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Old 02-06-2008, 01:47 PM
 
Location: Midtown
177 posts, read 702,077 times
Reputation: 99

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Quote:
Originally Posted by Niners fan View Post
Not only are we going to be bailing him out but the company that gave him the loan. I remember hearing people a year or two ago saying that the government would step in before too many people lost their houses. Seems like the S&L bailout set a bad precedent...
I'm wondering what the motivation was for this particular company. According to the owner's the lender was actually helping them pay the note for the first few months. Obviously they weren't making ANY money off of these people.
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Old 02-06-2008, 02:53 PM
 
Location: Oxygen Ln. AZ
8,626 posts, read 10,896,817 times
Reputation: 4780
My suspicions would be that she was in part buying into this home expecting to cash in on the "future" equity when they sold it. I can't imagine any other intent other than she was a partner in crime, so to speak.
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Old 02-06-2008, 10:09 PM
 
6,586 posts, read 16,580,531 times
Reputation: 3008
Those extreme stories are the fault of the lender. Anyone has the right to ask for something. It's up to the other person to say NO. The field worker didn't force the lender to loan him money. He didn't have a gun to the bank's head, did he?
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Old 02-06-2008, 11:12 PM
 
412 posts, read 594,916 times
Reputation: 209
Quote:
Originally Posted by FarNorthDallas View Post
Those extreme stories are the fault of the lender. Anyone has the right to ask for something. It's up to the other person to say NO. The field worker didn't force the lender to loan him money. He didn't have a gun to the bank's head, did he?

I'm sorry, FarNorthDallas, this is one of the most ridiculous things I've read, even more ridiculous than these mortgage stories. It's not the seller's responsibility to make sure that the buyer isn't making a stupid decision.

This whole mortgage mess is the result of people not taking invidual responsbility. Then, when they realize that they really screwed up, they want to blame the lenders!
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Old 02-07-2008, 07:13 AM
 
6,586 posts, read 16,580,531 times
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Quote:
Originally Posted by skchi View Post
I'm sorry, FarNorthDallas, this is one of the most ridiculous things I've read, even more ridiculous than these mortgage stories. It's not the seller's responsibility to make sure that the buyer isn't making a stupid decision.

This whole mortgage mess is the result of people not taking invidual responsbility. Then, when they realize that they really screwed up, they want to blame the lenders!
Seller? You mean bank/lender? The bank has fiduciary responsibility when it loans money. If a bank loans $700,000 to someone making $20,000, then the bank is stupid. Would YOU loan $700,000 to someone making $20,000 with any expectation whatsoever that it will be paid back?? The banks aren't victims.
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Old 02-07-2008, 09:07 AM
 
Location: City of the damned, Wash
429 posts, read 1,742,589 times
Reputation: 231
Quote:
Originally Posted by deere110 View Post
I guess no one likes my "crazy guy in the gunshop" analogy. Seriously-am I the ONLY one who's also mad at the lenders/investment houses for packaging these loans up as good risks? I mean, they knew that these weren't exactly municipal bonds!
I thought it was an excellent post, but we need to remember that the feds did not want these high risk borrowers to be "discriminated against", and so pressured the lenders to loosen up the loan criteria.
There is plenty of blame to go around.
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Old 02-08-2008, 09:36 AM
 
36 posts, read 3,736 times
Reputation: 14
My wife worked in a brokers office where the common questions to ask were... "So what extra income do you make? Do you babysit, do you landscape? What do you think it amounts to a year? And extra $5-6K per year... let's use that". They were masters at getting people into the houses they 'wanted' not could afford.

All sides and participants have blood on their hands. We've all helped to create this mess. I see alot of people ripping homeowners to shreds, yet those who were experts at predatory lending or helped to contribute some fraud have abandoned the industry. . Alot of people made money... and now alot of people will lose money.

Interestingly enough... last Saturday I was on some showings and passed by this beautiful palacial estate that was in the midst of foreclosure. The place was pretty decadant, and had a gate and man-made pond. So I asked my realtor if he knew what happened... the owner was one of the biggest realtor in the county and was just in over his head.

So remember... that next foreclosure down the street might be more than your neighbor... it may be more than someone who lied on their mortgage application. It maybe someone who worked in the housing/finance industry.

Last edited by thunder88; 02-08-2008 at 10:11 AM..
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Old 02-08-2008, 12:26 PM
 
Location: The Big D
14,874 posts, read 23,874,869 times
Reputation: 5787
Quote:
Originally Posted by missyM View Post
I thought it was an excellent post, but we need to remember that the feds did not want these high risk borrowers to be "discriminated against", and so pressured the lenders to loosen up the loan criteria.
There is plenty of blame to go around.
To take a part of this............. for MANY years and LONG before the no-doc loans, interest only's and all there have been "buyers" that will insist on seeing a house then tell the mortgage company they are applying with, "you CAN NOT turn me down. If you do I can claim discrimination and I'll sue you." I've seen it and heard it WAY TOO MANY times. Then the lender is stuck between a rock and a hard place. Do they go ahead and give the person the loan even though they do not qualify and have bad credit (usually student loans they did not and REFUSE to pay back as they are "owed that") and then let the buyer figure it out and lose the house or maybe make it somehow? Or turn them down. Get sued, most likely lose their job because the company does not want to employ a "liability", spend time and a LOT of money defending your self and your actions because you thought that on paper the person would not be able to afford the house because of their race? Then that lawsuit is blasted all over the news put on your record (you can look up suits filed against companies to see if they are reputable to deal with). The company then suffers and loses money and possibly goes out of business because this person sued them for trying to make prudent decisions.

BTW, I am NOT for bailing these idiots out. Their greed is catching up to them. No one is knocking on my door handing me some money to help pay the bills when things get tight.
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Old 02-08-2008, 12:46 PM
 
Location: California
3,432 posts, read 314,067 times
Reputation: 138
Quote:
Originally Posted by sierraAZ View Post
Oh, that's nothing. There was this strawberry picker from CA making 14K who "bought" a 720K house! Apparently a few more members of the family's income was taken into consderation, but it's still ridiculous no matter what...

HollisterFreelance.com | Minorities Hit Hard by Foreclosure Crunch (http://hollisterfreelance.com/news/contentview.asp?c=213141 - broken link)
Sounds like someone from the Mexican community. I've heard a lot of stories like this. Someone buys a big house even though they make 40k a year, they buy the house for around $700k. They think "hmm.. I can rent all the rooms for $500 a pop and then the house will pay for itself right?" Not right. The person rents to their family, they have a fight and they move out. They don't find another renter for the room and they lose their home, simple as that. Either this scenario or the scenario of "I'll just do a little over time and landscaping jobs on the weekend, we can afford that right"? not right, no one has enough money right now to spend on landscaping since they're probably losing their home too.
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Old 02-09-2008, 11:56 AM
 
412 posts, read 594,916 times
Reputation: 209
Hey, FarNorthDallas, based on your last post, I think we're just looking at the situation from different perspectives.

My point is - it's not the bank's fault that the buyer is losing their home. The buyer bought more than they could afford and weren't responsbile enough to understand the mortgage terms. I don't think we should feel sorry for these homeowners when they lose their homes.

I believe that your point is that we shouldn't feel sorry for the banks when they need to foreclose on homes when people stop paying, because they weren't responsible enough to make sure that the buyer could make their payments.

I think both points are valid.
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