Borrowers Are Out In the Cold

I really don't see what the big cridit problem is and I'm generally appalled at seeing all the posts blaming the banks and credit card issuers for the sub-prime ledning problems. Last week, I refinanced my home from 30-year motrgage at 5.8% to a 15- year mortgage at 5.1% thereby saving a total of $241,000 in interest. I had no problem at all in getting this loan and the only drawback is that I'll have to pay mortgage insurance for 1 year due to the loan-to balance equity ratio of 83%. I read my truth-in-lending package and the final loan agreement before I signed it. I plan to refinance again later this year to a 10 year mortgage if the rate drops to 4.5%. The closing costs are a small price to pay for trimming the mortgage term and reducing the interest. The benefits of personal responsibility and maintaining an excellent credit score are huge. The government will only make the situation worse.

You know what needs to be done is a total restructure of the credit rating system - simplified for consumers to keep up with too - not secret voodoo numbers that even banks don't get.
The Gov't needs to step in too - call it a recession so we can all regroup. Everyone is loosing their shirt right now on the housing fiasco and that interest only loans as well as the variable interest non-sense. We need to stop that. Loans need to be simple like they used to be. You had to have 3x the amount of the payment for income to quality - simple. Interest was determined by your credit - that's fine but we all need a simple system so we can work together and credit card companies need to stop with the absurd card offers enticing folks into debt that they know full well most cannot really afford in the market now. It's time for a reality check.
No - losses are not someone elses gain any more - that's the problem. Losses are losses with no real recovery.
We the people need to step up here and push our leaders to make DRAMATIC changes. That means Washington and States need to live in their means too.
Recession may not be so bad if we all really look at things and evaluate them.
I mean for cryin' out loud. I left California because of the stupidity in the housing market there and came to Texas where we could afford a home. We were chased away from our family because banks got greedy and people got stupid. Since when is a 3/2 1300 sq ft fixxer worht $400k anyhow? Seriously.
It's got to be changed.
California is feeling the hit, hard! My family who are natives for 80 years or more there want out too because of the stupidity.
I think ultimately the sad fact of the matter is that the Gov't is gonna have to come in, put caps on housing costs to make things affordable so that the average joe can get a home and thusly keep the economy going. They will have to come up with genuinely simple guidelines for credit, and a real credit repair solution. Maybe even issue some kind of new identy so folks can really get on top again - you know forgiveness is a wonderful thing. Right now with everyone floundering so badly - we are going no where fast.
Anyhow - we need to do like our grandparents did - only get what we can afford and pay CASH if you can.
Until Uncle Sam figures a way to undo what they let happen calling it "economic growth" we are all rpetty much screwed.

The idea of a foreclosure freeze is a good one. While the lending institutions are an absolute necessity to the economy, they cannot be allowed to be insulated from bad speculation. Nor can they be bailed out with taxpayer dollars. The notion that they 'lose' money is not a likely scenario since it's based upon forecasts and expected profit margins....that is to say they still make money, just not as much as desired. For those that have speculated wildly, let them pay the price for their speculations instead of the homeowner and taxpayer. And since the only responsibility lending institutions have is to their investors, government intervention will be a necessity. This is a matter that needs immediate action.