Foreclosure filings up 120% (loan, real estate, approved, credit)
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Home foreclosure gloom, ARMs or people just walking away, buyer responsibility, no blame placed on realtors, lender fault, lender secured by asset, overextending budget
I wonder if these are all ARM's or how many are just walking away?
When will more be done and looked ito who are to blame and if they start the snow ball will go fast and the blame game will start. From mortgage brokers bad advise to realtor pushing their client to take the great deal and telling them how fast their property will double in value, to the appraiser who came up with an unrealistic value and a buyer who lied on their application...I hope they go after all of them and have them pay for what they did to others who are paying as what they signed for. The once who really couldn't help will be left out since no one has anything against them... I wonder what the percentage will be for these people...1%?
They are already going after many lenders for fraud;its in the news if you look. I do believe that they may have a problem if they need many of the buyers as witnesses.
I heavily advised clients against "fancy" mortgage products they did not understand. If you can not understand the basics of how a mortgage works and the risks/rewards of a program its a red flag that you shouldn't be using it.
Many buyers told me they would just go down the street because lender B was offering them a pre-qual for $50-100,000 more than I was willing to give. Sorry, it isn't worth it to me to state that a Disneyland Cashier makes $90k/year like IndyMac apaprently did.
Its one thing to state income on a self-employed person or others that have complicated income that is hard to document, another thing to lie. Many borrowers were willing to lie regardless.... they knew that on $40,000 a year they couldn't afford the home but they were willing to listen to unethical (and sometimes illegal) sales people. The buyer needs to take responsibility for their actions as well... they were often motivated as much by greed as anyone else in the process.
I will not blame the home buyer. It's human nature to take the bait if some one is offering you something you cant have otherwise.
I place no blame on Realtors. They did nothing wrong.
Im pointing at the lenders now. Do you have any idea how many people would like to stay in their home but the lender refuses to modify the loan? They would rather foreclose and play the Real Estate Broker then to work with the borrower. This makes no sense but they seem to think so.
Sure there are those borrowers who are more happy to walk away. I believe it's a small number compared to those who want to stay but the lender just laughs rather then work with them.
Im not for any govt bailouts either but can your govt at least be able to put some pressure on lenders to work with buyers to avoid all these foreclosures? One in every 171 homes in the USA is in foreclosure. One in every 27 homes in Stockton, Ca. 1 in every 31 where I am in Vegas. Can anyone really comprehend this number? This might help: Take a nice walk down your street. Being that homes are numbered across from one another, every 15th home you walk past is in some phase of foreclosure. That is phenomenally incomprehensible to swallow.
And those numbers are more to blame towards the lenders then borrowers. It is the lenders fault they choose to take the home rather then work with the borrower. And I thought those who run those companies at least had some one on staff who graduated highschool.
While I do think it's in everyone's best interest for the lenders to work with those truly in trouble, the blame lies mostly on the buyers. They bought more than they could afford.
So what if the Lender approved the loan or the Realtor told you that you were getting a great deal, it's your responsibility to read the papers you sign, know how much it's going to cost you before signing those papers and last, but not least, make sure that you can afford what it's going to cost you.
There are exceptions. People lose jobs, medical emergencies arise, etc. and this is why the lenders should work with these people. But most of the foreclosures are the result of people buying more than they could afford, getting ARMs or other fancy mortgages, or those choosing to walk away because the value of their house has dropped. In every single one of these cases, it is the buyers fault, period.
While I do think it's in everyone's best interest for the lenders to work with those truly in trouble, the blame lies mostly on the buyers. They bought more than they could afford.
So what if the Lender approved the loan or the Realtor told you that you were getting a great deal, it's your responsibility to read the papers you sign, know how much it's going to cost you before signing those papers and last, but not least, make sure that you can afford what it's going to cost you.
There are exceptions. People lose jobs, medical emergencies arise, etc. and this is why the lenders should work with these people. But most of the foreclosures are the result of people buying more than they could afford, getting ARMs or other fancy mortgages, or those choosing to walk away because the value of their house has dropped. In every single one of these cases, it is the buyers fault, period.
I agree it is the responsibility of the person signing but what is the responsibility of the professionals who gave you the advise the buyer was lookin for and thought he was doing his due diligence but ended up in the referal circle of scruples professionals who where just after the buyers money to get a fast deal to get their commission. People who refer others to people who aren't giving a honest and fair advise should be responsible as well. That will change the way people give referrals. Just a simple example. These days there are phone companies who give referal fees to peopel bringing in new cleints...most people won't care if they are happy with the service they had...but see the $25.- or more referal fee as a nice giftcard and will do so although they might have a different opinion about the comapny...what about the way higher referal giftcards or otherways mortgage brokers gave referal gifts to realtors, etc.....?
We see the stories on tv every day...for money ..many peole will do alot if they agree with it or not money talks. Any many are now feeling the financial burden because all of a sudden no one thinks he did anything wrong.
I will not blame the home buyer. It's human nature to take the bait if some one is offering you something you cant have otherwise.
I place no blame on Realtors. They did nothing wrong.
Im pointing at the lenders now. Do you have any idea how many people would like to stay in their home but the lender refuses to modify the loan? They would rather foreclose and play the Real Estate Broker then to work with the borrower. This makes no sense but they seem to think so.
Sure there are those borrowers who are more happy to walk away. I believe it's a small number compared to those who want to stay but the lender just laughs rather then work with them.
Im not for any govt bailouts either but can your govt at least be able to put some pressure on lenders to work with buyers to avoid all these foreclosures? One in every 171 homes in the USA is in foreclosure. One in every 27 homes in Stockton, Ca. 1 in every 31 where I am in Vegas. Can anyone really comprehend this number? This might help: Take a nice walk down your street. Being that homes are numbered across from one another, every 15th home you walk past is in some phase of foreclosure. That is phenomenally incomprehensible to swallow.
And those numbers are more to blame towards the lenders then borrowers. It is the lenders fault they choose to take the home rather then work with the borrower. And I thought those who run those companies at least had some one on staff who graduated highschool.
Sorry but I put the blame completely on the the buyer. No one held a gun to their head as they signed the loan agreement. If some one told me I could afford a 300K house on 35,000 annual income, it would be my responsibility to decide whether its a good idea or not. The lender is secured by the asset. The buyer is the one that has the ultimate decision on the transaction. As for working with the borrower. Its the lenders option. Many will work with their borrowers depending on the credit stability that was shown. No sympathy for the ones caught up in this because of greed or overextending. For them its now time to pay the piper.
I agree it is the responsibility of the person signing but what is the responsibility of the professionals who gave you the advise the buyer was lookin for and thought he was doing his due diligence but ended up in the referal circle of scruples professionals who where just after the buyers money to get a fast deal to get their commission. People who refer others to people who aren't giving a honest and fair advise should be responsible as well. That will change the way people give referrals. Just a simple example. These days there are phone companies who give referal fees to peopel bringing in new cleints...most people won't care if they are happy with the service they had...but see the $25.- or more referal fee as a nice giftcard and will do so although they might have a different opinion about the comapny...what about the way higher referal giftcards or otherways mortgage brokers gave referal gifts to realtors, etc.....?
We see the stories on tv every day...for money ..many peole will do alot if they agree with it or not money talks. Any many are now feeling the financial burden because all of a sudden no one thinks he did anything wrong.
I have NEVER received ANYTHING of monetary value from a Mortgage Broker.
It is illegal for a Realtor to receive anything of value from a Mortgage Broker in the State of Florida unless you actually had specific services actually performed for the Mortgage Broker.
Keep trying and maybe someday you will have a post with some substance.
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