2007-12-07 16:20:57 · 8 answers · asked by endgame1915 3 in Business & Finance ➔ Renting & Real Estate
It will destroy the economy. It won't solve the problem it will make it far worse.
Mortgages are sold on the secondary market. When you sign your mortgage papers it becomes an asset for the lender and is often sold. Now, it is no longer an asset and it's worthless. If the government can arbitrarily change the terms of the contract, what investor in their right mind would buy them. No investors means no mortgages. Interest rates will rise and the real estate market will fall deeper into turmoil.
Would you put your hard earned money into a CD if the bank could at any moment decide to not pay you any interest at all? That's what just happened to everyone that bought that paper.
When interest rates start hitting 8% for A paper then everyone will understand. Lenders have to make money on someone, if they have to fix their rates on subprime loans, you can bet they will make it up on everyone else.
Rates already on the way up ...
The pinheads don't have a clue what they are doing and bandaids don't always cure the wound, sometimes they trap bacteria inside and help it to fester.
2007-12-07 16:27:43 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Mortgages should all be fixed rates in my opinion. The rate should be determined by your credit. It's a ridiculous wrong game for the mortgage companies to play when they give someone an arm on a mortgage. They deserve when the loan back fires in their face. Thank god we have a president who is willing to step in and help people from losing their homes. I pray we continue to see republicans in the white house.
2007-12-08 00:34:06 · answer #2 · answered by jwilliams22mn 2 · 0⤊ 1⤋
Mixed feelings. The problem I see is that NONE of Bush's various financial gurus in his administration had the foresight to do something about it BEFORE it occurred. Anyone with two functioning brain cells could see this train wreck coming.
But then, of course, doing something to prevent it would have prevented the Bush crowd from claiming a 'healthy economy' for the past five or so years.
2007-12-08 06:38:54 · answer #3 · answered by acermill 7 · 1⤊ 0⤋
Well, it's what I've been saying for three months, so I like it.
I think people need to see this not as a freebie to greedy jerks (in fact if you aren't current now you won't qualify) but as a measure to stop the downward spiral effect this mess is having on the economy.
Makes me oh so glad I am married to a man who is as cheap as I am. We live in less house than we can afford, and we know we are rare!
2007-12-08 00:49:49 · answer #4 · answered by gingerdaisy43 3 · 0⤊ 0⤋
Bad all around. No relief to borrowers except those who are victims to predatory lending -- lenders who steered them into bad loans when borrowers would have qualified for prime fixed-rate mortgages.
2007-12-08 00:25:43 · answer #5 · answered by Anonymous · 0⤊ 0⤋
Like a band-aid, this is only a temporary fix. Home prices still need to come down in order for people to afford them.
2007-12-08 00:49:39 · answer #6 · answered by Grandpa Shark 7 · 0⤊ 0⤋
It's good for those who qualify. Some rational regulation of the industry would prevent this crap from happening in the first place.
2007-12-08 00:23:44 · answer #7 · answered by Anonymous · 0⤊ 0⤋
I don't know what his plan is, but if it's not "sell your car, sell your big screen tv, sell all of your stuff and if that's not enough start turning tricks until you pay for the house you bought" then I disagree with it.
2007-12-08 00:25:02 · answer #8 · answered by Anonymous · 0⤊ 1⤋