: We create a new government position where Bryan can read mortgage contract word by word to new applicants so that they MAY understand what these documents mean. Bryan can use has 4.0 GPA and Sharon can protect us from ourselves and we can have peace on earth and Great Society for all.

Todd to clarify, I wasn't touting my 4.0 GPA to be egotistical, but rather to answer Sharon's rude assertion that I was an idiot and didn't understand anything about the way business or finance works.

Trust me, having a 4.0 in business certainly doesn't make me smarter than most people.

sharon kinsella wrote:Bryan -

I'm done arguing with you.

Just not worth it. I've said what I had to say.

I'm done.

But you will not chase me off this board. Just not gonna happen.

Stephen,

Raspberries!

Sharon,
I'm not trying to chase you off, just trying to make you aware of how your negative attacks on people aren't appropriate.

I like your presence here, I actually appreciate your POV. However, I just wish you would allow others the same respect to disagree that you expect for yourself without resorting to personal attacks.

Ryan Salo wrote:Ryan,

The main reason most of the foreclosures are not happening on the higher end home is because most of them have higher credit scores and got interest only loans or arms for investment purposes. When you can leverage your equity to triple your return in the stock market it is a wise trade. This is one of the reasons why the pay option arm was so great. You could have deferred interest and take the cash now to invest and still get the tax benefits of the interest. The state of Ohio has now banned those loans because dumb loan officers sold them to people needing the extra low payments just to survive. A few bad apples destroyed a great product.

Many of the alt-a type interest only and ARM loans are really beneficial in the correct circumstances. The key is know when to use them.

I think if you looked into the foreclosures of Avon and Strongsville you might be surprised at how high the numbers are there. This is not a Lakewood thing. There are many that lived on the edge on the seemingly "higher" end too.

"This is not a Lakewood thing."

It is not a Lakewood thing, but it is much more of a lower income and lower education and lower house value thing. It is not necessarily an ARM thing or an interest only thing. It is too much house in a variable rate thing. It is a greed thing with all parties involved.

Like previous posts stated, some is greed, others were deception, and it really wasn't only low income people. You would be surprised to see the Jones keeping up with the Jones in some neighborhoods and what their bankruptcy and foreclosure rates look like. My friend in Strongsville lives in a three hundred thousand dollar house range and her neighbor lost his to foreclosure this summer!

On a side note, I have met both Bryan and Sharon. Sharon is not ignorant, and Bryan is not arrogant. Communication in writing can look or be deceptive!

Bryan -

I wasn't going to get into it with you but you are saying that you brought up your 4.0 because I said you were ignorant. I went all the way back through the whole thread and the only person that said anyone was ignorant was you.

To which I said that was arrogant of you to say that.

Go back and read from the beginning.

Justine Cooper wrote:On a side note, I have met both Bryan and Sharon. Sharon is not ignorant, and Bryan is not arrogant. Communication in writing can look or be deceptive!

Thank you Justine.

We are all just passionate people with opinions stuck in the house on some cold and rainy days!