I was reading about how one of our presidential candidates would like to use OUR taxpayer dollars to help bail out homeowners facing foreclosure. This is the same speculator crowd that purchased using “Liar Loans” or as the industry calls them “Stated Income” loans to obtain the financing on homes they truly could not afford by past standards. I am all for actions that support our community but this is pretty absurd. How about the lender’s not adjusting the ARM mortgages to help the homeowners who can’t afford a rate increase? People seem to think it is mandatory that a lender enforces their interest rate hikes when this is totally not the case. It kills me to hear them cry oh woes me when their profit margins are slipping but nobody ever seems to talk about the HUGE BONUSES that were taken over the last couple of years by the senior staff at all levels of lending including our infamous Fannie Mae.
In 2003, for example, Fannie Mae’s five most highly paid executives received a combined $3.4 million in salaries and more than twice that amount, $8.2 million, in annual bonuses.If lenders left the rates on the ARM loans fixed or offered to refinance the existing balances at rates the homeowners could afford I think this would solve the majority of the issues our Real Estate market is currently facing. Before I close this post up I would also like to express a concern regarding the County Tax Assessor and property taxes. We already know that the lending system has some tremendous flaws but why don’t more people complain about the amount of property taxes we must pay. As homes were appreciating in
Riverside
County they assess the property taxes off of the purchase price.
I am not a rocket scientist or do I claim to know everything about our tax system but boy this seems pretty unfair.
Just by looking at the median price of a home and transactions I have closed most people are paying far too much in property taxes (personal opinion).
I need to do more research on this subject but when the values drop in a neighborhood are they going come running to lower our taxes?
They probably won’t change them unless you fill out 10 forms, get them notarized, check up 10 times and wait 6-8 weeks for any kind of update LOL.
I feel the groups who funded and purchased these loans that sucked massive amounts of money out when TIMES WERE GOOD should bare the weight of their consequences and loose lending guidelines.
But here comes the kicker, the majority of the money used to fund these Stated loans was YOUR money to begin with.
When I say YOUR money I mean the same kitty you pay into when you pay your life insurance that has more than a few “Restrictions” or reasons for them not to pay out.
Let’s think about this, if we collect X number dollars from a very large portion of Americans and then we take that same money and lend it back to the vary people that gave us the money in the form of a mortgage we can collect a massive amount of interest. We all have heard of insurance companies but there is a silent one out there called Re-Insurance Companies hmmmmmm.
Sounds pretty simple right?? But what happens when those people can’t pay the loan and their collateral “The Home” is worth less than what the borrower paid for it? Oh Oh I know, I know…. Pick me Pick me….Take it from the tax payers so the insurance companies don’t have to look at their rich share holders and say we stretched your money a little to far and all our VP’s have already purchased their new boats and homes… oops.
www.rebatemyhome.com
