SMF - Just Installed!
Quote from: caskur on Today at 06:10:30 AMYou'll hear about it on the 6 o'clock news
Quote from: Biggie Smiles on November 11, 2024, 10:46:14 AMI agree with you. Mostly. Up till the part where you place all of the blame on banks. That is where we differ slightly. Banks indeed are culpable and were in fact the henchmen which carried out will of their puppet masters.You responded with what I do not have time for this morning. And you did it succinctly.
But they were PLACED in this situation in 1995 by democrat scum via the Community Reinvestment Act of 1995.
This act mandated that banks FIND A WAY to provision loans in low income communities which were estimated to be predominately people of color or face stiff penalties. black and brown People are poor because white people exist! Typical democrat scum mantra.
The government never worked on any of the underlying issues which were causing homes to be unaffordable to these people of color. they instead opted to blame the evil corporate empire and mandated their way out of the issue. But they never told banks HOW they were to lend 300,000.00 over a 360 month term at a 7.25% interest rate to a person making 24K a year and keep the principle, homeowners insurance, PMI, interest and Taxes under the 35% of take home pay threshold.
a 24K annual salary estimates at approximately 1590.00 month when you factor in a conservative state and federal taxation of roughly 19% based on the lower income bracket.
So banks had to devise a way to make a monthly mortgage payment not exceed 1590.00 a month. A number which represents a stark variance from prudent budgetary practices for the common American.
And even THIS number was unattainable given the purchase price, term and ancillary expenses which I listed above.
As any online mortgage calculator will tell you, given the factors I listed above (300,000 / 360 @ 7.25) with modest calculations for taxes, insurance, pmi etc etc you should arrive at a monthly payment of 2,739.
2739.00 exceeds the borrowers total monthly income by 1,149.00. so what does the bank do about that 1,1149.00 ? do they take the loss? Hell to the no. THey were never told to do that. They just tack it on to the tail end of the loan so that the poor borrowers principle goes UP every month instead of down. Commonly known as negative amortization. Thus the birth of the ""balloon mortgage" the term coined because the principle keeps growing and growing and growing until one day the whole thing just pops.
and did the democrats know this would happen? I'd expect they did if they had access to a simple calculator -- but they just didn't care. They didn't care because the common idiots marveled at their accomplishments -- Poor Americans buying their first home!!!! All the talking heads applauded as we on the right, with common fucking sense, shook our heads in horror as to what would inevitably befall the American people.
and in 2008 those chickens finally came home to roost
Quote from: Ravey on November 10, 2024, 03:31:43 PMwinner winner
Quote from: Frood on November 11, 2024, 12:15:53 PMTo be honest, I do it so infrequently that I forget how to do it.Let me know. Oerdin apparently cannot get YouTube videos to embed.
I'll try with video tags or other approaches especially.
Quote from: Courier Six on November 11, 2024, 11:49:01 PMMy tactic now is to encourage them to remain stupid.That should be very easy.
Quote from: Flynn on Today at 04:51:05 AMOhhhhh!!!
What will you do?
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