California foreclosure "surge": Up 327% from '07 levels

[Dutter]

Originally Posted by bountyhunter

And you will until the day you die.

You people just don't get it: you spout the mantrah of "those stupid people should not buy homes until they are sure they can afford it." Under those guidelines, the vast majority of working class families will NEVER own a home and you won't either.

KNOW WHY?

Because as you rent you are simply burning money in rent, and your wealth will never accumulate fast enough to "catch" the housing market which is accelerating away from you. Every working class couple I know or knew with both parents working really had to STRETCH to get into a home, and that hasn't changed.

We were lucky having two good incomes and no kids, we were better off than most. We still had to raid every account we had, including our IRA's and borrow some from relatives. We made it into our house and one month later my company laid off half it's employees... but not me. We dodged a bullet.

The whole point of this thread is the arrogant, condescending neocon BS about how all these STUPID PEOPLE jumped into houses they couldn't afford... well guess what, about 99% of working class people in kali can't SAFELY afford a house and the only way they get into one is to bite off a big mortgage loan and pray for the grace of God. And working 20 years renting won't help, it actually makes them sink farther down towards the lower middle class range where they will NEVER afford a house.

And FYI, poor people can only get into variable rate loans. The lenders jack the "up front" points very high on fixed rate loans to keep people from getting them. We barely got into one.

If the banks qualified people for loans they couldn't afford, THEN BEAT ON THE BANKS. People are not finacial experts. If Chevrolet started putting defective starters and water pumps in all their new cars, would you blame the people who bought them for not knowing that ahead of time? Blame the greedy lenders if you want, but quit bashing people for buying houses with the only loans they could get into.

Last I heard, everybody was complaining that home prices were coming down.

So you were just lucky ?? Hard work, perseverance, EFFORT, planning had nothing to do with it ?

There is so much in your post and in your thinking (as far as I can perceive it) that is just plain wrong..........Take a deep breathe and have a cool drink, friend.

I invite you to move to Alabama....it's nice here !!!!!!

[afmo]

And you will until the day you die.

You people just don't get it: you spout the mantrah of "those stupid people should not buy homes until they are sure they can afford it." Under those guidelines, the vast majority of working class families will NEVER own a home and you won't either.

What a bold and judgmental thing to say to someone you don't even know. Internet anonymity at its finest.

as for california's job market, sure there has been an unemployment rate jump of 1.2%, but you also have to look at the total employment numbers, the overall labor force in california has grown by 1%. 1.2% increase in unemployment is based of current labor numbers compared to last years labor numbers at a smaller workforce., and the total labor force growth needs to be taken into account.

[robinsre]

Originally Posted by bountyhunter

If the banks qualified people for loans they couldn't afford, THEN BEAT ON THE BANKS. People are not finacial experts. If Chevrolet started putting defective starters and water pumps in all their new cars, would you blame the people who bought them for not knowing that ahead of time? Blame the greedy lenders if you want, but quit bashing people for buying houses with the only loans they could get into.

Yes I would, if it was outlined in the car loan paperwork "THIS CAR HAS A DEFECTIVE STARTER AND WATERPUMP"

After someone drove off the lot with it I'd laugh at their ass.

The fact of the matter is the terms of a loan are outlined in the paperwork.

I don't know how you learned to do business, but my old man taught me three basic principles :

1) Don't ever do business with friends or family, that you wouldn't do with a stranger.
2) Don't agree to spend more than you can reasonably spend.

and most importantly

3) If you sign your name to it...YOU BOUGHT IT..at the price negotiated.

They've worked pretty well so far.

This doesn't mean I don't have sympathy for people losing their homes. I feel bad for them. Life sucks that way. You took a gamble and "prayed for the grace of God" and you lost...guess it's time to move on.

It also doesn't mean it's time to dig into MY or anyone else's pocketbook to bail them out.

This applies equally to the banks that are lending irresponsibly. If you put someone in a loan you KNOW they can't afford, they bail, you reposess the house and can't resell it...TOUGH ****. If your bank goes belly up...too bad...so sad...use better business practice.

It's called capitalism. Those who can - DO those who can't - CRY.

[eric_t12]

Originally Posted by robinsre

It's called capitalism. Those who can - DO those who can't - CRY.

or you could do modern-day babyism, where those who can't - get heavily subsidized by those who do, for the kids/poor/sick/elderly/etc

[XDConvert9mm]

Based on past experience my guess is that we won't be hearing from ole BH in this thread again. He seems to "vacate" when strongly disagreed with, usually citing the fact that he won't debate with "Idiots or Morons" (read: anyone who disagrees with his opinions).

[Devil Dawg]

Seems that something I quickly picked up in Boot Camp comes to mind as "Spot On" in this topic.


You Signed the Mothertrucking Contract.........

I have empathy to a degree for the people involved in this situation. However I met a nice couple while on a trip this past week, and got a bit more insight on the overall picture.

Examples:

• You buy a house a few years or so ago for ~$250k. The "Flip My House" crap goes off like gang buster from the Canadian television shows. You take the little bit of equity in your house and risk it on an 2-28 Variable or Interest only 2nd to try to make out like a bandit.... .IDIOT....you are currently reaeaping what you sowed. NATURAL SELECTION

• You buy a house a few years or so for ~$250k. You bought well beyond your means to keep up with the "Joneses" because the lender over qualified you......You are both to blame again Natural Selection

• You buy a house a few years or so for ~$250k. You bought within your budget at the time, but the market insanity caused by examples 1 or 2 made your values multiply 10fold or more. You are now unable to afford the house and the bills while maintaining any kind of quality of life beyond simple existence....... I feel for you. We are all pulling for you and your family. Hopefully the government will stay the heck out of it. You are having enough problems without the "Help" of people who are only qualified to kiss babies for photo ops trying to fix the issues of High Finance.

If you are having troubles regarding employment, I can again empathize with you, assuming you didn't try making it quick and with an understanding of the inherent risks. If you are a hard working blue collar, or white collar caught up in the current debacle. My sympathies.
If you took risks on the market, high technology, risky ventures I had better not get stuck with the tab. You took this chance.. NATURAL Selection wins again.

[XDConvert9mm]

Originally Posted by Devil Dawg

Seems that something I quickly picked up in Boot Camp comes to mind as "Spot On" in this topic.


You Signed the Mothertrucking Contract.........

I have empathy to a degree for the people involved in this situation. However I met a nice couple while on a trip this past week, and got a bit more insight on the overall picture.

Examples:

• You buy a house a few years or so ago for ~$250k. The "Flip My House" crap goes off like gang buster from the Canadian television shows. You take the little bit of equity in your house and risk it on an 2-28 Variable or Interest only 2nd to try to make out like a bandit.... .IDIOT....you are currently reaeaping what you sowed. NATURAL SELECTION

• You buy a house a few years or so for ~$250k. You bought well beyond your means to keep up with the "Joneses" because the lender over qualified you......You are both to blame again Natural Selection

• You buy a house a few years or so for ~$250k. You bought within your budget at the time, but the market insanity caused by examples 1 or 2 made your values multiply 10fold or more. You are now unable to afford the house and the bills while maintaining any kind of quality of life beyond simple existence....... I feel for you. We are all pulling for you and your family. Hopefully the government will stay the heck out of it. You are having enough problems without the "Help" of people who are only qualified to kiss babies for photo ops trying to fix the issues of High Finance.

If you are having troubles regarding employment, I can again empathize with you, assuming you didn't try making it quick and with an understanding of the inherent risks. If you are a hard working blue collar, or white collar caught up in the current debacle. My sympathies.
If you took risks on the market, high technology, risky ventures I had better not get stuck with the tab. You took this chance.. NATURAL Selection wins again.

Very good post DD. Thank you.

[ForTehNguyen]

saw many occassion where some of these houses were purchased with no down payment. Are you freaking kidding me. No down payment (obviously a living paycheck to paycheck habit) immediately raises the BS flag that they couldnt afford it in the first place. Not that a variable rate mortage helps any better. A lot of people and lenders were stupid

[akhimark]

The contract was signed by both parties, bank and borrower. Depending on local laws, the borrower may have even been represented by a lawyer. The contract is legal and binding and clearly spells out the repsonsibilities of both parties and what happens when obligations are not met. The part that really upsets me is that our beloved politicians, in order to buy votes, believe they can void legally entered contracts between private parties. Constitution, we don't need no stinkin' constitution!

[Brickboy240]

Live within your means.

Save your money for a rainy day because someday, it will rain.

Read everything carefully before signing.

If it looks too good to be true...well, it probably is.


These are all things we heard our Grandparents tell us. You know..the WWII and Korean War generation. Many of you probably ignore these people and their outdated views...just a bunch of crochety old folks..what do THEY know about modern life...right?

Well, guess what...turns out that your Grandparent's advice STILL holds true today. Follow it as I have and the chances you will fall into the trap we see with subprime loans and other scams goes down in spades. Ignore it and live for the day and you're headed for a lifetime of misery and letdowns.

Many these days grow up without grandparents or even two parents...or one that has a coherent thought in their head - another tragedy for another post. You had nobody to tell you of these little rules of life and had to learn them the hard way from banks, mortgage companies and lenders that are looking out for thier tails..not yours.

- Brickboy240