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I don't see the correlation between how 20% or 3% or 0% downpayment avoids someone to default.
Easy. With no equity, if the buyer loses his/her job and exhausts emergency reserves, the house cannot be sold and most lenders won't negotiate, so it ends up in foreclosure (barring finding a similarly paying job quickly, family assistance, selling a car, etc.).
With 20% equity, the house would probably be sold, not foreclosed.
Easy. With no equity, if the buyer loses his/her job and exhausts emergency reserves, the house cannot be sold and most lenders won't negotiate, so it ends up in foreclosure (barring finding a similarly paying job quickly, family assistance, selling a car, etc.).
With 20% equity, the house would probably be sold, not foreclosed.
Incorrect. Short Sales happen all the time.
Do you know how long the banks take to foreclosure? Banks are absolutely willing to work with people because it's easier for them to get some payment then sit on a foreclosure.
I've seen it happen. You speak like you work and have done work in real estate which you haven't . You speak like you work or have massive banking/lending experience which you don't.
Come face the fact you are doctorate student with no real world experience. You may have book smarts but you lack real-world experience
Do you know how long the banks take to foreclosure? Banks are absolutely willing to work with people because it's easier for them to get some payment then sit on a foreclosure.
I've seen it happen. You speak like you work and have done work in real estate which you haven't . You speak like you work or have massive banking/lending experience which you don't.
Come face the fact you are doctorate student with no real world experience. You may have book smarts but you lack real-world experience
This is a fallacy. Not everyone who ask for a short sale receives approval and the same goes for modifications. Short sales may happen all the time but their approval rates aren't anywhere near 100%. Foreclosures happen all the time too. Ncole might be a student with limited real world experience but that in and of itself is in no way a discredit to as you would put it common sense. His commentary is on target
This is a fallacy. Not everyone who ask for a short sale receives approval and the same goes for modifications. Short sales may happen all the time but their approval rates aren't anywhere near 100%. Foreclosures happen all the time too. Ncole might be a student with limited real world experience but that in and of itself is in no way a discredit to as you would put it common sense. His commentary is on target
Of course you agree with him you two peas in a pod.
Of course you agree with him you two peas in a pod.
Where did anyone say short sales happen 100%?
You never said 100% but the truth is getting short sales pushed through isn't an easy process so when you say they happen all the time it's really glossing over the reality of the situation
Quote:
Where did anyone say foreclosures never happen?
I never made such a claim. What I did say is that Foreclosures happen all the time as you so comminted on short sales so the commentary made by Ncole that those with 20% down can have a much better opportunity to sell than those with little or no downpayment. That's factual not just opinion or implied common sense
Then you really are as delusional. Best of luck. I can't waste my time going off topic with you to try to educate you.
My only advice is to invest in reading comprehension courses
Sorry champ I'm not the one who is delusional or in need of comprehension courses. The higher the starting ltv of a loan the higher the foreclosure rate is even within the same credit profile. The lower the starting fico the higher the foreclosure rate too. Your continued stance that downpayment has no impact on foreclosure rates isn't supported by anything other than your claim it's common sense despite all the actual common sense going against your stance.
Sorry champ I'm not the one who is delusional or in need of comprehension courses. The higher the starting ltv of a loan the higher the foreclosure rate is even within the same credit profile. The lower the starting fico the higher the foreclosure rate too. Your continued stance that downpayment has no impact on foreclosure rates isn't supported by anything other than your claim it's common sense despite all the actual common sense going against your stance.
It's that simple
Again you make things up. I never said it didn't impact. However it is not a driving factor like you two think it is.
The study showed the lower the credit score and lower the downpayment the higher the default. The higher the credit score the % difference in default for between ltv was not significantly different not like it was for the low credit score population. Again proving the point credit scores are the driving factor in predicting default
I really guess I will be the bigger person and let you have the last word.
That's not the point he is making. He is trying to convince us that if anyone puts down more they are less likely to default. Which is not true.
The only way to prevent default is paying 100% cash
Quote:
Originally Posted by Gene Starwind
Again you make things up. I never said it didn't impact. However it is not a driving factor like you two think it is.
The study showed the lower the credit score and lower the downpayment the higher the default. The higher the credit score the % difference in default for between ltv was not significantly different not like it was for the low credit score population. Again proving the point credit scores are the driving factor in predicting default
I really guess I will be the bigger person and let you have the last word.
Look at your first quote and what's in bold. People are less likely to default with lower ltvs at origination, that is true regardless of fico scores at origination. Your statement bolded calling out a falsehood is in fact wrong itself.
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