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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 07-30-2008, 07:56 AM
 
Location: Pennsylvania, USA
5,217 posts, read 4,111,845 times
Reputation: 908

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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?

First of all...stop putting words in my mouth.. I never called them scumbags.. I said that they are being stupid..there is a difference. Someone like me can be worked into staying into the home WITHOUT any losses incurred.. unlike the person making $2500/month in a $400K home! Go back and read my posts and you'll see exactly what I mean.

And NOWHERE did I ask for a LOW RATE. I'd hardly call 6.95% a LOW RATE! Secondly I've been paying $3300/month to live in my modest 1100 square foot home in what is supposed to be a blue collar middle income neighborhood.. I'd say that at that type of payment I'm hardly earning a low salary and am undeserving of homeownership. Certainly someone that got a prme fixed rate is in a much better boat than I am and probably paying less than I am.. so they are the smarter ones and reaping the rewards.. they are also not faced with the stressfull situation I now find myself in.

And lastly... I think those leaving simply because they are upside down are ridiculous and it's insane and THAT is selfish. If you read my posts you'll see that I didn't care about owing more on the house than it's worth and had I been given the opportunity I would continue to overpay for my home rather than become a statistic and just another short sale/foreclosure flooding the market. I tried in vain for 8 months telling the mortgage company that i was dedicated to remaining in my home. I didn't ask for a write down.. didn't ask for my interest to be reduced.. I asked if they could fix it at the 6.95% and extend the maturity date of the mortgage which would make up for some of the PROFIT lossed by not jumping to the higher percentage. I wasn't paying a Low teaser rate, nor was I paying interest only or a negative amortization loan. I dont think , given the situation at hand with other types of mortgages, I was asking for much. And my getting fixed at my NON LOW RATE wouldn't have hurt you, my neighbor OR the economy any.. however me short selling my home for 100K less than I owe on the mortgage certainly will hurt everyone including myself.

There are two ways I could have gone.. there is the way of I'mjust going to live in my house for free until they throw me out and/or take everything in it out and leave a disheveled distressed mess.. I don't feel that that is the responsible way to handle the situation. .both for myself and my neighbors. Instead I have elected to short sale, get as much for the bank on the home as I possibly can and be done with it. I'm not abandoning my property and I'm not walking away either.

Get off your high horse and stop preaching.. until you are in a situation you can't understand where the rest of us or I am coming from..

And again.. stop twisting what I say and putting words in my mouth.. I already said that my problem is NOT with the problem at hand.. but how the banks are NOT solving the problem between their borrowers AND The homeowners. .I'm a prime example of someone that could have been avoided being a statistic and a loss on their books if they would have started addressing the problem at hand. Instead they are doing nothing to lessen the severity and then crying to the gov't and the taxpayers to bail THEM out.... I'm not crying for a bail out at all from any taxpayer or gov't entity. Never have.
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Old 07-30-2008, 09:18 AM
 
25,338 posts, read 37,471,570 times
Reputation: 13255
I have been advised in '05 that it was in my best interest to take an ARM so i could buy more properties and since I didn't have a very long credit history but still at that time I had a 700 score, they offered me an ARM which would be 11% and I was told this was great. it started lower but would soon be 11%...who's best interest?

If i would have signed it or other people who are paying 8%...do you think it is fair if you would be forgiven $ 100K and/or you would pay 6.95% while the other people are paying 8%?
I understand and think it is a good thing that you didn't want to walk away but try to save the home you love and I understand how hard it must be...but on the other hand in your post you blame others, maybe there are others to blame too and I hope they all get punished. Yesterday we saw on the news that the State of Florida had 5000!!! felons working in the mortgage field and the State is getting sued for this...so my realtor who was/is a convicted felon wasn't the only one working and still works in the field and IMO that isn't right at all and I hope things will change soon. I haven't found an article about what was said on tv otherwise I would have post it already but if I find it i will post it right away.

Since there are so many horrible stories outthere and it is hard to check who is really guilty and who was just stupid, IMo you have to draw a line and treat everyone the same and don't bail anybody out, otherwise the people who are paying higher rates right now will stop paying also....
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Old 07-30-2008, 09:33 AM
 
3,583 posts, read 10,242,083 times
Reputation: 5096
Quote:
Originally Posted by bentlebee View Post
Since there are so many horrible stories outthere and it is hard to check who is really guilty and who was just stupid, IMo you have to draw a line and treat everyone the same and don't bail anybody out, otherwise the people who are paying higher rates right now will stop paying also....
Riiiiiight and lets just throw the country into an economic depression that would make '29 seem like a market adjustment. It took a world war to pull us out of that economic crisis. Is that what you want to see? The cycle has started and if left to run its course thats exactly what will happen. I don't have the answers but I firmly believe that some steps to prop up the economy will be needed to stablize it or we all are going to be in for a world of hurt for a very long time!
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Old 07-30-2008, 09:57 AM
 
Location: Pennsylvania, USA
5,217 posts, read 4,111,845 times
Reputation: 908
Quote:
Originally Posted by bentlebee View Post
I have been advised in '05 that it was in my best interest to take an ARM so i could buy more properties and since I didn't have a very long credit history but still at that time I had a 700 score, they offered me an ARM which would be 11% and I was told this was great. it started lower but would soon be 11%...who's best interest?

If i would have signed it or other people who are paying 8%...do you think it is fair if you would be forgiven $ 100K and/or you would pay 6.95% while the other people are paying 8%?
I understand and think it is a good thing that you didn't want to walk away but try to save the home you love and I understand how hard it must be...but on the other hand in your post you blame others, maybe there are others to blame too and I hope they all get punished. Yesterday we saw on the news that the State of Florida had 5000!!! felons working in the mortgage field and the State is getting sued for this...so my realtor who was/is a convicted felon wasn't the only one working and still works in the field and IMO that isn't right at all and I hope things will change soon. I haven't found an article about what was said on tv otherwise I would have post it already but if I find it i will post it right away.

First, my posts I took some of the blame AND I blamed the circumstances in the market that lead to my predicament. Secondly.. when i short sell for 100K less than I am owed I will be forgiven the debt.. they wont' come after me.. oh. .and I wont have to pay income tax on it too thanks to the foreclosure forgiveness act that includes 2007-2009. So. .had I stayed in my home and NOT had the principle written down.. I would be paying far more than 100K difference that will now be forgiven anyway.

Since there are so many horrible stories outthere and it is hard to check who is really guilty and who was just stupid, IMo you have to draw a line and treat everyone the same and don't bail anybody out, otherwise the people who are paying higher rates right now will stop paying also....
Man.. someday you'll find yourself in some situation and let's just see how you feel about that statement then
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Old 07-30-2008, 09:59 AM
 
25,338 posts, read 37,471,570 times
Reputation: 13255
Quote:
Originally Posted by Va-Cat View Post
Riiiiiight and lets just throw the country into an economic depression that would make '29 seem like a market adjustment. It took a world war to pull us out of that economic crisis. Is that what you want to see? The cycle has started and if left to run its course thats exactly what will happen. I don't have the answers but I firmly believe that some steps to prop up the economy will be needed to stablize it or we all are going to be in for a world of hurt for a very long time!
Sure, something needs to be donebeside bailing these people out. To prevent similar things for the future the once responsible should all be punished. Starting with the mortgage companies, realtors/sales rep. for builders, for referals ( to the worse mortgage brokers. That shouldn't have taken place), appraisers who came up with bad values, buyers who lied on applications, etc...and if all that has be handled the market should be able to get healthier.
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Old 07-30-2008, 10:01 AM
 
Location: Pennsylvania, USA
5,217 posts, read 4,111,845 times
Reputation: 908
Quote:
Originally Posted by bentlebee View Post
Sure, something needs to be donebeside bailing these people out. To prevent similar things for the future the once responsible should all be punished. Starting with the mortgage companies, realtors/sales rep. for builders, for referals ( to the worse mortgage brokers. That shouldn't have taken place), appraisers who came up with bad values, buyers who lied on applications, etc...and if all that has be handled the market should be able to get healthier.

First off.. the homeowners are NOT getting a bail out.. THE BANKS AND INVESTORS ARE
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Old 07-30-2008, 10:09 AM
 
Location: Hernando County, FL
8,489 posts, read 17,411,688 times
Reputation: 5397
Quote:
Originally Posted by bentlebee View Post
Sure, something needs to be donebeside bailing these people out. To prevent similar things for the future the once responsible should all be punished. Starting with the mortgage companies, realtors/sales rep. for builders, for referals ( to the worse mortgage brokers. That shouldn't have taken place), appraisers who came up with bad values, buyers who lied on applications, etc...and if all that has be handled the market should be able to get healthier.
Please explain the illegal things that Realtors/Sales Reps. did that they should be punished for.

Were the appraisal values bad because the values are now lower?
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Old 07-30-2008, 10:14 AM
 
2,836 posts, read 3,005,347 times
Reputation: 1399
http://www.city-data.com/forum/3333801-post17.html
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Old 07-30-2008, 10:15 AM
 
Location: Hernando County, FL
8,489 posts, read 17,411,688 times
Reputation: 5397
Quote:
Originally Posted by Wendell Phillips View Post
What?
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Old 07-30-2008, 10:31 AM
 
3,583 posts, read 10,242,083 times
Reputation: 5096
Default Noble thought but impractical

Quote:
Originally Posted by Wendell Phillips View Post
I agree - but how to you track down and punish ALL the offenders? This was one very obvious case of fraud. Do we start a witch hunt to root out every single case out there? What about the ones that stated their income as higher to qualify? They are just as guilty. I wouldn't even know where one would start with the amount of documents that would have to be reviewed to succussfully take this approach. The cost of this would do more to hurt the situation than help it. On theory I agree that it would be great to punish all that had a hand in bringing the real estate market to where it is now. But how and what greater good would be achieved other than a sense of satisfaction? It wouldn't do anything to make the situation any better
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