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WWCR do.. mortgage question


V8 Beast

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Its always a buyer beware, I agree... But in this case the companies are causing themselves trouble by trying to make a quick buck. If you talk someone into buying a home they cant afford, then how can you get mad when they cant afford it?

 

 

 

It's the consumers money and they have the ultimate say in what they do with it. The consumers weren't forced into buying a house they couldn't afford, they could have walked away at any time. If I tell someone a turd is work $1000.00 and they can buy it for $800.00 is it my fault they bought the turd on my valuation alone? If a consumer is mentally compentent to enter into a legal contract they should have the common sense to do their due dilligence before purchasing something.

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Explain exactly how a short sale works for me.

 

I dont live my life based on what someone else tells me my credit should be. I dont use credit for anything other than my house. The fact I have good credit isnt really due to any effort other than doing what I feel is right. If I think defaulting on a loan is in my best interest and that of my family, than so goes it. It hasnt happened yet but in the future it may.

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It's the consumers money and they have the ultimate say in what they do with it. The consumers weren't forced into buying a house they couldn't afford, they could have walked away at any time. If I tell someone a turd is work $1000.00 and they can buy it for $800.00 is it my fault they bought the turd on my valuation alone? If a consumer is mentally compentent to enter into a legal contract they should have the common sense to do their due dilligence before purchasing something.

 

This argument has gone around in circles for years with facts on both sides. I'm biased because here is what happened to me....

 

A guy in finance said I was approved for $225k. I asked how much the payment was, and he started talking about the ramp up mortgage. Asked me how much of a raise I got each year, my yearly bonus, and any other forms of "expected income". He worked out the math to tell me I could afford it by the time it ramped up. Being conservative I told him I wasnt buying a house for more than $175. At that point he tried to pressure us to get a house by showing how much better the more expensive houses were, and told us the program was made specifically for people like us. After an hour of declining offers he finally gave up. The pressure given from that guy was pretty bad. Having a 24% foreclosure percentage in my area can be partly contributed to that one guy. One finance guy and a lot of young people with dreams to buy a house that were taken advantage of. Not saying its all like that because we know Americans love to live outside of their means.. but when you get pressure on top of it, its not good.

 

Yes its the buyers job to be aware. But its also the finance companies job to be mindful of who they give money to. There is fault on both sides.

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Explain exactly how a short sale works for me.

 

I dont live my life based on what someone else tells me my credit should be. I dont use credit for anything other than my house. The fact I have good credit isnt really due to any effort other than doing what I feel is right. If I think defaulting on a loan is in my best interest and that of my family, than so goes it. It hasnt happened yet but in the future it may.

 

The mortgage company agrees to take less for the house than whats left on the loan. In most cases the people are at risk of foreclosure so they do it so that its not a total loss. In my case the loss prevention team is the only department that can approve or deny these. Since I pay on time I was told to stop paying and they might help me. During that time open houses, walk throughs, etc are conducted and hopefully a buyer is found. After an offer is made its sent over for approval through the mortgage company. Its considered a more responsible way to leave a house but still has somewhat of an impact on your credit. It also has about 3 less years of impact on your credit than walking away.

 

 

Just curious, what part of columbus do you live in, how much would you sell the house for to get out of it, what are the dimension of the house(bedrooms/bathrooms/sqr foot)?

Just outside of Hilliard. Columbus taxes, Hilliard schools (was the biggest reason for getting it). Its really up to the mortgage company but I'm hoping for $160k after I finish up some upgrades this spring. I dont mind the house or area at all. Its just hard to swallow 3-4 years of payments going towards nothing because I picked the cheap house on the block and it got cheaper.

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This argument has gone around in circles for years with facts on both sides. I'm biased because here is what happened to me....

 

A guy in finance said I was approved for $225k. I asked how much the payment was, and he started talking about the ramp up mortgage. Asked me how much of a raise I got each year, my yearly bonus, and any other forms of "expected income". He worked out the math to tell me I could afford it by the time it ramped up. Being conservative I told him I wasnt buying a house for more than $175. At that point he tried to pressure us to get a house by showing how much better the more expensive houses were, and told us the program was made specifically for people like us. After an hour of declining offers he finally gave up. The pressure given from that guy was pretty bad. Having a 24% foreclosure percentage in my area can be partly contributed to that one guy. One finance guy and a lot of young people with dreams to buy a house that were taken advantage of. Not saying its all like that because we know Americans love to live outside of their means.. but when you get pressure on top of it, its not good.

 

Yes its the buyers job to be aware. But its also the finance companies job to be mindful of who they give money to. There is fault on both sides.

 

 

 

Honestly, don't beat yourself over it. Here's another example: young people were able to buy new homes in the new market and within 6 months to a year, they were able to sell with a profit. So they took the profit and bought a bigger home with the staggered loan thinking that it is working now and it will down the road. The housing market craps itself, people lose their jobs, and their finances has hit the fan. It's easy to sit back now and say one can't complain about the situation they put themselves in. At the time, the housing market was booming along with everything else. The best thing I ever did was to not buy a house when I was younger because I know that I would have lost and been even more screwed than what I am now. We're all ecky experts after the fact.

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I failed at an online post.

 

You're failing at responsible borrowing in today's society. :gabe:

 

I pay my bills on time.. Im even so responsible that Im second guessing an easy out. You fail at reading on a forum of words :fa:

 

 

 

Anyone have any alternate options? Is there a gray area that can be looked into? I've researched this stuff for about 3 months, but people that go through it typically have other options that are not always openly offered.

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Brian I feel for you, we have been in our house for 10 years and have a good chunk of equity and if we sold for a lot less than we paid we would break even I think, plus we have more than the 5% down in savings. So with us it's a matter of put the damn thing on the market for what the state says it's worth and maybe make a little $$, or sell it close to when our house is ready for less than the value and break even. We are kinda scared because what if the damn thing sells quick? I'm not going to look forward to moving into an apartment then moving again into the house.
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Ever think about making your current home a rental and buying a new home? I know it could be a potential pain in the ass but at least then you can satisfy your conscience by not just handing over the keys to your current home. Still put the new home in daddy-in-law's name if the mortgage lenders won't give you a second mortgage loan. Just a thought...
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Ever think about making your current home a rental and buying a new home? I know it could be a potential pain in the ass but at least then you can satisfy your conscience by not just handing over the keys to your current home. Still put the new home in daddy-in-law's name if the mortgage lenders won't give you a second mortgage loan. Just a thought...

 

Actually, I thought about doing the rent and get an apartment, but never the rent and get another home. Damn, so simple and right in front of my face.. fail

 

 

You have to have 20% equity to rent a house out.

Actually, this might have been what killed those thoughts about legally renting last time. 5% less fail .. + 10% for not remembering. Current fail at 105%

 

I wouldn't walk away from it.

I dont think I could. Not unless I wasnt able to afford it some day.

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Actually, I thought about doing the rent and get an apartment, but never the rent and get another home. Damn, so simple and right in front of my face.. fail

 

My wife and I are currently debating on doing it. The only issue with our plan is that my dad is currently unemployed/prematurely retired and my mom is making $90k/year less than she used to. :fuuuu:

Edited by GilbWs6
For shitty spelling
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Insurance fire mod. Just get the tvs, car, and stuff that can't be replaced out. Sit out front sinning on top of old smoky until the fire department gets there and boom problem is solved.

 

On a serious note do what makes the most sense for you.

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Times are hard.

 

P.s. My neighbor foreclosed and the guy that moved in payed $75k less for the house!!! WTF!!!

 

 

Insurance fire mod. Just get the tvs, car, and stuff that can't be replaced out. Sit out front sinning on top of old smoky until the fire department gets there and boom problem is solved.

 

On a serious note do what makes the most sense for you.

 

Nothing makes sense. If Im responsible I pay for it. If Im irresponsible I get rewarded... is this real life!?!?!

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Either way it sounds like you're doing the right thing and making it work as much as possible. I'd definetly look into renting it out, With where things are now its pretty hard to get one mortgage let alone two. You may have to transfer the mortgage to someone else lile mentioned before. Good luck either way, I hope it works out for you.
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images?q=tbn:ANd9GcS2vg9BXFnhvhbxRQr5u9yFGSil075NyXGr_D8JQJynkUAl4jhkTg

 

So...has this thread been helpful to you? Has "3 months of research" and talking with all the finance gais shown a way? Did CR break through the mental block you have at what to do next?

 

I've got a new angle... but its also good to communicate with people going through similar situations.

 

 

Either way it sounds like you're doing the right thing and making it work as much as possible. I'd definetly look into renting it out, With where things are now its pretty hard to get one mortgage let alone two. You may have to transfer the mortgage to someone else lile mentioned before. Good luck either way, I hope it works out for you.

 

Thank you sir. I've got a lot to ponder. I'm going to try going into the branch and speaking face to face with one of their financial advisers. Thats about the only thing I haven't tried yet to get all of my options.

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