Posted on 03/15/2007 12:58:07 AM PDT by Graybeard58
There is some good news - investment properties will be widely available and relatively affordable. 'Course they'll need some cosmetic fixing-up.......
You mean those who know the price of everything and the value of nothing? Or those who bought as much house as they could afford but more than they needed as an "investment?" Or those that bought beachfront second homes. Or those that believed the hype that ou can make a killing in real estate.
Those who played by the rules and the rules paid off until multiple foreclosures in their neighborhoods depressed the price of their homes.
I'm exactly the kind of person that "no doc" loans were devised for: consultant with a 780 FICO score. I had no idea they were giving them out to indigents living in Section 8a housing. That's kind of insane.
In any case Biz Week did an excellent article on the topic of option ARMs last year, everyone should take a look:
BUSINESS WEEK ONLINE
SEPTEMBER 11, 2006
COVER STORY
Nightmare Mortgages
They promise the American Dream: A home of your own -- with ultra-low rates and payments anyone can afford. Now, the trap has sprung
Back in the day, when I ran a residential framing outfit on Cape Cod, I worked for a couple of builders who kept stacks of W2 forms handy. This was over thirty years ago and the builders, buyers and bankers were all colluding to get unqualified people into houses.
I'd say about 95% of these "unqualified" folks found a way to make their payments and have probably moved up to more substantial homes by now. Of course on the Cape today that 2 bedroom half Cape on 1/4 acre that went for $27,900 brand spanking new is "worth" over $400,000.
Subprime loan market grows despite troubles
Especially interesting the short bit about ACORN, Citigroup, and subprime loans to illegal immigrants.
I paid my student loan off early. The loan people thought I was crazy, and heavily hinted that most loans aren't paid back at all.
lost another Di-Tech! :)
on Section 8 rental assistance, who had been paying $200 a month in rent, was put into a $350,000 mortgage. Her income was listed as $72,000, when in fact she made half that,
Half that .... hmmm 36,000$$ a year and shes in section 8.
Sweet , where can I sign up? .. and can I rent from myself or do I have to go to one of their places?
And on another note , I saw a story about a poor little old lady who re-mortgaged her paid off home for 350,000 ... her income was 1000 a month ... poor girl. But my question ... what the heck did she do with the money?
Am I suppose to feel sorry for these folks?
IMHO, this sounds like collusion between developers, appraisers and and mortgage brokers...to take advantage of individuals and lenders....to the end benefit of the builder/developer. Wonder how far into it Deval is?!!
ACORN, Citibank, and Bank of America.
I wonder what percentage of these loans have gone to illegals and what their default rate is?
The people that live in these homes today still need a place to live.
I suspect things will be rocky for awhile if you are trying to sell a home. However, I think that will followed by a pretty long period of increases in families renting homes. If you have money, buy some of these foreclosures at $.50 on the dollar and rent them back to the same people that tried to buy them.
The first time my wife and I shopped for a house over 20 years ago the rule of thumb was the mortgage couldn't exceed 2 1/2 times income. This was 5 times income.
There's a sucker born every minute.
The price of laziness in school gets paid as as adult.
"Ah yes they were "victims".
Gag me."
I can tell you haven't spoken with a mortgage lender lately. Many are extremely unethical and even the educated consumer has to be wary.
Sure consumers have a stake in this but when the licensed and state certified mortgage guy says something people tend to listen. Fraud on his part doesn't make the consumer an idiot.
"Guess it's like being conned into running up a hughe credit card debt while buying non necessities or gong on expensive vactions."
Why do so many people give a free pass to banks and mortgage companies? Those companies know what they are doing lending to novice and over leveraged consumers. In fact the banks and lenders will target them BECAUSE they are novices and easy to sway.
Do not forget to add in the governmental pressure to increase the "diversity" of home owners and the continuous charges that the mortgage industry was being "unfair" to certain groups.
I don't think debts incurred via fraud were ever (or now) eligible to be discharged in bankruptcy.
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