Comments on: Show us your credit crunch

By: Chris Boulder

Chris Boulder — Fri, 06 Feb 2009 20:24:24 +0000

Two things folks:

1. The government LOANED money to the banks, as well as getting some stock in the companies. The government could actually make money off the deals.
2. There are way way way too many people to “bail out”. Anyway, you don’t want a loan, you want free money.

By: R. Friend

R. Friend — Thu, 25 Dec 2008 14:24:19 +0000

Here’s one you might not have heard of… My husband & I built a new home. We had a construction loan, with a guaranteed flat rate conversion to a 30 years mortgage at the finish of construction.

The bank decided at the end of construction the home wasn’t worth the amount they had anticipated, so they tried to renegotiate the terms. They wanted us to pay almost 3Xs they agreed on interest rate and allow them to attach the mortgage to additional property we own.

When we tried to meet with them to discuss the situation, they would not talk, return calls or work with other lending institutions.

The accelerated the loan and hit our credit. We have NEVER had ANY credit problems prior to this. No slow or missed payments.

We would gladly pay accept a reasonable mortgage… at the agreed upon rate. BTW, it wasn’t sub-prime, mid sixes. Nothing has changed in our employment or financial history.

We’re now anticipating being homeless, never even living in this brand new home.

Merry Christmas.
Happy Holidays.

By: Steve Hula

Steve Hula — Wed, 24 Dec 2008 18:23:49 +0000

We have been in the Real Estate business for 30 years and would like to offer our idea, to help deal with the housing crisis.

Step #1: Give everyone who has a mortgage a 120 day moratorium on their mortgage payments. This would be retroactive for anyone who is currently late on their payment. This would act as a great stimulus to the economy, especially at Christmas time when people are motivated to spend money!

Step #2: Individuals apply for Gov payoff and refinance into a 30 yr, or more fixed rate of 3% - 4%. Applicant shows decrease or loss of income. Gov will payoff the loan, same as any home owner could do at anytime they were able, and the Gov will hold the deed to these homes so will have something if the home owner still goes into default. Late, or no payments could be added to the back of the loan. If a home owner is still unable afford the payment, work a Gov Subsidized loan with them and keep them in their home, same as the Gov does with Gov subsidized housing projects across the country, only difference is that the Gov will own these homes, not the developers who build Gov subsidized housing projects.

This process would benefit local mortgage lenders and anyone involved in the process and should help create additional jobs to handle the increased work load at the same time.

In short, the big bank bailouts are not working! it’s time for the Gov to step in and do the job for them!

By: Dee

Dee — Fri, 19 Dec 2008 19:37:46 +0000

Like dave above,
I canceled two cards then received a letter two months later stating they are lowering my credit line to $500 months after it had been canceled, both cards customer service reps said both cards were never canceled…Hmmm

Its like they’re trying to ruin your credit so you can default so they can tack on four times the fees and charges related to defaulting on a card, in which they get t reimbursed for half of the default amount…..never again credit card companies…never again.

By: krissy

krissy — Mon, 15 Dec 2008 00:09:04 +0000

Credit seems to be in charge right now but according to Nielsen, cash will rule 2009 and retailers will offer discounts to cash over credit. The credit market is just too unstable right now. I tried to rent a car recently which I do often. All of a sudden Ace, Thrifty and Budget require credit checks for customers without credit cards. I just thought that was way too intrusive and costly to be worth it.

By: Lucky Girl 81

Lucky Girl 81 — Wed, 10 Dec 2008 21:08:37 +0000

My husband and I bought our very first town home last November w no $ money down. We are paying our mortgage, bills, etc. on time with our jobs that we still have. I just wish we would have waited a few months for all of these house deals. Our place was purchased for 190 and today, similar places around our block are going for 175. Next time, we’ll get a place that’s closer to my work, too. Not 40 miles away.

By: chuck

chuck — Tue, 09 Dec 2008 00:18:40 +0000

I think some people are are going to learn that when you have no home, no savings and no credit you are not going to jump start the economy. You are wasting your time saving banks, insurance companies and various funds. They never supported the financial system before and they will not now.
Try the market at 7000 and unemployment 12 to 15 percent and 8 to 10 years to get back to where we were 1 year ago.This whole bailout is a joke and we have really serious problems…………………………………H.Steele

By: Doc

Doc — Mon, 08 Dec 2008 17:18:44 +0000

The ‘credit crunch’ is not the cause of the economic crisis we are experiencing. It is a contributing factor. The Stock Market greed for fast cash and instant wealth through gambling coupled with mismanagement of companies by boards, officers and managers who, through their ‘professional’ management have launched us into the most serious economic crisis ever experienced in this country (this includes the great depression). It is time to realign our priorities which includes not living on credit and investing in people, not gambling in a market.

I have never previously experienced the traumas and set-backs that I have in the past few months. I do not and have not lived on credit. Evenso the economy has crunched my cash flow and resources tremendously.

I vote for a restructured economy that is not based on the wealthiest trading stocks for profit. I think we have to invest in our people and the quality of our service and products.

Shame on the execs for their contribution to this crisis. I should think their huge salaries and bonuses are now a thing of the past. They have cost we taxpayers far more than we should ever have had to pay.

By: Greg T

Greg T — Tue, 02 Dec 2008 23:42:55 +0000

I was laid off from my I.T. job in 2003.
I earned two college degrees while looking for a job in my own field for 5 years. Computer jobs all went to Asia. In June 2008, I went back to school to learn insurance and today I work selling auto and home owners for 1/4 of what I used to make in 2003. But it pays the mortgage. Try something new. If it doesn’t work, try something else. That is what I did.

By: David

David — Fri, 28 Nov 2008 22:55:28 +0000

The banks are running scared and pulling the rug out from under people.

Example: I recently paid off a credit card in full and the bank immediately lowered my credit limit. WHY?

THEN I get a letter from another bank stating that my credit score dropped due to higher “debt to income” ratio (caused by me paying off my card). Since my score is lower they are raising my APR to 29.99%

I have never missed a payment or went bad on a loan. The banks in my case are making me look like a high risk when I am paying my obligations.

Its a mixed up world man!