SUB-PRIME CITIZEN'S ALERT: George Bush Sets Up Help Line For People Who Didn't Read Before They Signed or Fell Victim to "Predatory Lending"
For those of you who signed one of those fun, little sub-prime mortgage loans -- and ended up getting burnt, George Bush has set up a toll free line for those who either couldn't read the contract, didn't read the contract, didn't care about the contract, or were simply victims of "predatory lending" by the banks that held guns to their heads to take these loans, please call:
1-(888) 995-HOPE! (That's H-O-P-E)
And to everyone who locked in with 10 year bonds based on current interest rates, and the current state of the sub-prime effect on the banks -- they are more than happy to pay for all of this!
HOWEVER, ZD WOULD BE A SIDE-TALKER IF HE DIDN'T ALSO ADD: At this point, I DO think this is what needs to be done to prevent everyone who is complaining from REALLY taking a hit -- because this problem is much wider and deeper has been realized yet. And if everyone's stock portfolio drops 30% as a result -- and the entire economy "recesses" while we let the problem move through the system -- well, that's what hardcore economists say we SHOULD let happen -- but that ain't no fun.
"There is no perfect solution to mortgage market problems. Plan is not a 'silver bullet', problems remain. Investors back plan. Legal liability limited. 1.2 million subprime borrowers may be fastracked. This effort involves only the private sector. No public money." - Secretary Paulson
Something Senator Clinton reminded Zuma Dogg during here cnbc appearance: If all these people are kicked out of their homes, many of them are in cluster areas where you would have enitre communities shutting down and turning to blight -- and then the crime starts replacing the community and it's roots. So looks like we're gonna step in and do the wrong thing to prevent it from becoming a lot worse as we stand by on principal and logic.
cnbc viewer: "Let's call it what it is, a 'bail-out' for the banks." (affecting 1.2 million.)
(Rock and a hard place, y'all!!!)
zumadogg@gmail.com
strategyupdate.com
1-(888) 995-HOPE! (That's H-O-P-E)
And to everyone who locked in with 10 year bonds based on current interest rates, and the current state of the sub-prime effect on the banks -- they are more than happy to pay for all of this!
HOWEVER, ZD WOULD BE A SIDE-TALKER IF HE DIDN'T ALSO ADD: At this point, I DO think this is what needs to be done to prevent everyone who is complaining from REALLY taking a hit -- because this problem is much wider and deeper has been realized yet. And if everyone's stock portfolio drops 30% as a result -- and the entire economy "recesses" while we let the problem move through the system -- well, that's what hardcore economists say we SHOULD let happen -- but that ain't no fun.
"There is no perfect solution to mortgage market problems. Plan is not a 'silver bullet', problems remain. Investors back plan. Legal liability limited. 1.2 million subprime borrowers may be fastracked. This effort involves only the private sector. No public money." - Secretary Paulson
Something Senator Clinton reminded Zuma Dogg during here cnbc appearance: If all these people are kicked out of their homes, many of them are in cluster areas where you would have enitre communities shutting down and turning to blight -- and then the crime starts replacing the community and it's roots. So looks like we're gonna step in and do the wrong thing to prevent it from becoming a lot worse as we stand by on principal and logic.
cnbc viewer: "Let's call it what it is, a 'bail-out' for the banks." (affecting 1.2 million.)
(Rock and a hard place, y'all!!!)
zumadogg@gmail.com
strategyupdate.com
Labels: los angeles politics
Posted by Zuma Dogg @ 12/06/2007 10:36:00 AM
21 Comments:
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ZD,
I will call a spade a spade. Great post today.
This is a bailout, plain and simple.
Most speculators claimed they lived in the houses they bought, to get those low teaser rates, and now you and me, the taxpayers, will have to pay their mortgages.
ZD, start a campaign. Have everyone who is NOT late on their loans, everyone who DID get a 30-year-fixed, every responsible person -- have them call their lender and demand the same teaser rates that the idiots are getting.
Let's see, I took out a mortgage I can afford like a responsible person, and guess what I got from the George Bush party favor bag?
JACK SHIT
Higby:
#1 - This is not a Mayor Sam issue.
#2 - Dave Elliott is not a mortage expert, that is, unless you need a mortgage to live in your van, not shower and beg for Starbucks.
Please get rid of Zuma Dogg before he kills your blog.
"ECONOMIC DARWINISM"
THINK SUSTAINING PROPERTY TAX REVENUE STREAM. Did the "ZORRO MARXIST" chime in on this at one "CLOWNCIL" meeting? He did.
12:08pm,
Not only are you a short sighted idiot if you don't think this affects LA City, but:
The subprime issue and what to do about it has been an agenda item and discussed by City Council, you big dummy -- so it IS city business, dumbass. Are you an ostrich, or just have your head up your ass?
read this bitch!
GO READ ANOTHER BLOG! You've been complaining about "zd killing the blog...it's #6, loser...as long as you are not contributing! (LOL!)
Hi, Zuma
As long as you uncover the truth of all these politicians you will have them attacking you and making fun of you to weaken your purpose. You are doing a great service for our community, we all need to wake up to the reality of how these politicians take advantage of their positions to benefit themselves instead to do the work they were elected to do. We all need to be as vocal as you are to be effective in regaining our democracy. Your job is not an easy job and is not without its dangers. To be a simple person like you gives you the freedom to advocate for our rights. Many of us have too much luggage to protect and we become enslaved by it.
Thank you for the service you are providing. Always remember those that appreciate you, the others are just parasites, not worth of your attention.
From this week's City Beat
larence Rhone held his 2-year-old son in his arms as he walked into a room full of housing specialists gathered at the California Science Center in Los Angeles. They were there to help families suffering from the national foreclosure crisis.
Rhone works in financial planning for the World Financial Group, but he did not visit the gathering at the Science Center just for his clients; he came to find solutions to his own personal housing disaster, he told CityBeat last Friday, November 30. He and his wife decided they needed to refinance their home a year ago. His wife soon found a lender in Northern California, and they negotiated a loan – over the phone and by mail – that the Rhones could afford. But when the couple went to sign the loan about 30 days later, the rate had jumped from about 6 percent to 8.5 percent.
“That’s a huge jump,” Rhone said. “Our mortgage went from $1,800 to $3,000.”
Rhone said he and his wife knew they could not afford the monthly payments, but they didn’t have an option. They were going into the second month of being late on their last mortgage and had to act fast.
It’s a year later, and Rhone and his wife also have a 2-year-old son and 6-month-old daughter. And they are 90 days late in mortgage payments – and worried they are about to lose their home.
“It’s very scary,” Rhone said, his son sitting patiently on the floor next to him. “I’ve been in that home for nine years.” After a bad loan with an unaffordable rate, Rhone’s house could be “gone in a matter of months. I definitely need to find a solution.”
Trying to find answers to his personal housing crisis and that of his clients, Rhone went to last week’s field hearing convened by U.S. Rep. Maxine Waters (D-Los Angeles) to address the national foreclosure crisis. Rhone was among 300 homeowners, mortgage brokers, politicians and others who came to listen to the hearing’s panel of speakers, which included Mayor Antonio Villaraigosa and experts from the housing and mortgage sectors.
“Our state lies at the epicenter of the foreclosure wave,” Waters warned in a statement. “California’s third-quarter foreclosure rate of one filing for every 88 households ranked second-highest among all states and reflects a near quadrupling of the number reported for the same period last year.”
Most economists believe the country is facing a foreclosure crisis because lenders lowered income standards for approving loans and negotiated sub-prime mortgages with adjustable rates that have risen to such an extreme that borrowers can no longer afford the payments.
To arrive at solutions to “this most daunting crisis,” there must be cooperation between federal, state, and local authorities; private lenders, brokers, servicers, and investors; and the public, according to Heather Peters, deputy secretary for business regulation for the California Department of Business, Transportation and Housing.
She said California is tackling these problems, caused by a number of factors including the lack of affordable housing, and has already passed bills to increase the amount of available affordable housing. She said “reform is crucial” and Gov. Schwarzenegger has proposed underwriting standards to ensure that people can afford their loans. He’s also proposed the criminalization of appraisal fraud.
Ray Jones, whose cousin lost his home in Arizona, said he felt the hearing offered helpful solutions, such as a proposal to convert some of the sub-prime loans into fixed loans with the initial so-called teaser rate.
After listening to the panel of speakers, Rhone said, “In there, I hear the talk. But I need solutions. What can I go back and tell my wife? What can I tell my clients? I still haven’t heard that. That’s why I walked in here.”
Rhone gestured around the room to the booths set up to serve people like him. Representatives of Allwest Mortgage gave out information on reverse mortgages for the elderly, and the Los Angeles County for Foreclosure Solutions met with individuals to offer financial advice.
Anne Marie Molina of Operation Hope, who talked to families about modifying their loan, said she used to consult about the organization’s first-time home buyer program and business loans, but because of the housing disaster, she now only works on the mortgage crisis.
She said she cannot find people willing to buy a first home because the sub-prime mortgage crisis and its portrayal in the media has led to fear even among people who can legitimately afford a mortgage. “People are so scared now,” Molina said. “They’re afraid to jump into the market.”
READ THE SMALL PRINT!!
Zuma is an expert!! / He is an intergalactic expert on everything...
Dude, I worked in banking for ten years, and I can promise you...
The people who have time to think about things are way better off than the people who don't.
Sorry, but the Dogg is dead on here. Only Bush could dare to pitch a banking plan that invalidates contract law. Germany in the thirties, anyone?
Any of you "experts" read the whole story?
To qualify, you must:
1) Be unable to meet new payments; and
2) Have never missed a payment;and
3) Taken th eloan during a specific period when the numbers were off; and
4) Have your home be worth more than the mortgage.
5) Others I do not iknow about.
Three people in the USA will qualify here.
Dump ZD!!!
Are you aware of the California anti-deficiency laws?
The one form of action rule regarding forclosure of deeds of trust in California?"
I dont know about thoses laws; what do they mean? I lost my home and still cant figure out how or why?
What is so interesting is the lack of discussion of people who went into a loan they knew they could not afford, applying without any proof of income and expecting that the euphorio is going last forever! And now, so many people are crying foul over their inability to pay their mortgage. Yes it is sad, especially for families who have kids and whose kids will now face loosing an environment that is precious to them.
When people get over the conspiracy theories and such, only then can people realize that their own actions can be detrimental to the ones they love the most. Has anyone ever hear of the term Caveat Emptor? By the way, what does Zuma do for a living beside being a gadfly wannabe rapper?
"Predatory Lending' should mean that you were convinced you could afford something you couldnt. Too many builders or sellers kept saying, "all you have to do is refinance it on your equity. Eventually you will come out ahead."
It was a fantastic Ponzi scheme and now many "unknowing, uneducated, unskilled in real estate law have become victims of the banks, the title companies, appraisers and the builders.
"Predatory Lending' policies of the banks and appraisers are totally responsible for this.
Zorro Marxist
I love that - describes him perfectly.
Here's Mullings' explanation:
You might have heard or read about the situation in home mortgages. Over the past decade, or so, the prices of residential housing has been rising and rising and rising leading to people to buy larger and more expensive houses than they could afford.
I am not a housing or mortgage expert, but I believe this to be approximately the way it worked.
The arithmetic is simple: If you have a $100,000 house whose value is rising at 20% per year has the effect of being a part-time job earning an additional $20,000.
So, the theory went, if you can score a house worth $250,000 and IT is rising at 20% per year, your part-time job is now $50,000 per year.
rules, if you wanted to buy a house worth $100,000 you would first have to plunk down $20,000 as a down payment leaving $80,000 to be financed.
According to one mortgage calculator site, a 30-year, 5.75% loan for 80 grand would require a monthly payment of $466.86 per month.
If you wanted to buy a house worth $250,000 and you wanted to finance the entire amount, a 30-year fixed mortgage would be $1,458.93 per month.
Many people couldn't afford $1,400 a month so new, modern, non-traditional mortgage "products" were invented - under the general heading of "Adjustable Rate Mortgages (ARMs) - which would allow you to pay far less. Maybe not much more than the amount you would have to pay for that $100,000 house.
But two things were going on: First, the additional $1,000 per month you SHOULD have been paying wasn't being forgiven; it was being added to the price of the house. So, after one year your $250,000 house now had a mortgage of $262,000 ($1,000 x 12 months).
Second, the "introductory rate" of 5.75 percent would "reset" to something on the order of 11% beginning in 2008.
At that point, instead of a monthly payment of about $500 for your quarter of a million dollar house, you would have to pay the full amount of nearly $2,500 per month ($262,000 at 11% for 30 years).
Most of us don't have a spare two grand per month sitting around looking for something to be spent on and in short order your mortgage would fall behind, go into default and, ultimately your house would be foreclosed and be the proud possession of whatever organization ended up owning your mortgage.
I understand there are other costs involved, mortgage insurance, fees, closing costs, etc, but as I said, this is approximately the way it worked.
Came the bursting of the housing bubble and suddenly your $250,000 house wasn't rising in value by $50,000 per year. In fact, it wasn't rising in value at all. In many markets your house was losing value because others with sub-prime mortgages found themselves in the same situation of being unable to pay a mortgage four or five times higher than when they first moved in, so houses were being dumped on the market driving down values for all the houses in a neighborhood.
The White House as well as the Treasury Department and the Department of Housing and Urban Development have worked out a plan with the major mortgage lenders which according to the White House Fact Sheet will help people with sub-prime mortgages either
- Have their interest rate frozen for up to five years;
- Move them into an FHA loan; or
- Refinance an existing loan into a new private mortgage.
This program will not affect everyone with an unaffordable ARM. According to USA Today's summary, it only applies to people who live in their houses; whose mortgages are now current, and who have not missed more than one payment in the previous 12 months. There are other qualifications but those are the major points.
A home mortgage is a contract. Contracts are renegotiated all the time on the theory that 80% of something is better than 100% of nothing. Home mortgages are not generally re-written because homeowners don't generally have the clout to go against a major bank the way an airline or auto maker does.
This appears to be a good deal for everyone concerned. There is no taxpayer money involved. It is a deal worked out with lenders who, otherwise, would be facing perhaps an additional 1.2 MILLION foreclosures. And, people who have been living up to their end of the bargain, will be able to stay in their homes.
The Bush Administration deserves kudos for getting this done as quickly as it has.
ONCE AGAIN...MY nuts, YOUR tonsils: Anonymous pussy said, "This (subprime) is not a Mayor Sam issue."
Looks like some folks had some opinions and insights on both sides of the issue, so again, you do not have the pulse of readers and you are face-down in a puddle of mud again. How much deeper do I have to shove your face in it, you crybaby weakling-loser?
YOU HAD YOUR CHANCE IN THE COMMUNITY -- NOBODY CARED ABOUT YOU -- AND YOU COULDN'T GET ANY TRACTION...MAYBE BECAUSE YOU HAVE NO INSTINCTS.
Try PBSkids.com -- those readers are more your speed and I think you will have an easier time connecting at their level! (LMFAO...AT YOU!)
Dec 6 5:32pm,
Although you were trying to be combative (trying to slam me) --
YOU ARE CORRECT, SIR! This bail-out is a big psychological fix for the market.
You are right that about three, maybe four people will be saved.
But unfortunately, these little dog and pony shows (bush's plan) will be the band-aid to keep people's confidence (and the market) up, FOR NOW!
So if you are against this plan, because you don't wanna be punished for "playing by the rules", and don't want irresponsible borrowers to be rewarded...then at least this won't actually be that much from a numbers standpoint...but will keep shallow psychology from sending things into a economic tailspin.
So 5:32pm...even though i agree with you, you are still a combative pussy, because you have to always take a swipe at ZD in order to make your point. and that makes you a little pussy in my mind. And you ARE one. You big crybaby. I would say "DUMP YOU", but you have already been dumped.
Price is Right loser sound effect:
Whomp, whomp, whomp, whomp...(deflated) whoooooooomp!
'I wouldn't call this a bailout because taxpayers are not on the hook for this one.
In fact, it's just a 5 year deferrment for a select few who can't afford the resets! They have to have good credit and no lates!
This stupid freeze will just give a bunch of crybabies 5 extra years to live in their unaffordable houses. They should be forced to SELL those houses and let the free market take it's course!
Also, the freeze will keep the home prices artifically inflated until the eventual bubble bursts and this small group of homeowners will be forced to sell!
Utter insanity...the freeze!
I repeat...THIS IS NOT A BAILOUT..IT'S A DEFERMENT.
No Zuma, I do not have to take a swipe at you to prove a point; I take a swipe at yuo because it is so easy to take a little hot air out of your bullshit filled balloon after I have made my point.
Oh, and because you still owe me for all the time you've wasted of mine, while I sat quietly and had to listen to your off key rants and smell your highly offensive body odor, while being visually assaulted by a bum in a ski hat trying act like he knew something about what he was trying to say/sing.
That's why I take swipes at you.
Formerly 5:32 But Still A Weak Pussy,
You say you can take the hot air out of my B.S.
WELL INFERIOR-MIND...
WHY DON'T YOU???
Again, all you did was mention a bunch of stuff about personal stuff...
STILL HAVEN'T BEEN ABLE TO TAKE ANY HOT AIR OUT OF MY WORDS/COMMENTS!
So I guess everything I have put "on the record" before council was on the money.
Thanks!
Actually, 5:32 is right. The problem is that no one could ever understand anything that you were singing/trying to say.
Your phony white boy trying to be a black boy massacre of the English language left everyone bored and ready to go to sleep.
Go back to advising the guys at the SEC and NYSE on how to run the market. At least we don't have to waste our time in Council anymore.
By the way, a guy who is broke advising on stocks takes the cake for Chutzpah.
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