forclosures up 97%

[Raven]

the news announcers are saying that the stimulus package is going to be
some kind of rescue for all these Americans loosing their homes


they have to be on drugs to believe that ...let alone be saying it....

it's complete plain and simple

[spence]

It might provide a teeny bit of help, but there's a lot of feel good in there as well.

I do agree that the problem is big enough that the Government needs to take some action, although I'm not smart enough on the subject to say exactly what that action shoud be.

I just home the aid goes to those who really need it. There was a lot of mortgage fraud in the past 6 years, and a lot of people borrowing in a very irresponsible manner who should have to own their own problems.

-spence

[BigFish]

From what I saw on 60 minutes the other night it seems the "lenders" are more at fault than the borrowers! They were giving loans away and not checking financials......just making the deal, making the money and letting the chips fall where they may! Well fall they are!

[GattaFish]

The lenders are to blame,,, They were the predators who came up with the loans and sold people on them.... Most don't know much about a mortgages since they rarely go through the process and all they wanted was a big house they were TOLD they could afford.

Now,,, I won't feel bad if one of those Vacation homes on the water goes into foreclosure,,, So lets find one and do some fishing,,,,

[PaulS]

Read an article in the paper about a company that investors use to check loans for fraud, etc. They normally reviewed about 20% of all loans. The company started reporting that the quality of the loans was starting to deteriorate about 2 years ago yet they were ignored.

[striperman36]

Originally Posted by GattaFish

The lenders are to blame,,, They were the predators who came up with the loans and sold people on them.... Most don't know much about a mortgages since they rarely go through the process and all they wanted was a big house they were TOLD they could afford.

Now,,, I won't feel bad if one of those Vacation homes on the water goes into foreclosure,,, So lets find one and do some fishing,,,,

I believe a lot of people were convinced they could afford something more. I had several people try that when I was looking in the eighties with low rate with a balloon after 5 years. I didn't do it.

I did refinance in 91 to a 15 year 4.125 2 point mortgage. I am good.

[Swimmer]

Its very difficult blaming the borrower when they looked at it like it was thier only chance ever at having a home of thier own.

The frieking lenders are predators though. Borrowers were fish in a bathtub to them. Phonying up down payments, getting people to go to city hall and pay a fee to register a non-existent in-home business. Lenders will not end up in jail and I think they should.

When the lenders do something so egregious that it throws the whole country into a slide then they should PAY.

[Raven]

Originally Posted by Swimmer

Its very difficult blaming the borrower when they looked at it like it was thier only chance ever at having a home of thier own.

when the lenders do something so egregious that it throws the whole country into a slide then they should PAY.

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
if not pay they should have to offer refinancing thats within the borrower's budget...
.........
and in my case the mortgage broker said don't worry we'll get you refinanced in a few months at a much more affordable rate...

yeah right....

then it got changed to five months, then 6 , and now there's talk of even another rate decrease besides the 3/4 that just got slashed and it still doesn't seem any easier to find refinancing as the economy
just gets worse and worse.... by the day

i am so disgusted with this whole
friggan process...it's beyond words...

[zacs]

unfortunately, it became difficult for new borrowers to re-fi due to the falling real estate market. The bank will not finance 100% of the value of the home in a normal mortgage.

so when you financed $240 for your $300K home, which now assesses at $250, you are screwed and can't refinance if you owe a penny more than $200.

is this what is happening to you, Raven?

[MrHunters]

its both the lenders and borrowers fault.

YES the lender should be more thorough in their approval processes but ultimately it falls on the borrower to know what your limits are. We just went through the process about 8 months ago. We were approved for probably 40% more than what we could afford. BUT being the responsible, and nervous first time home buyers, we said that was insane and borrowed what was managable.

I don't understand why people bite off more than they can chew in this situation. Sure there are the lost my job stories but that can't account for 97% of it. I blame uneducated people buying property.

[BigFish]

MrHunters....obiously you did not see 60 Minutes? I agree that many times its a case of default on the borrowers part for one reason or another.......but if you saw this 60 Minutes episode you would see what I saw.

[MrHunters]

BF, I agree with you that the lenders are just throwing money at people, and if they are not checking financials then stupid them....BUT shouldnt you know as an individual or couple how much you make and what you can afford no matter what the bank says?

Too good to be true applies EVERY time in getting a home loan.

[BigFish]

Again I refer you to the 60 Minutes episode....I do not have time to hit all the highlites but it was quite telling.

Lenders were simply approving mortgages for any and all comers without so much as checking social security numbers......most of the mortgages were varible rate mortgages and what happened was after a period of time the rates ballooned and many times the mortagages doubled and the borrowers were screwed! Yes the borrowers admitted their negligence but it was the lenders who were most careless in this scenario as they make their money on how many mortgages they sold......they would sell them and the bank that held them would in turn sell them to another mortgage house and so on and so on.....everyone was making money on it without regard for the consequences........so here we are!

It is the job of the lenders to check backgrounds and financials on the potential buyers and they were not doing it!

[BigBo]

Originally Posted by BigFish

Again I refer you to the 60 Minutes episode....I do not have time to hit all the highlites but it was quite telling.

Lenders were simply approving mortgages for any and all comers without so much as checking social security numbers......most of the mortgages were varible rate mortgages and what happened was after a period of time the rates ballooned and many times the mortagages doubled and the borrowers were screwed! Yes the borrowers admitted their negligence but it was the lenders who were most careless in this scenario as they make their money on how many mortgages they sold......they would sell them and the bank that held them would in turn sell them to another mortgage house and so on and so on.....everyone was making money on it without regard for the consequences........so here we are!

It is the job of the lenders to check backgrounds and financials on the potential buyers and they were not doing it!

And a huge percentage of the borrowers defaulting are in this country illegally. So if the lenders took the time to do a simple credit/background check, they never should have qualified for that mortgage to begin with. Never would have happened a few years ago, but as already stated, the lenders are such a greedy predator type, they'll let anyone borrow.

[spence]

Originally Posted by BigBo

And a huge percentage of the borrowers defaulting are in this country illegally.

Really? Everything I've ever seen indicates just the opposite

-spence

[BigBo]

If you say so.

[MrHunters]

my mortgage has been sold 3 times in 8 months... pretty crazy.

I see your point Larry but I still say we are responsible for our own actions. Why can I, harry home buyer, find enough info around, talk to enough people, take a first time home buyers class, to feel ok about the loan I chose and the next guy blindly walks in and takes out 500K when they know they can't afford it?

[BigFish]

Kind of makes you wonder....doesn't it????

[MrHunters]

maybe id feel different if i saw 60 minutes.

[MrHunters]

problem with re fi is the closing costs again. 6 to 10K bleh

[Raven]

what i meant was loosing this place now
just before i got my chance to farm it after waiting my whole life

would rip my soul right out of me...

to the point i'd be so destroyed i'd be just a ghost

of my former self....and probably

turn white haired in a month

then i'd have a coronary.

and very true Spence ...................

since the nest EGG has already been spent
on the closing costs to get it.

re: the bank doesnt want to own it....
especially not this place! because of the condition it's in
which is gonna take this imaginative Scottish
ever so determined, bad ass carpenter 20 years
to whip it into shape....

[MrHunters]

those 80 20's are scary deals.

[Bronko]

This is actually really interesting being able to view a cross section of people and see their comments and view their take on the current mortgage situation. It appears the general sentiment is that the fault lies with the mortgage companies, and the borrower gets a pass.

What do you guys think about this?

http://www.nbcsandiego.com/news/1514...subid=10101561

Who is to blame here?

[spence]

Seems like an isolated case where the buyer was really stupid. Although, it may help to know how any state laws might apply in this situation as I believe they do vary...

But if the seller did knowingly lead them into believing they house was worth 5X what they paid, I'd think there could be room for some potential fraud, even if the buyer was a dope.

Difficult to tell not knowing the entire situation or being a legal expert

-spence

[Bronko]

Originally Posted by Raven

the news announcers are saying that the stimulus package is going to be
some kind of rescue for all these Americans loosing their homes


they have to be on drugs to believe that ...let alone be saying it....

it's complete plain and simple

Also, not that it will change the sentiment of the thread, but foreclosures are up 79% not 97%.

[Backbeach Jake]

I had a comptroller for a major string of auto dealerships tell me once that a salesman hasn't done his job if he didn't get every dime that a buyer had for an auto for the term of the payment. Sounds like the infection has spread to housing. Predatory lenders thinging everyone is a sucker to be played. There's a lot of hard working folks out there who have watched their "American Dream" die a horrible death. It'll never come true now. Because their lenders did not have the moral fiber to explain what a sub-prime was. Not to mention an economy tanking like Red October. Sure there's some money out there, They just printed us a tax refund. It's sad.

[Raven]

Originally Posted by Bronko

Also, not that it will change the sentiment of the thread, but foreclosures are up 79% not 97%.

they are up 97% since December 2006

[Clammer]

B/J

your right ;;
some buyers got f $%^&* but others were stupid >>>>>>>>>>>>> but it didn,t stop there // I heard the bankrupsy court is overflowing every single day >>. a descent amount of realtors /But a ton of mortgage originators / who also ready making a killing on the 80-30>. 70 -30 ,s had to know it wasn,t gonna last .. but they spent like it was >>>>>>> now SOL & out of work ;;
the buyers / on the subprime loans / mostly had fescent jobs / little money & fair credit at best >>>>> they were lead to believe that in a year to 18 months they would be able to refi >>>>>>>>>>>>> never happened ;
then ya got the buyers that had good credit & jobs & a little money >>. bUt with the market being hot &//& values increasing they didn,t want to settle [even }with the interest rate being approx 5.68 >.they took 3 & 5 years arms @ a 4= interest rate >>>>>>>>> now its time to lock in & they can,t make the lockin in payment // arms are great if you only plan on stayin a couple of years or your company will cover your ass when you relocate ;;
then you have the buyers that bought 2000 - 2003 .. that still wanted the house & all the toys >>>> so they just kepy refi ing ;;
Just this past year I had to turn down at least a dozen clients that asked me to sell their homes ;;
before I even did comps >.I,d check on what they paid .. see if they both had new SUv,s & I knew I couldn,t help them >>> they were upside down in the value of their homes >>> In otherwords ...they took the equity & didn,t put it back into their property // now its worth // alot less than what they owe // so they can,t refi ;;

it was/is a combination of many factors & people & it is truly a Cluster f #$%^&* &&&& its far from over ;;

If you have access hard cash >>. take it out of the stock market or notes & buy properties right >>> && when this does turn around / those that are doing that were wealthy before // will become alot more than wealthy

[Bronko]

Originally Posted by Clammer

B/J

your right ;;
some buyers got f $%^&* but others were stupid >>>>>>>>>>>>> but it didn,t stop there // I heard the bankrupsy court is overflowing every single day >>. a descent amount of realtors /But a ton of mortgage originators / who also ready making a killing on the 80-30>. 70 -30 ,s had to know it wasn,t gonna last .. but they spent like it was >>>>>>> now SOL & out of work ;;
the buyers / on the subprime loans / mostly had fescent jobs / little money & fair credit at best >>>>> they were lead to believe that in a year to 18 months they would be able to refi >>>>>>>>>>>>> never happened ;
then ya got the buyers that had good credit & jobs & a little money >>. bUt with the market being hot &//& values increasing they didn,t want to settle [even }with the interest rate being approx 5.68 >.they took 3 & 5 years arms @ a 4= interest rate >>>>>>>>> now its time to lock in & they can,t make the lockin in payment // arms are great if you only plan on stayin a couple of years or your company will cover your ass when you relocate ;;
then you have the buyers that bought 2000 - 2003 .. that still wanted the house & all the toys >>>> so they just kepy refi ing ;;
Just this past year I had to turn down at least a dozen clients that asked me to sell their homes ;;
before I even did comps >.I,d check on what they paid .. see if they both had new SUv,s & I knew I couldn,t help them >>> they were upside down in the value of their homes >>> In otherwords ...they took the equity & didn,t put it back into their property // now its worth // alot less than what they owe // so they can,t refi ;;

it was/is a combination of many factors & people & it is truly a Cluster f #$%^&* &&&& its far from over ;;

If you have access hard cash >>. take it out of the stock market or notes & buy properties right >>> && when this does turn around / those that are doing that were wealthy before // will become alot more than wealthy

I agree clammer. Cash is king right now. There will be some incredible opportunities out there for level headed investors who have kept their powder dry. I work with a lot of investors who have been on the sidelines for 2 years and they are all warming up in the bull pen.

[riverrat55]

Some of these buyers were in it for the quick buck!!!
Buy it now at an adjustible rate(4percent interest) for 5 years!!!
Sell out at end and make 200,000 grand due to rising real estate market!!!
When market burst, so did their investment bubble!!!