FORECLOSURE PREVENTION PLAN.....

NEW -> Contingent Buyer Assistance Program
This message is directed at cw_dude. Your statement was Sorry, but this is crap. I didn't buy a house BECUASE I COULD NOT AFFORD TO. I make just under six figures and could have easily used an exotic loan to purchase a house that I COULD NOT AFFORD. But I DID NOT, because I am responsible.



ANY effort to "save" people living in houses they cannot afford is a bail-out that everyone else will have to pay for. This will be rewarding bad behavior. The price of buying a home will INCREASE for me while keeping hundreds of thousands of people in homes they have no business living in.



Well not all of us are living in houses we couldn't afford. Maybe some of the blame should be directed at untrustworthy lenders who put us there. When you can afford a home 2 years ago and the interest rate goes up to 17% or almost $500 more than it did 2 years ago, I wouldn't call the home owner unresponsible. We need to be able to trust bankers and lending institutions. People in the US cannot trust anyone any more and that is sad. You go to a doctor and you trust him to treat you if you are sick, you deal with a banker and trust he will do you right. Not all homeowners are unresponsible. Just put in a bad situation by unscrupulous people. I hope the Foreclosure Act of 2008 passes so thousands of people can have that 2nd chance to reclaim their homes.
 
<p>Did you read your loan docs? Or, hire an atty or accountant to read them for you? Particularly, did you read the note? Did you ask any questions at the closing at all? Do you know what an index is? Or, a margin, as described in your note? As of today, do you understand how your note works?</p>

<p>Did you get any disclosures as to how your loan would work? Did your read them? Did you perhaps have a closer who did try to explain stuff to you?</p>

<p>I tried explaining horrible mortgages in the 80s, I even mentioned foreclosure (the client would have killed me, had they known). Not one person ever walked away. I think you would have closed even if everyone had gotten in your face and explained in detail what could happen.</p>

<p>Why are you so trusting? I don't trust doctors unless what they say comports with what I know. If it's something new I go read about it. You should try to read the Black Swan. Professionals are often a whole lot less knowledgable than one would think.</p>

<p>I hate it when a client says they trust me. It puts their problem on my shoulders. I like the ones that question. </p>

<p>I suggest that you take this opportunity to rethink your position in life. I'm truly sorry this had to happen to you, but you know, you could have prevented it.</p>
 
<p>Part of being an adult is taking responsibility for oneself. If you are old enough to sign a contract - read it and understand it before you sign it. </p>

<p>If you don't understand it - question it until you understand it. Seems simple to me.</p>
 
<p>awgee - what if the other gold bugs stop buying? How much jewelry are people around the world going to be buying?</p>

<p>2 page ad spotted in Feb edition of Orange Coast magazine</p>

<p>NOW BUYING!</p>

<p>DIAMONDS 1 TO 30 CTS.</p>

<p>HIGHEST PRICES PAID!</p>

<p>BUY * SELL * LOAN</p>

<p>ESTATE BUYERS SINCE 1969</p>

<p>Winston's Jewelry, 1775 newport Blvd., Costa Mesa 949-645 9000</p>

<p> </p>
 
As a matter of fact, yes we did read the note and asked questions. Our lender did not show up at the closing, it was the title company that did the closing and we were told ARMs were nothing to be afraid of. "Rates will not go up". Yes we did trust them. Isn't that what you are supposed to do when you hire someone??? I was brought up in a household that if you needed assistance from someone you trusted them to do what was right for you. Perhaps you are much younger than I am and don't know what it was like in the 60's. We trusted our lender and they stabbed us in the back, quit loaning in our state and then they went bankrupt and passed our loan off to Ocwen who is not much better in my opinion. I hate to say it but I am very hardened and bitter now. When I was growing up, things were so much better. Now you have criminals and crooks running the industry and no one wants to correct the situation. That is why I am for the Foreclosure Act of 2008. Someone has to take a stand and turn our country around.
 
<p>Anybody who bought a home on speculation (i.e., based their financing on anticipated appreciation) took a gamble. There is no excuse for not knowing it was a gamble. And if one loses the gamble, they need to assume the losses <em>themselves</em>, like responsible adults. </p>

<p>I agree that "someone has to take a stand and turn our country around." Why? Because we are long gone from the halcyon days when hard working people would be too embarassed to whine about the outcome of their gambles. That is sad.</p>

<p>Edit: What I should have wrote was "...when hard working people would be too ashamed to ask someone else to cover their losses." This is more accurate.</p>
 
Gamble?? I didn't say anything about gambling did I? I merely purchased a home to live in for the rest of my life. My only mistake was trusting someone's word. It is really sad when you can't trust someone's word anymore. And Major I am not whining. I am merely pointing out the fact that there are "responsible" citizens out here that got the shaft.
 
Sorry for your predicament tiredof, but I'm confused as to why you thought your rate would not go up.



Did you understand that the "A" in ARM stood for ADJUSTABLE? That is, if you did not take out a fixed loan then your rate would adjust. Why would you trust someone just because they said it would not go up? (Serious question).



You say you're a bit older, so surely you remember the days when interest rates were higher?
 
<p>I doubt that I am younger than you. I was born in 1946, first wave of the baby boom. I have been a lawyer for almost 30 years. I have closed literally thousands of loans.</p>

<p>Why would you think that rates would not go up just because someone told you that? They could have actually believed what they said and simply been wrong. I think that some of the disclosures give a historical perspective, but it may be that they don't go back far enough now to show the 17 1/2% fixed rates I closed. The disclosures are supposed to be given to you at some point before closing. Peoples' hands would tremble over the note, but they signed anyway. At my lender they were told to the penny the interest rate and costs. I myself had a 15% fixed rate, which I modified to an ARM which steadily went down. But I understood exactly what I was doing, had picked a short term (18 years), and the rate was much much lower than 15%. Plus we put 20% down, which we got by selling a house for 50 grand, which we had bought for 22,500. Which was cheap in 1972. Which we called the Pit, because we were both working and going to law school at nite and hardly ever cleaned it. In 72, and afterwards, we tried to keep one month ahead on the mtg, just in case something happened.</p>

<p>And I have always regarded my home purchases to be a gamble. All such big purchases are always a gamble.</p>

<p>Life is unsure, and then you die. Life is a risk. Denying this or relying on other people to make your decisions is foolish.</p>

<p>And tell me, what are the terms that got you to 17%? How is the interest calculated. This sounds too high even if your credit wasn't pristine at the time of closing. It may be that someone is making an error. On my own ARM, they picked the wrong date to make the calculation, which I made them change. It favored the bank, naturally. If you tell me the terms, I can do the interest rate calculation for you. I need to know your remaining balance, the index and margin, and whether you still have negative am. If you ever did. Also, the term of the loan and the remaining term.</p>

<p>Also, why do you think the title company was representing you? Did anyone tell you that? Lenders never show up for closings unless it is a private lender, or the seller is giving you a purchase money mtg. The title company probably thought that it was representing the lender. It's only duty to you was to assure you that you had good title, which it did by issuing a title policy.</p>

<p>I hope you realize now that lenders do not have and never did have a fiduciary duty to their borrowers. They have a duty to not be dishonest, but you haven't described exactly what they did to "stab" you in the back. And if you choose to read my posts a goodly percentage of them are about how stupid the lenders are. If they were really dishonest, maybe you have some kind of valid lawsuit against them, or you should contact the DA, or who ever regulates this particular flavor of lender.</p>
 
<p>Liz,</p>

<p>Does any of the current crop of complaining remind you of the early 1980's glut of ballons that folks went to refi but couldn't because they had negative equity?</p>

<p>Everyone back then said "nobody told us" Ohwell.</p>
 
<i>"We need to be able to trust bankers and lending institutions. People in the US cannot trust anyone any more and that is sad."</i><p>


tiredofbeingwalkedon - Wow. May I respectfully disagree that we need to trust bankers and lending institutions. May I respectfully suggest that "trusting" may be the problem. Personally, I don't trust anyone who is selling me anything. I do not mistrust them, but I do not trust them either. I guess I do not figure trust has any place in a business deal. I would rather verify. And figure my odds. And I especially do not trust real estate agents, stock brokers, car salespersons, mortgage brokers, financial counselers, account representatives, CEOs, anybody in public office, reporters, and pet breeders. I guess I trust firemen. And land surveyors.<p>


Anyways, it seems to me that if you keep trusting you will become exhaustedofbeingwalkedon and not just tired.<p>


To paraphrase Reagan - "Trust, but verify."
 
<i>"awgee - what if the other gold bugs stop buying? How much jewelry are people around the world going to be buying?"</i><p>


Anonymous - IMO, the price of gold has little or nothing to do with gold bugs buying or selling or jewelery demand. I would estimate those two factors account for about 5% of gold price movements. I would estimate 90% of gold price movement is determined by investment and speculation in the futures market which is almost completely a reflection of institutional faith, or lack of faith, in currency's ability to retain it's buying power.<p>


And I would not describe myself as a gold bug. Personally I prefer an asset I can live in or will pay me a dividend and until less than three years ago, I owned no gold. And I will probably not own any again when I think it is a good time to sell.<p>


What do you think is a good investment right now, Anonymous?
 
<p>The price of jewelry has about as much relation to gold as the price of wheat has to a box of cornflakes, some, but not much.</p>

<p>No vas. Back then I was only doing closings, not foreclosure defense, and I only heard thru the grapevine that most of those neg ams I did went into foreclosure. I filled in occasionally for our foreclosure dept, but that was on the foreclosing side. And we weren't careless about title. And I don't recall any notes being "lost". This was in the mid to late 80s.</p>

<p>However, I don't recall people reported in the newspaper complaining that they wuz robbed. Of course, there wasn't anything like the volume, and by the time these types of foreclosures started, prices, which had gone down (for me 10%, overall who knows?) had started inching up again. And rates had dropped to 12%, which everyone thought was wonderful. One realtor said to me that rates would NEVER go below 10%. I said that never was a long time. I myself thought rates would never go below 7%.</p>

<p>I repeat that only for neg ams did I mention the word foreclosure, since closings are a happy time, and I think pretty much everybody knows what a foreclosure is. </p>

<p>I don't think this is true for the current crop of neg am buyers, but in the 80s it was apparent that these mtges were being given to a set of people who were distinctly inferior in understanding and sophistication, so I got really simple in my explanations. At first this was difficult because I didn't understand the loans so well myself. One of the Vice Presidents of the bank told me he didn't understand them, and I would have explained, but he didn't want an explanation from the way he acted.</p>

<p>The S & L folks were mostly a lazy bunch of entitled guys, who didn't really have to compete, except for toasters and bikes, and were not capable of dealing with the tide of high interest rates and low interest loansthey had booked. Talk was had of simply selling the book at a discount and talking one's lumps, but it never happened, I rather think because the entitled ones couldn't comprehend what had happened to them, and couldn't face such a loss. There was another S & L I previously worked for which was in the nature of a family business. That one was created later, and didn't go out of business in the S & L debacle, but was sold, I think because the son wanted to retire.</p>
 
People pretty much have to borrow (see Hernando de Soto on what happens when normal people can't access credit markets - think Lima slum) and a lot of people simply can't make good predictions on future interest rates. What choice do they have besides trusting somebody else to do it?
 
I am not savvy about future interest rates for sure, but I still wouldn't trust someone who was making money off of selling me a product if he/she said that they were not going to go up.





If your rate is adjustable, I think you have to assume that you that your rate might adjust up, not hope that they will stay the same because someone looked into his or her crystal ball and told you they would not. If you do not want your loan to go up, take out a fixed rate loan. I personally wouldn't take out a loan where I could not predict what the interest rate would be regardless of what some salesperson told me.
 
<em>"I guess I trust firemen. And land surveyors."</em>





I don't know if I trust land surveyors. I don't need to because their work is checked and rechecked more than any profession I know. Very little in land surveying has to be taken on faith and trust...
 
You guys can believe all you want but you tell the 600,000+ people who would benefit from this act and are in similar situations that they were wrong and not the banking industry. I think you might find a hole and crawl in it.
 
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