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That's pure BS. I have been far below middle-class ($800/month gross in CA with a pregnant wife) and could get access to all of those things.
You're right, I'm sorry. EVERY other persons situation is the same as yours. Knowing *three* things about you has completely changed my opinion. I also guess that since State beat ECU yesterday and ECU beat WVU; this means State would beat WVU if they played this season.
A rather prominent politician in the 80's said: "The nine most terrifying words in the English language are: 'I'm from the government and I'm here to help.'"
The easy answer is that both lender and borrower are equally responsible but I don’t believe that’s completely accurate. The lending agent has a fiduciary responsibility as the professional to provide honest information to both the borrower and the underwriter of the loan. Ultimately the person that sells or OK’s the loan has the most responsibility. If I’m not mistaken that’s the law and it is so to protect people from predatory lenders. Isn’t it called the Truth in Lending Act?
Think of it this way, a doctor tells you that you need an operation and you sign a consent form and agree. It is later discovered after the procedure that you really didn’t need the operation. Who’s responsible, both you and the doctor because you signed the consent? Hardly, the doctor as the professional carries more responsibility so he’s to blame.
The person agreeing to loan money is being paid to ascertain if the borrower is a good risk, and is thus the professional so unless the borrower willfully lied the fault in the matter is clear.
Now that the Government is willing to take on these questionable mortgages through the recently announced Bail Out, shouldn’t they also investigate to see if the person given the loan really qualified in the first place?
The whole thing is very odd to me because I can tell a mortgage broker I make a certain amount of money a year but the proof would ultimately be my W-2.
If a person defaults on their mortgage and the government (actually you and me as tax payers) is left holding the bag then the loan should be re-evaluated with all relevant paper work. It’s the only way to keep this from happening again, now or in the future.
Now that the Government is willing to take on these questionable mortgages through the recently announced Bail Out, shouldn’t they also investigate to see if the person given the loan really qualified in the first place?
The whole thing is very odd to me because I can tell a mortgage broker I make a certain amount of money a year but the proof would ultimately be my W-2.
If a person defaults on their mortgage and the government (actually you and me as tax payers) is left holding the bag then the loan should be re-evaluated with all relevant paper work. It’s the only way to keep this from happening again, now or in the future.
A nice multi-gallows could be erected on Wall Street.
The whole thing is very odd to me because I can tell a mortgage broker I make a certain amount of money a year but the proof would ultimately be my W-2.
There is such a thing as a stated loan (or at least there was, not sure anymore) where people didn't/don't need to provide W-2s or 1099s to show proof of income. They simply "stated" what their income was/is and the loan gets underwritten based on the client's stated income. Not a great practice IMO. Lots of people in those loans are having issues.
There is such a thing as a stated loan (or at least there was, not sure anymore) where people didn't/don't need to provide W-2s or 1099s to show proof of income. They simply "stated" what their income was/is and the loan gets underwritten based on the client's stated income. Not a great practice IMO. Lots of people in those loans are having issues.
I don't even understand how they allowed those loans. They were just asking for trouble on the behalf of over eager buyers who might lie, or brokers who might pull a fast one.
I recall a story on NPR once of a guy (I think he was retired military) who was in danger of foreclosure and was going through debt counseling to see if he could get his ballooning rate reduced to a fixed payment. The financial consultant was going over his original loan paperwork and asked him his gross income. I don't remember the specifics but the amount stated by the loan officer in the paperwork was something like 3 times more. When they told him how much he made based on his loan paperwork he was very shocked.
Now many of you see why I’ve insisted on being honest about the dynamics of the Raleigh real-estate market. Deceit and misrepresentation can only lead to one conclusion, disaster. And in the final analysis, it doesn’t even really matter who’s to blame when the wheels of commerce finally stop turning.
You're right, I'm sorry. EVERY other persons situation is the same as yours. Knowing *three* things about you has completely changed my opinion. I also guess that since State beat ECU yesterday and ECU beat WVU; this means State would beat WVU if they played this season.
Your statement doesn't make sense. You said many people don't have access to libraries, books, internet, etc, and that it's easy to lose sight of that when you're middle class.
By framing the matter this way, you made the issue one of income - where those who are better off financially are more capable of watching out for themselves.
An income of $800/month put me at the bottom rungs, which is why I stated that - frankly, I'm getting sick of this idea that the "middle-class" doesn't understand being poor - and I had access to all of those things. In fact, amazingly, everyone around me also did.
The main difference is that I chose to utilize those resources.
Your statement doesn't make sense. You said many people don't have access to libraries, books, internet, etc, and that it's easy to lose sight of that when you're middle class.
By framing the matter this way, you made the issue one of income - where those who are better off financially are more capable of watching out for themselves.
An income of $800/month put me at the bottom rungs, which is why I stated that - frankly, I'm getting sick of this idea that the "middle-class" doesn't understand being poor - and I had access to all of those things. In fact, amazingly, everyone around me also did.
The main difference is that I chose to utilize those resources.
I don't speak in absolutes. I didn't say that EVERYONE that is middle or upper class doesn't understand poverty. You know, everyone who is middle or upper class at present didn't necessarily pull themselves from the class/classes below. Just as an example, are you telling me that you don't see how a child that grows up with parents who make six figure salaries or more SHOULD understand what it means to live in poverty? Either way I can live with you not understanding my statements.
Your anecdotal evidence doesn't prove that everyone "has access to" all of these forms of media. Also, your salary and at the time pregnant wife alone don't tell the entire story. I know someone who made less than that, had a child, and was still able to complete a college education... There were other factors that helped her a long. That's not an inquisition for more specifics. That's not my concern, and regardless, while your past financial situation as stated qualifies you to speak on the subject, there are plenty of employed individuals in situations worse than what yours was... I hope that doesn't sound like I am belittling your situation. Kudos to you for doing what you needed to do, providing for your family, and bettering yourself financially. I wish more people would do this!
I'm restating what I said before that opinions will vary on the concept of "having access to", but I'll rephrase my thoughts on it another way; Yes anything is possible, but not everything is PROBABLE.
There is such a thing as a stated loan (or at least there was, not sure anymore) where people didn't/don't need to provide W-2s or 1099s to show proof of income. They simply "stated" what their income was/is and the loan gets underwritten based on the client's stated income. Not a great practice IMO. Lots of people in those loans are having issues.
Wow, lending practices were that loose; no wonder we’re in our present predicament. Didn’t the lending institutions check the borrower’s credit score?
Things are looking worse in this discussion for the mortgage companies. They just had no safeguards in place. It’s like leaving your front door unlocked and then being surprised when you’ve been robbed.
I think some people in the mortgage industry should be going to jail. At the very least some stiff fines need to be imposed.
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