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Bailout, Bailout, Bailout!!!

By Ulises Romo

Real Estate Agent with Realty One Group

October 01, 2007 01:36 PM

A new bill is being proposed to help out struggling home owners. This bill would make changes the the bankruptcy code to allow judges the power to wipe out debt or lowering the principal and or interest. This would be a step that would be used instead of repayment. While this is supposed to be good for the sellers, it is mentioned that it could be good for Lenders as well. I fail to see what difference this could actually make. Here is the link to the article I read talking about the new bill.

http://money.cnn.com/2007/10/01/real_estate/subprime_bankruptcy_change/index.htm?postversion=2007100115

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Andrew Scherer

Approved Mortgage Group - Doylestown, PA

Real Estate Representation At It's Finest

That is definitely pretty interesting!

Oct 01, 2007 01:42 PM

Wayne Miller

San Diego, CA

Thanks for the information Ulises, there is so much going on this area now it hard to keep up.

Oct 01, 2007 01:45 PM

Nancy Moeller

Seven Gables Real Estate - Anaheim Hills, CA

I agree. I don't see the benefit AT ALL.

Oct 01, 2007 01:48 PM

Daniel Sundberg

Crystal Springs Real Estate - Kentwood, MI

Honestly, I hope they use some common sense with this help. Many people's problems was based on the fact that they were spending beyond their means, and being very irresponsible. I think people should take the hit and learn the hard way rather than expect to be bailed out their entire lives; but thats just my 2 cents.

Oct 01, 2007 02:16 PM

Jim Crawford

Long & Foster - Fredericksburg, VA

Jim Crawford Broker Associate Fredericksburg VA

I can't see why homeowners need to be bailed out. Any mess they are in is their own, It is called personal responsibility. Adults need to take responsibility for their own actions! Should we also bail out all persons that lose money in stocks? What about bailing out persons that lose money in card games? How about those that are way overextended on their charge cards? What should we do with them? What about if as society we start bailing out persons that have a problem with losses on the ponies. Where do we begin as a society, and where do we draw the line?

Oct 01, 2007 02:19 PM

Ulises Romo

Realty One Group - Phoenix, AZ

Andrew: It is interesting isn't it?

Wayne: It is hard for me to keep up with the endless information available to us.

Nancy: I did not see it being beneficial to anyone, except maybe the Government. They like to look like they care and do something to help.

Michael: Thanks for the information and the link.

Daniel: I hat to sound mean or unreasonable, but that is what I was taught. Do what you want, but beware of the consequences.

Jim:I think that we have do draw the line somewhere, but I don't know where the Government will.

Also, now that lenders are not being as naive as before will benefit all of us in the market. Agents, Lenders, buyers, sellers, etc... will be hurting for the mean time but the future will have a brighter outlook.

Oct 01, 2007 06:00 PM

Katie Marchione

Community First Financial - Scottsdale, AZ

Community First Financial

I have to say, I hate all this talk of bailout! I feel bad for all the people who's ARMS's have adjusted, but take some responsibility!

I don't think that it is the governments job to "bail them out". One of my rental properties has me $400 in the hole every month due to rising property taxes and a soft rental market (at the time). I never expected when we bought the place that we would have to decrease the rent by $200, or that our taxes would nearly triple after two years. This sucks! But we are sucking it up and making the payment every month. We are not looking for a bail out.

Sure we want out, but not at everyone else's expense...

Oct 17, 2007 08:10 AM

Ann Heitland

Retired from RE/MAX Peak Properties - Flagstaff, AZ

Retired from Flagstaff Real Estate Sales

There are going to be a lot of bills introduced that will do nothing. Out of it, hopefully, an increase in the FHA limits will arise and pass.

Oct 18, 2007 04:09 AM