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Thread summary:

Home foreclosure gloom, ARMs or people just walking away, buyer responsibility, no blame placed on realtors, lender fault, lender secured by asset, overextending budget

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Old 07-29-2008, 11:20 AM
 
25,351 posts, read 37,514,449 times
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Quote:
Originally Posted by Mjames View Post
In 2003, when we bought the house we recently sold, we gave our realtor all of our requirements. These included the areas we were considering, sq. footage, lot size, beds and baths, how old it could be, and max. price. He then pulled all the homes on the market that met those requirements and my wife and I decided which one to look at and, eventually buy. Why would a buyer continue to work with a realtor that does not let them choose which houses to look at and buy?
That is the issue when people have signed with a realtor and the realtor doesn't show the home priced at what they asked for and getting annoyed but have to deal with the signed contract. If you haven't signed you can just go to another realtor.
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Old 07-29-2008, 02:19 PM
 
Location: Hernando County, FL
8,489 posts, read 17,425,992 times
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Quote:
Originally Posted by bentlebee View Post
That is the issue when people have signed with a realtor and the realtor doesn't show the home priced at what they asked for and getting annoyed but have to deal with the signed contract. If you haven't signed you can just go to another realtor.
Mjames did not mention signing with a buyers agent.

He stated that he told the Realtor what he was looking for and the price range he wanted to be in.
The Realtor showed him what he was looking for within his price range.

I understand it does not fit your scenario but it just happens to be exactly what I said is done most of the time.

Also a buyer agency agreement is a bilateral agreement and if the agent is not fulfilling their end then the buyer has an out. Thus the agent would be just as inclined to show the buyer what they are looking for than an agent without an agreement in place.
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Old 07-29-2008, 06:21 PM
 
Location: Southeast Georgia
65 posts, read 215,995 times
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Quote:
Originally Posted by TristansMommy View Post
Completley understand and agree..but you need to be taught first before you can apply that knowledge. They don't teach you how to balance a checkbook in schools, they don't teach you how credit cards work in schools.. they do not teach you anything that I feel you can really use once you get out of school. It's basic life skills that are lacking..

I will be sure to teach my kids that stuff.
I was taught basic finances and how to balance a check book in high school. Unfortunately, that class is no longer taught here.
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Old 07-29-2008, 06:33 PM
 
Location: Southeast Georgia
65 posts, read 215,995 times
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Quote:
Originally Posted by TristansMommy View Post
Don't you think, based on my scenario, that it is foolish for them to throw Me out of my home and take the loss along with those that can't afford to pay a real mortgage in the first place.

I think that they have alot of nerve crying to the gov't for bail outs when they can lessen their pain by re-evaluating their borrowers and finding realistic soluctions.. instead they've got their head up their .. well you know what..giving the standard answers or "codes" that they had from teh past.. meanwhile this type of situation is somethign we have not really faced before. Rather than being so ridgid they could be saying..okay.. how can we minmize our losses here.. lets see.. we have a borrower here that was paying us back at 6.95% for the past 2 years.. she paid on time..etc. she's asking tofix the rate. and wants to stay in her home..and gee.. she can afford to keep paying us at that ABOVE PRIME RATE for the next 30 years.. we should let her stay in her home and modify her into this rate and lock it at that!!

THAT would be smart.. however, what they are doing is just plain stupid, foolish and IMO.. dumb busienss sense! So , while they are not to blame for the initial problem.. they certainly are to blame for the severity of the problem in not doing what they can to stop the bleeding, so to speak!
I think it would be smarter for them to say: You're having problems making the payment? Ok, sign this and we'll extend the original contract to 40 years at the same terms. Now your payment goes down a little and they actually make more money off you in the long run for their troubles.


But if they did that, then every buyer who complained they couldn't afford their mortgage would be screaming.
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Old 07-29-2008, 08:26 PM
 
Location: Pennsylvania, USA
5,217 posts, read 4,115,320 times
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Originally Posted by phantoms View Post
I think it would be smarter for them to say: You're having problems making the payment? Ok, sign this and we'll extend the original contract to 40 years at the same terms. Now your payment goes down a little and they actually make more money off you in the long run for their troubles.


But if they did that, then every buyer who complained they couldn't afford their mortgage would be screaming.

Your first paragraph makes sense.. and I wouldn't have been opposed to that at all..

but your last sentence i'm not understanding.. claiming you can't pay your mortgage and really not being able to are two completely different things.. To even short sell you have to prove you can't afford it.. and so would be the case for a modification that you mentioned.
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Old 07-29-2008, 08:41 PM
 
Location: Southeast Georgia
65 posts, read 215,995 times
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Opps, the sentence had got cut off. It should have read "But if they did that, then every buyer who complained they couldn't afford their mortgage would be screaming the banks were now trying to rip them off."

What I was trying to say is if the banks just extended a borrower's loan to a 40 yr loan with the same terms of the original loan so that their payments would be more affordable, the borrowers who were complaining that they couldn't afford their payments would now start complaining that the banks were ripping them off when in fact the banks would be throwing them a lifeline.
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Old 07-29-2008, 08:54 PM
 
Location: Pennsylvania, USA
5,217 posts, read 4,115,320 times
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Quote:
Originally Posted by phantoms View Post
Opps, the sentence had got cut off. It should have read "But if they did that, then every buyer who complained they couldn't afford their mortgage would be screaming the banks were now trying to rip them off."

What I was trying to say is if the banks just extended a borrower's loan to a 40 yr loan with the same terms of the original loan so that their payments would be more affordable, the borrowers who were complaining that they couldn't afford their payments would now start complaining that the banks were ripping them off when in fact the banks would be throwing them a lifeline.

Well.. i wouldnt neccesarily make that assumption.. becasue I certainly wouldn't have.. the way around that is that you pay off more than you have to by putting any extra's toward your mortgage .. that is if you can.. nad perhaps as your principle gets paid down adn your payments decreae you may be able to find more money to put on it every year cutting the time down anyway.

In a way though, now knowing just how far my home had plummetted, I'm convinced that this short sale is probably the best thing for me in the long run anyway.. but I would have still stuck to my agreement if the bank had given me that opportunity.
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Old 07-30-2008, 06:11 AM
 
25,351 posts, read 37,514,449 times
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So you want a 40 year for the low interest...what about others who signed for a fixed one with a higher interest because they were smart enough to see that the one you signed would work in the future after it was reset. You gambled and now you almost demand they have to give you a low rate for the rest of your life because they took the risk and you gambled.....Isn't this called selfish?

You called investors of mortgages scumbags and now you want them to help you out in a better way than the people who are still paying and you and me don't know how hard they have to work to pay it, but they do. It is only 4% who defaults either because they can't afford it or they just walked away.....and the rest is left with houses in distress and/or left with higher HOA fees... So what do you have in mind for the rest of us?
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Old 07-30-2008, 07:33 AM
 
3,583 posts, read 10,253,572 times
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Quote:
Originally Posted by bentlebee View Post
That is the issue when people have signed with a realtor and the realtor doesn't show the home priced at what they asked for and getting annoyed but have to deal with the signed contract. If you haven't signed you can just go to another realtor.
I think you may be confusing the representation contracts for selling a home with the agreement that is entered into for buying a home. The representation contract we signed as a BUYER could be cancelled by either party at any time, for any reason. The only exception was that if we entered a purchase agreement on a home that was presented or shown to us by that realtor within a timeframe of one year from the end of the contract, that realtor was entitled to and would receive the agreed upon commission from the sale. Personally, I wouldn't sign any purchase representation agreement that did not include a cancellation clause such as this.
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Old 07-30-2008, 07:47 AM
 
947 posts, read 2,783,900 times
Reputation: 721
Quote:
Originally Posted by bentlebee View Post
So you want a 40 year for the low interest...what about others who signed for a fixed one with a higher interest because they were smart enough to see that the one you signed would work in the future after it was reset. You gambled and now you almost demand they have to give you a low rate for the rest of your life because they took the risk and you gambled.....Isn't this called selfish?

You called investors of mortgages scumbags and now you want them to help you out in a better way than the people who are still paying and you and me don't know how hard they have to work to pay it, but they do. It is only 4% who defaults either because they can't afford it or they just walked away.....and the rest is left with houses in distress and/or left with higher HOA fees... So what do you have in mind for the rest of us?
I agree bentlebb.

Many have said this to her and it hasn't sunk in. That's why I now find her posts unruly.
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