Should congress bail out home borrow in trouble?
Give the pros if congress decides to take on this problem.
I am really stuck with Econ..
anybody can help me with this question.....
Thank you so much aR.....
2007-09-20 06:05:41 · 4 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
These lenders gambled on making lots of money by giving out these high interests loans in risky situations. Many lost money.
If you bail out everyone who gambles and loses, it will encourage them to continue these high risk activities.
We don't need the government getting involved. The market will correct itself naturally.
It's sad that so many people were taken advantage of by these predators like the companies that John Edwards invested in, but that's the breaks. I think this Edwards creep is evil for foreclosing on all the Katrina victims, but what can we do?
2007-09-20 06:17:29 · answer #1 · answered by Anonymous 7 · 0⤊ 0⤋
The bailout isn't to bail out the lenders but to assist homeowners who were victimized by predatory lenders but have maintained a satisfactory payment record at least until their rates reset.
For the borrowers who qualify for the bailout program this will not cost the taxpayers though the lenders will lose out when the loans are refinanced with more reasonable FHA fixed rate loans with rates closer to what the borrower should have been qualified for.
It's easy to say that they should read their contract before signing. I just pulled my most recent mortgage contract and it was more than 50 pages of legalese -- and that was from a trustworthy lender! Most home buyers don't get an attorney when they buy a home and very few states require an attorney for the closing. Realistically it should be a requirement but that won't likely happen any time soon.
By tightening down on the credit requirements greedy lenders will be prevented from ripping people off quite so badly in the future.
2007-09-20 07:24:54 · answer #2 · answered by Bostonian In MO 7 · 0⤊ 1⤋
I make my very own money too, yet 4 hundred,000 sources proprietors, is in user-friendly terms a drop interior the sea. I advise, that is like a lottery? Congress has been commonly used to spend money, and a lot of it, on stupider initiatives, so relax. I advise our u . s . a . isn't being run by Geniuses anymore, and it incredibly exhibits! And the full international is commonly used with of!
2016-10-19 05:21:06 · answer #3 · answered by ? 4 · 0⤊ 0⤋
No I dont agree you should always read contract thoroughly and do not buy more house than you can afford
2007-09-20 06:13:33 · answer #4 · answered by Anonymous · 1⤊ 0⤋