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Old 10-29-2011, 11:57 PM
 
Location: Sunrise
10,864 posts, read 17,007,440 times
Reputation: 9084

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Quote:
Originally Posted by sparkit711 View Post
"Got to ride it out. The moral thing to do.."

That has got to be the stupidest thing I've ever heard. Don't bother checking the numbers. Don't budget. Don't THINK. Just hang on...it is the right thing to do..
You need to pay closer attention.

I think buying a house that one can afford is the right thing to do. Too bad so many were buying McMansions with 0% down on principal-only jumbo loans, and couldn't afford the monthly nut when the loan reset.

If the majority of homeowners were in traditionally-financed homes within their means, our collective economic woes would not be nearly as bad.
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Old 10-30-2011, 03:48 AM
 
8,420 posts, read 4,585,492 times
Reputation: 5599
What I don't understand is interest rates are lower then they were in 2006-08. Many ARMS are resetting down. Still can't afford it?
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Old 10-30-2011, 09:13 AM
 
Location: S. CA
126 posts, read 118,653 times
Reputation: 26
Quote:
Originally Posted by ScoopLV View Post
You need to pay closer attention.

I think buying a house that one can afford is the right thing to do. Too bad so many were buying McMansions with 0% down on principal-only jumbo loans, and couldn't afford the monthly nut when the loan reset.

If the majority of homeowners were in traditionally-financed homes within their means, our collective economic woes would not be nearly as bad.
Those who bought homes between 2004 and 2007 in Las Vegas took a terrible beating. And traditional financing made no difference. Only a small number with large equity have a financially viable deal after the collapse.

As value declines exceed 50% everyone is badly hurt and many, if not most, have no good option.

There were a few 0 down McMansions...but that was not the problem. See the NW. In those ten of thousands of homes there are not more than a few hundred McMansions.
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Old 10-30-2011, 09:25 AM
 
Location: Kingman AZ
15,370 posts, read 39,136,984 times
Reputation: 9215
Quote:
Originally Posted by clutchcargo777 View Post
What I don't understand is interest rates are lower then they were in 2006-08. Many ARMS are resetting down. Still can't afford it?
I think it's more the fact that they are paying for a $130,000 house and living in a $50,000 house.....no matter HOW you manage it....the banks got bailed out but the people didnt.
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Old 10-30-2011, 10:01 AM
 
4,794 posts, read 12,385,881 times
Reputation: 8404
Quote:
Originally Posted by gburke1 View Post
In the meantime the banks hopefully have learned a lesson of what NOT to do so this situation never repeats itself.
I have my doubts. The OP just stated in a recent post that after the short sale, the bank is willing to finance another loan and he has a FICO score of 715. A short sale isn't as bad as foreclosure but still, it seems there was very little consequence for this guy not paying off his full loan. Seems to me someone should take a bigger hit on their FICO score than that.
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Old 10-30-2011, 12:52 PM
 
15,868 posts, read 14,506,290 times
Reputation: 11986
Or maybe everyone involved has smelled reality and compensated? If something just isn't worth what it once was, is there any value in pretending it is?

Quote:
Originally Posted by kanhawk View Post
I have my doubts. The OP just stated in a recent post that after the short sale, the bank is willing to finance another loan and he has a FICO score of 715. A short sale isn't as bad as foreclosure but still, it seems there was very little consequence for this guy not paying off his full loan. Seems to me someone should take a bigger hit on their FICO score than that.
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Old 10-30-2011, 02:35 PM
 
Location: Paranoid State
13,044 posts, read 13,884,096 times
Reputation: 15839
Quote:
Originally Posted by clutchcargo777 View Post
What I don't understand is interest rates are lower then they were in 2006-08. Many ARMS are resetting down. Still can't afford it?
Is it really true that "many ARMs are resetting down"?
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Old 10-30-2011, 05:17 PM
 
412 posts, read 916,508 times
Reputation: 166
Quote:
Originally Posted by kanhawk View Post
I have my doubts. The OP just stated in a recent post that after the short sale, the bank is willing to finance another loan and he has a FICO score of 715. A short sale isn't as bad as foreclosure but still, it seems there was very little consequence for this guy not paying off his full loan. Seems to me someone should take a bigger hit on their FICO score than that.
Research looks at how mortgage delinquencies affect scores - Banking Analytics Blog

Either ther was some special circumstance or something about it is not true. Even if the score was super high at 820 before the foreclosure, the score after foreclosure would normally be well under the claimed 715.
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Old 10-30-2011, 05:30 PM
 
3,622 posts, read 5,598,538 times
Reputation: 4322
Keep in mind that not everyone short selling has a ARM loan or bought a home that they could not afford at the time. I have a lot of friends who lost their jobs due to the economy and they had traditional loans.

My home is literally worth half of what I paid for it. It's the risk you take when you buy a home. The first home I bought in 2002 doubled in price and we made 150,000 off of it in 3 years. So we have experienced both the highs and lows and I guess are breaking even now?

We knew going into this house we were bound to take a hit...we just didn't think it would be this bad.

Last edited by lyra33; 10-30-2011 at 05:42 PM..
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Old 10-30-2011, 05:41 PM
 
3,622 posts, read 5,598,538 times
Reputation: 4322
Quote:
Originally Posted by ScoopLV View Post
And I've heard from a few people who are walking away from their mortgage, because, "Everyone else is doing it."

That has got to be the stupidest thing I've ever heard. Don't bother checking the numbers. Don't budget. Don't THINK. Just walk away, because "Everyone else is doing it."
I don't know if I would call it stupid. Make the best decision for you...and go with it. Maybe people like me sticking it out for the sake of personal pride that we didn't walk away are the dumb ones.

We can afford our home but it's pretty depressing thinking people are buying our same home...for half of what we paid in 2006.

I'm just glad to see that we have not seen that many foreclosures in our neighborhood. Only a few on our street...that I know of!
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