SUBSIM Radio Room Forums - View Single Post - Republicans Take Over House Ready to Spar With Obama

Armistead · 01-06-11, 02:22 PM

What gets me about these banks, we bailed them out over the housing crisis they created and got rich off of. Due to the fall out, prices dropped.
A house worth 200K in some areas may be worth 100K. Owners that needed to get out couldn't sell it for near enough to pay the loan, so they either try to get a modification or go into foreclosure.

However, it was better for the bank to foreclose as the government paid them for the full value of the loan, minus a percentage for the home, usally 30% of tax value and the bank keeps the home. Not only that the banks could charge the government high late fee's, all legal fee's, ect. on top of that and no regulation to check the cost, just whatever they add.

So instead of working with the homeowner to keep the home with a mod, they made more from the government than what it could be sold for...and it the end the banks still own the home. The kicker is now the loan is paid for and they're sitting on billions of dollars of homes they'll sell higher as the economy improves.

Course these banks paid well for each congress seat they control, mostly GOP.

01-06-11, 02:22 PM	#49
Armistead Rear Admiral Join Date: Dec 2008 Location: on the Dan Posts: 10,880 Downloads: 364 Uploads: 0	What gets me about these banks, we bailed them out over the housing crisis they created and got rich off of. Due to the fall out, prices dropped. A house worth 200K in some areas may be worth 100K. Owners that needed to get out couldn't sell it for near enough to pay the loan, so they either try to get a modification or go into foreclosure. However, it was better for the bank to foreclose as the government paid them for the full value of the loan, minus a percentage for the home, usally 30% of tax value and the bank keeps the home. Not only that the banks could charge the government high late fee's, all legal fee's, ect. on top of that and no regulation to check the cost, just whatever they add. So instead of working with the homeowner to keep the home with a mod, they made more from the government than what it could be sold for...and it the end the banks still own the home. The kicker is now the loan is paid for and they're sitting on billions of dollars of homes they'll sell higher as the economy improves. Course these banks paid well for each congress seat they control, mostly GOP.