Wednesday, February 25, 2009

$800,000 Mortgage to a School Bus Driver?

In this CNN clip, a school bus driver is living in a beautiful home she bought using a mortgage product that allowed her to not have to show income, ( the clip doesn't mention the husbands employment), and it sounds as though they got 100% financing. Now, surprise -surprise, they are getting pre-foreclosure notices. They say the bank made it so easy to get the loan, trying to lay blame on the bank and not on her ignorance and stupidity. Now they could have been sold a bill of goods by a mortgage broker that put them in a "Option ARM", a product made for well off, very money savvy folks that works best when someone is able to make lump sum payments when say they get bonuses or large commission type income. But to put someone in a mortgage product that has the possibility for negative amortization and a low minimum payment that doesn't even pay all the monthly interest with each payment, that is low and has hurt the mortgage industry severely. But this person, the school bus driver, had every opportunity to say "No Thanks", from the beginning of the contract process all the way to the end at the closing table. They signed the note and the mortgage, so guess what, they are responsible for what they owe, NOT US!

What could have been going through this person's head when they signed this note? And now, they have the audacity to say that Pres. Obama needs to stop the foreclosures, I say take the home now, while it still has that nice kitchen and cabinets and appliances. This video clip did not say that anyone lost their jobs or they had some big medical bills or anything of that nature, something that might allow a mortgage company to make an exception and modify the mortgage, it just shows her saying that they bought too much house.....GET OUT! Allow the mortgage company to take it back and sell it if they can to recover something, this borrower will never be able to pay it back. And I'll be damned if they take any of my tax money and stop the foreclosure from taking place. She and her family just need to vacate and find an apartment or house to rent for a while, there's plenty of home to rent now as well.

The mentality of this report just underscores the nonsense that is happening with the government intrusion in the banking and housing industries. As long as the Obama administration keeps sticking its head into the free market, it will not be able to recover because the banks and companies will just be wondering......what's next? Uncertainty in the market place concerning taxes or governmental policies were the biggest factor in the slow recovery of the "Great Depression" and it looks as though we are seeing the same mind set with this administration today. Let businesses fail, let individuals fail and let the market do it's thing and we'll see hard choices being made and dead wood cut so that the economy will become lean and healthy again. Obesity is not just a general population problem today, it's a economic and governmental problem as well, we all need to trim our waistlines a few inches.

1 comment:

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