U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > U.S. Forums > North Carolina > Charlotte
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 09-23-2008, 09:30 AM
 
Location: Charlotte, NC
2,193 posts, read 4,536,162 times
Reputation: 1072

Advertisements

Quote:
Originally Posted by anifani821 View Post

Sorry. We have a generation of people out there who wanted something for nothing. Way too many Gen X'ers have thought they should buy a first home as nice as - or nicer - than it took their parents a lifetime to acquire!
I agree w/ this statement. Most of my friends feel like at our in our 20s that they should (or whoever they marry) should own a home as large as the one they lived in. God forbid it doesn't have high ceilings and not enough closet space. I'm not really sure where the sense of entitlement came from. And I don't know why they don't realize that their parents are in their 50s and 60s and NOW they have these large homes with fancy cars. They worked 20-30 years to get that.
Reply With Quote Quick reply to this message

 
Old 09-23-2008, 09:48 AM
 
Location: State of Being
35,885 posts, read 67,029,152 times
Reputation: 22370
Quote:
Originally Posted by sheenie2000 View Post
I think there needs to be a place where people can go to figure out how much they can afford and how to budget their money. A lot of people probably don't know how to do that. Buyers think realtors and lenders should be the one advising them and others think the buyers should be the one to know.
I've been looking at homes recently and frankly I am having a very hard time figuring out how much it will cost. And this is me who took Calculus and Differential Equations and getting As in them thru college. But while math is my strong suit, I don't know all the variables to take into consideration. I've been reading about home buying and I completely forgot about school taxes. Which is an additional expense on top of HOA, homeowner's insurance, city tax, county tax, and state tax. Nobody tells you these things when you are looking to buy a home. No one breaks it down for you.

Those of you who bought a home, did you know beforehand EXACTLY how much your monthly payment will be? Since I personally am math oriented, it really bothers me when I am looking for a home, I have no idea how much it'll exactly cost. Since it all depends on the interest rate you get, how much down payment you put, whether you put 20% down or not, whether you get a 15 year or a 30 year fixed. Then there is thing called points and origination fees as well as closing costs to add on top of that. I wish there was a little bit of an easier method.

Maybe lenders and buyers can come together to figure this out. We can only do it by helping each other rather than just trying to screw each other over which got us into this mess.
There are online calculators. I always know down to the penny how much my payments will be. You can figure out your real estate taxes by looking up the info on county rates . . . and you can completely amortize any loan online. I also have amortization calcs on my computer - but it can all be found online.

I believe one of the most accessible sites would be bankrate.com.
Reply With Quote Quick reply to this message
 
Old 09-23-2008, 09:54 AM
 
Location: State of Being
35,885 posts, read 67,029,152 times
Reputation: 22370
Wanted to add: as a former realtor, I figured out this info down to the penny for all my clients, on any house they wanted to consider. Any good realtor can do this for you. If they can't, you need to find another realtor. Some of the most helpful people (and eager to educate the buyer!) that I have known have been good realtors.

You can discuss insurance policy costs w/ a good insurance agent ahead of time, as well. If they are not helpful, call another one! They need your business and goodwill!
Reply With Quote Quick reply to this message
 
Old 09-23-2008, 09:55 AM
 
743 posts, read 2,024,689 times
Reputation: 231
I wonder if they still used the amenities that they felt was not important to pay for. I would have at least agreed to work something out with the HOA the first time I missed a payment, not two years later. Two years is quite a long time, a generous time, to allow someone to get back on track.
Reply With Quote Quick reply to this message
 
Old 09-23-2008, 10:10 AM
 
630 posts, read 1,674,841 times
Reputation: 287
Quote:
Originally Posted by MommyV View Post
I disagree. It's in the banks' best interest not to have to deal with foreclosures and shortsales.
I agree thats why I put "as much as possible without defaulting on the loan".

If you can string someone along paying 10% interest, you make much more money than someone paying 5%. The banks want to keep you as a customer first off, charge you as much for a loan as they can (without you defaulting or going to another lender), and give you as little interest on your savings (without you investing elsewhere)
Reply With Quote Quick reply to this message
 
Old 09-23-2008, 10:27 AM
 
Location: Noth Caccalacca
5,554 posts, read 6,671,104 times
Reputation: 4847
I read this article with great interest this morning. As an HOA board member, I've seen this process happen close up. Too many people went into home-buying with blinders on! Financial skills among the general public are grossly deficient. Both the lending institutions and buyers such as this family are co-conspirators in the financial debacle that we are about to go through.

This family may well be facing a greater financial crisis in the near future. Most HOAs are generally willing to work out a reasonable repayment schedule for dues and late fees. But paying back $100 a month may not work for their HOA. What will happen when next year rolls around and they have to pony up another $795? They'll be deeper in the hole than they were! Good intentions don't pay for landscaping and upkeep. This family would always be owing payments.

Any good HOA only proceeds with a foreclosure as a last resort. Foreclosure is generally used to "threaten" the homeowner into repaying. The HOA may never recover any money anyway, and incur legal expenses.

Here's why:

If the house is sold at auction for less than what is owed on it, the bank will get all of the proceeds. The HOA will end up with nothing!

The homeowners will be on the hook for taxes if the home is "short sold".
Let's say the homeowners owe $300,000 and the home is sold for $250,000. This is certainly plausible in today's real estate market. The IRS would see the bank's loss of $50,000 as a gain to the homeowner's income. They would have to cough up taxes on a $50,000 gain on their future tax return. That would make it a lot more 'costly" than originally figuring out a way to come up with a couple of grand. The IRS is a lot less forgiving than an HOA!

This family, with financial rose-colored glasses got on the "housing Love Boat" and may soon find, they really boarded a "financial Titanic".
Reply With Quote Quick reply to this message
 
Old 09-23-2008, 10:58 AM
 
Location: Charlotte, NC
2,193 posts, read 4,536,162 times
Reputation: 1072
Quote:
Originally Posted by TheEmissary View Post
I read this article with great interest this morning. As an HOA board member, I've seen this process happen close up. Too many people went into home-buying with blinders on! Financial skills among the general public are grossly deficient. Both the lending institutions and buyers such as this family are co-conspirators in the financial debacle that we are about to go through.

This family may well be facing a greater financial crisis in the near future. Most HOAs are generally willing to work out a reasonable repayment schedule for dues and late fees. But paying back $100 a month may not work for their HOA. What will happen when next year rolls around and they have to pony up another $795? They'll be deeper in the hole than they were! Good intentions don't pay for landscaping and upkeep. This family would always be owing payments.

Any good HOA only proceeds with a foreclosure as a last resort. Foreclosure is generally used to "threaten" the homeowner into repaying. The HOA may never recover any money anyway, and incur legal expenses.

Here's why:

If the house is sold at auction for less than what is owed on it, the bank will get all of the proceeds. The HOA will end up with nothing!

The homeowners will be on the hook for taxes if the home is "short sold".
Let's say the homeowners owe $300,000 and the home is sold for $250,000. This is certainly plausible in today's real estate market. The IRS would see the bank's loss of $50,000 as a gain to the homeowner's income. They would have to cough up taxes on a $50,000 gain on their future tax return. That would make it a lot more 'costly" than originally figuring out a way to come up with a couple of grand. The IRS is a lot less forgiving than an HOA!

This family, with financial rose-colored glasses got on the "housing Love Boat" and may soon find, they really boarded a "financial Titanic".
Bush signed a law saying homeowners won't be charged tax on the amount that was lost on the short sale. Mortgage Forgiveness Debt Relief Act

Last edited by sheenie2000; 09-23-2008 at 11:24 AM..
Reply With Quote Quick reply to this message
 
Old 09-23-2008, 10:59 AM
 
1,877 posts, read 4,304,950 times
Reputation: 1243
Quote:
Originally Posted by TheEmissary View Post
I read this article with great interest this morning. As an HOA board member, I've seen this process happen close up. Too many people went into home-buying with blinders on! Financial skills among the general public are grossly deficient. Both the lending institutions and buyers such as this family are co-conspirators in the financial debacle that we are about to go through.

This family may well be facing a greater financial crisis in the near future. Most HOAs are generally willing to work out a reasonable repayment schedule for dues and late fees. But paying back $100 a month may not work for their HOA. What will happen when next year rolls around and they have to pony up another $795? They'll be deeper in the hole than they were! Good intentions don't pay for landscaping and upkeep. This family would always be owing payments.

Any good HOA only proceeds with a foreclosure as a last resort. Foreclosure is generally used to "threaten" the homeowner into repaying. The HOA may never recover any money anyway, and incur legal expenses.

Here's why:

If the house is sold at auction for less than what is owed on it, the bank will get all of the proceeds. The HOA will end up with nothing!

The homeowners will be on the hook for taxes if the home is "short sold".
Let's say the homeowners owe $300,000 and the home is sold for $250,000. This is certainly plausible in today's real estate market. The IRS would see the bank's loss of $50,000 as a gain to the homeowner's income. They would have to cough up taxes on a $50,000 gain on their future tax return. That would make it a lot more 'costly" than originally figuring out a way to come up with a couple of grand. The IRS is a lot less forgiving than an HOA!

This family, with financial rose-colored glasses got on the "housing Love Boat" and may soon find, they really boarded a "financial Titanic".

Not exactly correct: Mortgage Forgiveness Debt Relief Act
Reply With Quote Quick reply to this message
 
Old 09-23-2008, 11:09 AM
 
Location: Noth Caccalacca
5,554 posts, read 6,671,104 times
Reputation: 4847
Quote:
Originally Posted by Hoagie58 View Post
I wasn't sure that had passed! Thank you both for the update. Nonetheless, that family will be in deep financial doo-doo once they lose that house! With the $700 billion bailout, we'll all be paying for any loss!
Reply With Quote Quick reply to this message
 
Old 09-23-2008, 05:46 PM
 
Location: Charlotte, NC
7,041 posts, read 13,107,177 times
Reputation: 2323
You know, everyone here is all judgemental and stuff...but, how about this?? What if the family had never heard of an HOA before moving to their house? (I didn't when I bought mine) What if they thought the CCRs were just part of the closing papers? (that is what I did) and simply filed them away. What if the family was snagged by one of those predatory brokers (which sounds like they were) and were talked into much more house than they could afford because it would net that broker a lot more cash in his pocket??

There may be a lot more going on than we know about. True, it could have all have been negligence on the homeowner's parts, but, let's give these guys the benefit of the doubt. They look young. They honestly may not know better. Hoagie, I am with you on this one. I almost wish that we could take up a donation and send it to them just to keep them in their house. (for now)

I am the president of my HOA now. I quickly came up to speed once I realized what was going on. As president, I would resign rather than allow my HOA to do something like that. We do file liens on people's properties, but, that is the extent of it. That is just to ensure that when a homeowner sells or refinances, we will get our money. But, to foreclose...that is just stupid as another poster has already explained.

I think that HOAs should be banned. I know that will cause some people heart failure, but, I simply do not see the need. Cities developed the concept of HOAs so that they could get out of their obligations to keep up the city streets and common areas. They need to take over that responsibility. THAT is what our taxes should be used for, not insane stadiums or halls of fame or what other silly idea. Keeping up the city?? Why..who would have thought??!!

I am sure after this article that there will be a huge surge of interest in HOAs and the legalities and such. I hope that the government gets its act together and bans them outright. That would be a service to us all.

and to those who will cry...but, who will enforce the rules?? Why, the city of course. That is what 311 is for. Amenities? that is what the local YMCA is for. that way nobody is forced to pay for something that they don't use nor care about. And, then, there are also the subdivisions (like mine) that has no amenities and the only reason that the HOA exists is to keep our common areas up. Useless!!
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:



Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > U.S. Forums > North Carolina > Charlotte
Similar Threads
Follow City-Data.com founder on our Forum or

All times are GMT -6.

2005-2019, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35 - Top