Comments on: Help on the Horizon for Subprime Borrowers?

By: discount towing

discount towing — Wed, 28 Nov 2007 16:31:02 +0000

BUYER BEWARE SEEMS TO BE THE AMERICAN WAY .NOT TO MENTION THE WAY OF THE WORLD. I BELEAVE I HAVE A HEART ,BUT WE HAVE TO BE HONEST WITH OURSELVES. MOST OF THE TIME A LOT OF US GET THAT FEELING WHEN WERE PURCHASING SOMETHING WE KNOW WE CANT AFORD ,SO WE DONT BUY ITOR WAIT UNTILL WE CAN AFORD IT.I FEEL BAD FOR THOSE PEOPLE WHO WERE SWINDLED OR MISSLED BY A SAVY LOAN OFFICER BUT ALLTIMATELY THEY WERE NOT FORCED TO PURCHASE A HOME.IT SEEMS A LOT OF US HAVE FORGOOTTEN WHAT A SRARTER HOME IS.WE WANT TO HAVE THE SWIMMING POOL ,BIG BACKYARD,NOT TO MENTION THE TWO & HALF CAR GARAGE.WE SIGNED ON THE DOTTED LINE MANY TIMES FOOLING OURSELVES INTO THINKING ILL CUT BACK ON THIS OR THAT TO PAY FOR IT & NEVER DO. SO NOW ITS TIME TO PAY THE FIDDLER .FOR EVERYONE INVOLVED CAUSE LETS FACE IT LENDERS DONT GET FULLY REIMBURSED WHEN THEY FORECLOSE . WHAT IM SAYING IS BEWARE OF CREDIT CAUSE YOU ARE PAYING FOR THAT SERVICE. SOMETIMES MORE THAN WE THINK.

By: Christina

Christina — Sat, 06 Oct 2007 20:49:21 +0000

What to do about the subprime crisis? Answer = there really isn’t much the government can do at this point, even if they wanted to. We have some enormous storms on the horizon, and they really haven’t hit yet. There is the commercial real estate loan market, which is actually having some of the same problems as the residential real estate market. The Fed will probably have to go in with some cash infusion to help out the commercial lenders.

‘Caveat Emptor’
This is Latin for ‘Buyer Beware’. It doesn’t matter how much the real estate market has zoomed to the stratosphere. How much money Uncle Joe made from selling his house. There has ALWAYS been the element of risk. And when the buyer signed on the line, there was always that risk, even if it was only 0.0000001 % risk.

I agree with you Matt I really have mixed feelings about it. I belive the government will step in and help as much as they can. But – it’s not out of benevolence. They have a vested interest in seeing people keep their homes.

By: Matt Harris

Matt Harris — Tue, 15 May 2007 19:22:49 +0000

Ralph…

I am right there with you. What we are seeing is the classic debate between objective and subjective realities.

On an emotional/homeowner level, people being foreclosed upon are expressing their plight to show us what happens to a common American. I believe that many have been taken advantage of and that affects most people emotionally. From an investment/objective point of view the same information is viewed just as you stated. A poor investment was made, and now people want help trying to recoup their costs. The problem is trying to decipher what side of the arguement to be on and for what reasons.

Yeah, some people simply made bad investments and are looking for the sympathy vote to stay on top, however there are also many out there that were literally taken advantage of by predatory lenders. So…what is the solution? Well part of it is to make the lenders less predatory, and hold them responsible when they are. Unfortunately this does not solve most of the current issues. Hopefully it will save us from this in the future.

I do not know the solution to our current problem. I am sure I would not be writing this if I did. I do know that my emotional strings are being pulled when I hear of families becoming homeless and I also feel my business sense becoming angry when I hear of investors whining because they made a poor investment. I don’t think that our Government should relieve the debt or take it out of taxpayer money, but I also feel that they will need to step in, in some capacity.

By: Ralph

Ralph — Mon, 14 May 2007 17:48:44 +0000

I lost some money in the stock market, when do I get to apply to the government for assistance with amortizing my losses?

First thing to remember, a bail-out isn’t for the person sitting in the home, it is for the banks. The banks gambled on the housing bubble and are now starting to get worried as NODs and foreclosures rise. The banks gave out credit like the peppermint candies and suddenly they realized that 12-16% appreciation wasn’t going to happen forever.

Why should I pay for this? Here is what I am hearing….

“Buy a home you can’t afford, plead ignorance when the ARM resets, ask the government for help.”

I’m more amused by states that are trying to get a moratorium on foreclosures. Great message to people, “don’t bother paying your mortgage”.

signed,
frustrated tax payer

By: Ron

Ron — Fri, 04 May 2007 03:35:07 +0000

….and caring, devoted parents that clearly left an imprint on their son. It’s just a feeling I have…

By: Cheri

Cheri — Fri, 04 May 2007 03:31:41 +0000

Matt,
It is so refreshing to deal with a mortgage broker who actually cares about his clients. As i have followed your career, it is obvious that you have integrity, and want the best possible results for your clients.

By: Matt Harris

Matt Harris — Thu, 03 May 2007 23:29:39 +0000

Emma,
I appreciate your feedback, and no I would never presume to be “the divine appointee to fix and solve this problem”. The aim of my article was to put forth information showing what those in power are doing in order to shed some light on the trouble subprime borrowers are facing. I agree whole-heartedly about the 40 year mortgage plan not being a real solution to the problem. It is more of a band-aid. However, it is a better alternative than the banks foreclosing on people’s homes. Moving borrowers into a 40 year fixed mortgage simply restructures the payments to a level that may be more affordable to the borrower thus allowing them to retain ownership of their homes. Ideally those borrowers will later be in a position to refinance and get back into a 30 year mortgage if they prefer.
Due to the fact that many borrowers can no longer make their mortgage payments after rate adjustments, many people are asking “what can we do?” The lender’s response to this is what I outlined in the above article. I have tried to paint the most detailed and accurate portrayal of what lenders are doing to help. So far, although Fannie Mae and Freddie Mac have spoken, congress has remained silent, and in all reality cannot do anything about mortgages they do not own. As far as your take on the Old Testament, debt forgiveness, and our nation’s help to “foreigns”, the government is not in a place to forgive debt unless they own that particular debt. Many of the loans out there that are in threat of being foreclosed upon are owned by banks and other private institutions. I am a mortgage broker, therefore I pair borrowers up with a lender, so unfortunately I am in no way proposing that I have the infrastructure or the know how to solve this complex problem. In all reality that is what is being worked out by lenders, and will most likely eventually require more involvement by the government.
Thanks again for your response,
Matt.

By: Emma Pearl Allen

Emma Pearl Allen — Thu, 03 May 2007 22:34:59 +0000

Matt—Refinancing people mortgages into new 40-yr. fixed rate mortgage-that adds up to 10 more yrs. paying, plus all the extra
interest-What kind of a deal is that??? Taxes are used for wars,
give-aways to every country some that don’t need help and I could go on and on but my question. Why can’t a certain amount
be forgiven??? U.S. forgives other countries for their debts. When american citizens lose their homes, live on the streets then
we have uneducated people, hunger , crime and then prisons
that taxpayers support. Why can’t America be more tolerant
and generous to their own people?? Old Testament forgave
debts every 7 years. Our own government is more tolerant to
foreigns here illegally. What’s wrong with this picture??
Are you the divine appointee to FIX and solve this problem????

Thank you for your attentive time.

By: Margaret

Margaret — Thu, 03 May 2007 19:47:45 +0000

Hi Matt,

GREAT web site! Good for you! I’m so excited for you, branching into a new career. Go Matt, go Matt, go Matt!