Video: Bail me out, Obama!
posted at 1:50 pm on February 23, 2009 by Ed Morrissey
Michelle has a clip from CNN that demonstrates the silliness of the mortgage-bailout efforts of the Obama administration. Minta Garcia and her family bought an $800,000 home that they could not afford, using speculative lending as a lever. The value of the house has dropped to $675,000, and now Garcia faces foreclosure. However, the coverage omits a critical piece of the puzzle:
JIM ACOSTA, CNN CORRESPONDENT (voice-over): School bus driver and mother of two, Minta Garcia got the letter every homeowner dreads, your mortgage is in jeopardy of going into foreclosure.
MINTA GARCIA, DISTRESSED HOMEOWNER: We’re going to be losing the house. We’re going to lose everything.
ACOSTA (on camera): You think you’re going to lose everything?
GARCIA: Yes.
ACOSTA (voice-over): Her message to the president…
GARCIA: Stop with the foreclosure.
ACOSTA (on camera): Stop the foreclosures?
GARCIA: Yes. Right now, because if people are losing houses, losing jobs, what are we going to do? …
ACOSTA: Like countless other Americans, Garcia admits she and her husband bought more house than they could afford, but she says the lender made the purchase all too easy. Now her mortgage is worth more than her house.
(on camera): How much was the house when you bought it?
GARCIA: Eight hundred.
ACOSTA: Eight hundred thousand dollars?. And how much is the house worth?
GARCIA: Right now, it’s like $675,000 on the market.
I guess the first question I’d ask is what made a bus driver believe she could afford an $800,000 house. Unless she makes six figures and had a hell of a down payment, the figures themselves seem so far out of whack that one has to wonder how it occurred at all. The lenders certainly deserve blame here, too, but no one forced Minta Garcia into that house and that mortgage.
What has happened in too many cases is that homeowners took a speculative risk on their house, either buying a home they couldn’t afford or emptying the equity in their existing home in anticipation of above-inflation value growth. Once the market reinflated the equity, the owners could refinance with better terms on a fixed-rate mortgage and have a payment they could (barely) afford. Unfortunately, this Ponzi scheme imploded when housing at first failed to increase in value and then began to drop.
In other words, the homeowners took a risk based on market appreciation. Those who completed their refinancing before 2007 managed to avoid losses. Others took a risk and lost out. Let’s remember that Garcia’s home value only matters if she tries to sell the property. Lenders do not foreclose just because the valuation drops; they foreclose when borrowers can’t make the payments. Being under water on a mortgage doesn’t mean one can’t make payments as long as the owner bought a home and a mortgage he or she could afford.
Garcia didn’t do that, and now she wants taxpayers to indemnify her for taking a loss on a risk she assumed on her own. The government doesn’t exist to remove risk from speculative investments, and to the extent that they do so, they only ensure that more speculation rather than less takes place in the future.
Blowback
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This woman must be on crack to think she could afford an $800k home. News flash: you can’t afford a $675k one either.
Get another job to pay your bills or get the hell out of the house.
I’m sympathetic to people who lived within their means and, for reasons beyond their control (e.g., catastrophic illness, loss of job) are on hard times. They deserve a helping hand as long as they’re doing their part to pick themselves up.
But people like this are irresponsible imbeciles. No pity, no mas!
redfoxbluestate on February 23, 2009 at 2:22 PM
HA! I get the funnies, and that was funny.
juanito on February 23, 2009 at 2:22 PM
What were they supposed to do? Give up cable? Sheesh.
bloggless on February 23, 2009 at 2:22 PM
I don’t care what this lady or anyone else “needs”. She could be a single person living in a 5,000 sq foot house for all I care… just so long as she is paying for it and I am not.
myrenovations on February 23, 2009 at 2:22 PM
Can anyone tell me how much the house payment actually was? And the taxes, too?
bloggless on February 23, 2009 at 2:23 PM
This lady in all likelihood makes less than me, but she somehow got a $800K house. Perhaps instead of living in a studio apartment and saving my money, I should have bought a $300K condo in Wicker Park or Evanston. I could then demand the gov’t bail me out. My bailout would have been much cheaper than this lady’s.
Illinidiva on February 23, 2009 at 2:23 PM
I have no sympathy for these people who bought McMansions and now suddenly can’t afford them. Mrs. Crazy Legs grew up one of 5 kids with both her parents in a 3 bedroom ranch. And they made it work.
crazy_legs on February 23, 2009 at 2:23 PM
BPD on February 23, 2009 at 2:18 PM
You hit the nail on the head, man.
I’m starting a small business. My wife and I rent because our income is currently to volatile to ensure that we could consistently make a mortgage payment and pay property taxes.
Boy, do I feel stupid. Now the taxes that my struggling business pays (my biggest expense is, by far, taxes) can go to help Mrs. Bussdriver keep the house she couldn’t afford.
29Victor on February 23, 2009 at 2:23 PM
Obama supporters
…….. and they never paid for it, hence their poor wittle dilemma.
fogw on February 23, 2009 at 2:23 PM
Maybe if we made it harder to get credit and loans (I denounce myself), it wouldn’t be “too easy” to get “too much house”.
Techie on February 23, 2009 at 2:23 PM
Probably the illigal alien type with no ss# no asset no questions asked. Probably the type that should never have bought a house to begin with. Get the hell out of my country idiot.
ok , I’m all better now
UNREPENTANT CONSERVATIVE CAPITOLIST on February 23, 2009 at 2:24 PM
Dirty little secret… just because they foreclose doesn’t automatically make you homeless… you just have to move. With the dip in property values she will be left with a debt, but it doesn’t exclude you from renting (pardon my language) a small apartment somewhere until the details are worked out.
What’s next? Making foreclosures illegal? Can I stop paying my taxes under the same premise? “Sorry, I just can’t afford to pay… can I get a government bail out to pay my taxes?”
mankai on February 23, 2009 at 2:26 PM
Using a basic calculator with PERFECT credit and 10% down over a 30 year loan the payment would be $4143/month.
txaggie on February 23, 2009 at 2:26 PM
I just wonder what this family’s carbon footprint is.
There, that’ll get the Left to hate her.
rbj on February 23, 2009 at 2:26 PM
It’s PRIMAL SCREAM time!!! Tonight…10pm…my back yard. I’ll call 911 and tell them to ignore any calls from my neighborhood related to a frustrated screaming male.
sdd on February 23, 2009 at 2:26 PM
This is the kind of crap that is going to anger regular America more and more.
I’m renting trying like hell to save for a house, DIDN’T do the insane ARM/Interest Only/No Down Payment thing because I wanted to be responsible (stupid me). I also figured that the market could not last, as it didn’t seem feasible that so many people could afford such insane prices. So I waited knowing the market would come down.
So now I get to pay for douchebags like this in order to protect her from her irresponsibility. Meanwhile my savings go down as my taxes go up, and the market fakes an uptick again, making homes less affordable for the responsible people…which is what helped cause this mess in the first place!!!
I know there are a lot more like me than her that aren’t getting any press. Voices of dissent are going to get louder and louder.
F her and F this “solution”.
spaninq on February 23, 2009 at 2:27 PM
Predatory borrower.
Greg Toombs on February 23, 2009 at 2:27 PM
LOL!! Nice one! I needed the laugh.
crazy_legs on February 23, 2009 at 2:27 PM
I’m trying hard to find any sympa…oh who am I fooling? I’m not even trying. I feel no sympathy for this woman at all. None.
Bob's Kid on February 23, 2009 at 2:28 PM
I’m not saying this is what happened in her case, but I was wondering the other day how many of these houses are bought because they had 3 or 4 families paying on the mortgage – but when the construction industry went bad, most of the household went back to Mexico? Again, not saying this is the case in this situation, but where i’m living immigrants( legal and illegal) all pile into one house to save money( the more they save the more there is to send back to Mexico) and many, many – thousands of them…left for mexico when the construction jobs ran out. Now, the chicken farms here are cutting workers….so I have to wonder how many foreclosures are from immigrant families leaving to go home and leaving a legal immigrant holding the note?
Oh and BTW – on the whole “save us” thing…….anyone asking for that kind of thing….go to hell. You get what you deserve in most cases.
OwlorNothing on February 23, 2009 at 2:28 PM
Evanston. Than you would be closer to Barcelona Tapas. Mmmmmmmmmmmmm…Sangria.
WashJeff on February 23, 2009 at 2:28 PM
F ‘em all
LimeyGeek on February 23, 2009 at 2:29 PM
Atlas needs to shrink, a lot, and by millions.
Honest producers, individuals and businesses, will not allow themselves to be raped.
Doctor Zero, the great commenter on HA, said it best:
here, and here, and really everywhere…
Entelechy on February 23, 2009 at 2:30 PM
Silly, rbj, Hispanics don’t have carbon footprints.
mankai on February 23, 2009 at 2:31 PM
School bus driver is only a part time job, right? Does she have another job in addition to driving?
OmahaConservative on February 23, 2009 at 2:33 PM
There seems to be a lot of retrograde thinking in these commetns.
First, ChimpMcBush spent 3 Trillion dollars on the war and then gave 2 Trillion to the banks.
Now, it is my time to cash in. My 800K is nothing, I’m entitled to something.
Seriously…this is the Left’s argument.
r keller on February 23, 2009 at 2:33 PM
Her kitchen, and probably the rest of the house, looked nicer than mine, but I’m not behind on my mortgage. The average person will have a harder time with this than with the corporate bailouts. You don’t have to see the CEO who accepted billions for his failing financial, but everyday you will walk out the door and see your neighbor who got a sweetheart deal on their McMansion. Every purchase they make will bring on another fit of “how can they afford that” since they just got bailed out.
DFCtomm on February 23, 2009 at 2:33 PM
+1
rbj on February 23, 2009 at 2:34 PM
Badger40 on February 23, 2009 at 2:21 PM
My post had an invisible sarcasm tag. I suppose any pony Ozbama would provide will probably end up on the dinner table soon enough. Right next to the wish sandwiches and rock soup his administration will be serving up.
viking01 on February 23, 2009 at 2:34 PM
Did not BO say that those that speculated or were irresponsible would not get a bailout?
bloggless on February 23, 2009 at 2:34 PM
So…she’s asking the American taxpayer to let her keep living in a $800,000 house?!!?!?!!!
Why the fuck did I follow the rules of smart investing! I could have bought a fucking vineyard in Napa valley.
joeindc44 on February 23, 2009 at 2:35 PM
$800,000?
Wouldn’t that be around $40,000 a year in interest, alone?
Count to 10 on February 23, 2009 at 2:35 PM
What is she the poster child of? Not a welfare queen, but something like that; what’s an appropriate term for the 21st century?
jeff_from_mpls on February 23, 2009 at 2:35 PM
Simple, just F&D
Foreclose & Deport!
TheSitRep on February 23, 2009 at 2:36 PM
(from the video)
It’s ridiculous when they try to cast us as against the stock market (as well as totally separate from it).
Middle-class people have investments. I forget exactly, but I read something astounding about how many average middle class people now have money in the stock market.
Yet they want us to believe that the “stock market” has nothing to do with us!
Alana on February 23, 2009 at 2:36 PM
You know, I took a risk on putting money into my 410k and lost. Lost a ton in the late 90′s when the tech bubble burst as well. Where’s my bailout? Isn’t retiring rich a right?
BrianA on February 23, 2009 at 2:37 PM
Good luck understanding ARMs (the things most of these people are having problems with) — the basis for the rate is what matters, and there are literally hundreds of different rate bases. Then there the “teaser rate” which makes the house affordable, and the actual rate which sends it off the scale.
As for me, I am with you — I have never had an ARM, because with a fixed rate mortgage you know the payment from month to month.
For a home equity loan (the nasty one), the ARM introductory rate may be as much as 5% lower than the fixed rate, and those who don’t know any better are doomed. The mortgage company is not going to tell you, because within a month or two after the loan has been made, they will have aggregated it and sold the result to another lender.
My fixed rate loan was sold three times within two years. Absolutely amazing.
The game is designed to insulate the lenders from liability and yet to assure their profits.
unclesmrgol on February 23, 2009 at 2:37 PM
Excuse me, but this isn’t a $150,000 starter home, this is $800,000 home…they couldn’t afford it when they bought it, and they can’t afford it now.
This has nothing to do with “government interference”, it has to do with not being very smart.
The bank was stupid for giving the loan, so they will eat the loss, and they were stupid for thinking a bus driver could afford an $800,000 house.
I can see helping out people with mortgages of under $250,000, assisting them, because with two incomes you can manage that payment…but when you get into $500,000 mortgages and $2,500 to $4,000 monthly payments, no amount of “refinancing” is going to help them.
right2bright on February 23, 2009 at 2:37 PM
Democrat?
Full Bluntal Swindler?
juanito on February 23, 2009 at 2:37 PM
I wonder if CNN actually knows how bad this looks. Really helps make Rick Santelli’s case!
A bus driver w/ an $800k house! How ridiculous!
JeffVader on February 23, 2009 at 2:39 PM
The more “air time” these tools get, the more the market tanks. I want my 401 k back to what it was.
bloggless on February 23, 2009 at 2:40 PM
So you would be okay with it if she made more money? That’s the nub of it for you, the bank made an error in judging her earning potential? And that’s it?
unclesmrgol is saying it’s a little deeper than that.
jeff_from_mpls on February 23, 2009 at 2:40 PM
I’m crying on the inside.
Bishop on February 23, 2009 at 2:40 PM
The only reason I’d like to see a stop to the foreclosures is this: In my area, people are going into foreclosure, and simply walking away from their houses. So they sit, abandoned and unmaintained, for months… lowering the property value of the surrounding houses. In combination to a few other factors (crime, apathy, too many houses on the market), this has caused many of us to be unable to sell our homes, even though our mortgages are perfectly sound. My husband’s job moved, and yet our family can’t.
My husband and I were so proud when we bought our house – we saved and planned and bought a tiny townhome in an older community. Our mortgage ended up being a little cheaper than rent (at the time), we could paint our own walls, and the waitlist for base housing was as long as my husband’s shore duty tour (people homestead here). Biggest mistake we’ve ever made. Punished for being full and on-time with the mortgage, and stupid for thinking home ownership was a good option.
As to this woman, if she wants sympathy, she can find it between shit and syphillis in the dictionary.
Anna on February 23, 2009 at 2:42 PM
More great MSM reporting.
Her husband is briefly mentioned in the story, what does he do for a living? I doubt she got the house on a bus driver salary. They must have two incomes.
How did the drop in value affect her ability to pay the mortgage? How long has she had the mortgage? How many other bills does she have? Was there a change in her income? Did they take out a home equity loan from ditech?
Is investigative reporting that friggin’ difficult?
Damn it, that 8% is going to turn to 12%, then 15% and on and on once people realize they can get away with this crap.
reaganaut on February 23, 2009 at 2:42 PM
To get this loan for the house she committed felony fraud falsifying income info on the loan application. (she wanted to lie, the mortgage broker told her how much)
Prison should be her free room and board.
Spock of Tralfamadore on February 23, 2009 at 2:42 PM
We should send thank you e-mails to CNN for showing us Ms. Garcia and encourage them to find more vicitims just like her and tell their stories.
It may be our only hope for stopping this insanity.
myrenovations on February 23, 2009 at 2:43 PM
So why doesn’t she just go rent? She has no equity, so what’s the diff? She actually wants US to pay for her continued speculation. What lesson was learned here?
bloggless on February 23, 2009 at 2:44 PM
F ‘em all
LimeyGeek on February 23, 2009 at 2:29 PM
Couldn’t have said it any better myself.
If she sold the house for $900,000 a month after she bought it would I have gotten a cut of the profit? I don’t think so.
Now that she lost money I have to help her, f’ her.
ouldbollix on February 23, 2009 at 2:44 PM
txaggie on February 23, 2009 at 2:26 PM
Egon: “For your information Ray, the interst alone for the first five years comes to $95,000.”
Venkman: “You’re not gonna lose the house, everyone has three mortages nowadays…”
Read your comment and thought of the movie, sorry.
catmman on February 23, 2009 at 2:45 PM
Would these people be able to pay their mortgage if the value had held steady, or increased slightly? No and they knew that. They were gambling on value appreciation either a) flipping it before the new higher monthly payment came due, or b) renegotiating for a lower rate again.
My ability to pay my mortgage has nothing to do with the whether my house went up in value from 1990 to 2006 or down in value these past two years. The Garcias’ ability hasn’t changed either.
That these delinquents cannot pay their mortgages has absolutely nothing to do with the value of the house. The point is they don’t want to pay because they have to pay more than it is worth now. If they paid their mortgage for ten years years, the value of their house would likely be above what it was when they got the mortgage and it would be basically the same as renting for ten years.
Dusty on February 23, 2009 at 2:46 PM
If she made more money wouldn’t she be current on her mortgage…?
JohnTant on February 23, 2009 at 2:46 PM
My jaw nearly hit the floor when I saw this. My mom has been an educator for many years and has her Masters +30 and numerous other degrees and certifications (much more than a school bus driver) and my parent’s house is more than half the size of this house featured here. The reason why my parents are paying off their mortgage and this lady is losing her home is simple economics, you don’t SPEND more money than you MAKE.
Rightwingguy on February 23, 2009 at 2:46 PM
Exactly. I’m not seeing any of evidence of a housing crisis here in Houston. And the only real sign of economic issues is that once of the major Chevy dealers went out of business. But I think that’s more an artifact of their crappy service than from any economic environment.
Vic on February 23, 2009 at 2:47 PM
This isn’t the first time that CNN has done this. Back when Paula Zaun still had a show, she profiled a poor single mom with three kids that lost her $300k house after only 8 months because she could not afford it on her $10/hr wages.
rw on February 23, 2009 at 2:48 PM
Simple P&I on $800,000
Monthly payment:
30 Years
Interest rate:
5.750%
Loan amount:
$ 800,000.00
$ 4,668.58 a month
Plus her interest rate is probably higher -
She probably did an 80-20 loan.
I doubt she paid anything down and
add Taxes & Insurance which is probably another $1000 per month.
Not to mention what the Heat & A/C would be on a house that large.
How much can a bus driver make??? $50,000 tops???
So she is at 150% of her income??
Now who gave her this loan???
izoneguy on February 23, 2009 at 2:48 PM
Wouldn’t a payment on an $800,000 house be about $5k a month with an interest rate around 5%?
Do bus drivers normally net over $60k a year which would be just enough to pay for the house?
WTF?
Bishop on February 23, 2009 at 2:48 PM
Do Izoneguy and I share a brain or something? We wrote pretty much the same thing at the same time.
I’m making myself a tinfoil hat.
Bishop on February 23, 2009 at 2:49 PM
Just like our old GYSGT always said. That’s why I love the military, they come up with the most direct and poetic commentary out there!
Rightwingguy on February 23, 2009 at 2:50 PM
America! What a country! (Stupid gringos)
BobMbx on February 23, 2009 at 2:50 PM
What these people don’t understand is that you don’t come to folks like us living in homes that sold for between $100k and $250k a few years ago, and ask us to feel sorry for you. I have no ill will toward people who have nicer houses than mine. That’s the American dream, isn’t it? Work hard, succeed, get the place of your dreams.
But 675K? If you can’t afford that, bus driver, sell it and get something you can afford. But you can’t sell it can you? You’re upside-down. It sounds like the only choice you have is to declare bankruptcy and rent an apartment. It will be a while before you have sufficient credit to buy a house again. That’s tough, but hey, that’s the risk of going for broke. Had you settled for what the rest of us have, you’d be okay. You know most of us could have done what you did, but something held us back. What do you think that was, bus driver?
Immolate on February 23, 2009 at 2:51 PM
doesn’t include taxes, does it?
lorien1973 on February 23, 2009 at 2:51 PM
How does a busdriver think she can afford an 800K home?
The real estate market bottoms out and the home she overspent on loses 125K, so why would I feel sympathy for her? I dont have an 800K home. This is ridiculous!
ObamatheMessiah on February 23, 2009 at 2:51 PM
I am just speechless. >>:(
mindhacker on February 23, 2009 at 2:53 PM
BS – The mortgage will always be worth more than the house at first, unless you put down a big chunk of change.
What is the interest rate? Was it an ARM? Unless they were trying to flip it, take out a home equity loan or sell it in the next couple of years, the home value has nothing to do this story.
Now she going to get bailed out by the rest of us. So, let’s fast forward to a few years…
They stay in the house, keep paying part of the mortgage, the taxpayers make up the difference, and/or the bank is forced to write down part of the loan, the house value climbs to 900k, mortgage is down to, say, 700k, sell the house and keep the profit?
reaganaut on February 23, 2009 at 2:54 PM
Don’t take this the wrong way, but there’s no way that any teaser rate could make a house that’s over three quarters of a million dollars affordable on a bus driver’s salary!
crazy_legs on February 23, 2009 at 2:54 PM
How does a busdriver think she can afford an 800K home?
The real estate market bottoms out and the home she overspent on loses 125K, so why would I feel sympathy for her? I dont have an 800K home. This is ridiculous!
ObamatheMessiah on February 23, 2009 at 2:51 PM
I’m guessing she figured she could bring over here entiore village from Guatamala or wherever… and that she’d also become a millionaire by selling for 2 million in a couple years… She’s kying abiout something. Who else was living (or expected to live)( in the house for instance?
I call BS
max1 on February 23, 2009 at 2:54 PM
I’m wearing a complete tin-foil bodysuit under my work clothes. But, it’s not what you think. Mine is grounded, like a Faraday cage. No subliminals for me.
BobMbx on February 23, 2009 at 2:55 PM
O/T but; “back off man, I’m a scientist!”
juanito on February 23, 2009 at 2:58 PM
Look, she didn’t but this house on her own.
It’s just bad reporting, there is more to the story.
reaganaut on February 23, 2009 at 2:58 PM
Boo Hoo…
I am laughing out loud at the stupidity of these Americans and the stupidity of the financial institutions that loan out money to stupid people. I am laughing in the face of ACORN as they protested redlining and forced the CRA on them so they would loan out money to deadbeats. i am laughing out loud at the idiots who voted for Obama and his communist government. I am laughing out loud at the MSM who reports on the idiots among us who are dragging us all down. I will laugh out loud when those 8% who get foreclosed on are out in the street. I will come up to your cardboard shack that you are living in and laugh out loud in your face.
Hah, Hah, Hah, Hah, Hah, Hah, Hah, Hah, Hah, Hah, Hah, Hah, Hah, !!!!!!!
Laughing out loud as the ship sinks and you all scurry out like rats drowning in the ice cold water……
izoneguy on February 23, 2009 at 2:58 PM
Read the rest of it….
I estimated another $1000 for Taxes & Insurance. Did they say where she lived?
izoneguy on February 23, 2009 at 3:00 PM
You know what really irritates me is that with that much interest being paid, she probably was able to deduct enough to offset her entire federal income tax bill…. she had no “skin in the game” yet she wants that pool of money (which she most likely did not contribute to) to bail her out.
BPD on February 23, 2009 at 3:01 PM
Do work with Chad Vader?
WashJeff on February 23, 2009 at 3:01 PM
In her own words, the lender made it too easy to accept, in a couple of years re-finance to a fixed rate. She evidently didn’t learn her lesson when she voted for Obama and his mantra of Hope and Change. So far he’s done nothing but lie too.
WAKE UP AMERICA!
fbcmusicman on February 23, 2009 at 3:01 PM
Yep, I have mine on and I am transmitting at MAX power.
izoneguy on February 23, 2009 at 3:02 PM
Regarding Citibank… When the rates were really low, we wanted to refinance to a lower fixed rate. We didn’t want to take any equity out of the house. I was really alarmed when the branch manager called me to advise that our house was worth more than $300k. I laughed my ass off at her and asked her if she was a total nut case. She said, “well dontcha want an extra $100,000 to ya know… take a trip or buy a boat”?
I stopped the deal and went with a more responsible lender.
Key West Reader on February 23, 2009 at 3:02 PM
{unclesmrgol on February 23, 2009 at 2:37 PM}
Well, you are probably right about the ARM’s related to lot’s of other lenders, but I’ve had an 30 yr, 1 year ARM and it’s never been a problem and over the last several years the fluctuation has been minimal, maybe 1.5%.
The big deal is the sub-prime ones. To me, that Garcia said the lender made it too easy to buy, makes me think she had a sub prime and that she knew exactly what she was getting into with the bounce up of monthly payment a few years down the road. She took the risk for whatever reason and it’s not working out. That’s her problem, IMO.
If it is just that the value went, down and they do have the ability to pay, it’s definitely their problem. I have a suggestion for her — remortgage for ‘$800,000′ at the current rates, which I’ll bet is lower rate than what she is paying now.
Dusty on February 23, 2009 at 3:03 PM
All the news reports are now criticizing the banks for all these bad loans.
Would some enterprising reporter PLEASE go to ACORN and ask them if they agree credit should be harder to get….especially for those with low incomes or poor credit records???~!!!
Heck, would someone please ask the PRESIDENT that question?!
jeanneb on February 23, 2009 at 3:05 PM
Who gave her thisn loan????? WHO GAVE HER THIS LOAN?????
BARNEY FRANK gave her this loan.
bloggless on February 23, 2009 at 3:05 PM
See, that was your first mistake. Should have put it into a 401k.
I love “made it too easy,” too. I wonder what would happen if she got into a car accident: “The steering wheel made it all too easy for the car to go plunging into the ravine.”
calbear on February 23, 2009 at 3:05 PM
[calbear on February 23, 2009 at 3:05 PM]
LMAO
Dusty on February 23, 2009 at 3:08 PM
Why is this video not on this site as a topic?
http://www.redstate.com/moe_lane/2009/02/22/acorn-we-have-a-right-to-take-over-foreclosed-houses/
Sugarbuzz on February 23, 2009 at 3:08 PM
This is part of the Loony Left’s talking points: we can’t allow millions of “struggling Americans” to have their mortgages foreclosed, because then they’ll be “homeless” or “living in the streets.” It’s total BS. If they have enough money to pay a mortgage on a “modified” (at taxpayer expense) loan, then they surely have enough money to pay the rent on a less expensive house or an apartment. And the foreclosed houses can then be sold to buyers who can afford to purchase them at current prices.
The argument that Obama’s plan to use tax dollars to pay down these idiots’ loans is the “only way” to keep the housing market from spiralling out of control is nonsense. Half of the people who get their loans “modified” are going to default again within a year. All we’re doing is throwing away billions of dollars just to end up back in the same situation a few months from now (the same thing we did with the auto bailout). It’s lunacy.
AZCoyote on February 23, 2009 at 3:08 PM
We’re sooooooooooooooooooooo effing screwed.
BallisticBob on February 23, 2009 at 3:08 PM
This is cartoon commercial mentality. These are the same people that cried about commercials being shown to their kids during cartoons because the kids wanted everything and the parents didn’t know how to say no and bought all the crap. These are just “adults” who think they’re entitled to all the toys and can’t say no to themselves and now it’s everybody’s fault but their own.
Liberals/Democrats are perpetual children who can’t take care of themselves.
Candy Slice on February 23, 2009 at 3:14 PM
jeanneb on February 23, 2009 at 3:05 PM
Stuart Varney did that on Fox News. He had an ACRON rep on and ripped her good! I missed the beginning of the intervies, but it was about the ACORN thugs “homesteading” in foreclosed homes – homes where the occupant had already been eviceted.
They come back with the ‘homeowner’ , cut off the locks, and enter the house.
The ACRON rep actually said these people have a “right” to these houses! Mr. Varney ripped her good, but it was all really for naught.
I’m surprised the video isn’t up anywhere – what I saw was pretty good.
catmman on February 23, 2009 at 3:14 PM
It’s just bad reporting, there is more to the story.
reaganaut on February 23, 2009 at 2:58 PM
Granted, but still one of them had to net over $60k just to pay for the house, not to mention every other bill that needs to be paid on a monthly basis. Hubby must have had one hell of a job.
Bishop on February 23, 2009 at 3:16 PM
The report has no information about the husband’s income, so we are not getting the full story. I’ll just say I have people in my office all the time with no income verification loans where the 1003 grossly overstates income. I’m a Bankruptcy lawyer. Most of these people were flippers who were willing participants in the fraud with full knowledge of the mortgage brokers, who themselves were cleaning up on Yield Spreads and origination fees. The end lenders were culpable for soliciting them and not doing any due diligence underwriting them.
But there is no time to discuss the source of the problem or debate TARP or the Stimulus. We’re in a crisis facing a catastrophe.
Ted Torgerson on February 23, 2009 at 3:16 PM
Did Minta even lose her job as a school bus driver? Typical CNN – no facts. She mentions job losses as a ‘problem,’ but doesn’t actually say that she has been laid off. So my guess is no. Oh, and nice granite kitchen counters. Jeez.
She gets no sympathy from me. I may reconsider my hardass position if the One reimburses my 401k and kids’ college funds for the $$ that we have lost, but as that would be akin to helping “Wall Street,” I’m not holding my breath.
LASue on February 23, 2009 at 3:18 PM
Right here in the first quote.
OmahaConservative on February 23, 2009 at 3:18 PM
The only way this makes sense is if Garcia never planned to pay out the mortgage, and simply was expecting the price to appreciate to $1-$1.5 million and she could then sell the home and take the profit. Considering how many “Flip This House” shows were on the cable channels between 2005 and last year, it’s no surprise people would think all you have to do is buy a home, add a few nick-nacks and watch the profits roll in on the re-sale a year or two down the line.
jon1979 on February 23, 2009 at 3:18 PM
Most first time home buyers don’t realize it is not just how big of a house or loan $$$$ is involved.
They may think they have a ball park idea (what with moving, furnitures, drapes, utilities, etc.), but the reality is a lot of ‘hidden’ cost was never thought about before the purchase.
Of course lenders are going to push for the largest $$$$ loan onto new buyers. What? Lenders are just like regular Americans, they go to work, then try to have some familiy time, etc. Just like you and me.
/that last paragraph comes with a sarc tag.
Sir Napsalot on February 23, 2009 at 3:19 PM
Oh yes there is. And those “exotic” mortgages are the foundation of the problem.
It worked like this: 6-7 years ago, virtually everyone who could afford a mortgage already had one. The brokers weren’t making commissions on loan closing’s, nor were the banks making free money from the closing fees.
So, what happened? It was decided to make loans to those folks who were less creditworthy. The banks reduced their underwriting standards by a notch, and started writing mortgages again. B
But, soon enough, they ran out of “creditworthy” borrowers again. So, they reduced the standards by another notch. By this time, the builders saw what was happening, and started to build like crazy.
Soon enough, the banks ran out of folks who had any hope of paying back a mortgage, so they re-wrote the mortgage rules, and invented these crazy loans, like the “no-doc loan”, the “live free for 36 month loan”, the “40 year loan”, etc…
The killer loan, and the one that Mrs. Ican’tpaymymortgageanymoreGarcia apparently has, is the low payment for 36 months, then you get the real payment from 37 to 360. I know people all over my hometown who have/had one of these loans, and everyone of them has filed for bankruptcy. Everyone one of them.
Literally, these folks bought the McMansion for say, $400,000, and for 3 years paid a P/I/T/I of $250-$400 monthly. Payment 37 jumped to anywhere from $2500 to $4500 a month. These folks were smart, well paid Northern Virginia types who jumped into home ownership in the country because of these strange mortgages. Now, most have moved on; just walked away from the home, literally. Toss the keys on the kitchen counter and lock the door on the way out. They all told me that the plan was to sell the house for a huge profit before the terms reset; problem was, every house on their street was for sale at the same time. Some people got out with the profit. Most didn’t.
This is the current foreclosure map. If it doesn’t work, go to http://www.realtytrac.com and search on ZIP 22701, zoom in just to the north side of the Town of Culpeper. Those developements are not even 8 years old. Some parts of them have half built homes just sitting there, some for 3 years or more.
Mr. and Mrs. Garcia used to be able to afford their mortgage, but now that the ARM or balloon payment kicked in, they’re stuck.
It’s musical chairs, and the music has stopped. Problem is, the banks changed rules while we were walking around in circles and all the chairs got taken away.
BobMbx on February 23, 2009 at 3:20 PM
I’ll tell you, though, while I have little sympathy for the Garcias, I despise those at CNN whose only motive is to play on the emotions of the public in an effort to get these people bailed out. As reporters, they left out all the critical information the public needs to assess the Garicas problem accurately and the reason they did so was to hide the responsibility the Garcias have for their own predicament.
Talk about predatory lenders. CNN is just a predatory news organization, here.
Dusty on February 23, 2009 at 3:23 PM
The sad truth is probably not. People who make bad decision tend to get into financial trouble no matter their income, I have seen doctors do it, and people who make good decisions prosper no matter their income.
DFCtomm on February 23, 2009 at 3:24 PM
It just drives me nuts, because it’s a pretty big omission.
Either hubby is a worker of the undocumented variety,
or, he has a decent job and the bank really wasn’t that predatory as the story tried to depict.
If he makes a healthy 6 figure income, then they can suck it up, cut out some expenses like the rest of us and pay the damn mortgage.
reaganaut on February 23, 2009 at 3:26 PM
Most likely the Battalion of day laborers who used to live there have either moved on to greener pastures or gone home. Her renters left her hanging. HEY! She really is a victim!
BobMbx on February 23, 2009 at 3:31 PM
This infuriates me. The last time my husband and I bought a home, we were, qualified for several hundred thousnad more than we knew we could pay for- There isn’t a loan closer on earth that doesn’t SHOW the buyer what their payment is going to be. No pity party for this broad!
anniekc on February 23, 2009 at 3:32 PM
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