1.

This man must be stopped. There is no way we should pay for these flippers and cash-out refinancers mistakes. NOBODY deserves to own a home.

2.

I agree. Why should my taxes--which should go to important things like infrastructure--be wasted on homeowners who purchased above their means, many of whom lied about their income on their application forms? That's insane. But then, we're talking the CA legislature, the majority of which are certifiable, anyway.

We never bailed out homeowners in the last several crashes--given the circumstances surrounding this one, there is NO NEED to do so here.

So, you lose your house because you had unrealistic expectations about future increases? Not my problem. People need to take responsibility for their actions and not dump it on the rest of us who weren't as foolish.

3.

Hear, hear. Or here, here. Or whatever combination thereof. NO PUBLIC MONEY for this.

4.

What is the sub prime mortgage crisis? Lending institutions started making loans to borrowers that previously did not qualify for a variety of reasons:

1) Poor Credit (low Fico scores)
2) Could not verify the income that the borrower claimed they made
3) Little to no down payment

These buyers were not considered prime (i.e. sub prime)

So the lenders decided that more people could get loans if they loosened their criteria... so some borrowers with poor credit and stated income (oh stated income is when the bank asks me how much I make and I tell them $1,000,000 and the bank accepts that figure without verification) and little to no down payment AND if the payment is still too high the borrower could just pay interest only (which means a 30 year loan never gets paid off) AND in the meantime the lending institutions revisited "negative amortization" where the loan balance increases instead of decreases AND by the way when you owe 125% of the original loan balance it is time to pay the piper....

If you are interested or if you are having trouble or need more specific information, here is some good information:

If you are having difficulty paying your mortgage
http://www.realtor.org/subprime_lend...nly%202007.pdf

Shopping for a mortgage
http://www.realtor.org/files/governm...nding_text.pdf

Risks and advantages of "specialty mortgages"
http://www.realtor.org/files/governm...ialty_text.pdf

Traditional Mortgages
http://www.realtor.org/files/governm...ional_text.pdf

5.

I completely agree with the above posts. Why should my tax dollars go to bail out people who made bad financial decisions? I certainly do feel bad for anyone who loses their home, but my partner and I have wanted to buy a home for over 3 years, but have held off because they only way we could afford to do so was with these risky loans. Now that those loans are proving to be as unwise as we thought, and home prices are starting to come down to where we might be able to afford one due to slow sales and foreclosures, this guy (and sadly many others) want to prop things up with loans to people who made bad financial decisions. Infuriating!

6.

Well, failed homeownership can seriously damage a neighborhood; abandoned properties are one of the most attractive of nuisances. That negative externality needs to be addressed.

That said, only owner-occupants should receive any sort of help. Flippers who got pantsed can go fuck themselves.

7.

I also agree. Its because of people buying homes so quickly (that they couldn't afford initially ) that real estate in Los Angeles as a whole has become unattainable for so many people with good credit like myself.

When I look at graphs to where an average home in my decent LA neighborhood has gone from just under $200k to $700K in 3 years, who can prepare for that shock? Nobody! Just when you had a descent amount saved up for a down payment (in my case, $30K) you get smacked with the down payment almost being the price of the freaking house!

Its because of situations like predatory lenders and poor credited people doing this business that the prices have gone up so fast. I think bailing these people out would be horrendous.

8.

I agree. No public money. Personal responsibility. Free market.

and while we are at it, let’s get rid of rent control and relocation allowances so the market can decide.

9.

This man is not protecting the homeowners - HE IS PROTECTING THE BANKS from going broke from their own reckless lending, PAID FOR BY INDIVIDUAL AMERICANS!!

10.

Alarcon's district, East Valley, is rife with foreclosure signs. I know of two friends who live in that area and when I visit, every other house had a foreclosure sign. But then again, they said the neighborhood is quieter and safer than before. Foreclosure Theory of Crime Control. Take that Broken Windows!

11.

Echoing everyone on the comments,Alarcon is a fool. And relax, based on the giant uproar here on these boards it wouldn't pass at all. So it's NOT going to happen. It would reward lenders for risky practices. Banks and other institutions are going to have to feel it to change. In addition, they'll do a cost analysis of this and figure that they can work it out with these borrowers without foreclosing. In addition some of these foreclosing numbers are skewed. Not saying it ain't happening, but some people are being count at every step of the foreclosure process.

Oh, and brace yourselves, it's going to get worse. I predict more than 30% fall in home prices for some areas. Start saving the cash, you'll need it.

Big Mo

12.

Snigger. No, not epicariacy but laughing at nouveau arrivests . I will type slowly so that even Councilmembers can follow along: There is NOTHING that can stop the mortgage and ultimately home price implosion that is underway. It isn't interest rates nor even subsidy. Home prices are too high. There is only one fix. Keeping home prices high with subsidies and bailouts is not it.

There is sometrhing that can be done; lower taxes. Instead of 1% go to 1/2%. Many of the most impacted will benefit most. Oh? What's that? Their salariy and perks and power comes from those revenues? Well scratch that stupid idea.

13.

I agree with Big Mo, except the implied assertion that readers of this blog are representative of Alarcon's constituents. Not to be aristocratic (forfend!), but I'd guess most readers/posters here are a bit more savvy and educated than many of those who bought into the real estate crazy of the past few years via risky loans. But perhaps I fool myself...

14.

I echo the above sentiments - no bailouts for irresponsible people. Market needs to correct itself. Where's the petition, I wanna sign!

15.

#12. There are other things that can keep some home prices high, they are just unlikely. Increase in wages to keep wage:home price ratio similar, change in US and foreign currency, and change in ratio of foreigner:native buyer ratio using an increased purchasing power of their foreign currency, just to name a few.

16.

#12 - also, nobody in america can lower taxes. Instead, politicians lower taxes and at the same time print more money behind our backs to compensate. So, lowering taxes in this day and age is a myth.

17.

Rob Dawg hit on something, maybe Alarcon and many other politicos are fearing the loss of some of their revenue base. If you look at it, they've been a beneficiary of this boom as well with higher property taxes.

18.

none of these asshats should recieve shit from tax payers/govt.!

this is RE-FUCKIN'-DICULOUS!

what ever happened to personal accoutability?!

19.

Don't Just Complain Here... Start Calling this idiot to express your frustrations. What a F*cking Idiot... and the people who bought when they couldn't afford are Fu*king Idiots too.. no pity here...

CONTACT INFORMATION
City Hall Office

200 N. Spring Street
Room 425
Los Angeles, CA 90012
(213) 473-7007
(213) 847-0707 Fax

Pacoima District Office
13630 Van Nuys Blvd.
Pacoima, CA 91331
(818) 756-9115
(818) 756-9270 Fax

Sylmar District Office
13517 Hubbard St.
Sylmar, CA 91342
(818) 756-8409
(818) 362-4857 Fax

You can contact Councilmember by E-Mailing at Councilmember.alarcon@lacity.org

20.

There are other things that can keep some home prices high...

Surely but they aren't within the powers of thy Lord Alarcón. Nay verrily, thy Lord Alarcón mayest, should he be so generous, couldst lower thine tax and thus do more goodliness than all other solutions thus combined.

21.

Hey Scott (#7) $30k will never be enough for a down payment in southern california unless you find a condo somewhere for $150k...

as for all posters who say a bailout of the lenders could never happen... what do you think happened with the Savings and Loan implosion in the 80's? Government bailout of epic proportions... its gonna happen in some way shape or form, mark my words.

22.

I think Alarcon' is great. I bought my home for $150K and as home prices rised to $600K I kept refinancing my house to purchase my new car, my pool, new windows, home theatre and travel all over the world. Now I can't afford the payments on my loan and I am in jeopardy of losing it. This money from Alarcon is a god-send and comes at the right time.

23.

All this time I've been wondering how so many people could afford such expensive homes while I'm leery of moving to a more expensive apartment. Now I know what I've been doing wrong: living within my means!

Where were these concerned politicians when these risky loans were being given to people who knew they didn't really qualify?

Add me to the choir - personal responsibility, do not make me bail out these institutions and irresponsible homebuyers, etc.

24.

I've got a solution! Give these cash-strapped homedebtors some basic financial instruction and then help them find rentals they can actually afford. After all, the cost of renting pretty much any given property is about half to 1/3 the cost of ownership.

Helping banks continue to enslave them to these overpriced crapshacks they all bought (or refinanced to death) in a fit of entitlement would be really, really great...for the mortgage companies.

I love that nobody's arguing that there isn't a bubble anymore. Clarity! Hurray!

25.

If our representatives must give out money, I vote they subsidize those of us who were responsible and didn't buy into the bubble regardless of our options to buy at zero down, interest only, teaser ARMs. At least we haven't proven ourselves irresponsible yet - unlike those that do need the bailout.

26.

If people want to learn more about the devestating effects of bailout and the hidden tax known as inflation, read The Creature From Jekyll Island (amazon.com). Its a history of bailout in america, and will open your eyes to the way our monetary system really works.

If the government does NOT bailout these banks and individuals, start pouring your cash into equities because after the correction, will we see a bull market like we've never seen.

27.

Alarcon is the political equivalent of an ambulance chaser. I wouldn't take anything he says very seriously.

28.

#24 - by the time "everyone" has accepted there is no longer a bubble, it will be past the bottom of the next cycle. Main St. investors are always late to the party.

29.

Speaking of a bubble, here are the latest Dataquick numbers for all of CA:
http://www.dqnews.com/ZIPCAR.shtm

Congrats to everyone who bought a downtown condo last year. Prices in downtown L.A. are -- indisputably -- down 10% YOY.

30.

The only question remaining is: just how far will home prices drop? A stubborn 10%? Or a more embracing 50%? Which will it be? Anyone have any thoughts?

All I can say is, we need another mass migration of people out of California like happened 1990-96. Cue the riots!

31.

People who use actual sale prices to calculate home value changes are idiots. (#29) Maybe more cheap or small condos sold in DT last year, so the median price decreased. DUH.

Only way to judge is by VALUE, or $/sq ft. In that way, does not matter the size, only the intrinsic value of any given space.

32.

Help out the (conned) individual homeowners and then sock the shit out of the predatory lenders with HUGE FUCKING FINES.

33.

Sadly many here may be missing the demographic consequences of this latest bubble bursting. The 70s & 80s middle class mostly white many two earner families in high tax brackets are bailing. Not because they are white or even unhappy or uncomfortable but because State and municipal policies are all but holding a gun to their heads and telling them they are stupid to stay. Same things happened in Taxachusetts 25 years ago as well.

Home prices are the problem. All else is ephemera. Understand, only home prices can fix an affirdability problem this time. Some people are hoping for inflation but no, adjustable rates closed that door long ago.

34.

I agree with many posts here. A bail out is irresponsible by the government

People did this to themselves.

But is anyone shocked that a politican would suggest this? he's pandering or wanting to get something out of it..

A US taxpayer-relief package aimed at refinancing existing debt at lower government subsidized rates - wow, wonder who profits from that?

it's crazy - an economy just can't function when the method of fueling growth or perception that 'economy is strong' is when have consumers keep buying on borrowed money and credit,of which, eventually they can't afford. Sooner or later the consumers default - This isn't accumulated "wealth" - these are only debts.

and for those that bought at right time and sold at right time, that's great for them. Those who are selling, many are waking up to a very unpleasant market.

when median home prices are 10X the median income, that's just not a good thing

oh well, i guess all the jet-setters and paris hilton wannabe's can buy up the property in LA to sustain these inflated prices and Senior Alarcon can propose bail-outs for the fools who didn't do their due diligence.

on a side note, 38000 workers have lost their jobs due to the sub-prime debacle.

and yah, LA prices never come down

35.

I know you were just "joking" Scott Mercer when you said "cue the riots" but there is a lot of glee at other people's expense here. Wouldn't it be great if the gov't just dropped a neutron bomb on L.A. while I was out of town for the weekend? When I got back I bet home prices would be real low. I am sure everyone who would die had done SOMETHING wrong at some time so they would DESERVE it. I haven't overextened myself or made any risky decisions trying to "live the American Dream tm" and therefore deserve to profit now from their sins and loss.

36.

"Cue the riots" is code for a three sigma event. Something extraordinary. Earthquake? String of employment shocks? Firestorm? Doesn't matter. And don't discount riots. The recent mania has disproportionately benefited minorities in the homeownership arena. Any decline is sure to be highlighted as being unduly tough on minorities. The LATimes is great at asymetrical reportage.

37.

travelingman:

FWIW, there was a time in America's history when someone said, "Home prices are at 3X the median income - thats just not a good thing."

And by the way, money=debt. If all debts were reconciled, there would be no money.

38.

My baseless prediction:

Next stage is developers buying up neighorhoods of distressed SFHs to tear down and replace with multi-family 'affordables.' It will make the whole thing seem like a plan . . .

Dawg, the idea of young thugs braining unlucky truck drivers because of a drop in real estate value gives me a chuckle. thanks for that.

39.

#37 - Joey

That anectodatal note is probably correct though the difference in this case is that 10X is unsustainable whereas 3X which may have been viewed as imprudent is manageable - you can't sustain this level of unaffordability

for those who hope prices to remain, so be it..i just think when you start taking out chunks (of course not all, but pieces) of the buying market (less speculators, less flippers, less 1st time buyers, less going to bigger homes) - those prices can't be maintained

I have mixed feelings about the a hard correction and pain that'll cause but at end of day, a correction is needed and i hope there is no bailout

40.

#37, "FWIW, there was a time in America's history when someone said, "Home prices are at 3X the median income - thats just not a good thing.""

Was that perhaps back in the day when the median household income was earned by only one person? I think it was. It's a pretty sad commentary that 3x one person's income could buy a home back then and today, in LA,, it's about 10x a two person income, don't ya think?

41.

Next stage is developers buying up neighorhoods of distressed SFHs to tear down and replace with multi-family 'affordables.' It will make the whole thing seem like a plan . . .

I'd say "count me in," but the most distressed areas are the ones that need multifamily housing the least.

Now, if I could get some financing together to buy out the Tract 7260 Association...

42.

#19 has the right idea: email/call the fool Alarcon, all the numbers/emails listed.

PLUS complain to the L A Times, urge a feature on the guy. ALARCON IS A COMMUNIST. The Daily News has over a hundred negative comments from readers, haven't seen one positive, since the impending foreclosures in his district he's so worried about are virtually all from non-English speaking Mexicans (illegals, too?) who just didn't understand their loan contracts.

That's not bias: at this "emergency meeting," of the two "representative" people he had in to speak, one was a "monolingual Spanish speaker," in other words, a guy who couldn't speak any English. His "excuse" for signing his loan was that he didn't understand it, because it was in English. (The other guy was just an idiot.) Well, guess what?

English is the lingua franca in this country, and if you can't understand it, get a translator. What kind of idiot signs something he can't understand?

This "representative" borrower should learn common sense -- and English -- and maybe can benefit from the educational programs Alarcon is talking about.

But IF in fact the loans were "predatory," as they claim, get the feds to go after the banks; there are also class action suits being planned. IT's NOT the responsibility of those of us who don't borrow more than WE can afford. My parents were immigrants from Europe, and they scrimped and saved to buy a modest house WITHIN THEIR MEANS.

As a small matter of practicality: If these people can't afford to pay back the banks, how will their borrowing more money help? No doubt they'd default. So we'd subsidize idiots AND the banks?

43.

Susan-

Don't worry hon. Soon all those dirty idiots will be gone and you can finaly own the place of your dreams in Palmdale. Would you give me a call, though? I was wondering if you or your husband would be interested in cuttinng my grass, cleaning my house or taking care of my mom who is an a nursing home? (I am willing to pay $9 an hour which will be enough to pay your new mortage after the bubble pops, I promise).

And I totally agree. What kind of idiot comes to this contry with dreams of making their lives better and then expects the government to provide basic protections for consumers? IDIOTS! Don't they know that we only protect corporations by doing things like making it harder to go bk? IDIOTS and COMMIES! Let em rot. Just get em out of their houses so I can buy one before the corpses start to stink!

Thanks, dear.

44.

annon of 2:46

Nice. Turn a housing and economic policy discussion into your personal and annonymous rant on what you perceive as racism and classism in other people. That in itself is and is the only example in this discussion of racism and classism.

45.

"What kind of idiot comes to this country with dreams of making their lives better and then..." signs a bunch of financial documents they don't understand a bit of?

What kind of idiot thinks the government is here to protect them from their own stupidity, and that therefore they can be as idiotic as they want, only to be bailed out with MY tax dollars?

46.

NOBODY understands their loan docs because nobody reads them. You start down the road with a lender and by the time you get loan docs it is too late to go elsewhere and its not as if the lender would be willing to change any part of the loan docs if you disagreed with any of the language or terms. Take them or leave them. We trust in the lender to play by the rules, not bait and switch or be deceptive. I once got a purchase mortgage from a broker and when I got the docs 3 days before close there was a 2 year lockout. My choice was to find a new lender and loose my 1031 exchange or go with the lockout. I will never use the broker again but I am sure other people have had similar or worse experiences. The government does not to help owner occupants. Class action suits only help the attorneys who bring them.

47.

#46, everyone is responsible for looking out for themselves. I *almost* bought a place earlier this year and I made sure to read every last word of my loan documents, all 75+ pages - I made sure my lender knew that I wanted everything in advance of my loan contingency ending so that there could be no bait & switch. Everyone should be their own advocate rather than playing ignorant victim.

And I say all this as a would-be first time buyer so it's not as if I've got all this advanced knowledge in buying, just enough common sense that I know I should read what I'm signing.

48.

#46 - Plan Dan

I had a comparable experience in that the broker sent me the loan docs but there were paragraphs missing; pages cut off; typefont that was illegible (and this is a big brand name bank, not some small S&L)- I totally lost confidence in broker

after that experience, I read the documents or send them to a lawyer (if you work at a company with a EAP, they provide legal referrals and you can find cost-effective but valid legal advice - we got a great deal on a legal review of a mortgage situation) - best $600 i paid as I walked from the deal...

i support legal immigration (being one, though granted to the dismay of some posters on this site), but english is the language of contracts - if you don't understand it, don't sign it

49.

It is so lovely to here the spirit of Ayn Rand alive and well in the Curbed comments section.

Not only should we let these people get kicked out into the street, we should have them arrested for offending our self righteous, complaining, little souls.

If one of these paupers dares to step on my lawn - he/she will have hell to pay. No tax dollars to prevent a larger underclass from forming!

Coming next: "A Modest Proposal: For Preventing the Children of Poor People in Van Nuys from Being a Burden to Their Parents or Country, and for Making Them Beneficial to the Publick"

50.

Thanks #43 for your response, well said.
#42, yeah, maybe folks shouldn't get "help" but there's no need for Mexican bashing or making assumptions about people's legal status. By the way, the Spanish language came with the first Europeans and has been spoken for hundreds of years in California, before English even.

51.

#49
Read my comments in #24. Bailing these people out so that they can continue to be debt-enslaved only benefits the mortgage companies, and rewarding them for foolish financial behavior only reinforces their ignorance and, yes, greed. Find them suitable rentals and given them an education in "what not to borrow".

52.

^ fuck ayn rand -she's irrelevant here and i told y'all bout downtown sucking too!

53.

i just emailed councilman Alacron and kindly directed him towards this site! :p

asshat.

54.

#53, great idea. Maybe we should do the same for all our Representatives. And perhaps to our potential presidential candidates. You know, just to ward them off from doing the same.

Seriously, good going.

55.

46:Nobody reads them? *I* read them. I read the purchase contract as well when i made my offer. In fcat, i distinctly remember the stunned and exasperated look on the face of my realtor when, after he gave me a "few minutes" to review the purcashe contract and then came back and asked if I had any questions and I said "I don't understand line 4 of the second paragraph on the first page." Is at there for over an hour, maybe two hours (it was ten years ago) reading it line by line and asking questions of EVERYTHING I didn't understand. I did the same with loan and refinance documents. Do you want to know how awful it was for the poor salesman who signed my wife and I for cell phones???

As for the Alaraon. Recall anyone?

56.

I would be personally OUTRAGED to learn that city money is going to bail out homeowners who took on mortgages that they could not handle while THE ENTIRE WORLD talked about how this was going to happen. THESE FORECLOSURES ARE NOT A SURPRISE. The entire world has been writing and reading and talking about these mortgages.

When you default, you default. You lose your house. That is the consequence of defaulting on a mortgage you signed.

The tax money of those who didn't choose to take on a mortgage they couldn't afford while being priced out of a falsely inflated market should absolutely NOT go to bail anybody out.

Again, it's been absolutely EVERYWHERE that these mortages were happening and that mass defaults were coming. You couldn't do ten minutes of research on mortgages in the last few years without reading about it.

If you can't pay your mortgage, you need to sell your house and move, not look for a tax-funded bail out.

57.

I totally agree! Nobody should get bailed out! Let them all burn! We don't need to spend tax dollars on these peasants! We need more security cameras trained on them, to keep them from pilfering.

Uh oh, it looks like the Federal Reserve disagrees with you 'tards:

http://tinyurl.com/2s4kbl

I'll give you the lead paragraph from this Forbes article:

"Responding to credit crunch fears in the stock market, the Federal Reserve of New York said Friday it would buy a total of $38 billion in mortgage-backed, Treasury and agency assets to inject more cash into the banking system."

What are you hateful little grouches going to do now? The government has already spent your precious cash-ola helping banks out of their poor investment choices. So, why do poor people in Pacoima have to suffer from some Wall Street douche bag's greedy miscalculation?

Does having your neighbors turned onto the streets, with their young kids, make you feel good about the future? Where does all this idiotic, misplaced, venom for other people come from?

58.

#57, "Does having your neighbors turned onto the streets, with their young kids, make you feel good about the future? Where does all this idiotic, misplaced, venom for other people come from?"

They should have cared enough about themselves and their families before "buying" - they didn't give a s*** about thinking about how they were going to pay these loans back so why should we give a s*** about the consequences. Irresponsible behavior reaps consequences - they'll go back to apartment living, they'll survive.

So how far underwater are you?

59.

Looky Loo,

I rent, bee-otch.

Way to look out for your fellow human being. I am sure that having a large un-housed underclass doesn't bother you in the slightest (what with your stockpiles of Hawaian Punch and large caliber machine guns) - but for a lot of us, our lives get worse when our neighbors lives fall apart.

Those POS banks who repackaged bundles of loans, and sold them as securities are getting bailed out. They were irresponsible in handing out money - and they are getting bailed out by the Federal Reserve. The havoc of their lending practices inflated prices and put people in homes they couldn't afford.

By turning people into paupers you will make them cost us more in the long run - they'll have dumb kids, they'll have more medical problems requiring emergency care, they're likely to commit more crime, and less ability to pay back the amount of money our society spends on them. Who wins when people have their lives destroyed? In this case the Wall Street bankers.

Get a sense of priorities already.

60.

They, the soon to be "paupers" (your word, not mine) drove prices up to the point at which housing has become unaffordable to 97% of the population of Los Angeles. They should have lived within their means, saved money like the rest of us and bought when the time was right.

My priorities are straight but I will not in any way, shape or form support my tax dollars being used to bail out people who bought above their means, irresponsibly. That's bullshit.

You can cite as many examples of the Fed bailing out Wall Street as you wish but that doesn't make it right to also bailout home"owners" - two wrongs don't make a right.

Had these people been respnsible, the unaffordability of LA real estate wouldn't be where it is today. If you bail these people out, are we going to bail out everyone who is priced out of owning homes as well? Is the government going to subsidize home ownership for the 97% who are priced out of the LAX market? Or do you prefer that the only people who can afford to buy LA real estate in the future be foreigners due to further devaluing of the US Dollar?

As I said before, irresponsible behavior reaps consequences.

61.

Hey ubrayj02; you're projecting a lot of your own crap onto us posters who are totally against this kind of extreme socialism ok! No one on here ever made a general blatant statement about who these kinds of ppl defaulting are! IN fact, if you knew anything about Real Estate, a lot of these morons are ppl who tried to get in on the action by getting 2nd or 3rd homes to rent (renters dried up or never came and they're stuck w/ the mortgage) and ppl who thought they could flip homes easily but are still sitting on these unsold houses. No body ever called anyone peasant or pauper or whatever, b/c in fact the stats don't show that at all so quit your projecting and get off a site you know nothing about! :)

good bye

62.

K PPL CHILL OUT - did you text your post using you cell phone? Congratulations, you tech wizard.

For the record - I used the title of a famous satire by Jonathan Swift to demonstrate that I was mocking those who want the swift justice of "the marketplace" to kick people out of their homes.

The banks who initiated and packaged these loans were just as greedy and insane, if not moreso, than the homebuyers so many Curbed readers have so little patience or symapathy for. Yet the banks get their bullshit mortgage backed securities bought up by the Federal Reserve (see the Forbes article I cited) to cover their irresponsible asses.

If it is good for the goose, it is good for the gander, homie. I'd rather see my neighbors bailed out that some New York six digit earning asswipe. If thousands of families are cast out of their homes, and their credit is ruined, then we will have yet another serious problem on our hands.

My point is: it is cheaper for us to take care of each other, as evidenced by the Feds move to cover the lily white asses of their wall street bank buddies.

Alarcon's proposal is not irresponsible, or a "waste of money" - it is an attempt to tackle the problem that several thousand newly homeless families in his district represent.

F**king n3wb.

63.

Look, take two potential homeowners. Both are offered mortgages they can't afford, with payments that balloon in five years. Potential homeowner one makes the responsible decision that this questionable mortgage with payments they won't be able to afford in five years is a bad decision. They realize that they can not afford a house right now. Potential homeowner two takes the mortgage.

Home prices falsely inflate due to these mortgages and EVERYONE EVERYWHERE talks about all the homeowners who are going to default in five years.

Five years later our second person - now a "home owner" defaults when the payments inflate. In fact, a lot of people do. NO ONE IS SURPRISED.

Now our homeowner wants a bailout.

Meanwhile, potential homeowner two is still renting and hopelessly priced out of the market.

Yeah, seriously, if you got into a mortgage that you couldn't afford, what happens is, you lose your house. You go back to renting. You join responsible potential homeowner who never got to live in a house. And with any luck, the market corrects somewhat. Anything else is rewarding you - paying you - for being fiscally irresponsible. And that is completely unacceptable.

If you can not pay your mortgage, you lose your house. This is not rocket science.

A bailout rewards fiscal irresponsibility and unethical lending practices. Sorry, but I can't get behind that.

64.

it doesn't make sense to a logical person to obtain a mortgage w/ payments higher than your rent (ie what you can afford); you're right it ain't rocket science and i'm not someone's mommy who's going to wipe up their shitty ass!

ok so bye newb, and why do you think ppl are posting via their phones on this site? jeez whats your problem?!

65.

so now everyone who makes a big fuckin' stupid mistake should get free help from the govt.?! No sorry, this is america, it doesn't work that way and thats how i like it ubrayj02 !