my opinion and comments on pro vs con and my idea

I agree with the cons, in this market it will not work unless the goverment swoops in and buys up all the forclosed homes at very low prices and than give a low interest rate. That way they would never be in danger of there homes lossing any more value. That would take some investigation in title history and and reserves that are used appropriately. If homes were appraised properly and equity lines were at a need to do bases, than maybe. Personally, I think we should focus our bail out on those that did not try and take advantage of the system.
Getting of the subject:
Homes were purchase for very low in Antioch, California by familys that could not buy in Oakland and San Francisco. A vast majority of the families are minorities. Thats okay but
as the home prices went up so did their equity. Bought a home for 280,000 and than 2 year later the home is 650,000 and up. Than comes the Chases and Wellsfargo Equity lines of the world.
You can take out 100,000 to 500,000 in equity up to 100% loan to value. What a deal! The equity lines had rediculously low interest rates. So the monies were pulled out mostly the maximum amount, because the could afford the interest rates.
Than everyone went shoping for cars, new amazing back yards, with pools and outside kitchens to die for. All the bling you could get and as some told me they sent the money to their families in Mexico or where ever.
Rates start going up! House prices start to drop! Cannot make the first payment and the second. Payments are to high.
Lenders come in saying great program, pick a pay! Teaser rates, you can pay 1% of the loan amount or interest or the whole principle and interest.
Well, guess what they pick the 1% option and loved it till the decided to look at their loan and found the loan is higher. Not only the loan on the first but also on the second and the house prices are dropping like crazy.
I really do not feel sad for alot of these people, why? they already spent the money that was the equity in the house. Now they have 2 big loans or 1 if they did cashout. Yah there house dropped in price by 200,000 or more but what did you take out and spend. Most of these homes in antioch, Ca have yards to die for. That is where there equity went. Yes the lenders were greedy, but the money was spent.
If someone bought a home for $280,000 and did some landscping for a reasonable amount and maybe had a 25,000.00 equity line.
so they have a total loan amount of 315,000, that would still give them equity in there home and keep them at a rate they could afford.
I think maybe the goverment should hire some independent Lenders to review the title history of each home, not to hard.
Take a look at the property to see if money was spent. An than send these people packing or help them.
I am a mortgage loan officer that did loan for people and made sure they could afford to pay the mortgage. Stated was just a convenience, I still had them prove they made the money they said. I turned away many people that tried to lie about there
Income. They always found someone other than me to do the loan.
There are people like the veterans, firefighters and policeforce that could use our help in providing them with a good affordable loan. Lets work and help the Us citizens of the united states to live confortably, without stuggling. Lets
not feel sorry for the people who took advantage of our lending system, profitted and now are sing the blues. Get rid of the bad lenders, and support those that have been working hard to help people get great affordable loans. Lenders should disclose everything and be honest with there clients if they think they are over their heads. There were to many greedy lenders just wanting money. I wish I could help out. My clients think I am great. I teach them about the business while I am doing the loan so they feel informed and are making a good decision. Some lenders tell me not to give the borrowers to much information. Why? My borrowers made decisions based on their understanding and my expertise. Right now they are doing well in great loans that have low rates.
will not support the efforts to support our veterans. I think all banks should have a duty to provide special financing for our veterans. It might mean less points in their pockets but these veterans are putting their lives on the line to keep us safe.