Oh, so basically, you're no longer able to qualify for the loan amount that you were able to when you bought the place, ergo no re-financing. In spite of the fact that you're making the mortgage payments, they's saying that their metrics won't allow the re-application to go through, based on the balance of principal?

I would have thought that your current loan payment schedule and good history would take precedence over the metric of income, but I guess not. Still, your situation is a relatively unusual one, you must admit. I don't necessarily think that it's a bad policy for lenders not to grant loans based on the income of the loan applicant. I don't know how much of that is regulated by the government, to be honest (though the loan processor you're talking to seems a likely candidate for blowing smoke up your ass about "following the rules"), but the policy is sensible. For everyone like you, there are dozens of people trying to borrow more than they can afford to, which is what got us into this mess in the first place.

Why not sell your home and rent or buy a less expensive home, out of curiosity?

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"Government big enough to supply everything you need is big enough to take everything you have... The course of history shows that as a government grows, liberty decreases."

-Thomas Jefferson

Not to answer for him - but since he has purchased his home, home values have dropped by as much as 30%...it is fairly likely he would owe the bank money after he sold it.

Came around this pice of opinion and no matter how you look at it, there's no easy way ot of it.

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"bellum omnium contra omnes; atque in eo bello jus esse omnibus in omnia."
Thomas Hobbes

"Homo Homini Lupus"
Thomas Hobbes

Isn't his story that he bought his home a bit longer ago and that 6 years after his purchase, he started to have troubles, so the question is adequate: Why haven't you sold your home e.g 2 years ago and adopted to your new financial situation?

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"bellum omnium contra omnes; atque in eo bello jus esse omnibus in omnia."
Thomas Hobbes

"Homo Homini Lupus"
Thomas Hobbes

aye - I have read numerous articles from top-top economist in the last few months...one underlying theme exists....we are in serious trouble....this is not just another low point in the tides of any economy.

As I have said many times - a fundamental change occurred during the last Reagan term and intensified all throughout Clinton's term - America went from an economy based on ACTUAL production, and the buying and selling of these products....to an economy based on consumer spending backed by insane lending practices...what our economy AS A WHOLE has depended on for over 20 years..is now defunct.

Well, probably not.

I bought my home in 1999; paid $199,500.00 for it.

The San Diego real estate market being what it was, it was worth about $510,000.00 at the end of 2004.

Right now, however, it's probably worth in the neighborhood of $400,000.00 roughly 20% of its' value at its' peak.

It's still 100% more than what I paid for it...

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Obama's New "57 State Patriotic Pin":




Sayeth John Drake - 10/13/08: "OK, you're right, I admit to LYING"

No, it isn't all I need to know. I ALSO need to know why the Republicans and the Democrats in Congress let this thing slide for all these years.

Blaming ONLY the president in a knee-jerk reaction to what a Democrat POTUS began such a long time ago accomplishes nothing.

For the people here who sing the praises of a GOP majority, and they have HAD that majority for a LONG time, the question is why they ALLOWED this implied Democrat screwup to STAY on the books for all this time?

Or, dare I say it, did they have a hand in all this TOO?

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Not a day goes by that I don't see something that reinforces my belief that people are idiots.

Evidently you don't know socialist from capitalist.
Bush..........a socialist...yeah, right.

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Seems I have found another brother in mind

What really scares me is, that noone in Washington seems to care( not that I want the idiots to do something), noone wants to hear a god damn thing about it and even worse noone is man enough to tell the ugly truth to the public.

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"bellum omnium contra omnes; atque in eo bello jus esse omnibus in omnia."
Thomas Hobbes

"Homo Homini Lupus"
Thomas Hobbes

Over the last 12 years? That seems unlikely. Around here at least, homes are still worth more than they were a decade ago, just not more than they were, say, four years ago. At casual perusal, my place seems to be worth about what it was a year ago (probably a little more if I tried to sell it, since I've sunk a few thousand dollars into improving it via my own labor )

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"Government big enough to supply everything you need is big enough to take everything you have... The course of history shows that as a government grows, liberty decreases."

-Thomas Jefferson

That's just it in a nutshell. The government always DOES take the easy way out, while never fixing what CAUSED the problems in the first place.

They just throw more money at it.

In this case, it appears that is exactly what they are doing. I don't see any restructuring of how they do business, or even any real oversight.
Just, "Oh, you poor dears. Here's some taxpayer money to pay off your losses, regardless of whether you could have avoided them or not, so you can continue like nothing happened."

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Not a day goes by that I don't see something that reinforces my belief that people are idiots.

Bush......... a capitalist.. yeah right

Where I come from, helping out folks (companies) who do badly due to poor judgement/policies not just sounds socalist, but is actually seen as nothing else than socialism.

But who am I to lecture you about socialism, especially as it's not as if a fellow German "invented" it

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"bellum omnium contra omnes; atque in eo bello jus esse omnibus in omnia."
Thomas Hobbes

"Homo Homini Lupus"
Thomas Hobbes

That's all true, of course. The thing is, it seems to me this is not really an "American dream" profit making situation here.

If your home's value rises by, say, 100% that means all the OTHER homes' value rose by that much too, making moving from your inflated value home to ANOTHER inflated value home pretty much a lateral move.

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Not a day goes by that I don't see something that reinforces my belief that people are idiots.

Absolutely!
Let's not forget the ceremonial "Contract to America" in 1994...to which almost immediately after sweeping both the house and Senate...the Republican majority (hell it wasn't a majority it was more like an avalanche) not only quickly forgot about the "contract" - they systematically ignored those promises and also don't forget without the Republicans in both the house and senate NAFTA would never have passed.

I've read the CNN report on this and if I read it correctly, there are two things about this bill that really friggin makes me mad.

1) Many people will have their mortgages reduced. If this is true, this is blatantly unfair to the rest of us who have played by the rules.

2) They will get lower interest rates than the market rates.

We ought to be rioting in the streets to get our mortgages reduced. And the end result with this bill is a massive socialist transfer of wealth. It's almost as if it was planned (but I know it wasn't).

Kramer

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“It's time to admit that public education operates like a planned economy, a bureaucratic system in which everybody's role is spelled out in advance and there are few incentives for innovation and productivity. It's no surprise that our school system doesn't improve; it more resembles the communist economy than our own market economy."
Albert Shanker, former president of the American Federation of Teachers