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And don't you think the people that took that money also knew they'd never pay it back ?
If I made $25K a year and a shady realtor/loan officer convinced me I could live in a $500K home I know dang well I can't afford that home.
Please..the blame has to go all around. No one held a gun to these people's head and told them to sign on the dotted line.
Isn't it rather ridiculous to continue to talk as though all the foreclosures are of 500k homes that were bought by people making 30k a year? The fact of the matter is that most foreclosures come from two scenarios.
#1. 200k homes that were bought by people who were making 80k a year with both husband and wife working. They made their payments just fine for many years but then one or both of them lost their jobs in this economy and were unable to find another...in this economy.
#2. People who had already paid off much of their loan and then were talked into taking out equity in a new mortgage....equity which AT THAT TIME was a reality.
These are the majority of the defaults and to keep on setting up the straw man of someone making 30k buying a house for 500k may make you feel safer in your own circumstances but that doesn't make it true.
Isn't it rather ridiculous to continue to talk as though all the foreclosures are of 500k homes that were bought by people making 30k a year? The fact of the matter is that most foreclosures come from two scenarios.
#1. 200k homes that were bought by people who were making 80k a year with both husband and wife working. They made their payments just fine for many years but then one or both of them lost their jobs in this economy and were unable to find another...in this economy.
#2. People who had already paid off much of their loan and then were talked into taking out equity in a new mortgage....equity which AT THAT TIME was a reality.
These are the majority of the defaults and to keep on setting up the straw man of someone making 30k buying a house for 500k may make you feel safer in your own circumstances but that doesn't make it true.
Absolutely right. There are many other scenarios as well. It's not all black and white .. thank you for reminding us of that.
Not to mention that every time someone checks your credit score, you lose a point. I know people that have not gotten jobs because of their credit score. Sorry about the off topic post. Now on topic, these squatters are probably going to go to jail for this. I think that it is not much different than illegal immigration.
If you pay your bills on time and maintain good credit, a couple of checks by prospective employers isn't going to bring your score down enough to matter.
Isn't it rather ridiculous to continue to talk as though all the foreclosures are of 500k homes that were bought by people making 30k a year? The fact of the matter is that most foreclosures come from two scenarios.
#1. 200k homes that were bought by people who were making 80k a year with both husband and wife working. They made their payments just fine for many years but then one or both of them lost their jobs in this economy and were unable to find another...in this economy.
#2. People who had already paid off much of their loan and then were talked into taking out equity in a new mortgage....equity which AT THAT TIME was a reality.
These are the majority of the defaults and to keep on setting up the straw man of someone making 30k buying a house for 500k may make you feel safer in your own circumstances but that doesn't make it true.
Yeah, it's not their fault that people don't set aside money for a rainy day, live beyond their means and get "talked into" home equity loans.
Yeah, it's not their fault that people didn't set aside money for a rainy day, lived beyond their means and were "talked into" home equity loans.
Again, this is just another straw man. In point of fact, most of these people DID have money they had "put away for a rainy day" in their 401ks, IRAs, etc. BUT those savings are now almost worthless because of the stock market crash ( and I speak from experience in that respect.) The liquid savings they had has already been spent in an attempt to keep their bills paid with no income. As far as "living beyond their means" goes...what does that mean? Does that mean that unless you are a millionaire you are never entitled to go out to eat? buy a car? take a vacation?
These strawmen set up to make it appear that only greedy, lazy people are losing their homes are simply not true in the majority of the cases. People want to believe it because it makes them feel it can't happen to them. That is just a false sense of security and I could sit here all day and give you example after example of good, hardworking, sensible people who thought just as you do and who now find themselves without their home.
Isn't it rather ridiculous to continue to talk as though all the foreclosures are of 500k homes that were bought by people making 30k a year? The fact of the matter is that most foreclosures come from two scenarios.
#1. 200k homes that were bought by people who were making 80k a year with both husband and wife working. They made their payments just fine for many years but then one or both of them lost their jobs in this economy and were unable to find another...in this economy.
#2. People who had already paid off much of their loan and then were talked into taking out equity in a new mortgage....equity which AT THAT TIME was a reality.
These are the majority of the defaults and to keep on setting up the straw man of someone making 30k buying a house for 500k may make you feel safer in your own circumstances but that doesn't make it true.
Regarding scenario #1, isn't that what cash reserves are supposed to be for? If people would stop living beyond their means and actually save some money, they'd be able to survive for quite some time when there is a job loss. In the area I live in, there were a LOT of people who were shoehorned into loans they didn't understand and could never continue to afford. Who's fault is that? I'm blaming both the bank and the consumer equally. no one forced the borrower to sign a document they didn't fully understand, and anyone with a shred of common sense knows that a person making $12/hour can't afford a $250K home.
Regarding #2, so what? Where did that money go? Vacations? A new car? Again it comes down to living within your means. I have no sympathy for anyone who used their home like a credit card. I have neighbors who did, they got a workout and bought a freaking BENTLEY the next day. I kid you not.
There is a third scenario that you didn't mention--the investor who put minimal down and then walked away. It's an all to common situation in the area that I live in. People invested to flip or for a rental property, and when they couldn't flip it or rent it, they walked away. Why on earth should the rest of us be covering their loss?
It might be of interest for some here to go and review the actions of Rep. Barney Frank and Senator Chris Dodd as to their committees actions in REQUIRING FNMA to lowering their underwriting standards.
Oh, and while you are at it - look at how much Rep. Franks SO, a FNMA exec, made off these loans
It might be of interest for some here to go and review the actions of Rep. Barney Frank and Senator Chris Dodd as to their committees actions in REQUIRING FNMA to lowering their underwriting standards.
Oh, and while you are at it - look at how much Rep. Franks SO, a FNMA exec, made off these loans
Freaking ridiculous. Standards should be tightened, not lowered. Everytime we've had a mortgage mess (this one, another back in the late 80's, another in the mid 70's--anyone see a pattern hare) it's been due to lowered standards.
Regarding scenario #1, isn't that what cash reserves are supposed to be for? If people would stop living beyond their means and actually save some money, they'd be able to survive for quite some time when there is a job loss. In the area I live in, there were a LOT of people who were shoehorned into loans they didn't understand and could never continue to afford. Who's fault is that? I'm blaming both the bank and the consumer equally. no one forced the borrower to sign a document they didn't fully understand, and anyone with a shred of common sense knows that a person making $12/hour can't afford a $250K home.
Regarding #2, so what? Where did that money go? Vacations? A new car? Again it comes down to living within your means. I have no sympathy for anyone who used their home like a credit card. I have neighbors who did, they got a workout and bought a freaking BENTLEY the next day. I kid you not.
There is a third scenario that you didn't mention--the investor who put minimal down and then walked away. It's an all to common situation in the area that I live in. People invested to flip or for a rental property, and when they couldn't flip it or rent it, they walked away. Why on earth should the rest of us be covering their loss?
Well to be honest it might not be right but "OUR" government is going to make you do it weather or not you like it, thats their game plan and all the bit**ing Is not going to change anything . You are a pon in the game , they control the action as they have always done .
Again, this is just another straw man. In point of fact, most of these people DID have money they had "put away for a rainy day" in their 401ks, IRAs, etc. BUT those savings are now almost worthless because of the stock market crash ( and I speak from experience in that respect.)
Just another edition of our societies overwhelming need for instant gratification--this time in the "get rich quick" stock market. Anyone with some level of common sense knows to diversify, and to have at least six months of living expenses in a good old fashioned savings account or laddered CD's that are untouchable by the whims of the stock market and insured by the FDIC. As to 401K's, it's called diversification--some stocks, some bonds, a little cash, and a dose of common sense.
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There are many other scenarios as well. It's not all black and white .. thank you for reminding us of that.
