New rule

darthtang aw

darthtang aw

Active Member
Stop bringing up the foreclosure rates.
in this country 2 in 172 homes are being foreclosed on at this time.
at this time and since 1979 4 in 172 cars are repossessed.
should the government bail them out as well.....I mean the cruel car companies talked them into buying a car they can't afford.
You know how much money you make and you know what you can afford. how is this the governments fault for your poor decision and failure to add properly?
 
agent-x

agent-x

Member
Originally Posted by Darthtang AW
http:///forum/post/2540316
Stop bringing up the foreclosure rates.
in this country 2 in 172 homes are being foreclosed on at this time.
at this time and since 1979 4 in 172 cars are repossessed.
should the government bail them out as well.....I mean the cruel car companies talked them into buying a car they can't afford.
You know how much money you make and you know what you can afford. how is this the governments fault for your poor decision and failure to add properly?

By know people should know not to get into and adjustable rate

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. And if for some reason they do, make sure you will be able to afford it when the rate goes up.
 
reefmate75

reefmate75

Member
hahaha i like this thread money talk here we go
people who got the shaft with a ARM loan are peopel who couldnt get a loan with a fixed rate becuase there credit wasnt good enough but should have refinaced into a fixed rate 6 months after makeing timely payments and i agree this is not the goverments fualt, this is the fualt of the people with that childish mentality oh i want it and i want it NOW and im willing to DO ANY THING FOR IT!!!
loans to stay away from, ARM (ajestable rate morgages) and baloons (baloons ALWAYS POP so why chance it)
and if your smart dont take a loan on your CAR! if you cant pay green then you cant afford gasoline!
 
gmann1139

gmann1139

Active Member
Let's not forget these are people's homes being taken away.
While I am of the opinion that some of the people being foreclosed upon were naive and got in over their heads, I am still compassionate to the fact this is still their home being taken away.
 
bang guy

bang guy

Moderator
I find the thought of a consumer

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bailout to be rediculous. The people that are in trouble from these ARM loans HAVE NO EQUITY IN THEIR HOUSE!
If the property is forclosed they lose NOTHING!
 
beth

beth

Administrator
Staff member
I just heard of a problem along this line from a workmate who has a friend who is being foreclosed on. The friend did an ARM loan on a $350,000 house in 2004, plus thru in another $100,000 for "renovations", basically a $450,000 loan. (Of course, no money down.) I asked my workmate what the friend did for living, she said she's a public school teacher. Is there a second income, I asked? No. I was astounded and near speechless. How can someone making no more $50,000 take out such a loan??? Especially, an adjustable rate? Its mind boggling. In 2005 my job transferred across state and I bought a house for $123,000. I put down $30,000 on a fixed rate loan. I now have this house, and the other house in Key West which is being rented out. I have done some renovations as I go, about $12,000, and plan to continue to do so as I go and when I can afford it. No way could I have afforded a $450,000 house, not in billion years of dreaming, and I am sure I make more money than most public school teachers.
Is it dreaming too high? I would crap bricks every day of my life with that kind of a loan looming over my head.
I did see a CNN special this week that showed how some unscrupulous loan companies actually lied and manipulated to get people talked into to doing one of these loans. Obviously, that end of things needs to be prosecuted to the full extent. Basically, telling people that by taking out a house loan and consolidating debt will actually save $60,000., etc. Yes, people should not be so stupid, but people also do rely on the integrity of these companies, and that was a BIG mistake. First time home loaners are basically in a maze of legal and contract craziness. My best is advise is to have a real estate lawyer handle it for you.
 
lovethesea

lovethesea

Active Member
this is nuts. A lady here in STL was on the news crying about here troubles
She makes 60 K a year and took out a loan for a $350,000 house. What on earth made her think she was able to afford THAT??? Princ/interest and then monthly bills. She is an adult, did she not think this through?
 
reefmate75

reefmate75

Member
ok guys, i do feel for these people in hard times, but i have to say it if you have read my thread in the auqairum then you know where i stand for people who havent, most of us 70% average of the US population belives that to have a nice car that car comes with a car payment, a house comes with a house payment,
this problem we are seeing in the US isnt about how the companys lied to the consumer, i mean they are out to make money any way they can, ITS THERE JOB TO GET YOU TO GIVE AWAY YOUR MONEY
what people belive to be THEIR credit score is not THEIR credit score, it is the BANKS SCORE that they keep on you to determin weather you are willing to give your money away, if it was my score wouldnt i be able to look at it at any time like my banking account? think about it
anyone takeing a home loan where the payment is more then 1/4 of the total familes bring home pay will come on hard times
i do not disagree with getting a loan on a home for the fact homes dont normally drop in value they normally go up (except here of late haha) but putting more then 1/4 of the bring home into a house payment is stupid yes i said it stupid!!! childish even the mentality i want it and i will do anything to get it comes to mind and that is normally seen withen children
people should stop and think about what they are doing, and for the comapnys LIEing well i do not agree to that eather but with my experiance with leanders they are sharks and should not be trusted
americans finace every thing these days... people you are GIVEING your money away, if i was to tell you i will loan you 10,000 but you had to pay me back 15,000 withen 5 years would you do it? i would sure hope not, but people do it EVERY day at a car lot
 
pontius

pontius

Active Member
my wife and I combined make $100k a year. we got a house loan for $200k. that's far less than the "rule of thumb" that they tell you about when figuring out how much you can afford. we went to the bank and the guy explained all the different loans. when he explained the ARM, we told him to move on to the next option because we weren't interested in a rate that could go up in the future. we got a fixed rate of 5.35% after paying 2 points down. in other words, we used our brains when we financed for a new house. the government bailing out people that bought a house they couldn't afford to begin with is like punishing ME for buying something I could afford. if the government does this, I want to trade my house in for a $500k house, but only be charged $200k for it.
 
1journeyman

1journeyman

Active Member
Originally Posted by gmann1139
http:///forum/post/2540362
Let's not forget these are people's homes being taken away.
While I am of the opinion that some of the people being foreclosed upon were naive and got in over their heads, I am still compassionate to the fact this is still their home being taken away.
And let's also not forget that the majority of the sub-prime loans required little or no down payment.
These people aren't losing their homes, they are being evicted form their overpriced "apartments" they've been renting...
 
darthtang aw

darthtang aw

Active Member
Originally Posted by 1journeyman
http:///forum/post/2540531
LOL,
Funny how a post titled "New Rule" immediately attracted 3 Sharks

Just wait till next weeks new rule. I have thoughts in my head and will rip off bill maher till my thoughts are done. I figure one a week for a while
plus they will give a different style of political discussion away from the usual ones we have all the time.
 
reefmate75

reefmate75

Member
as i said a second ago, i do feel for these people in hard times, but i bet you 100 dollars these people when they get out of it as long as the government dosent bail them out will spend there money diffrently from here on out and maybe even invest into learning what they are doing wrong, but then again some people never learn
if the gov bails them out they have just been let off the hook, and have not learned what is needed to not get into this bind, the part to learn you shouldnt have put yourself in that spot in the first place and to think befor you jump again, and dont take loans on every thing becuase as we all know nothing stays the same, the 100k a year job you hold today might only be a 50k a year job next year and if you have 80k a year worth of payments that isnt smart now is it
 
tangman99

tangman99

Active Member
I agree to no bail out. It is your responsibility to spend your money wisely. Now keep in mind the opportunity the banks and

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company were going for. They were handing out loans like candy to people with bad credit for a reason. Remember how the prices of houses were increasing in equity at an incredible rate? The economy looked strong and nothing pointed to this changing anytime soon. The banks felt they were taking no risk. They would give you a loan on $300,000 house knowing that when the rates went up that chances are you would default. The equity in the home after a couple years would probably have it close to $400,000 and you have been making payments during that whole time. They would evict you and sell the house for profit. It is the same principle that people do with buying a house for investment, renting it for income and then selling it when the equity goes up. The only problem is that the housing market went to crap and now they are all left holding the bag. Banks and people that bought houses for investment purposes.
The local news here had a family on that was crying about losing their home and how they were mislead into buying the house. A lady bought a $200,000 house with no money down by herself and didn't even have a job at time. That was their point in trying to say that it was wrong for them to give her the loan if she didn't even have a job. Boo friggin Hoo. It was still her stupid fault.
My neighbor bought 4 condominiums and built three brand new houses all with no money down and interest only loans. Let's just say today he doesn't even own his house in my neighborhood any more.
Also remember that many of the the houses that were purchases with no interest loans were for investment purposes to rent or turn over when completed. That was what my neighbor had planned. Buy at preconstruction prices, it was taking a year to build them here as the housing market was on fire, close shortly before building and sell the contract before the house was even finished. If you did it right, you wouldn't even make a payment. At that time, houses were going up around $50,000 from the time you put a deposit down up to the time you closed. Do I feel sorry for these people? Not one bit. I had the same opportunity and I passes because I have better sense than that.
 
al mc

al mc

Active Member
Originally Posted by Beth
http:///forum/post/2540428
I would crap bricks every day of my life with that kind of a loan looming over my head..

If we had a 'quote of the day' thread...I vote for this one.
I would also add that I feel compassion for anyone who has lost, or is losing, their home due to job loss, illness, unforseen circumstance. However, you have to be deluding yourself (and costing the rest of us our hard earned dollars/tax dollars) if you have a no money down ARM loan and do not see this as a potential problem.
 
bang guy

bang guy

Moderator
Originally Posted by Al Mc
http:///forum/post/2540723
I would also add that I feel compassion for anyone who has lost, or is losing, their home due to job loss, illness, unforseen circumstance.
I agree 100%. None of the bailout plans I have seen would help these people at all though.
 
lovethesea

lovethesea

Active Member
TOTALLY agree that some folks are just on hard times with job loss, company problems etc. But this lady in STL had a $2300 monthly interest only paymen
^& I am guessing she applied for the "stupid only may apply"
And Tang is right, the years of "flipping" are over!!! They were great for about 4 years. There is an area in Clearwater that has 2 bldgs that were totally foreclosed on last summer due to this gamble. They bought in a few years prior with a deposit only and intrest only loan during construction. Gambling that within the time of completion the increase of the price of the property and when the loan would be due, the property would be sold.
This has totally ruined some areas of the US. Take a look around at some areas that are cleared (and have been cleared for some time now) They are just weed riddled pieces of properties that won't be completed. Some swear that foriegn interests are buying up this land and completed properties. But in the end, those folks don't live here full time and don't/won't contribute to the local economies on a daily basis.
and what's up with the "

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" in some posts. What is being blocked out. My brain is too slow to figure is out.
 
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