Sully Posted February 25, 2006 Report Share Posted February 25, 2006 I know I speak for the residents of Galloway Ridge, such as Chris Green and myself, when I state: FUCK YOU DOMINION HOMES! Thanks for the predatory lending and balloon payments causing 110 foreclosures in our subdivision alone! I'm with you on this one. I live in the Holt Run subdivision. There's about 80 houses in my development. It's a 3 year old subdivision and there's already been several foreclosures. I'm in the process of refinancing my house for a second time already and these fucking foreclosures are owning me. My house isn't worth dick because of this shit. I'll say it again... FUCK YOU DOMINION HOMES! I will say though, that Greg is the man and is working his ass off to get me the best deal possible. Quote Link to comment Share on other sites More sharing options...
Orion Posted February 25, 2006 Report Share Posted February 25, 2006 well, my estimate wasnt TOO far off, considering it basically just told me what i paid for it in 03. considering i had it appraised last week for a refi and it came back at 140k, i think the estimate of 127k is a little low. Quote Link to comment Share on other sites More sharing options...
Guest Luetic Posted February 25, 2006 Report Share Posted February 25, 2006 No offense, but aren't people still responsible for signing bad loan deals? People continue to try to live above their means. Dominion simply gives them the rope. The home owners are the ones that hang themselves. You can't make $20k / yr and buy a $200k home! It is unfortunate that they don't have the business sense to ask themselves if they'll be able to make the house payment after 1 or 2 years when it goes up to the real price. I don't see how this would be a lenders fault. I thought balloon loans went out in the 80's anyway. Quote Link to comment Share on other sites More sharing options...
Rotarded1647545491 Posted February 25, 2006 Report Share Posted February 25, 2006 No offense, but aren't people still responsible for signing bad loan deals? People continue to try to live above their means. Dominion simply gives them the rope. The home owners are the ones that hang themselves. You can't make $20k / yr and buy a $200k home! It is unfortunate that they don't have the business sense to ask themselves if they'll be able to make the house payment after 1 or 2 years when it goes up to the real price. I don't see how this would be a lenders fault. I thought balloon loans went out in the 80's anyway. They do everything within there power to sell you the balloon payments. Trust me, they tried to sell me hard! They also "pre-qualified" me for a $335,000 loan with just a $30,000 tax form from the previous year (1999). I about shit my pants! We didn't even submit my wife's income info. None the less, we purchased a $150k house and put $14k down. We have always been able afford our $1150 a month payment on our house, even in '99. The harsh reality is that after refinancing 4 years ago at a lower interest rate for 15 years, and making an extra payment a year, we will have the house paid off (2010) before we will realize any significant equity return in it. This because of Dominions lending practices leading to an astounding number of foreclosures, thusly supressing the value of our homes for at least 5-7 more years. I don't wanna live in this house for 5 more years. I need a bigger garage! FUCK YOU DOMINION! Quote Link to comment Share on other sites More sharing options...
Guest powers Posted February 25, 2006 Report Share Posted February 25, 2006 No offense, but aren't people still responsible for signing bad loan deals? People continue to try to live above their means. Dominion simply gives them the rope. The home owners are the ones that hang themselves. You can't make $20k / yr and buy a $200k home! It is unfortunate that they don't have the business sense to ask themselves if they'll be able to make the house payment after 1 or 2 years when it goes up to the real price. I don't see how this would be a lenders fault. I thought balloon loans went out in the 80's anyway. Well the term Balloon has been used several times in this thread and that is not the kind of loan that Dominion uses. Both Dominion and MI use the same thing because they have to in order to compete with each other. The most popular loan is an FHA 2-1 buydown. In it's self it isn't a bad loan, no loan is bad if you a full understand of how it fully works. But there in lays the problem. You go into the model home and there is a sales person, not a realtor or a licensed loan officer. They get you payments and tell you much the builder works with you to get you the lowest payment. What they do not tell you is the issue. They do not inform people about escrow and how once their home gets assessed that their payment is going to increase drastically to cover the shortage in their escrow account. The other issue is how they sell the people on how they are going to make more money in the next 2 years so it gives you time to adjust to the payment. That is the sales issues now for the builder’s issues. When you do an FHA loan you can have a 400 credit score and get approved. You just need to be clean for 12 months. So they get people in your neighborhood who are not that stable. When they qualify them to see if they can afford the house, they are not using what the payment will be at its highest. Instead they are using what it will be at its lowest. This is the crazy part to me. Then with FHA you need to have a 3% down payment. Well they told you nothing down, that the builder would pay it for you. While it is included in the price of your home the builder is NOT paying for it, you are, and the closing costs that they covered. So your 150K dollar home just went to 160K so you can get in with nothing down. Then they use THEIR appraiser who comps it out to other new builds in your neighborhood that have had the same thing done to them. The 160 value was never there to begin with. The surrounding market would never support that value for what you own. Now we are getting to the root of the issue. So you bought a home over priced and you live next door to a shaky buyer living check to check. You are in about the worst situation possible. Once a few of those foreclosures happen someone else came in and bought for 135-140. So there you are, you owe 157K on the home you paid 160K for 2 years ago and the sales comps are 140. You are fucked hard. FHA has a loan amount cap. So now you have the people with the 250-450 sized loans. While these neighborhoods are not affected as badly, they still suffer from being over priced for the market. There will still be a few foreclosures in those neighborhoods dues mostly to the escrow situation and the minimum payment loans that the lender offers to this buyer. While I always say that every loan has its place, a purchase on a new home is not the place for this kid of loan. It puts the buyer in a false sense of the cost of the home they live in. I will give you an example. 350,000 purchase price On the loan MI and Dominion sell you the payment is 1293 for the mortgage 200 for taxes that are not even due yet 50-60 for your insurance 1543 to live in a 350,000 dollar home. Now here is the real world of what it costs to live in a 350,000 home 2212 for the mortgage 416 for actual taxes in Franklin or Delaware County 50-60 for insurance 2678 to the real world to live in a 350,000 dollar home. You look at that and you tell me what is going to happen in a few years when the reality hits these people. The same thing as the FHA neighborhoods, it just takes longer to happen, and it will hurt a whole hell of allot more. The issue with the builders is that they are taking advantage of people who just want to buy their dream. Predatorial lending is anytime you put the borrower into a loan that benefits you more than them. On a 190000 dollar loan the builder/mortgage company will make anywhere from 5200-7600 dollars on top of everything else buy putting you in the FHA mortgage. It is a racket and it is taking advantage of unknowing people who assume real estate is the best investment you can make. Dominion and MI have ruined that in the Columbus market. There are so many people trapped in these subdivisions that once they can get out and not take a loss there will be a flocking to more established areas. The buyers have no way of seeing any of this from the paperwork in from of them. Because it is all market research, not something you will see on your good faith estimate. Quote Link to comment Share on other sites More sharing options...
Guest mithesaint Posted February 27, 2006 Report Share Posted February 27, 2006 Powers, I love you man. True story I'll give you a call in a few weeks about a pre-approval letter, ok? Thanks again for everything. Quote Link to comment Share on other sites More sharing options...
Doug1647545489 Posted February 28, 2006 Report Share Posted February 28, 2006 Pretty close on my parents house but not close on my house. Quote Link to comment Share on other sites More sharing options...
ZYUL8TR Posted February 28, 2006 Report Share Posted February 28, 2006 Foreclosures = $. I have ventured into a joint program with several others. This involves buying foreclosures, renting them out until the area stabilizes. then selling. In well established developments, we do a mortgage search. We hunt for those that are not into foreclosure as of yet, then force them to sell at or below the mortgage balance (they only care that their credit is not crushed by their hardships). We have completed two so far, poor saps. Buy outside your means, creates more of a profit for others. If you have to refi, after only 1-2 years in your house, you are living outside your means. Quote Link to comment Share on other sites More sharing options...
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