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<blockquote data-quote="The Other Side" data-source="post: 908766" data-attributes="member: 17969"><p>NOBODY is saying Clinton didnt want more home ownership, cause like I said, EVERY PRESIDENT from 1900 till today runs on that premise. The difference is, only BUSH went the extra mile to make changes that eventually collapsed the housing market.</p><p></p><p>Of all the failed mortgages since 2007, ALL OF THEM were written after 2002 and ALL OF THEM were written using the "new" guidelines for home loans created after 2002.</p><p></p><p>As I said before, the worst isnt over yet, as the 10 and 15 year interest only loans are yet to mature and those homes average OVER 500K each. Another misconception is that loans are failing because of unemployment, and thats not the case.</p><p></p><p>The largest percentage of foreclosures are persons who have jobs but cant afford the reset mortgage payments. Let me give you some personal history as a guide. In my gated community of homes built in 2004, the first phase sold for 189K. They sold out before the foundations were layed down. ( that means concrete moreluck) The second phase was 225K. The third 275K and the final phase 339K. In a matter of 2 years, my home almost doubled in value. In 2007, the area was selling close to 700K.</p><p></p><p>These prices were ridiculous, but realtors and mortgage writers were making loans in days to people who couldnt afford them. ALL the loans were some type of interest only loan and today, half my neighborhood is vacant. Of all the homes lost, everyone of them had jobs, the same jobs they started out with when they bought the home.</p><p></p><p>If came down to the balloon payment and the adjustment.</p><p></p><p>Today, our values are down to 335K and everyone who bought a home here after 2006 is screwed. Most cant refi, most cant ask for a modification because they make too much money, Most cant sell because they owe 600K+ for a home valued in the mid 300's. </p><p></p><p>What are these people to do? When the loans were written, nobody thought about the market crashing, and in addition, a majority of them took out equity loans against the homes and put themselves deeper in debt.</p><p></p><p>None of this happened under bill clintons watch. All the rhetoric in the world wont help to convince anyone of that. BUSH's vision of home ownership was taken a step too far. It wasnt all his fault. Builders, wall street, banks, appraisers, realtors, lenders and cities were all in on the scam. Once BUSH gave the green light, the "FREE MARKET" took over and ruined a good idea.</p><p></p><p>While I believe home ownership should be a part of america, I dont believe that people who couldnt otherwise buy a home be given a "cheat sheet" to home ownership at the expense of the american taxpayer. BUSH felt otherwise, using section 8 money for poor, low income, bad credit risk americans to own homes. All to the tune of 2.5 million. All those 2.5 million are now on the foreclosure list.</p><p></p><p>It was a big mistake. De regulation and greed took over. Now the rest of us pay the price for it. Its that simple.</p><p>Peace.</p></blockquote><p></p>
[QUOTE="The Other Side, post: 908766, member: 17969"] NOBODY is saying Clinton didnt want more home ownership, cause like I said, EVERY PRESIDENT from 1900 till today runs on that premise. The difference is, only BUSH went the extra mile to make changes that eventually collapsed the housing market. Of all the failed mortgages since 2007, ALL OF THEM were written after 2002 and ALL OF THEM were written using the "new" guidelines for home loans created after 2002. As I said before, the worst isnt over yet, as the 10 and 15 year interest only loans are yet to mature and those homes average OVER 500K each. Another misconception is that loans are failing because of unemployment, and thats not the case. The largest percentage of foreclosures are persons who have jobs but cant afford the reset mortgage payments. Let me give you some personal history as a guide. In my gated community of homes built in 2004, the first phase sold for 189K. They sold out before the foundations were layed down. ( that means concrete moreluck) The second phase was 225K. The third 275K and the final phase 339K. In a matter of 2 years, my home almost doubled in value. In 2007, the area was selling close to 700K. These prices were ridiculous, but realtors and mortgage writers were making loans in days to people who couldnt afford them. ALL the loans were some type of interest only loan and today, half my neighborhood is vacant. Of all the homes lost, everyone of them had jobs, the same jobs they started out with when they bought the home. If came down to the balloon payment and the adjustment. Today, our values are down to 335K and everyone who bought a home here after 2006 is screwed. Most cant refi, most cant ask for a modification because they make too much money, Most cant sell because they owe 600K+ for a home valued in the mid 300's. What are these people to do? When the loans were written, nobody thought about the market crashing, and in addition, a majority of them took out equity loans against the homes and put themselves deeper in debt. None of this happened under bill clintons watch. All the rhetoric in the world wont help to convince anyone of that. BUSH's vision of home ownership was taken a step too far. It wasnt all his fault. Builders, wall street, banks, appraisers, realtors, lenders and cities were all in on the scam. Once BUSH gave the green light, the "FREE MARKET" took over and ruined a good idea. While I believe home ownership should be a part of america, I dont believe that people who couldnt otherwise buy a home be given a "cheat sheet" to home ownership at the expense of the american taxpayer. BUSH felt otherwise, using section 8 money for poor, low income, bad credit risk americans to own homes. All to the tune of 2.5 million. All those 2.5 million are now on the foreclosure list. It was a big mistake. De regulation and greed took over. Now the rest of us pay the price for it. Its that simple. Peace. [/QUOTE]
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