The Mortgage Market Is So Bad Lenders Want Ex-Employees to Give Back Their Bonuses (Obama, companies)
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Nothing so typifies the phrase; Easy come, easy go
I was thinking... "The Lord giveth and the Lord taketh away" (Job 1:21)
Quote:
Originally Posted by Listener2307
If you cannot pay it off early, pay it off in 15 years.
30 year mortgages are usually unwise and unnecessary.
It makes sense if you are not going to be there long and you need the lower payments rather than the equity in order to stay afloat. Everyone's situation is different.
Sounds like if you really want to sell your home and get a condo, you can pull this off by paying cash for the condo, assuming the condo won't cost more than your current home.
That's a bit of an iffy assumption, considering the housing market right now. Nevermind that buying a condo with cash is going to cost an awful lot more than paying off my current mortgage.
Quote:
Originally Posted by skeddy
Pay cash and you're not concerned with rates.
If it were only that easy! LOL
Quote:
Originally Posted by Corrie22
here's a great idea...
let's keep raising interest rates until we totally kill it....and everyone with it
Some folks on this forum have the weirdest fantasies ...
That would be for the courts to sort out and a hard look at how the contracts were written, state law etc.
That being said, they surely set fire to their reputation re: signing bonuses.
Since the information coming in is one-sided, we may not be getting the whole story and there may be vesting etc. so that he may not have to give back all of it.
Yeah there are certainly certain pieces that could shed more light on it either way. It still doesn't look good from a reputation standpoint, but if only going for a pro-rated portion or something like that is at least a reasonable explanation (still not exactly good, but an argument on favor of it)
On the flip side, if they are going for all of it that is real bad for the reputation if not worse, especially if they did it knowing that large portions of those they gave the signing bonuses to would be gone. While it certainly wasn't expected rates to go up to where they are now, anyone who has an even remote understanding of the industry knew that 2020-2021 levels were completely unsustainable.
Yeah there are certainly certain pieces that could shed more light on it either way. It still doesn't look good from a reputation standpoint, but if only going for a pro-rated portion or something like that is at least a reasonable explanation (still not exactly good, but an argument on favor of it)
On the flip side, if they are going for all of it that is real bad for the reputation if not worse, especially if they did it knowing that large portions of those they gave the signing bonuses to would be gone. While it certainly wasn't expected rates to go up to where they are now, anyone who has an even remote understanding of the industry knew that 2020-2021 levels were completely unsustainable.
Greed though.
If you're getting offered that 600k loan as a signing bonus in 2021 when the market is booming, maybe you don't think about the boom being unsustainable. You just take the 600k loan, vacation, buy something nice for the wife, then put the remainder down on your 7,700 square foot, 3 million house. Then in 2022 the market falls out and you can't meet the inflated performance numbers the company expects from you and why they offered you that 600k signing bonus loan. After failing to meet your performance numbers for several consecutive months, eventually they fire you as they hired you to get results and not make excuses. Nobody wants your 7,700 square foot 3 million home for nearly what you paid for it and the company wants the 600k loan it gave you back.
One month shy, is one month shy. Sucks, but it is what it is.
Mr. Siegel needs to give the money back or face the legal consequences.
I am not so certain that this type of 11th hour behavior doesn’t constitute bad faith, and even possible conspiracy, if this same strategy is being used against multiple people, and therefore could establish a basis for legal challenge.
I have to disagree with the bolded. While the high rates of today don't impact those with fixed rates of years back, but in the real world, there are life changes and the needs of homeowners change over time. Many are 'stuck', so to speak, because if they sell and they need to finance a their new home, it's basically become unattainable due to 30 year rates touching 8% today.
So this puts added pressure on the supply in many markets. People that are trapped with their low rate locked in, are very reluctant to even consider making a move.
Exactly.
I want to move. I work remotely, but it's an hour and a half on the rare occasions I need to go onsite. My girlfriend lives in that same metro.
I bought a townhome for about $100,000 @ 4.5% through a first time homebuyer's loan back in 2019. Comps in my complex are selling for $170,000 - $180,000, with rates pushing 8%.
The market I want to go to is more expensive than where I am now. My mortgage payment will easily double, maybe double and a half.
I hear ya.
Don't know about you, but most people who have 12 years left on their mortgage started with 30 years. And that's a mistake. The difference in payment between 15 years and 30 years is not all that much.
When we refinanced a 30 year mortgage into a 15 year mortgage in 2003, our payments went up something like $125-$150 a month and total amount paid to our lender over the course of the note went way down.
If you paid taxes on the bonus, how do you unpay the taxes for the part they want back?
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