save the financially irresponsible (enemy, illegal, suspect, racism)

[TimtheGuy]

Originally Posted by Kuharai

I make QUITE a bit more than 25K. And yes, I do have a year's worth of cancelled checks with JUST her (my mom's) name. And No. Most lenders denied me because of credit. Countrywide gave me the 100K (one of the only reasons I was even approved for it period was because my father has a mortgage with them that he's never been late on.. It's a courtesy thing.) And 100K. I was told that if I waited a year (because then my credit would be better) that I would qualify for getting a mortgage around 225K.

I think you are being a bit misled. There is absolutely no "courtesy thing" just like there is no "trust" component. Your father's payment history is 100% independent of you qualifying for a loan. Just like he could have been late on every single payment...this would not effect your qualifying one bit.

Do you know what your credit score was? Are there any late payments on the car loan? Unless there are derogatory items on your credit, (lates, collections, judgements) there is no denying for credit under these programs.

[Rita Mordio]

Originally Posted by baystater

Whoa! Do you realize how monumentally ridiculous that sounds. Going into the biggest expense of your life. Paying $100, $200, $300, $400,000 for a house plus closing cost and your going to skimp on the lawyer to check if you are in a bad mortgage or at least explain what the consequences of the mortgage are. If your willing do that you deserve what you get completely.

I wouldn't purchase a house without a lawyer (like I said, I have connections for a free one. Father of a friend.) but some people do. Yes, they're dumb for not doing so.. such as a "trusting" family. They're going to trust the nice people of the mortgage company to give them the best contract possible.

In fact, we should trust that businesses are going to do the best they can for us. But that's not the case. It kind of seems sad, IMO, that we have to pay for a lawyer to read all of the FINE print (why is it there?) and make sure that the mortgage company isn't cheating us out of thousands of dollars or cheating extra interest points in.

Back to the main topic of "Saving the Financially Irresponsible." Yes, people made mistakes years ago with interest only loans. And currently, foreclosures are through the roof. How is the economy going to react to so MANY people foreclosing? Almost 2k in JUST Virginia. If we can help big businesses that made mistakes, why can't we help the everyday Joe?

And it's not "oh, we know you're going to mess up, but the gov't will save you!" type thing. It's that the real estate market is a giant bubble that's going to burst. Badly. And hopefully a little assistance from the government to assist those who are going to be affected (with their resident home ONLY) will let the bubble burst slowly, hopefully.

Ok. So people made mistakes in buying their homes. So companies made mistakes in allowing people to sign subprime contracts to get people into houses. Yes, it's one of the biggest purchases you will ever make in a lifetime. Saying, "your mistake, your problem" is only going to cause more problems.

Say Countrywide files for bankruptcy.. or tries to sell off more and more of the mortgages they've taken. Somebody else (say... quicken) gets to buy YOUR mortgage... and well. Basically, it's like a re-finance. Thing is, they don't have to maintain the same contract terms. So.. you're given a 30 day notice to either finance with them.. or find somebody else to finance your mortgage. I received that piece of knowledge from a mortgage lawyer (his main purpose is to read mortgage contracts..)

Who's fault is it now?

[Rita Mordio]

Originally Posted by TimtheGuy

I think you are being a bit misled. There is absolutely no "courtesy thing" just like there is no "trust" component. Your father's payment history is 100% independent of you qualifying for a loan. Just like he could have been late on every single payment...this would not effect your qualifying one bit.

Do you know what your credit score was? Are there any late payments on the car loan? Unless there are derogatory items on your credit, (lates, collections, judgements) there is no denying for credit under these programs.

My credit score was a measley 615. There are no late payments on the car loan. The only thing on my credit is my zero balance credit card, the car, and I think my rent is. And the courtesy thing is because of my father (they're friends as well.. so he weaseled it into the system....). Initially I was denied due to credit by Countrywide.

As for the no-credit programs, I hadn't looked into those. I stated this - I am going to look into these programs once I start looking to buy my house.

[TimtheGuy]

Originally Posted by Kuharai

I wouldn't purchase a house without a lawyer (like I said, I have connections for a free one. Father of a friend.) but some people do. Yes, they're dumb for not doing so.. such as a "trusting" family. They're going to trust the nice people of the mortgage company to give them the best contract possible.

In fact, we should trust that businesses are going to do the best they can for us. But that's not the case. It kind of seems sad, IMO, that we have to pay for a lawyer to read all of the FINE print (why is it there?) and make sure that the mortgage company isn't cheating us out of thousands of dollars or cheating extra interest points in.

Back to the main topic of "Saving the Financially Irresponsible." Yes, people made mistakes years ago with interest only loans. And currently, foreclosures are through the roof. How is the economy going to react to so MANY people foreclosing? Almost 2k in JUST Virginia. If we can help big businesses that made mistakes, why can't we help the everyday Joe?

And it's not "oh, we know you're going to mess up, but the gov't will save you!" type thing. It's that the real estate market is a giant bubble that's going to burst. Badly. And hopefully a little assistance from the government to assist those who are going to be affected (with their resident home ONLY) will let the bubble burst slowly, hopefully.

Ok. So people made mistakes in buying their homes. So companies made mistakes in allowing people to sign subprime contracts to get people into houses. Yes, it's one of the biggest purchases you will ever make in a lifetime. Saying, "your mistake, your problem" is only going to cause more problems.

Say Countrywide files for bankruptcy.. or tries to sell off more and more of the mortgages they've taken. Somebody else (say... quicken) gets to buy YOUR mortgage... and well. Basically, it's like a re-finance. Thing is, they don't have to maintain the same contract terms. So.. you're given a 30 day notice to either finance with them.. or find somebody else to finance your mortgage. I received that piece of knowledge from a mortgage lawyer (his main purpose is to read mortgage contracts..)

Who's fault is it now?

Actually the terms cannot change. You will maintain the original terms.

[TimtheGuy]

Originally Posted by Kuharai

My credit score was a measley 615. There are no late payments on the car loan. The only thing on my credit is my zero balance credit card, the car, and I think my rent is. And the courtesy thing is because of my father (they're friends as well.. so he weaseled it into the system....). Initially I was denied due to credit by Countrywide.

As for the no-credit programs, I hadn't looked into those. I stated this - I am going to look into these programs once I start looking to buy my house.

Did you receive a copy of your report? If all the car payments have been on time and the zero balance credit card had all on time payments...then there is something derogatory being reported that is dropping your score to 615. I have never seen rent listed on a credit report. If you have had the last 12 months totally clean, you can qualify for a FHA loan regardless of score. FHA requires 3% into the trasaction. All 3% can be "gifted" if so desired.

FYI-there is absolutely no way to "weasel" anything into the system. He could say...enter in more income than you actually make or enter more cash than you actually possess, but obviously this would be caught by an underwriter.

I am just trying to give you some straight facts as it seems as though you have not been getting good information.

[Rita Mordio]

Originally Posted by TimtheGuy

Did you receive a copy of your report? If all the car payments have been on time and the zero balance credit card had all on time payments...then there is something derogatory being reported that is dropping your score to 615. I have never seen rent listed on a credit report. If you have had the last 12 months totally clean, you can qualify for a FHA loan regardless of score. FHA requires 3% into the trasaction. All 3% can be "gifted" if so desired.

FYI-there is absolutely no way to "weasel" anything into the system. He could say...enter in more income than you actually make or enter more cash than you actually possess, but obviously this would be caught by an underwriter.

I am just trying to give you some straight facts as it seems as though you have not been getting good information.

Yes, there is a way to weasel it into the system. And the 100K is NOT according to income. As I said, I can easily afford a 200K mortgage payment at 6.5% interest (normal 30-year flat rate) without even adding my husband's income into the equation. Unless you work for Countrywide and know for a fact that they can't weasel it in, you really can't say it.\

As for something derogatory on my credit, no. When I applied (before I got my apt.) I did get a copy printed for me. Thing is, I've ONLY just started working on my credit (less than 2 years at the time when I applied). You have to work your way up, you don't start at 700 or something.

Originally Posted by TimtheGuy

Actually the terms cannot change. You will maintain the original terms.

Unless your contract states that the terms will stick if one company buys your mortgage, it's true. Everything has to be in the contract. Remember, these companies are looking for every dollar they can pinch. And if you don't check and double check and get a lawyer's verification, they will try to pull a fast one.

[Rita Mordio]

Since I've made it quite clear that my finances aren't what denied me. It was my lack of credit from being young. The credit card was my first form of credit. That doesn't make your credit perfect. Neither does buying a used car. It takes years and skillful planning. I haven't looked into the "no credit, no problem" loans, but I will. Thank you for naming a program that I can look into.

The gentleman at Countrywide managed to weasel something in as a courtesy, and he stated it as such in front of my lawyer. He even showed the lawyer paperwork showing that the only reason for the acceptance is because he's throwing his name and job on the line.

So, as I asked, how is the economy going to benefit from the "your problem, not mine" attitude?

Is it really that hard to give people a break from mistakes, and how much does a family have to suffer because they made the mistake of accepting an Interest Only mortgage. Perhaps the reason that they took on this mortgage was to try to get out of the ghetto, so their kids can go to school?

Also, what if the people COULD have continued to afford their mortgage (if but barely) if their job wasn't outsourced, or many other reasons.

[baystater]

Originally Posted by Kuharai

I wouldn't purchase a house without a lawyer (like I said, I have connections for a free one. Father of a friend.) but some people do. Yes, they're dumb for not doing so.. such as a "trusting" family. They're going to trust the nice people of the mortgage company to give them the best contract possible.

In fact, we should trust that businesses are going to do the best they can for us. But that's not the case. It kind of seems sad, IMO, that we have to pay for a lawyer to read all of the FINE print (why is it there?) and make sure that the mortgage company isn't cheating us out of thousands of dollars or cheating extra interest points in.

In business everything must be in writing and you never trust anyone. Remember mortgage companies are out to make the most money for there share holder. You call mortgage clauses cheating. I call it the cost of doing business with the mortgage company.

Originally Posted by Kuharai

Back to the main topic of "Saving the Financially Irresponsible." Yes, people made mistakes years ago with interest only loans. And currently, foreclosures are through the roof. How is the economy going to react to so MANY people foreclosing? Almost 2k in JUST Virginia. If we can help big businesses that made mistakes, why can't we help the everyday Joe?

And it's not "oh, we know you're going to mess up, but the gov't will save you!" type thing. It's that the real estate market is a giant bubble that's going to burst. Badly. And hopefully a little assistance from the government to assist those who are going to be affected (with their resident home ONLY) will let the bubble burst slowly, hopefully.

Ok. So people made mistakes in buying their homes. So companies made mistakes in allowing people to sign subprime contracts to get people into houses. Yes, it's one of the biggest purchases you will ever make in a lifetime. Saying, "your mistake, your problem" is only going to cause more problems..

Your assuming I agree with bailing out the big banks. I'm not. I want them to take a hit as well. I'm sick of seeing easy credit with people and companies abusing it on foolish investments.
Also who says everyone want the market to go down slowly and easily. I want the pain over NOW. So we can get back to down to home prices pre-2002 or 2003. I personally would consider that a normal level of pricing. Will this drag down the economy. Yep. But we will survive and recover and will have a healthy appreciation of risk afterward.
Lastly. It is your mistake and it is your problems. I willing to live with the consequences to the economy.

Originally Posted by Kuharai

Say Countrywide files for bankruptcy.. or tries to sell off more and more of the mortgages they've taken. Somebody else (say... quicken) gets to buy YOUR mortgage... and well. Basically, it's like a re-finance. Thing is, they don't have to maintain the same contract terms. So.. you're given a 30 day notice to either finance with them.. or find somebody else to finance your mortgage. I received that piece of knowledge from a mortgage lawyer (his main purpose is to read mortgage contracts..)

Who's fault is it now?

As I said earlier. Read you contract carefully and negotiate what you don't like. Otherwise live with it.

[TimtheGuy]

Originally Posted by Kuharai

Yes, there is a way to weasel it into the system. And the 100K is NOT according to income. As I said, I can easily afford a 200K mortgage payment at 6.5% interest (normal 30-year flat rate) without even adding my husband's income into the equation. Unless you work for Countrywide and know for a fact that they can't weasel it in, you really can't say it.\

As for something derogatory on my credit, no. When I applied (before I got my apt.) I did get a copy printed for me. Thing is, I've ONLY just started working on my credit (less than 2 years at the time when I applied). You have to work your way up, you don't start at 700 or something.



Unless your contract states that the terms will stick if one company buys your mortgage, it's true. Everything has to be in the contract. Remember, these companies are looking for every dollar they can pinch. And if you don't check and double check and get a lawyer's verification, they will try to pull a fast one.

In effect I do work for Countrywide as a correspondent lender. We sell most of our loans to Countrywide. I can sign right into their computer system, which is by far the most advanced in the industry.

As far as "weasling" anything in....as loan officers we would approve every file we come across. It is no fun denying someone's loan. That's why there are underwriters. They will stop any "weasling" in it's tracks.

6 months to 1 yr. with on time payments will probably get you to around 650-680. We in the mortgage industry would call this a "false score" as there is not enough history to classify the score as a "true" score. At 615 there is something knocking it down.

As far as your terms changing if your loan is sold....not a chance. No lawyer needed. It is a done deal. The purchasing company is buying whats there.

[NewToCA]

Originally Posted by Kuharai

So, as I asked, how is the economy going to benefit from the "your problem, not mine" attitude?

Is it really that hard to give people a break from mistakes, and how much does a family have to suffer because they made the mistake of accepting an Interest Only mortgage. Perhaps the reason that they took on this mortgage was to try to get out of the ghetto, so their kids can go to school?

That is why we have HUD mortgages, to allow folks to improve themselves and their housing situation.

Let me ask you this, if your neighbor bought the same house as you for the same price at the same time, but took a standard 30 year mortgage, do you think you deserve to pay less than they did overall for that identical purchase? Assuming aggregate financing is a "zero sum" game, wouldn't subsequent purchasers be paying a smidgen more for their mortgage, in interest or settlement points, to offset your requested break?