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Holy Foreclosures...!


Putty

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There wouldn't be an issue if the dumabsses making $10 an hour wouldn't buy a 200k house. :(.

 

I'm happy with my $100k house I bought back in '99. Now it's worth at least $130k. Payments are still under a grand.

 

X2! When I went looking for a house I found that people were trying to sell me a house, not help me find one. My realtor took me to a bunch of those new builds where you pay $700.00 a month for the first 2 years and then ("Becasue your income will go up" :rolleyes:) the monthly payment will be $1,200.! I'm sure it will go up, and it has, but it sure as hell didn't double. I'd imagine that a lot of people saw what they wanted to see and got roped into it. I on the other hand said fuck the realtor got online and started finding them on my own. I found a nice 3 bed room ranch for $110K. Got a KILLER interest rate .0325 thanks to the 9/11 bs when they were cuttin rate and now I comfortably live in my own home and pay about $200.00 less per month then my friends who rent pay.

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Yep bought a 1400 Square foot house in a nice neighborhood in June of 01. Our payment is going down about 400 a month since we are refinancing to a much lower rate. Our payment will now be only 10% of our yearly income. In a year both our cars will be paid off. We are going to be able to really save and invest a bunch of money soon. As bad as the economy is right now, we are really in a good spot. We were smart when we got married we agreed to buy a house we can afford easliy.

 

I'm so glad we didn't buy one that we would have struggled to pay, you know the ones that the Realtor kept showing us and telling us we can afford. :rolleyes: We found the house we are in today ourselves. Realtors suck.

 

By the way, the person above has an FIXED rate of 3.25? I have seen adjustables originally at 3.25% but by now they should be much higher. Our rate of 5.1% is stupid low now for a fixed rate.......

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Yep bought a 1400 Square foot house in a nice neighborhood in June of 01. Our payment is going down about 400 a month since we are refinancing to a much lower rate. Our payment will now be only 10% of our yearly income. In a year both our cars will be paid off. We are going to be able to really save and invest a bunch of money soon. As bad as the economy is right now, we are really in a good spot. We were smart when we got married we agreed to buy a house we can afford easliy.

 

I'm so glad we didn't buy one that we would have struggled to pay, you know the ones that the Realtor kept showing us and telling us we can afford. :rolleyes: We found the house we are in today ourselves. Realtors suck.

 

By the way, the person above has an FIXED rate of 3.25? I have seen adjustables originally at 3.25% but by now they should be much higher. Our rate of 5.1% is stupid low now for a fixed rate.......

 

I did the same thing basically. Found a 1500 sq ft house that is just right for me, put 55% down, just enough that I keep a bit of a tax benefit on payments, and spend about 6% of my yearly income on it.

 

Another guy I knew on the other hand, made $9.50/hour (although he worked 60 hours a week.....Sometimes rofl) and bought a $200k house in Dublin, a $30k truck and a jet ski. He filed for bankruptcy 6 months later. It then took the bank 1 year to kick him out of the house. He had all his buddies move in and trash the place waiting to get booted.

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Dunno how he managed that...I dont think i've ever seen that low.

 

It was that low for a few reasons. Good timing mostly, I bought the house back in December of 02 and they had the interest rates real low because of 9/11 and the economy. Then I went through with a FHA loan and they were able to help get a lower rate since I had crazy good credit at the time, my beacon score was like 790. Ditching the realtor and looking on my own really helped. I found that there are a crap load of special GOV loans that you can apply for. There is a loan for urban development, if you want to look for houses outside the city they'll pay part of the mortgage up front to help reduce the cost of your loan/ payment, it's crazy. You can qualify for a lot if you take your time and just look. There almost out there like school loans, if you look you can find a great deal.

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If you say so. No reason to lie I guess. I'm 30yr fixed @ 5.65%. That's with points.

 

 

damn did your neighbor lose thier job?

 

 

I think they got duped into trickery with their mortgage. They were Asians and English was not that great. I bet the bank stuck it to them.

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If you say so. No reason to lie. I'm 30yr fixed @ 5.65%. That's with points.

 

 

 

 

 

I think they got duped into trickery with their mortgage. They were Asians and English was not that great. I bet the bank stuck it to them.

 

That's shitty not the bank is stuck with a property that they will have problems recouping the money and what makes it even worse is that it hurts your valve of the home as well.

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What happens to these people? Does anyone come after them for the money or do they just walk away scott free with a slap on their credit report?

 

I think they just get a slap on the credit report. If they stayed in the house it would be a different matter, but the house is collateral on the mortgage. So at the time of singing, the house was valued at X, which the bank agreed was a fair trade for the money. If they give the house to the bank in lieu of payment, then I would think that it is a better deal for the bank.. contract-wise.

 

Unfortunately, the housing market took a dump, so the houses aren't worth what they were originally appraised at. This is what's killing the banks. They end up with all these houses that aren't worth the money they paid for them, and no way to get the money back. Even if the house is worth the lion's share of the unpaid principle, they still have to sell the house. The speculator market is completely dead and the private market is near frozen. All that's left is auctions which means they'll take an even bigger hit.

 

Ultimately, the banks screwed themselves when they were screwing the customer. They were HOPING some of the people would default, then they get the money the people paid, plus the house which they could sell for HIGHER than the original loan. Even if the customer didn't default, they would still reap huge gains through those ridiculous rates. But the bubble burst and their plan is falling apart at the worst moment.

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What happens to these people? Does anyone come after them for the money or do they just walk away scott free with a slap on their credit report?

 

 

See that's a question I have not found an answer to. Here's why. I looked into this. Most people that got funny morts and can't afford their place, yet can't sell it, do one of two things. Get a new house with new fixed rate either financed in someone elses name or found a bank that was willing to give them an additional mort. Here's the thing. If you are late paying on your current mort...in today's economy...what bank would give you a 2nd loan of such amts.? I dont see that happening, thus, my theory they are getting homes in other names or renting. Then they take the credit hit and just say F it. People that walk away realize there is no way to stay afloat or understand any arrangements they make with the bank will actually not help them at all, so they get a foreclosure on their credit.

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See that's a question I have not found an answer to. Here's why. I looked into this. Most people that got funny morts and can't afford their place, yet can't sell it, do one of two things. Get a new house with new fixed rate either financed in someone elses name or found a bank that was willing to give them an additional mort. Here's the thing. If you are late paying on your current mort...in today's economy...what bank would give you a 2nd loan of such amts.? I dont see that happening, thus, my theory they are getting homes in other names or renting. Then they take the credit hit and just say F it. People that walk away realize there is no way to stay afloat or understand any arrangements they make with the bank will actually not help them at all, so they get a foreclosure on their credit.

 

And I'm pretty sure the forecloseure gets wiped off their credit report in 7 years. Just like bankruptcy, but without having to sell your car and other valuables. Or retain an expensive lawyer.

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I think they just get a slap on the credit report. If they stayed in the house it would be a different matter, but the house is collateral on the mortgage. So at the time of singing, the house was valued at X, which the bank agreed was a fair trade for the money. If they give the house to the bank in lieu of payment, then I would think that it is a better deal for the bank.. contract-wise.

 

Unfortunately, the housing market took a dump, so the houses aren't worth what they were originally appraised at. This is what's killing the banks. They end up with all these houses that aren't worth the money they paid for them, and no way to get the money back. Even if the house is worth the lion's share of the unpaid principle, they still have to sell the house. The speculator market is completely dead and the private market is near frozen. All that's left is auctions which means they'll take an even bigger hit.

 

Ultimately, the banks screwed themselves when they were screwing the customer. They were HOPING some of the people would default, then they get the money the people paid, plus the house which they could sell for HIGHER than the original loan. Even if the customer didn't default, they would still reap huge gains through those ridiculous rates. But the bubble burst and their plan is falling apart at the worst moment.

 

you would think that the banks would want to work with the loan holders to keep them in the house even if it was at a small loss is alot better than having to auction off the house.

 

One of my neighbors let his payment go unpaid for a while and after talking to him his loan company tried everything they could to keep in the his house. Sadly at that time coke was more important then his house and it when to HUD.

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what makes it even worse is that it hurts your valve of the home as well.

 

Totally screwed me now. Cause that house is going to go on the market at some godly low amt. I'll get some idiot neighbor that's happy he got a nice house for cheap. Now the comps on my street, NEXT DOOR to me will show a house sold for far less than what i'd sell my place for, which means i'll never get out of the bitch.

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