Posted on 10/20/2014 10:18:08 AM PDT by jazusamo
Foreclosure is a messy business and often leads to lenders getting back pennies on the dollar. If there is more money derived than what is owed the bank doesn’t get to keep that, it goes to the seller. There’s no windfall in foreclosure.
That depends upon loan to value. In a declining market (as in lately) no. In a rising market, definitely.
There’s no windfall in foreclosure.
LOL, There are hordes of people playing that game according to you for no reason.
It is foolish to fall for such a thing. I wouldn't let the NYT define the meaning of "is."
I’m just saying that it would be foolish for a bank to offer a loan with the intent of foreclosure, there’s too many things that could go wrong. I don’t think hordes of banks are doing that.
Hordes of loan brokers and private investors do. I've personally known at least five of them.
When the Neu Yuk Slimes begins to pontificate, it is time to open the salt cellar.
First, Media Libtards/commies attacked “banksters”, whining about banks being too discriminating in regards to whom they lent money. “Minorities” were being denied housing loans because of racism, whole minority neighborhoods were supposedly being “redlined”. That resulted in Congress mandating banks make loans they otherwise would not have.
In the industry those were known as ‘NINJA’ loans.
“NINJA” was a crude acronym for ‘No Income, No Job’ and came into use because Congress, and the usual suspects in the population of race card players, forced bankers to make loans to people with neither the job skills to earn money for the mortgage payments nor the self discipline to make payments, much less the cultural heritage of being sufficiently self regulating to maintain a home.
Having forced the “banksters” to loan money to the financially unprepared/incompetent, the term “Predatory Banker” was invented to disguise what the Evil Ones at places like the Neu Yuk Slimes had browbeaten bankers into doing.
My experience as a Real Estate Broker is the 105% loans given in the early 2000's, were made to renters, when we go in a foreclosed home they ALL look like they have been rode hard and put away wet. There was a time when $500 earnest money could get you in a home, where as renting, thousands in first and last months rent plus deposit. It made no sense and I knew it could not sustain itself.
I'd be eager to hear your experience.
Not because I doubt you but because of my own involvement in community banking.
Are you perhaps talking about 'mortgage companies,' or 'banks' like J.P. Morgan or AIG (because they aren't really banks at all).
I've had five home/real estate loans, and expect to have more. I did my homework, knew my limits, knew what I was doing, and never had a problem. To the contrary--the lenders went out of their way to accomodate me.
The biggest problem now for smaller community banks is that Dodd-Frank has buried them in such preposterous regulations that they can't really make a home loan except to someone who doesn't need it.
It was the process of land loans, construction loans, and the take-out process as an owner-builder. The process was more predatory at the beginning than toward the end, but there was a series of very interesting twists even at the close of the process. This was during the period of high interest rates declining to lower during 1990-92. Much more I don't have time for.
Nope I appreciate the response.
There is some b.s. out there that is for sure.
The experience of building a house fed an educational process that went far beyond just a place to make a living. In 1997-2001, I made a real-time, inflation-adjusted, opportunity-cost based study of 14,000 real estate transactions in my county over a period of 30 years for a book I was writing. So I actually knew a fair bit about that market at the time, but more importantly, I know a lot more about the political corruption that makes it tick.
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