Another reason for the Bailout mess.

[robertoh]

There was a Republican Congressman on Fox today talking about the Bailout and said the Bailout would also pay for over 300 to 400thousand(set down for this) homes abandoned by Illegales who had bought them the past few years and because of ICE and other immagration agencies clamping down on Illegales have left the homes:whistling to return to their countries. Nothing about this from our other members in Congress or the MSM you'll notice. It just gets better and better.:whistling:

[CAcop]

Those homes though should be easy money for the banks that floated the loans. No one to fight the foreclosure. Just take them and sell them. The only problem might be if they were worth more with someone paying a mortgage for more than the house was worth. Even then if the former owners paid enough into the mortgage they might break even.

The real big killer right now are all the loans made to people who should not have been buying houses or as big of a house. Banks made money off of making the loan but it was unsustainble given the market.

An aritcle in my local paper was all about a couple trying to save their house. (I'll provide the link if anyone is interested) Then reading the details of the story they had a mortgage on $750K. They had gooten a house from mom when she dided. They took out a second on the house to finanace property and building a new 5 bedroom house. She works as a laborer in a cannery (or did on disability now) and he was a construction worker (no work now because house values are cut in half where they live and work). Both jobs are honorable jobs but they are hardly secure jobs. She was likely to get hurt do to repetative tasks and construction has its ups and downs outside of the economy. Then they overextended themselves. They could have easly stayed in mom's old place or sold it for a down payment on a modest 3 or 4 bedroom house and had a mortgage they could work as greeters at Walmart and make.

America: the land of chamagne lifestyles on beer budgets.

[Sam Spade]

http://www.youtube.com/watch?v=H5tZc8oH--o

[lovette]

Klinton's part of the subprime mess (http://query.nytimes.com/gst/fullpage.html?res=9C0DE7DB153EF933A0575AC0A96F958260&sec=&spon=&pagewanted=1)

"Fannie Mae is taking on significantly more risk, which may not pose any difficulties during flush economic times. But the government-subsidized corporation may run into trouble in an economic downturn, prompting a government rescue similar to that of the savings and loan industry in the 1980's."

[RenoF250]

I think there are a fair number of folks that bought a house for $200k that appreciated $450k and they cash out with a interest only adjustable mortgage and now the rates have gone up and they cannot make the payment. I am sure there are some that had reasonable houses and lost their job or the like but now cannot sell because the market is in the tank.

[Sam Spade]

I think there are a fair number of folks that bought a house for $200k that appreciated $450k and they cash out with a interest only adjustable mortgage and now the rates have gone up and they cannot make the payment. I am sure there are some that had reasonable houses and lost their job or the like but now cannot sell because the market is in the tank.

No doubt. But the real issue isn't who's being swept along; the real issue is who created the whirlpool. Do we want them working for us?

Check the video.