so what should we do about the mortgage crunch?

[actsnoblemartin]

I have no freaking clue

http://news.aol.com/story/_a/paulson-no-easy-answer-to-mortgage-woes/n20080107154909990025

[theHawk]

How about teaching Americans about responsiblity and not to purchase homes way out of their standard of living? And my God, maybe even put a downpayment on a house you buy?

[typomaniac]

Do what the Japanese do: only citizens should be allowed to own land.

None of these Taiwanese mafia types coming over with suitcases full of cash.

[Little-Acorn]

so what should we do about the mortgage crunch?

Who's "we"?

The people who signed up for mortgages they couldn't pay for? Sell the house and take your lumps, just as the rest of us have had to do at times. And learn from your mistake. Don't buy a house you can't pay for.

Or is "we" the government? They should do whatever's not covered by the comment above: NOTHING. Why should the people (read: taxpayers) who played by the rules and either didn't buy, or who bought smaller houses we COULD pay for, now have to pay for those who didn't?

[shattered]

"WE" shouldn't do anything. Those of us that are paying for our houses get to keep them. Those that can't pay for their houses get to lose them. Period. There is no mortgage "crunch". Suck it the hell up and don't live beyond your means.

[typomaniac]

Many of the people who bought houses beyond their means were poorly educated, spoke English as a second or third language, and basically got scammed by mortgage brokers who would do literally anything for a commission.

You don't think the government should do anything about these "brokers?"

[Kathianne]

Many of the people who bought houses beyond their means were poorly educated, spoke English as a second or third language, and basically got scammed by mortgage brokers who would do literally anything for a commission.

You don't think the government should do anything about these "brokers?"

No, the mortgages should not have been made, the government should not be forcing lenders to act in an affirmative action mode regarding mortgages that people cannot afford.

[typomaniac]

No, the mortgages should not have been made, the government should not be forcing lenders to act in an affirmative action mode regarding mortgages that people cannot afford.Are you seriously suggesting that no fraud was ever involved with these loans? :poke:

[Kathianne]

Are you seriously suggesting that no fraud was ever involved with these loans? :poke:

Buyer beware. Only adults should make contracts. If you can't read, shouldn't do it. That's not fraud. I'm assuming you knew the terms of your mortgage or had a $250 lawyer to read and explain? Commonsense.

[typomaniac]

Buyer beware. Only adults should make contracts. If you can't read, shouldn't do it. That's not fraud. I'm assuming you knew the terms of your mortgage or had a $250 lawyer to read and explain? Commonsense.
I don't know about Illinois, but here in California it's illegal for a seller to intentionally misrepresent what's in a contract for the purpose of getting the buyer to sign it.

[Kathianne]

I don't know about Illinois, but here in California it's illegal for a seller to intentionally misrepresent what's in a contract for the purpose of getting the buyer to sign it.

And where were mortgage companies doing that? Did they sell mortgages at 'fixed' that were not? In Illinois the terms are highlighted, you are supposed to read them upwards of 8 times, signing off on each page.

[typomaniac]

And where were mortgage companies doing that? Did they sell mortgages at 'fixed' that were not? In Illinois the terms are highlighted, you are supposed to read them upwards of 8 times, signing off on each page.

Many places, including Illinois:


The Federal Trade Commission, the U.S. Department of Housing and Urban Development (HUD), and the State of Illinois today announced that subprime lender Mercantile Mortgage Company, Inc. (Mercantile) has agreed to settle charges that the company deceived borrowers about the terms of their loans in violation of the Federal Trade Commission Act (FTC Act) and the Illinois Consumer Fraud and Deceptive Business Practices Act, and also violated the Real Estate Settlement Procedures Act (RESPA). According to the FTC, the alleged deception resulted in many borrowers' not knowing that their loans required large "balloon" payments at the end of their terms....

Although subprime lenders may expand access to credit to individuals who otherwise would be shut out of the market, the government said, unethical lenders use deceptive practices to hide from consumers essential information they need to make decisions about their single greatest asset - their home.
Source (http://www.ftc.gov/opa/2002/07/mercantilediamond.shtm)

[Kathianne]

Many places, including Illinois:


Source (http://www.ftc.gov/opa/2002/07/mercantilediamond.shtm)

If indeed there was fraud, the contract is null and void. The courts will care for that, as indicated. That's the point.

[typomaniac]

If indeed there was fraud, the contract is null and void. The courts will care for that, as indicated. That's the point.

That's a complete 180 from what you said in post 7.

[Yurt]

That's a complete 180 from what you said in post 7.

No her stance is not. Also, like K said, let those with the mtg problems take the initiative and sue the mtg lender for the ALLEGED fraudulent mtg. You have done only one thing in this thread, and that is to create a strawman argument. The thread is not about fraud, nor have you presented evidence that overwhelming fraud is causing the mtg crisis.

Here is a bandaid for your bleeding heart... :)

[typomaniac]

The thread is not about fraud, nor have you presented evidence that overwhelming fraud is causing the mtg crisis.
Wrong on both counts.

Would you cheat these dogs, Mr. "Free Market?"
http://www.youtube.com/watch?v=ocOjSVf_ZEo&NR=1

[avatar4321]

live within our means and not sign stupid mortgage deals.