Watching Suze on Larry King the other night...

[gamecock43]

I was watching Suze Orman on Larry King live the other night. He had her on the show to explain this new housing crisis development.

So a woman sent an email explaining that she still owes $77,000 on her home, she has excellent credit but doesnt want to pay her mortgage anymore. Will the govt be more willing to short sell her home than a bank? (now that the govt is buying the mortgages.)

Suze said "no- not with excellent credit." But I was just like "ummm-HELLO!" In a situation where our economy is crumbling, financial giants are going out of business and all can partially be traced back to the fact that people are not making their mortgage payments- would you want to capitalize on this new development and contribute to the problem?

That really just made me angry that someone would call into a show that was trying to explain the impact of all the actions of everyone who is not paying their mortgage...and try to see how you can contribute to the problem and get everyone else watching the show pay for your financial gain. Especially now that the govt is footing the bill. grrr....

[meatloafkend]

I agree. Especially with all the people who desperately want to keep their homes and want to pay their mortgages, an email like that is just plain disrespectful.

[Exile]

I agree. It's shameful that someone would want to cash in on something that contributed to the problem in the first place.

Having said that, how fair is it that the BIGGEST contributors to the problem of all, such as CEO's of failed investment companies are being rewarded with golden parachutes worth millions of dollars and no one as a condition of the $700,000,000,000 bail out is being held ACCOUNTABLE for what's happened in this decade that led up to this catastrophe? I thought conservative Republicans were big on individual responsibility. I guess that doesn't apply to their own, especially to President Bush, the the biggest failed CEO of all. Under his watch banks and investment companies that were able to survive the Great Depression failed under the deregulated Reagan/Bush-onomics. Yet have you heard Dubya or ANY of these hypocritical "free market" politician or exectutive scumbags step up to the plate and say "mea culpa"? Instead, you have the likes of Phil Gramm who was an engineer of deregulation and is one of McCain's advisors call America "a nation of whiners".

So at the end of the day, if some deadbeat wants to bail on a $77,000 mortgage, she's just following the example that the rich and powerful and our great leaders are setting. The only difference is that they will get away with it--because they can.

[gamecock43]

I thought conservative Republicans were big on individual responsibility. I guess that doesn't apply to their own, especially to President Bush, the the biggest failed CEO of all. Under his watch banks and investment companies that were able to survive the Greate Depression failed under the deregulated Reagan/Bush-onomics

Love that quote! I gotta pull that from memory sometime and drop that line next economy discussion I have with my conservative friends....

[kork13]

Let's be honest--everyone is looking for a scapegoat in all of this, and nobody wants it to be them. It helps their prez. bid, so they're mostly accusing Bush. Repubs are spreading the blame a little broader, hitting congress a bit, wall street alot, companies themselves.

Personally, I put the majority of responsibility on Congress over the last number of years (both republican- and democrat-controlled... btw, even when it's not controlled by one party, the difference is normally only about 5-10% of the seats, like in Senate, 55-45 or so. So everyone in Congress is "to blame"), then also on individual banks/mortgage companies for pressing loans people can't afford, on individuals (regular Americans) for being dumb enough to take on boatloads of debt they couldn't reasonably afford. Finally, on the "watchdogs" that are supposed to help keep people from doing stupid things.

In short, we're all at fault, everybody in the Gov't is at fault, and companies are at fault. Can we stop this ridiculous blame game now, with everyone trying to dodge the bullet?

P.S. Has anyone noticed that almost no politicians have laid any blame on all the Americans who got in over their heads and who are actually at the root of all this mess? Nobody wants to accuse voters of being wrong.

[cptacek]

Originally Posted by Exile

I agree. It's shameful that someone would want to cash in on something that contributed to the problem in the first place.

Having said that, how fair is it that the BIGGEST contributors to the problem of all, such as CEO's of failed investment companies are being rewarded with golden parachutes worth millions of dollars and no one as a condition of the $700,000,000,000 bail out is being held ACCOUNTABLE for what's happened in this decade that led up to this catastrophe? I thought conservative Republicans were big on individual responsibility. I guess that doesn't apply to their own, especially to President Bush, the the biggest failed CEO of all. Under his watch banks and investment companies that were able to survive the Great Depression failed under the deregulated Reagan/Bush-onomics. Yet have you heard Dubya or ANY of these hypocritical "free market" politician or exectutive scumbags step up to the plate and say "mea culpa"? Instead, you have the likes of Phil Gramm who was an engineer of deregulation and is one of McCain's advisors call America "a nation of whiners".

So at the end of the day, if some deadbeat wants to bail on a $77,000 mortgage, she's just following the example that the rich and powerful and our great leaders are setting. The only difference is that they will get away with it--because they can.

I think for once I agree with you. Mark it on the calendar!

[Exile]

Originally Posted by cptacek

I think for once I agree with you. Mark it on the calendar!

Give me a halleluiah, brothers and sisters.

[Like2Plan]

Originally Posted by gamecock43

That really just made me angry that someone would call into a show that was trying to explain the impact of all the actions of everyone who is not paying their mortgage...and try to see how you can contribute to the problem and get everyone else watching the show pay for your financial gain. Especially now that the govt is footing the bill. grrr....

gamecock43,
Wouldn't the lady be experiencing a loss with a short sale on her home?

[gamecock43]

If she short sold her home...she would not be getting a loss.

She owes 77,000...the house is worth 50,000 (hypothetically), and sells for 50,000... thats it. she moves on with a short sale. She will owe income tax on the 27,000 *profit* she got away with, but that is all. And her credit will tank.

If she put down a down payment- that is gone- but if she cant afford this house and is in this mess- I am guessing she used a 100% financing loan. So she lives in the house for however long...makes payments that are basically intrest payments...sells and walks away with nothing- but she put nothing into the home as well.

But the bank is out the full $27,000 that it paid to the previous sellers...plus all the intrest that it was counting on.