Your Thoughts on the Economy?

[katharina]

The problem here in the Pacific Northwest (Oregon) is that property values rose so quickly that a lot of folks took out loans to do home improvements that were not truly prudent long term enhancements, and now a lot of them are upside down on their loans with little real equity left because of the loans they took out.

Yes, I can see how that would definitely be one of the big problems when it
comes to real estate. One of many, I know. And now it's probably difficult
for them to keep up with the mortgage payments because of the
recession and everything gets a lot worse.

 

[Laughingmouse]

I think things will get worse before they get better, but only if the government nationalizes the banks.

Without that nationalization, we will resemble Ethiopia within a decade.

 

[heretoday]

I agree 100% with nationalizing the banks. They have showed that they are willing to take stimulus money and blow it on parties and bonuses and whatnot. They are definitely not operating as they should, to protect the interests of the people, at the very least their customers, and don't seem to want to learn.

 

[Taggart]

I agree that things will probably get worse before they get better.

And I do receive credit card offers in the mail, and some telemarketing calls about consolidating debt.

 

[Old Dutchman]

Unfortunately, the large banks are in business to make money any way they can. there is no care for the lower or middle class, it used to be that one would make a loan for a car or home, and the rates would not change. The bank was careful not to make a loan to anyone that would have a problem paying it. When a bank doesn't try to work with people the people suffer.

 

[Taggart]

When a bank doesn't try to work with people the people suffer.

I agree with that and I'd add that in some cases, the people getting the credit made some mistakes as well.

I saw a report on people who got mortgages with manageable payments initially, but it sounded like the payments were designed to basically double in a few years... At least that's what happened and I got the impression that it wasn't simply a result in the change in overall interest rates.

 

[Laughingmouse]

I agree with that and I'd add that in some cases, the people getting the credit made some mistakes as well.

I saw a report on people who got mortgages with manageable payments initially, but it sounded like the payments were designed to basically double in a few years... At least that's what happened and I got the impression that it wasn't simply a result in the change in overall interest rates.

Often, people were told not to worry about the payments going up, and were assured that the lender would be happy to work with them so they could stay in their homes.

It can be hard to defend yourself when you are taught that banks and other lenders can be trusted.

 

[Taggart]

One of the cases I saw on CNN involved a lady who was having trouble as her payments went up, but didn't have a lawyer to help with the purchase. I was surprised at that.

Is it common in some areas of the US to not hire a lawyer when buying a home?

 

[katharina]

Is it common in some areas of the US to not hire a lawyer when buying a home?

I'm not aware that you need a lawyer when you go through a real estate agency. We never had to deal with one. If you mean without a real estate agent either... well yes, there are some "for sale by owner" homes that bypass an agent, but I'd think those would be the ones that *would* take a lawyer.

 

[chocoguy]

I think that it would get a lot worse. It would take some time before the economy could be better. I doubt it that anyone could speed up the recovery.