Friday, November 30, 2007
Foreclosures
I'm not quite sure I understand why the government is having to step in and try to help people with their mortgages. These individuals are the ones that took out loans that they couldn't afford to buy a house that was being sold for way more that it was worth. Now the government is having to try and rescue these people. Doesn't sound right to me, what's your take on it?
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6 comments:
My take on it is that the interest rate was lower when they agreed on the mortgage. Now interest rates have risen, which in turn makes their payment higher than it was when they first bought the house. That is why the FED keeps stepping in to lower the rates. I may be wrong, but this is from what I understand. Feel free to correct me.
no, you're correct.
In addition to the previous comments, the government knows that we are potentially facing an economic crisis.
If they sit by idling twidling their thumbs, things could get real bad.
But your posting has a certain theme that taken at heart is probably correct. I also think people over extended themselves, probably at the doing of the real estate and banking industry, and are now paying the price.
You may say people were stretching themselves too far, but it's these same people that were buying and spending that made the economy boom in the first place. The people that sit at home and say well I am not going to take any risk of losing my money is bad for the economy. The more you spend and buy the more it helps the economy. If you ask me they weren't just helping themselves they were trying to help the economy so as reward for their efforts they should receive something. Cause I'd be too scared to go out on the limb like that myself. Gambling like that just isn't my forte, but someone has to win and someone has to lose that's how it works. When everyone is losing that is when things get really bad.
I dont belive the government is helping rescue these people. They are helping to get these people a bigger audience of buyers to buy thier houses. The governent will make a profit when helping the individuals as you say "seeking help."
That's what it is. First time home buyers sign contracts with an low intrest rate, and 12 to 36 months later the rate goes up and it becomes to much to handle. But that what I've been told by a few people. So in some cases it is necessary for the government to give a helping hand when it's needed. After all they do spent money on other dumb stuff, they might is well help out U.S. citizens.
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