FHA providing buying opportunities to those who defaulted on homes

[Gypsy]

A friend of mine lost her job 4 years ago, prior to this was gainfully employed and lived in a fiscally responsible manner.

After her job loss she worked several jobs, all of them part time, to make ends meet. A few months ago she just couldn't keep up due to even further PT hour cuts...lost her modest yet homey house.

I'm sure she'll love to read this article.

[The Reaper]

Originally Posted by Gypsy

A friend of mine lost her job 4 years ago, prior to this was gainfully employed and lived in a fiscally responsible manner.

After her job loss she worked several jobs, all of them part time, to make ends meet. A few months ago she just couldn't keep up due to even further PT hour cuts...lost her modest yet homey house.

I'm sure she'll love to read this article.

Maybe she should spend beyond her means and learn Spanish.

Then the government might help her.

TR

[Gypsy]

Originally Posted by The Reaper

Maybe she should spend beyond her means and learn Spanish.

Then the government might help her.

TR

Funny, that's what she said.

[Paragrouper]

and we can pay for this by simply redefining the 'rich' we'll tax.

Now maybe you're 'rich' too.

[ddoering]

"The last time he owned a home, Maldonado refinanced four times and took on a second mortgage. He put a Cadillac and Mercedes-Benz C300W in the driveway and racked up about $45,000 in credit card bills and other debts. His debt-fueled lifestyle ended only when he was forced into bankruptcy."

The good ole American dream.....

[ddoering]

He just one example of a parasite that has learned how to ride the system. There are millions of them.

[The Reaper]

Ten or twenty years in debtors prison or indentured servitude might change that spending habit.

Certainly, giving him more credit is not a viable solution.

TR

[Dozer523]

Originally Posted by ddoering

He just one example of a parasite that has learned how to ride the system. There are millions of them.

I'm not sure he was born a parasite (although there is that ferrin-sounding name) after all the guy is 61 and holds a good job and initially bought a modestly priced home - he's in CA.
I suspect he wasn't born this way but was taught.
For those of you unfamiliar with the housing market in CA a few years ago it was wild. And the folks running the show were the mortgage refi folks from companies like Country-wide. These folks figured out a way to bypass only really efficient way to keep the mortgage industry safely afloat. And listen up! That safety valve was not the FHA, the VA or Fannie/Fredie. It was the BANKs!! In the old days mortgage-backed securities were boring but safe and a lot like securities with utilities (until assholes like Enron . . . ) Country-wide created a whole new way of doing business. They didn't underwrite like a bank because they weren't ever going to hold any of the business they created and they sold it directly to investors.
Another thing they did was sell the idea that home equity was some sort of self refilling piggy bank.
We bought a reasonably priced home in So CA in 2003. Watched our neighbors sell at twice and thrice the original price. We got out just as it started to suck. I ended up paying. $10,000 fee to the buyers rep (in addition to his slice of the regular arrangement.) we were lucky. We got out with a profit. The folks who bought it were foreclosed on and we only got 1/3 of the seller carry-back second. My neighbor did the cash out refi and has toys and a nice car. He will live in that house until the day he dies. It will probably never be worth the appraised value of his refi.

As for debtor prisons. We don't do that in America. But there are plenty of real prisons and the head of Country-wide is in one. Truth is there are lots of loan originators that should be there too. Who were the most aggregious resellers? Real estate sales people.

Lots of people were taken advantage of.