Welcome to City-Data.com Forum!
U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Economics
 [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 03-09-2009, 01:26 PM
 
Location: Kansas
3,855 posts, read 13,239,753 times
Reputation: 1734

Advertisements

Quote:
Originally Posted by mjohnson4381 View Post
This episode was great! I especially loved it when Jon was talking about how loser homeowners were stupid to take money that lenders offered them and they needed to educate themselves. I never thought of it like that. You'd think that the people doing the lending would be the ones you'd expect to be careful and "educated" about who they lend money to.

I know that technically it wasn't the lender's money that was being loaned because the loans were immediately securitized and sold to investors, but you'd think that lenders would still know better. I guess it didn't matter to them, because they were getting their cut. I say that securitizing loans is a dumb idea, period.
I think there is fault on both sides of that coin. The borrower should be able to figure out whether or not they could afford the home from figuring out what their average monthly expenses are as well as income. If Income minus expenses is a very low or negative number that's not an acceptable situation. And at that point they need to say, "Sorry but I cannot afford that house."

However, I think that in the last year what we may have seen more of is the recently unemployed being foreclosed on. If you were doing well in your job and paying your monthly bills then one day you were laid off and were unable to find a job due to the poor economy....you're basically racing against the clock. You will lose your home if you don't find a job that will afford your home. These people are not "Loser Homeowners"....that could happen to anybody.

On the other side of the coin, the lenders have all the information at their disposal. When they know all the facts about income, credit report indicates that they are highly leveraged, and adding a mortgage on top of that puts them into a position where they would be paying out 75% of their income in debt payments....WTH do they think is going to happen?????
Reply With Quote Quick reply to this message

 
Old 03-09-2009, 02:54 PM
 
370 posts, read 439,535 times
Reputation: 185
Quote:
Originally Posted by drjones96 View Post
However, I think that in the last year what we may have seen more of is the recently unemployed being foreclosed on. If you were doing well in your job and paying your monthly bills then one day you were laid off and were unable to find a job due to the poor economy....you're basically racing against the clock. You will lose your home if you don't find a job that will afford your home. These people are not "Loser Homeowners"....that could happen to anybody.

I fall under this category and I hope this happens to everyone who makes the assumption that its only people who bought more house then they could afford. I will laugh at them when they are homeless on the streets with their children.

I lived in a 45k condo which I lived in for 9 years without missing a payment. I had paid in 45k into it but only paid 5k off the principal (thanks to my sister affecting my credit score)

My job was outsourced and I couldnt find anything except a part time job delivering pizza. I went through 30k in savings to keep up my payments and I asked the mortgage company to do a Deed In Lieu. They told me I had to put my condo on the market 3 months before they would look into a DIL. I recieved an offer 2k less than what the condo was appraised at and the mortgage company turned the offer down. Now the condo is in foreclosure.
Reply With Quote Quick reply to this message
 
Old 03-09-2009, 03:34 PM
 
13,811 posts, read 27,351,964 times
Reputation: 14244
Quote:
Originally Posted by mpyne View Post
My job was outsourced and I couldnt find anything except a part time job delivering pizza. I went through 30k in savings to keep up my payments and I asked the mortgage company to do a Deed In Lieu. They told me I had to put my condo on the market 3 months before they would look into a DIL. I recieved an offer 2k less than what the condo was appraised at and the mortgage company turned the offer down. Now the condo is in foreclosure.
That's crazy why didn't you just pay off the principal, you had $40k left on the note and $30k in savings, what's a 30 year $10k mortgage run per month? $100?
Reply With Quote Quick reply to this message
 
Old 03-09-2009, 03:36 PM
 
Location: Castle Hills
1,172 posts, read 2,626,029 times
Reputation: 656
Quote:
Originally Posted by mpyne View Post
I fall under this category and I hope this happens to everyone who makes the assumption that its only people who bought more house then they could afford. I will laugh at them when they are homeless on the streets with their children.

I lived in a 45k condo which I lived in for 9 years without missing a payment. I had paid in 45k into it but only paid 5k off the principal (thanks to my sister affecting my credit score)

My job was outsourced and I couldnt find anything except a part time job delivering pizza. I went through 30k in savings to keep up my payments and I asked the mortgage company to do a Deed In Lieu. They told me I had to put my condo on the market 3 months before they would look into a DIL. I recieved an offer 2k less than what the condo was appraised at and the mortgage company turned the offer down. Now the condo is in foreclosure.
You are not the problem. The problem is POS people who buy large homes they cannot afford. For example... lets just say you were making your payments and everything was fine. Then you decided to go from your 45k 1k sqft condo to a 400k 3800sqft house because technically you could afford the payments. So you get in that house and it goes up to 500k and you are bragging to all your friends etc. Then the housing market crashes and you lose your job. Now you can't even come close to affording the payments, you never had much of a savings(Like a lot of the losers in the housing bubble), so you just foreclose and the bank has to eat it! This is what people are talking about.. this is the majority of cases. Sure, it happened to responsible people like yourself... and you are the ones that deserve real help.

Thats what caused the housing crash, and thats what has caused all the millions of people to lose their jobs, and thats what caused companies to go completely under. Basically, thats what brought this country to its knees.
Reply With Quote Quick reply to this message
 
Old 03-09-2009, 03:50 PM
 
370 posts, read 439,535 times
Reputation: 185
Quote:
Originally Posted by wheelsup View Post
That's crazy why didn't you just pay off the principal, you had $40k left on the note and $30k in savings, what's a 30 year $10k mortgage run per month? $100?

I didnt pay off the principle just in case home prices fell (which they did). My condo lost over half its value(appraised value 20k).

Again I stress the mortagage company turned down an offer for 18k lol

The area I lived in wasnt getting any worse in crime or anything its because I lived in Michigan.
Reply With Quote Quick reply to this message
 
Old 03-09-2009, 03:58 PM
 
370 posts, read 439,535 times
Reputation: 185
Quote:
Originally Posted by ufcrules1 View Post
You are not the problem. The problem is POS people who buy large homes they cannot afford. For example... lets just say you were making your payments and everything was fine. Then you decided to go from your 45k 1k sqft condo to a 400k 3800sqft house because technically you could afford the payments. So you get in that house and it goes up to 500k and you are bragging to all your friends etc. Then the housing market crashes and you lose your job. Now you can't even come close to affording the payments, you never had much of a savings(Like a lot of the losers in the housing bubble), so you just foreclose and the bank has to eat it! This is what people are talking about.. this is the majority of cases. Sure, it happened to responsible people like yourself... and you are the ones that deserve real help.

Thats what caused the housing crash, and thats what has caused all the millions of people to lose their jobs, and thats what caused companies to go completely under. Basically, thats what brought this country to its knees.
I couldnt even keep my condo with help anyway because I cant find a job that even pays a lving wage.

This has been happening for years and years( people buying more than they can afford) and I think its been propping up our economy for at least the last decade. My GF actually left me because I didnt want to buy a more expensive home because I knew I would be one missed payment away from being homeless.

In my opinion the cause of the economic melt down started years and years ago when companies started sending jobs overseas and people were using real estate as a 2nd source of income. Wages havent been kept up with inflation in my opinion.
Reply With Quote Quick reply to this message
 
Old 03-09-2009, 04:25 PM
 
4,173 posts, read 6,672,528 times
Reputation: 1216
Quote:
Originally Posted by SandyCo View Post
This was brilliant - Jon Stewart at his absolute best! I love the very end of that clip.

And if anyone is wondering why the stock market is down so much, just watch this a few times. There is zero credibility now. Every time the market starts to recover a little, we get more bad news. It's going to be quite a while before we see a true bottom here. My poor 401(k)...
Agree that Jon was on target although a couple of times CNBC did quote the CEOs (not thier own opinion) being interviewed. Ironically, it is CNBC that should be the critical of these CEOs etc and not a comedy show like The Daily Show. I sometimes see the same thing in politics - Stuart did make mincemeat of many politicians when CNN et al were asleep. Our newpeople are not very good at their jobs.

The bigger issue I have is the credibility of the some of our money wiz kids and our financial industry in general:
-- almost all of them, as fund mamagers, underperform the indexes
--most of them - especially the internet experts - completely failed to see the internet bubble
-- most of them were clueless about the current crisis did not understand derivatives, risks, etc etc
-- Moodys still has good ratings for companies that are not the AAA standard. In fact, the ratings are meaningless since they failed to predict many problems in companies of good caliber

No wonder Donald Trump can file for chapter 11 and yet have a show where he fires people left and right. Tough to trust these characters now-a-days. My poor 401(k) is not even a 200.5(k) now
Reply With Quote Quick reply to this message
 
Old 03-09-2009, 05:11 PM
 
707 posts, read 1,290,640 times
Reputation: 438
Quote:
Originally Posted by LittleDolphin View Post
Stewart's got it right--Santelli blames the victims--the mortgage holders--not the financial institutions and brokers who sold them these bogus loans--then turned around and re-packaged the sketchy loans and sold them all over the world, causing our international melt-down.

It's all the fault of that homeowner in Peoria who just got foreclosed on...he caused our new Greater Depression...

Derivatives? Not a problem...it's that homeless family in Peoria's fault.
You are half right. But you place no blame on people who borrowed way more than they could ever afford? You place no blame on people who falsified their income to obtain a loan they could never service?

The lion's share of the blame goes to the banksters who did not properly manage risk and gave credit to people unworthy of it. But do not hold blameless the millions who overextended themselves, lied and took on debt they couldn't dream of servicing.

Stewart,like most of the media, has a bad case of man love for Obama.
Reply With Quote Quick reply to this message
 
Old 03-09-2009, 05:14 PM
 
707 posts, read 1,290,640 times
Reputation: 438
Quote:
Originally Posted by mpyne View Post
I fall under this category and I hope this happens to everyone who makes the assumption that its only people who bought more house then they could afford. I will laugh at them when they are homeless on the streets with their children.

I lived in a 45k condo which I lived in for 9 years without missing a payment. I had paid in 45k into it but only paid 5k off the principal (thanks to my sister affecting my credit score)

My job was outsourced and I couldnt find anything except a part time job delivering pizza. I went through 30k in savings to keep up my payments and I asked the mortgage company to do a Deed In Lieu. They told me I had to put my condo on the market 3 months before they would look into a DIL. I recieved an offer 2k less than what the condo was appraised at and the mortgage company turned the offer down. Now the condo is in foreclosure.
First, sorry to hear of your bad fortune and hope it picks up for you.

However, your figures don't add up. If you had 30K in savings why didn't you pay off 20K. The balance of your mortgage is so low, you could make the payments on unemployment
Reply With Quote Quick reply to this message
 
Old 03-09-2009, 05:51 PM
 
370 posts, read 439,535 times
Reputation: 185
Quote:
Originally Posted by jimmyP View Post
First, sorry to hear of your bad fortune and hope it picks up for you.

However, your figures don't add up. If you had 30K in savings why didn't you pay off 20K. The balance of your mortgage is so low, you could make the payments on unemployment

Well, I made a judgment call. First I didnt think I would be out of work for such a long time (I had 10 years experience).

Unemployment only lasts so long and I had/have other expenses like an association fee, car insurance, car payment (subcompact car) so I wanted to have money in the bank for monthly expenses.
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 > General Forums > Economics
Similar Threads

All times are GMT -6.

© 2005-2024, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Contact Us - 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, 36, 37 - Top