Morons and Mortgages

ifirefight

ifirefight

Active Member
Apperently,over 1/3 of Americans have NO idea what kind/type of mortga ge they have.
I was absolutely dismayed with that statistic. A home is probably the largest investment you will make in your lifetime...I would like to think,people would want to know EXACTALLY what they are getting into before agreeing to some of these "BAD" loans. It is unbeleiveable that people can be that out of touch...but apperently it is very wide spread....This is why we are now in this mess we are in.
http://www.kenlayne.com/2007/03/70_m...ricans_got.htm
 
kjr_trig

kjr_trig

Active Member

Idiots
There are so many foreclosures here and short sells.....Our neighbors were recently foreclosed on and admitted to us they had no idea what an "arm" really meant, and when theirs came up they had no chance, made me want to smack em. They have the nerve to blame the "greedy" bank
...Now our property value is in the toilet, even though we tried to buy responsibly.
 
ifirefight

ifirefight

Active Member
Originally Posted by kjr_trig
http:///forum/post/2838467

Idiots
There are so many foreclosures here and short sells.....Our neighbors were recently foreclosed on and admitted to us they had no idea what an "arm" really meant, and when theirs came up they had no chance, made me want to smack em. They have the nerve to blame the "greedy" bank
...Now our property value is in the toilet, even though we tried to buy responsibly.
And now WE have to bail out these people...
Not fair to those of us that have saved/gone without ..so we can pay our mortgages. NOW they want to help people that are 90 days or more behind on their mortgages....nice....penelize ME for be responsible and making my payments on time......AND dont give me the BS...."the banks told me I could afford it"....The lenders JOB is to get you into a loan (they were doing there job)...If they came back and said..."Im sorry Mr so and so..we cant give you this loan" ....You would have said "WHAT !!!...I will take my business elsewhere." I for one think its amazing that some people are so unaware of these things....
 
zman1

zman1

Active Member
Originally Posted by ifirefight
http:///forum/post/2838478
And now WE have to bail out these people...

Actually you're not, we are bailing the banks out and underwriters (AIG). Unless the Treasury Secretary flipped since yesterday again, he is changing from potentially helping home owners to now bailing out credit card companies. Let me know if this changed again today. Now tax revenues in the counties could be going down and public services like Police and Fire could be in jeopardy too. I would bet some of the 1 million that lost their jobs this year, could be filing bankruptcy too.
 
ifirefight

ifirefight

Active Member
Originally Posted by zman1
http:///forum/post/2838500
Now tax revenues in the counties could be going down and public services like Police and Fire could be in jeopardy too.
YES, I am actually seeing that.... We are under contract negotiations and are looking at a ZERO percent increse in wages ..AND possible layoffs because of the decrease in tax base.
 
yearofthenick

yearofthenick

Active Member
I don't know much about mortgaged either, but I just wanted to say that when I was looking through the list of threads in The Aquarium, I skimmed over this and thought it said "Mormons and Mortgages." I just had to see what the similarities were so I clicked on the thread, only to find you were saying nothing about Mormons....
So, false alarm haha
 
zman1

zman1

Active Member
Originally Posted by DragonZim
http:///forum/post/2838968
Try Zero down, make 50K a year and buy a 400K home. Happened a lot where I am...
Who in their right mind would give these people a loan to begin with and underwrite it?
 
jdl

jdl

Member
Originally Posted by kjr_trig
http:///forum/post/2838467

Now our property value is in the toilet, even though we tried to buy responsibly.
this isnt entirely true. Your property value was sky high because of everyone getting 'bad' loans. Now the price is adjusting to what it should be, instead of the inflated price when people bought/sold homes more then changing underware.
 
cowfishrule

cowfishrule

Active Member
here's the problem... and since i am currently buying a house, i know how to avoid this trap.
it all comes down to emotions.
people get emotionally attached to a house. they must have it. banks make it easy to afford that dream house in the beginning, then jack you with higher rates later.
since its affordable now, the typical thought is "we can figure it out later"
WRONG ANSWER.
my wife and i found our perfect house. it is out of our range slightly. we know what we can afford now on 1 income, and in 6 years or so, when she goes back to work, definately on 2. i refuse to fall into that trap. if i cant afford it now, how will i later on with inflation? what if my wife does not go back to work?
as much as i love this house, if we cannot get it for what we can afford TODAY, then it could burn to the ground and i wouldnt shed a tear.
the ARM is a powerful financial tool for banks. its screws with peoples emotions and makes them (banks) tons of money.
 
sigmachris

sigmachris

Active Member
Originally Posted by zman1
http:///forum/post/2839000
50k isn't low income, is it?
Depends where you are trying to buy. 50K a year in Cincinnati, Indianapolis, Louisville will afford you the opportunity to buy a decent home with a good mortage for $150K to $250K.
However, $50,000 in a major Californian city, parts of Florida, etc won't get you much so then you have to reach on a bad mortage for a $400,000 condo.
 
zman1

zman1

Active Member
Originally Posted by SigmaChris
http:///forum/post/2839013
Depends where you are trying to buy. 50K a year in Cincinnati, Indianapolis, Louisville will afford you the opportunity to buy a decent home with a good mortage for $150K to $250K.
However, $50,000 in a major Californian city, parts of Florida, etc won't get you much so then you have to reach on a bad mortage for a $400,000 condo.
Like I said before, who in their right mind would loan someone making 50k a loan for 400k - regardless of going housing rates...
 
king kole

king kole

Member
the law specifically states that financial institutions avoid "high Risk" loans and only to "qualified individuals". the problem is and was institutional greed that lead to unsupervised financial free for all, bundled derivatives masking the validity and security of loans originated in the secondery and tertiery markets.
 
zman1

zman1

Active Member
Originally Posted by King Kole
http:///forum/post/2839019
the law specifically states that financial institutions avoid "high Risk" loans and only to "qualified individuals". the problem is and was institutional greed that lead to unsupervised financial free for all, bundled derivatives masking the validity and security of loans originated in the secondary and tertiary markets.


You nailed it - the useless scraps of paper peddlers... A game of hot potato, someone is left standing with the useless scrap of paper. While everyone that was able to peddle it to someone else made their tidy little profit....
 
cowfishrule

cowfishrule

Active Member
Originally Posted by DragonZim
http:///forum/post/2839053
Around here it is. 50K might let you rent a decent apartment, but there is no way you can buy a decent house in a decent neighborhood on that salary alone.
50k salary will get you a place in Mastic...
 
D

dragonzim

Active Member
Originally Posted by COWFISHRULE
http:///forum/post/2839068
50k salary will get you a place in Mastic...
Not even. I live in Shirley, the next town over from Mastic. Shirley isnt as bad as Mastic and houses in my area are all still running in the 275K to 350K range.
 
You must log in or register to reply here.
Top