T Nation

Biden and Mortgages


#1

Did anyone else notice how Biden wanted to give the bakruptcy courts the right to not only adjust interest rates, but also the principle of the loan?

Here's a sarcastic question... Do I have to be financially irresponsible for this reduction in principle, or am I just out of luck since I didn't borrow beyond my means and pay on time every month?

How do you think this legislation would affect the real estate market?


#2

That pissed me off more than anything said last night.


#3

I was swearing at the tv when he said that. One of the legitimate functions of gov't is to protect contracts, not shred them.


#4

You forgot that he's a liberal. Liberals don't think people have to be responsible for anything, it's up to big government.

It's not John Doe's fault he borrowed $450,000 on a 3/1 ARM while making $40,000 a year. Mr. Doe just ignored the fact that his interest rate would go up a point a month until it topped at 13.9%.


#5

"Did anyone else notice how Biden wanted to give the bakruptcy courts the right to not only adjust interest rates, but also the principle of the loan? "

Snipe, what's your interpretation on how the principle would be adjusted because I almost blew a gasket too.

Do you think it means that they would eliminate some of the cost or just increase the amount of time to pay it off ?

I fuckin bust my balls to pay off my mortgage and Joe Shmoe who over extends himself gets a break and ends up paying less on the house. What happens when the house starts to appreciate. Does Joe Shmoe get to keep all the profit ?

WTF ?!

I have a question. Didn't the last stimulus package cost close to 150 billon ? If so, why not cut out every ounce of pork from this bill and send out another stimulus check ?


#6

As far as what he meant I can't be sure. If they are going to permanently lower interest rates, I can only assume they are going to permanently cut the principle.

I'm not sure how bankruptcy works as there are different chapters. I do know people who have filed and no longer owed anyone anything with the exception of the mortgage company.


#7

He's a fucking moron. I guess no one has told him about short sales. They seem to be pretty poplular these days but the dipshits that can't afford the house actually have to move out.


#8

Can you imagine though the cutting of principle, there would be no need for a short sale.

Go to court get your principle reduced from say 200,000 to 150,000 then you turn around and sell for a profit. They would surely have to put some clause in there to prevent this.

Some days I don't know why I bother to work and pay my bills. Just 15 months ago I paid 283,000 for my house, today I'd be damned if the fucking thing is worth 225,000.


#9

Can someone get a clip of him saying this?

Because I was under the assumption that Biden isn't a moron =/.


#10

Ask and you shall receive. Look at around 1:10 of said clip.


#11

Why would you think that?