Follow my math using a $100,000 home with an $80,000 original 1st mortgage.
First let's inflate the value of the home to $150,000. Now, even if the bank only loans 90% loan to value look what happens.
90% of $150,000 is $135,000.
$135,000 minus the $80,000 1st mortgage equals $55,000 the bank loans on the home.
The homeowner gets $55,000 cash to do whatever they want with. Go on vacation, buy a boat, buy a corvette, buy a diamond ring, invest in stocks, bonds, mutual funds.
But now they owe $135,000 on a home that is actually only worth $100,000 so they simply just walk away from the home BUT guess what? They get to keep the boat, the car, the diamond ring, the investments and the vacation was a blast!
They have legally robbed the bank and in the words of Eleanor Roosevelt.
"NOBODY can make a fool out of you without your permission."
So while the Poli-Tic bass towards go on and on about this poor homeowner con artist who lost their home they fail to mention they have kept all their ill-gotten gains while making fools out of the banks and the Gubment.
Where's MY stimulus check when I need it?
_________________ Gary Spicuzza, *SAFE
Copyright 1956.
No rights reserved.
*Self Appointed Financial Expert
Posted: Tue Sep 30, 2008 6:09 am Post subject: Sec. 20, Act of 33
Mr. Spicuzza,
in law school, (I was only a "C" student), I remember the corporations prof warned if section 20 of the Act of 33 was ever messed with, chaos would follow. Can I cut/paste your stuff to include in my own rants?
Peace . . . _________________ Register Now to have your Insurance queries solved.
I think it is all bull****. Then we are the ones left bailing them out and we don't have the keys to the car,boat or the diamond ring on our fingers. Why did they ever come up with second mortgages to begin with and why don't they take into consideration your scenario? I am just a regular person and don't understand much pf the ins or mortgage world but I figure it is my tax dollars being affected. Now McCain wants to tax my health insurance benefits too? Where does it end???????
