Massive financial bailout

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Posted by Future Mulligan

how much of an effect do you think the media has? like with the stocks plummeting today? you know how the news was saying if the house votes no it would cause the market to nosedive - do you think the media is making things worse?

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not sure but once all those people who would buy anything found out the plan didnt go through, then this would've happened no matter what i think.

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Posted by MrsDrinkh20

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Posted by beram63

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Posted by flairforfashion

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Posted by Espo22

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Posted by PROBM

this is not being passed bc the politics who voted against it are scared that they are not going to be reelected... meanwhile they are going to put us in a GREAT DEPRESSION!

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actually its the ceo's of the financial businesses that put us there. Its not governments responsibility to pay off their debts, this is not a socialist government. Its the mortgage business and financial institutions that put us in this situation.

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Thank you Mr. Clinton for getting us into this disaster.

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not so fast. this was a clinton/bush one-two punch. clinton opened doors to get people in homes, and bush pushed them open wider with the help of a deregulating republican majority. in flowed the corruption and abuse.

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im not sure if we should be bashing clinton or our current fearless leader...

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They are BOTH to blame.

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Posted by flairforfashion

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Posted by beram63
not so fast. this was a clinton/bush one-two punch. clinton opened doors to get people in homes, and bush pushed them open wider with the help of a deregulating republican majority. in flowed the corruption and abuse.

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Yes, Clinton opened the pandora's box and Bush came in and was spending irresponsibly in addition to the Government not regulating the expenses. They are all A-holes in my eyes.

Our market was FANTASTIC during the Clinton Administration but towards the end of his term, things started to go sour. Because of that 0 money down deal, disaster was waiting to happen. Banks cannot survive on lending and not getting any money down - which in turn failed because people borrowed more than they could afford and then people not paying bank the banks, and in turn, forclosures as we see now. I don't know how that bill was passed in the first place. It is virtually impossible for it to work as we all know now. But, it's too late. You'd think that the people in the Government who are all graduates of ivy league schools would know how the economic cycles work but they don't. So, I am still holding Clinton as the person PRIMARILY responsible for this disaster and holding the Bush administration secondarily responsible.

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that's like blaming clinton for 9/11 bc the WTC was bombed in '93. bush had plenty of time to prevent this. he didn't bc he's a kept man and an idiot.

Meanwhile, I think for the banks to survive, they have to continue to lend, no? How would they even exist without lending? Just there to hold your money? Bear with me here, i'm no finance genius.

And at the same time, I have 100% perfect credit, when I bought my place 2 years ago my credit was in the high 700s? And it should be better now that I have a paid off asset (apartment)...am I still going to have trouble getting a mortgage with 2 decent incomes?

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Posted by KittyGags

Meanwhile, I think for the banks to survive, they have to continue to lend, no? How would they even exist without lending? Just there to hold your money? Bear with me here, i'm no finance genius.

And at the same time, I have 100% perfect credit, when I bought my place 2 years ago my credit was in the high 700s? And it should be better now that I have a paid off asset (apartment)...am I still going to have trouble getting a mortgage with 2 substantial incomes?

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nobody really knowns how the markets will behave if it's left alone. it's all speculation. they're just going to keep revising it until they get something through.

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Posted by Songstress
Exactly. 8 years in office there were plenty of signs this was on its way to happening. Gimme a break with the Clinton blaming already. Anytime something goes wrong Im just gonna blame it on Clinton

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As I mentioned in two posts before this one- the economic cycles during Clinton's term shows who's at fault. It's as clear as the blue sky. But, no one wants to admit it. I can admit when a republican leader has been an a$$ and clearly, well- we all know that's the wonderful G'Dub Yah.

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Posted by KittyGags

Meanwhile, I think for the banks to survive, they have to continue to lend, no? How would they even exist without lending? Just there to hold your money? Bear with me here, i'm no finance genius.

And at the same time, I have 100% perfect credit, when I bought my place 2 years ago my credit was in the high 700s? And it should be better now that I have a paid off asset (apartment)...am I still going to have trouble getting a mortgage with 2 decent incomes?

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the banks are in trouble this is why they needed money to bail them out. They wont be able to lend money, and yes this is why everybody is scared because since the bail out plan didnt go through then banks are probably going to start going bankrupt and having alot of problems. This is why we are all afraid that the market will crash.

Yes you will still have trouble, i am sorry to say but it is the truth. You can have PERFECT credit but it will be hard for you to find a bank that will lend you money. Even with decent income and all of that. And not just homes but any type of loan.

They are trying to come up with different plans, so lets see what they come up with and how the plans would work, until we know what they come up with we wont know what is going to happen. But as of now, it will be very difficult to get a loan no matter how great your credit is

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Posted by Espo22

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Posted by KittyGags

Meanwhile, I think for the banks to survive, they have to continue to lend, no? How would they even exist without lending? Just there to hold your money? Bear with me here, i'm no finance genius.

And at the same time, I have 100% perfect credit, when I bought my place 2 years ago my credit was in the high 700s? And it should be better now that I have a paid off asset (apartment)...am I still going to have trouble getting a mortgage with 2 decent incomes?

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the banks are in trouble this is why they needed money to bail them out. They wont be able to lend money, and yes this is why everybody is scared because since the bail out plan didnt go through then banks are probably going to start going bankrupt and having alot of problems. This is why we are all afraid that the market will crash.

Yes you will still have trouble, i am sorry to say but it is the truth. You can have PERFECT credit but it will be hard for you to find a bank that will lend you money. Even with decent income and all of that. And not just homes but any type of loan.

They are trying to come up with different plans, so lets see what they come up with and how the plans would work, until we know what they come up with we wont know what is going to happen. But as of now, it will be very difficult to get a loan no matter how great your credit is

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Great, I can't wait to live in a 700 sq foot apartment FOREVERRRRRR!!!!!!!

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Posted by KittyGags

Meanwhile, I think for the banks to survive, they have to continue to lend, no? How would they even exist without lending? Just there to hold your money? Bear with me here, i'm no finance genius.

And at the same time, I have 100% perfect credit, when I bought my place 2 years ago my credit was in the high 700s? And it should be better now that I have a paid off asset (apartment)...am I still going to have trouble getting a mortgage with 2 decent incomes?

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im worried about getting a mortgage with a decent interest rate - and im also worried about homeowners insurance....

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Posted by beram63
that's like blaming clinton for 9/11 bc the WTC was bombed in '93. bush had plenty of time to prevent this. he didn't bc he's a kept man and an idiot.

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I understand your point BUT again, the economic cycles are self explanatory. And don't get me started on the attacks in '93. That's another debate which I don't want to get into.

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Posted by KittyGags

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Posted by Espo22

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Posted by KittyGags

Meanwhile, I think for the banks to survive, they have to continue to lend, no? How would they even exist without lending? Just there to hold your money? Bear with me here, i'm no finance genius.

And at the same time, I have 100% perfect credit, when I bought my place 2 years ago my credit was in the high 700s? And it should be better now that I have a paid off asset (apartment)...am I still going to have trouble getting a mortgage with 2 decent incomes?

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the banks are in trouble this is why they needed money to bail them out. They wont be able to lend money, and yes this is why everybody is scared because since the bail out plan didnt go through then banks are probably going to start going bankrupt and having alot of problems. This is why we are all afraid that the market will crash.

Yes you will still have trouble, i am sorry to say but it is the truth. You can have PERFECT credit but it will be hard for you to find a bank that will lend you money. Even with decent income and all of that. And not just homes but any type of loan.

They are trying to come up with different plans, so lets see what they come up with and how the plans would work, until we know what they come up with we wont know what is going to happen. But as of now, it will be very difficult to get a loan no matter how great your credit is

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Great, I can't wait to live in a 700 sq foot apartment FOREVERRRRRR!!!!!!!

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I feeeeeeeel your pain

i dont even think our apartment is 700 sq feet

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Posted by KittyGags

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Posted by Espo22

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Posted by KittyGags

Meanwhile, I think for the banks to survive, they have to continue to lend, no? How would they even exist without lending? Just there to hold your money? Bear with me here, i'm no finance genius.

And at the same time, I have 100% perfect credit, when I bought my place 2 years ago my credit was in the high 700s? And it should be better now that I have a paid off asset (apartment)...am I still going to have trouble getting a mortgage with 2 decent incomes?

---

the banks are in trouble this is why they needed money to bail them out. They wont be able to lend money, and yes this is why everybody is scared because since the bail out plan didnt go through then banks are probably going to start going bankrupt and having alot of problems. This is why we are all afraid that the market will crash.

Yes you will still have trouble, i am sorry to say but it is the truth. You can have PERFECT credit but it will be hard for you to find a bank that will lend you money. Even with decent income and all of that. And not just homes but any type of loan.

They are trying to come up with different plans, so lets see what they come up with and how the plans would work, until we know what they come up with we wont know what is going to happen. But as of now, it will be very difficult to get a loan no matter how great your credit is

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Great, I can't wait to live in a 700 sq foot apartment FOREVERRRRRR!!!!!!!

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We should all be thankful that we have someplace to live ... I know people that foreclosed and live with their in-laws or parents ... so sad and stressful

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Posted by flairforfashion

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Posted by Songstress
Exactly. 8 years in office there were plenty of signs this was on its way to happening. Gimme a break with the Clinton blaming already. Anytime something goes wrong Im just gonna blame it on Clinton

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As I mentioned in two posts before this one- the economic cycles during Clinton's term shows who's at fault. It's as clear as the blue sky. But, no one wants to admit it. I can admit when a republican leader has been an a$$ and clearly, well- we all know that's the wonderful G'Dub Yah.

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I will admit Clinton is also to blame yes I wont say he has no blame whatsoever. But how long has this been predicted? When this whole crisis started, I wasnt even sitting here surprised. It was just expected like people were waiting for it to happen.

here is an article that came out on friday about it being more difficult to get a home loan now

NEW YORK (CNNMoney.com) -- Wall Street's meltdown has put the squeeze on all sorts of lending, and home loans are no exception. Now, even some very well-qualified home buyers are getting turned down for mortgages.

'A lot of good, well-qualified people are being turned away for no good reason,' said Mark Savitt, president of the National Association of Mortgage Brokers and a mortgage broker in West Virginia. 'The wheels are coming to a grinding halt.'

Sometimes the rejections seem completely inexplicable. Long Island, N.Y.-based mortgage broker Bob Moulton had one client with substantial income and assets who planned to put down $1.2 million on a house selling for $2.2 million. For this borrower, a mortgage should have been a snap. But it wasn't.

The hitch: The buyer was a few days late with a single mortgage payment last year when he was away on vacation. That lowered his credit score to 679, which is the reason the lender cited when it denied his loan.

'Just a little ding on his credit report, one late payment a year-and-a-half ago,' said Moulton. 'Everything else was fine.'

Higher rates
Another example comes from Savitt. One of his clients was buying a home for $205,000, putting down 20%. The buyer had an excellent credit score in the mid-700s, and the house was appraised at a little higher than the sale price.

The problem here: The borrower's debt to income ratio would be at about 45 - slightly higher than what most banks like to see, but by no means excessive. And his other risk factors were great.

'The bank turned it down over excessive debt ratio,' said Savitt. 'That's crazy.'

And higher interest rates are making it even harder for borrowers to get a loan. The 30-year fixed rate has shot up in the wake of the financial crisis - to 6.09%, compared with 5.78% last week - making monthly mortgage payments higher as well. That's raising the debt to income ratio for most borrowers, which means more will have their loan applications rejected.

'

It used to be that if most of a borrower's qualifications were quite strong - income, assets, credit score and the value of the home itself - lenders would use their judgment to make exceptions if one factor was a bit weak.

A lender might accept a less than stellar credit score, for example, if the borrower was making a big down payment, or forgive a modest income if the borrower's bank account was fat enough.

Not any more, says Alan Rosenbaum, president of New York City mortgage broker GuardHill Finance.

'There are no exceptions today,' said Rosenbaum. 'If an application does not meet each of the guidelines - and those guidelines themselves have gotten more strict - it's denied.'

That means many more people simply no longer qualify for a mortgage.

A numbers game
'I get as many phone calls as I got two years ago,' said broker George Hanzimanolis, of Bankers First Mortgage in Pennsylvania, 'but I bet you 40% of the people calling in, we can't do anything for, versus 5% a year ago.'

And Hanzimanolis say it's gotten worse in the last few weeks. One recent client who had excellent assets and income wanted to refinance his first and second mortgages. The house was valued at $1.6 million, and he was looking for a $1.2 million loan. That's an excellent loan-to-value ratio of 75%; the banks like it to be no more than 80%.

But these days many lenders are anticipating that home prices will continue to fall, so they're automatically discounting every home's appraised value by 10%.

That dropped the value of the borrower's home to $1.44 million, which put him over the 80% loan-to-value ratio. So the loan was turned down.

Things like that make brokering mortgage loans today a struggle, according to Moulton.

'Nothing is making sense. Everything is torture right now,' he said. 'We're getting things done but it takes enormous effort. You think a deal is vanilla and it turns out to be rocky road.'

Congress has a plan

This isn't Armageddon

Bailout foes plan protest
Find mortgage rates in your area

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Posted by Songstress

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Posted by flairforfashion

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Posted by Songstress
Exactly. 8 years in office there were plenty of signs this was on its way to happening. Gimme a break with the Clinton blaming already. Anytime something goes wrong Im just gonna blame it on Clinton

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As I mentioned in two posts before this one- the economic cycles during Clinton's term shows who's at fault. It's as clear as the blue sky. But, no one wants to admit it. I can admit when a republican leader has been an a$$ and clearly, well- we all know that's the wonderful G'Dub Yah.

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I will admit Clinton is also to blame yes I wont say he has no blame whatsoever. But how long has this been predicted? When this whole crisis started, I wasnt even sitting here surprised. It was just expected like people were waiting for it to happen.

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she did admit a few posts ago that they were both to blame. i already said my piece on this thread about finger pointing tho. it's futile.

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Posted by Songstress
I will admit Clinton is also to blame yes I wont say he has no blame whatsoever. But how long has this been predicted? When this whole crisis started, I wasnt even sitting here surprised. It was just expected like people were waiting for it to happen.

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Economists have predicted this when that bill was passed. It's just common sense that it can't work in the long run. Nobody wanted to hear it. Just like when the man was getting a beej under the desk, no one cared about that either. But like you, I wasn't even surprised when this financial meltdown happened. It had to happen with everyone being irresponsible with spending and borrowing.

President Clinton also left office with this economy being at a surplus. Nancy Pelosi is right when she says 'Bush inherited that and with his reckless economic policies turned it around. No regulation, no supervision, no discipline and if you fail youll have a golden parachute and the tax payer will bail you out'. I agree with her 100 PERCENT. So although I hate to place blame I cant sit here and NOT agree with her.

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Posted by Songstress

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Posted by beram63

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Posted by Future Mulligan

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Posted by beram63

it's so much bigger than that. a broke nation cannot defend itself. we are not well liked these days. it's really, really bad.

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my FH just got approved to transfer to another office in another state - we needed to provide the mortgage broker with it, i guess because of everything going down....there are also offices in dublin, manchester, singapore and bermuda - maybe he should transfer to one of those instead...who said they wanted to move? denise and leah?

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idk if you watch real time with bill mahr, but he's been doing a feature every week called exit strategy in which he profiles a country to escape to. he's done finland and brazil so far it's not funny, and yet it is, and yet it's not

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I watch every episode of Bill Maher! That segment cracks me up!!

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i am love Bill Maher!!! I am hysterically laughing every friday night with his show.!!

in regards to the article i posted above about the difficulties in getting a mortgage now and what problems you will come across, let me say that it is so true.

I bought 4 years ago and had no problems. I was 24 years old actually younger bc i moved here 4 years ago but we waited about a year until i moved in to wait for renovations

Now forget it, we've gone through so many headaches it is insane. That whole debt to income ratio is SOOOO true, and that was our problem. DH has great credit NEVER had a late payment EVER. He makes very good money, has a great 401k plan which helps with your liquid assets and used to your advantage. BUT he has school loans and other credit card bills so theyd did the whole debt to income ratio. Unfortunately there were 3 cc's on there that had been closed for YEARS, they were his parents but he just had a joint account when he was like 19 years old. We went through so much trouble to get that off the credit report bc just 1 of those credit cards showed $25k. So what they do is that they will take what you would pay in mortgage payment, school loans, all your credit card bills, car payments and that can not exceed 40% of your income. If all your bills exceed 40% of your income you will get denied. Not only that but in the past, once you got approved for a mortgage you were automatically approved for the insurance, the pmi. NOW bc of everything you ALSO have to get approved for PMI and even if you got approved for a mortgage you can get denied for this. PLUS its done by computer so if youre off by 1 point then thats it you cant get it.

My mortgage broker also told me about one of his clients, and how much problems he is having. Her uncle is signing for her house and he has MILLIONS In the bank and he cant get approved lol. He has good credit too lol, and he was willing to do way more than 20% down