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Old 01-10-2008, 02:54 PM
 
5,340 posts, read 14,106,022 times
Reputation: 4699

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Quote:
Originally Posted by sierraAZ View Post
The problem is that the kind of people who fall prey to these practices don't know there is a difference from lender to lender and from mortgage to mortgage and haven't heard of any of the vocabulary you're using... People say what rate they got (many times even on this forum). They may very well have no idea what type of loan it is.
The uninformed either need to work with someone they know they can trust or make themselves informed.

Rule #1 should be

"don't do your financing with someone that contacts you"!!
(it should be the other way around)
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Old 01-10-2008, 02:59 PM
 
5,340 posts, read 14,106,022 times
Reputation: 4699
What's the old saying....

a fool and his money will soon be parted...
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Old 01-10-2008, 08:28 PM
 
Location: Sound Beach
2,160 posts, read 7,502,701 times
Reputation: 897
A responsible lender would not have offered this loan at those terms. I am very much like the person you describe (about 100K income, 710 credit score, ~15K credit card debt, high cost of living area (Long Island...arguably the highest). I did not qualify for more than 280K with my current financial situation. With astronomical NY taxes my monthly payment of 2500 a month is over 30% of my income. A 40%+ ratio is absurd and is the reason so many people get into trouble.
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Old 01-11-2008, 07:46 AM
 
Location: Burlington County NJ
1,969 posts, read 5,950,079 times
Reputation: 2670
Quote:
Originally Posted by Humanoid View Post
You mean you don't know if you'll be able to sell your house for what you own on it or purchased it for, that is much different than
"what its worth". Its only worth as much as someone is willing to pay for it.

what we owe
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Old 01-11-2008, 08:25 AM
 
30 posts, read 121,773 times
Reputation: 16
Quote:
Originally Posted by sierraAZ View Post
You may very well be correct in many cases, but then I'd like to know the reason they approve people for a lot more than what they can comfortably afford.
sieraaAZ: This is exactly what I am talking about. Of course, nobody puts a gun to your head to take these loans....but perhaps so many people wouldn't be in trouble right now if they would have never been allowed to give out such high loans in the first place.

As I said, people in high cost of living areas got desperate after awhile just watching that market climb up up up....unfortunately now we are going to watch it all fall.

nic529...I think we are from the same state, so you understand how crazy the bubble got here. I believe it is going to continue to fall throughout 2009, if not longer.

The reason I posted this is to kind of get a grasp of what went wrong from all angles....it's not just the people who took risky ARM loans who got in trouble because of the bubble.

It's frustrating that they are only addressing the ARM issue and not the rest of it.
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