I bought my house four years ago. At the time, my wife and I had an extremely hectic schedule. She is a busy professional, and I was constantly traveling back and forth between the US and Europe on business. We used an mortgage broke recommended by a friend. I was implicit in my instructions to this broker that I wanted a 30 year mortgage with a fixed interest rate.
The purchase day came, the moving van had been scheduled, and our previous house was about to close escrow. The Notary Public came to our home with the papers. I performed an act that I'm sure that many of the individuals who will be the gleeful recipients of Obama's $75,000,000,000 gift failed to do. I sat down and read and reviewed my loan papers. The monthly payment was considerably lower than I had expected. Then I read the terms. The mortgage broker had written this a a loan with the first five years of interest only payments. After 5 years we would be paying some outrageous interest rate. I made this discovery at 10 AM on the morning that we needed to sign the papers. I got on the telephone to the broker. He advised me to sign the papers and we could redo the loan later. As I had read the terms of the loan closely, I knew that there was a prepayment penalty if we paid off the loan in the first three years. He advised me that this was a technicality and we should sign the papers, we could work it out later. I told him that he had until close of business that day to get us a new loan with a 30 year term and a fixed interest rate, or he would be speaking to my attorneys. At 4 PM that afternoon the Notary returned to our house with a new set of papers that had a 30 year term and a fixed interest rate. Had we not carefully reviewed the loan documents, we would no longer own this house. We could not have afforded the payments after the five year interest free period.
Every day I see some sad story in the newspaper or television about some poor person who lost their house because they did not know what they were signing or didn't understand the terms of the loan. Some say that they don't speak English and signed papers that they could not read. Would any of us sign such documents? Our $75,000,000,000 is going to bail out these fools.
I'm better informed than many because I have an MBA. If I was going to venture into something that I don't know such as commercial real estate, I would seek the advice of experts in the field. I wouldn't blindly sign a document that was thrust in front of me. If I was going to buy property in a foreign country, I would have all of the documents translated by an independent translation service. I would retain the services of a reputable real estate attorney in that country. Did any of these people take those steps?
I do not fault those borrowers who in good faith bought a home that they could afford, and had a change in circumstances. I believe that the banks should make some provision to work with families who have a medical emergency, or suffer a job loss. That's just good business. Modify their rates for a period of time until they can get back on their feet. They will have a happy customer and avoid the hassles of repossessing a house. Best of all the government would not need to whip out their $75,000,000,000 check book.
Wall Street Votes on Obama's Actions
As Americans we won't have the opportunity to vote against Barack Obama's ludicrous policies until the mid term elections in 2010. As we all know, we will regain the majority in the House of Representatives at that time. One election is being held daily. Americans are voting with their investment dollars, and the results are bleak for the Democrats. Yesterday the stock market hit its lowest point in 12 years. Obama keeps announcing plans and the stock market keeps tumbling. Does that tell us something about the viability of the plans? If the 2008 Presidential election was held today, would Obama get 35% of the vote?
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