Who Will Profit When Homeowners Saved From Foreclosure See Values Rise?

“Group urges civil disobedience in foreclosure evictions”

Reporter: Jessica Garrison (Junk Journalist)
Publication:
Los Angeles Times

Notice of Default available for a Debora and Tommy Beard Jr. says they owed $287,658 on the Watts home they owned for 20 years – where did all that cash go?

President Obama and groups like Acorn want us to believe that people like the Beard’s just did not know what they were doing and deserve taxpayer help so they can stay in their homes.

In reality, these may be very smart investors.  Take the Beards for example, it appears based on public records they refinanced their home of 20 years draining the equity out of the home and spending it.  Now that the home is not worth what their loan is worth, they want to stay in the home.  What makes the Beards smart investors is they sold their equity to a bank when their house value was higher than it is now and had use of the money from then to now.  Had they just left the money in the bank, they could have let this house go into foreclosure and walked with more cash then if they had sold it.  In three to five years, while the market is still down, they could have used the cash they drained from this house to buy a new better home.  The problem is they apparently spent the equity.

Other California buyers are even smarter than the Beards.  Those buyers who bought in the late 1990’s using no money of their own and who got 100 percent financing would have seen significant appreciation in their homes from the late 1990’s to 2005.  Some of these people sold making a huge profit with no money of their own at risk.  Others, were in a position to get a second loan draining their equity of a home they bought with no money of their own.  Some of these people are now in foreclosure and appear to qualify for the taxpayer rescue.  It is interesting that President Obama wants taxpayers many of them who did not use 100 percent loans and bought homes with money down and who are paying their mortgages even though their home value is less than what they owe, pay for people who put no money down, drained their equity from their home if they owned it long enough and spent that equity.  How is that good for the economy?  For those zero money down buyers who bought too late to see appreciation and are now in foreclosure, they still have no “skin in the game.”  They went from renting to owning with no money out of their pocket and the only cost being the rental for the moving van.  How are these people hurt financially other than they once had a mortgage they could not afford and now they have a lease or rental agreement.  They never owned the home even though they were on title.

If banks or taxpayers are going to rescue these buyers, the homeowner should be required to payback the original loan amout with interest before profiting when the market rises again during the next cycle.

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One Response to “Who Will Profit When Homeowners Saved From Foreclosure See Values Rise?”

  1. Acorn accuses Republicans of creating the entire economic situation when it was the Dems who controlled Washington. They scalded a Republican president that didn’t know how to say no or use the VETO power. The Left has always fought for “equal” rights when there has never been anything equal about them. With them, it’s their way or the highway yet they always talk about tolerance. It’s hard to tolerate those who would force their ideas and demands down the throats of Americans. Now they will force Americans who have NO trouble paying their mortgages to pay for those who shouldn’t have qualified for a mortgage in the first place. And don’t give me the “predatory banker” bit! It was organizations like Acorn that FORCED banks to “lend equally”. It doesn’t matter to the Left whether that individual was an illegal alien or someone who had a prior history of unreasonable debt. If you were the “down trodden” minority of a certain group…that bank BETTER give them the money if they know what’s good for them. What is wrong with giving the money to a family in legitimate need, who has ALWAYS paid their debts but is in crises due to a job loss?! The current situation paved by the Left has NOTHING to do with logic or good common sense. They never have and they never will!

    Obama’s plan to take from the “rich” and give to the poor… is not a legitimate means of helping the poor. It only makes slaves out of those who pay taxes and parasites out of those who intend to do wrong (continually) or have simply fallen on hard times.

    Turning good people into bad is evident in recent news that a few people who were (once) decent, law abiding Americans are now quitting their jobs in order to qualify for Obama’s plan. This president who was to save us all from total annihilation has repeatedly made bad decision after bad decision in only a few weeks and I don’t see how his regime can strengthen this country with four more years of this kind of leadership. The dam is leaking and they’re chiseling away at it with jack-hammers!

    The only good decision that I’m aware of Obama making was the one made this week in killing the fairness doctrine. I was quite surprised at this and hope that Obama has pulled or will pull the wool over the eyes of his comrades to the left and makes a great president. I will be praying for him and as God works in mysterious ways, wouldn’t it be wonderful to see Obama nominate a few conservative Supreme Court Justices. We need true leaders and I pray that Obama will one day CHANGE his course because the ideologies that elected him will surely destroy the fabric of this once great nation.

    Keep up the good work JJ Chronicles. This nation needs the truth and those who would sell us “junk” journalism need to be exposed.

    Regards to ALL,

    Michael Lindsey

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