Wednesday, February 27, 2008

Change We need to understand II

Another Excerpt from Mr. Obama's speech:

We're here because of the mother in San Antonio that I met just today, just this afternoon. She's got 2-year-old twins who are legally blind. She somehow entered into a predatory loan and saw her mortgage payments double in two weeks and has paid thousands in fees to try to stave off foreclosure.

She told me she was on the verge of packing and didn't know where her family would go next. She needed us to crack down on predatory lenders and give relief to struggling homeowners who were tricked out of their dream. She needs change today.

It's nice to see that Mr. Obama is only motivated by altruism and he decided to run for president because of a chance meeting with a complete stranger who gave him a sob story about losing her house. It's hard to believe his motivation for running for president is a serious of chance meetings with young single mothers who are down on their luck. I'm also wondering what a married father of two is doing hanging out with random single parents who are down on their luck. (sorry about that but I took a page or the New York times "reporting style" there)

So what is the action Mr. Obama is suggesting here. "She needed us to crack down on predatory lenders ". Interesting dilemma here. As far as I know sub prime mortgages are legal and have been for some time. They are not a great idea unless you plan to refinance your house before the high interest rate comes around, that is why you don't ever take one with a high penalty for early payment. So if I read this right, Mr Obama wants to take legal action against a company that did not break any law.

This is my problem with Mr Obama and liberals in general. They think all injustice must be righted by the Gov't. Instead let free enterprise and capitalism takes it's course. If anyone is paying attention, these predators are quickly going out of business and the idiots who bought these loans are losing money hand over fist. I would be very surprised if any Loan purchasing company will ever buy a mortgage like this that was given to someone with bad credit. If they do, then they should go out of business. But not to jail unless we want to make those kind of loans illegal. Then once it is illegal, all loans after that should be prosecuted. But prosecuting organization that gave out those loans in a legal manner, hmmmm....

Then he suggests we should provide relief. What is relief. Hillary wants a moratorium on foreclosures. So now they can stay in their house for another 6 months to a year with out paying rent. What happens after that? IF they can't afford their loan then what is going to change. Should we now pay the rent of anyone who didn't understand what they were getting into and can't afford their house. That sounds good to me. There is a $750,000 house I've got my eye on. I can't afford it but maybe they will give me a sub prime loan and in a few years I can't get the Gov't to pay for my mortgage. It's painful but it's time people took responsibility for their actions. Being Tricked is a poor excuse. There are tons of documents you are strongly encouraged to read before signing and tons of information on the Net and lots of advice you can get. This is one of life's little lessons that people need to learn from. Be careful when you get a loan or buy a house. Understand what your obligation is under the law.

Barrack is promising change. However, I don't see how keeping people from suffering from their mistakes is change from what the Liberal Democrats have been promising for years. However, to prosecute someone for a law that was made after the person committed the crime would need a change to the constitution. That is against the Constitution. So that is change, I don't think it's a change I want.


philip_tucker said...

Yeah, I have trouble getting worked up over the "mortgage crisis", too.

1) You borrow money with some form of collateral (in this case a house) and agree to pay the money back.
2) You don't pay the money back.
3) You lose the collateral.

This isn't rocket science, its the consequence of living in debt.

Now, if you were lied to during the process of financing the house, you might have a class action lawsuit on your hands. But until you demonstrate that, the house belongs to the bank.

philip_tucker said...

I like this part too:

She somehow entered into a predatory loan

somehow? I don't know about you, but buying a house (I've done it twice now) was one of the longest most grueling processes of my life. I don't think it sneaks up on anyone.