Worldwide Cataclysmic Economic and Stock Market Collapse is Directly Ahead – Thanks to the endless barrage of Government feel-good propaganda, most citizens have no idea how disastrous the country’s fiscal, monetary and economic problems truly are. Nor do they perceive the rapidly increasing risk of a totalitarian nightmare descending upon the American Republic.
Homeowners Just Keep Walking Away – Nearly one-quarter of U.S. mortgages, or about 11 million loans, are “underwater,” i.e. the houses are worth less than the balance of their loans.
Is The US Preparing For “The Total Destruction Of Iran?” – The Herald of Scotland, may have credible proof that a US-led attack on Iran approaches and could be just days away.
Toyota Closes Last California Plant: 4600 Unemployed – The United Auto Workers and Toyota have agreed on terms to shut down the Nummi plant that employs 4,600 workers. It is California’s sole remaining auto plant.
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I could be wrong, and it wouldn’t shock me, but it would seem to me that a U.S. invasion of Iran at this point would be a very bad idea. The politicians would have to know that this would be viewed negatively by most of the world(except for the Hebrews , the U.K., and very few others).
The political system is far to impressed with itself ( from all the lies that it told to make us think things are going to be fine) to throw it all away on another war. To many people are already upset with the combat this nation has seen in recent years. Another campaign would only continue to lose the confidence of the American people that the U.S. is on the upswing. Most of us know that it’s not. However, there is a large population of people out there that buy in to all that propaganda. The political machine needs those people to continue to believe.
As far as bunker busters being shipped to an island in the U.K. territory,(for supposed use on Iranian nuke facilities) this could simply be nothing more than simple business, or a card show. The U.S. and the U.K. have been trading arms for years, or could simply be restoring ammo used in Iraq or Afganistan.
If they really wanted to hit these targets in Iran, they could use B2′s from many different places to fly in, hit targets, and the pilots could be home for dinner the next day. The government wouldn’t let us catch wind until it was all over and done with.
Just a little rant…..but try to put a little common sense and thought behind some of the articles you read from various sources.
Dean in Mich………
I wonder how many of the 4600 auto workers laid off have an underwater mortgage. Also all the suppliers and support of the auto plant. Uncle Sugar isn’t about to save them because it would slow down the collapse. The same collapse that will lead to martial law. He probably will start another war so more of our own troops are out of the US so he can use U.N. troops on us. Most of this because people were brain washed into believing the US needs to be politically correct. I hope those same people choke on it while they’re in the Fema Camps.
I got annoyed after reading the L.A. Times article. I am a Loss Mitigation expert and see this scenario all too often.
The featured people walked away from their loans because the real estate had gone in value less than the loan against it. This entitlement mentality irritates the crap out of me – its as if the bank owes YOU.
Lets take a look at it objectively (these are concerning people without a legitimate hardship – at least 15-20% of the current defaults):
You decide you want to buy a home. A good investment in many ways – primarily because mortgage interest is tax deductible which, by the way we are one of the very few countries in the world with that benefit.
Next you need a loan for 90% because you saved 10% for a down payment. The bank then analyzes the whole process – your credit score, the provable income or stated income (what you state is your income & swear to), appraises the property to make sure the property has value, analyzes the current market trend and projects 6 months ahead & discloses the interest rate and provides all of this information to you in English and you agree all is correct and sign it. Pretty neat & fair process.
(BTW, it is rare that someone got duped into a bad loan because the disclosures are pretty clear)
So, its boom time values go up, up, up and you think this is the greatest deal on the planet. You are into it for 10% and the bank at 90% and you stand to make 10 times on your investment in a couple of years – TAX FREE! What leverage!! You sell get fat and rich & you do not have to split any profit with the bank, happy days are here again!
So you are making the payments just fine and, uh-oh, the market starts to go the other direction. The market feeds on itself and now you are upside down. What do I do????? Walk away and blame the bank for screwing you sounds vogue but really, what did they do?
You were in it to profit well, the bank took the bigger risk by far and relied on your implied integrity to pay back what is rightfully due.
Next -
OK, now imagine you loaned a stranger a couple of 100K of your money under the same conditions, how gracious would you be if they dared to default. Would it be the Hells Angels 12 gauge collection routine if they were a month late? Imagine they dared to vandalize the property as they vacated, how happy would you be??
Well, my friends that is exactly what is happening to you who have money deposited in the bank – people are treating you like this because they borrowed your deposited money and feel entitled to walk all over your generosity.
A real hardship is a different matter BUT I believe you should do what ever you can to honor the debt – short sale it, loan mod or deed it back to the bank if the afore fails. It’s only right and fair, plus you preserve some personal dignity.
Finally, a little parallel scenario -
Imagine you bought Microsoft at $90 a share and it dropped to $50. You get mad at the stock broker and blame him for screwing you, maybe file a lawsuit against him because he should have seen this coming!
Next you stomp your little feet into Bill Gates office demanding $40 per share for each share with the loss… and Bill says, no can do – hold on & suck it up things will eventually return, they always do.
The two are not much different, really.
That LA Times article? I understand it.
We were shopping for a house in 2003, we could afford a $75k home but we were offered a $200k loan. I wondered why they offered to loan us that much more than we could afford, it wasn’t until later that I found out everyone in the process was taking a good cut from that loan.
There was a lot of money made making loans the bigger the loan the more profit and larger loans were easily available.
Fast forward to today…. You got one of those easy to get loans a few years back and everybody made money. Today you are still paying $2k a month on a house you could rent down the street for $800.
That’s $1200 a month … the major corporation I work for always says “we are running a business” when they are going to screw you.
It’s alright for them to screw you in the name of “business” but it’s not ok for you to do it to them?
Walking away from an underwater loan is just another business decision.
Questions:
1. What income did you state that you were making In 2003 that enabled you to get that loan?
2. Was it ok for you to profit if you sold the property prior to the “crash”
3. Who exactly is screwing you? Re-read my post.
Your argument about being a “business decision” is pretty empty, bordering on idiotic. It’s your home stupid & not a business.
IMPORTANT NOTE TO ALL OTHERS READING THE ABOVE POST -
It is your type of mentality Is exaserbating this problem, thank you for clearly making my point.
PS
if that “major cooperation” you work for openly thinks that way, pack your bags because obviously you have little value to them & they will have no problem screwing you. It is a pattern they have established.
Afterall, it’s just a business decision.
Final question – if someone owed you money & they boldly told you they were not going to pay you because it was their business decision, how would react? Be honest!
PPS
look up & memorize the word “Integrity”.
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