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"As it turns out, home loans that don’t require legal status are among the safest risks that banks can take. According to The Wall Street Journal, ITIN mortgages - which immigrants can get with only a taxpayer ID number - have a delinquency rate of about 0.5 percent, roughly half that of prime mortgages and far below the 9.3 percent rate of subprime loans.
One reason for the high reliability of “individual taxpayer identification number” mortgages is that banks actually screen applicants thoroughly. Illegal immigrants, who don’t have valid Social Security numbers, typically must submit more documents than U.S. citizens, including payroll and tax records. Had banks checked subprime applicants this closely, a lot of today’s pain could have been avoided.
Another reason, according to the Journal, is the work ethic of immigrant families, most of them Latino. Immigrant households make it a priority to pay the mortgage before anything else."
Kromay, do you have any link that doesn't have a pro-illegal immigrant stance? I highly doubt illegal immigrants have better default rates than prime borrowers... I might accept that compared to subprime borrowers but to say that it is better than primer borrowers, stinks of outright lies (i.e. manipulated data)...
"As it turns out, home loans that don’t require legal status are among the safest risks that banks can take. According to The Wall Street Journal, ITIN mortgages - which immigrants can get with only a taxpayer ID number - have a delinquency rate of about 0.5 percent, roughly half that of prime mortgages and far below the 9.3 percent rate of subprime loans.
One reason for the high reliability of “individual taxpayer identification number” mortgages is that banks actually screen applicants thoroughly. Illegal immigrants, who don’t have valid Social Security numbers, typically must submit more documents than U.S. citizens, including payroll and tax records. Had banks checked subprime applicants this closely, a lot of today’s pain could have been avoided.
Another reason, according to the Journal, is the work ethic of immigrant families, most of them Latino. Immigrant households make it a priority to pay the mortgage before anything else."
Thank you! People love to blame illegals or minorities for this when the truth is that many people of all walks of life, took out equity to buy boats, cars, pay for education etc. and now find themselves in a bind.
Kromay, do you have any link that doesn't have a pro-illegal immigrant stance? I highly doubt illegal immigrants have better default rates than prime borrowers... I might accept that compared to subprime borrowers but to say that it is better than primer borrowers, stinks of outright lies (i.e. manipulated data)...
That is not what I was asked for. I provided what I was asked for. Read the posts. And I can't help you if you don't want to read the facts. Search it. Contact those lenders, see what they tell you. I didn't write the articles or come up with the figures, they did.
Thank you! People love to blame illegals or minorities for this when the truth is that many people of all walks of life, took out equity to buy boats, cars, pay for education etc. and now find themselves in a bind.
Right, and then, when you show people the facts,they can't handle it. I'm so glad to see someone can!
Funny.. there was another very similar thread a few weeks ago and I called it "walking away" and got completely ridiculed in the thread for doing so.. I still believe that is what people are doing though. Walking away.
Anyway's to my actual point here...
What are the responsible ones who HAVE to sell their home to do?
We are being relocated, great relo package ,however,does not include the purchase of our current home.
We are in our 40's,didn't buy what we couldn't afford,didn't do a risky loan but now,we are being forced to put our home on the market for less than we paid for it, and we have seen no interest,no calls,no showings.
We may end up very realistically having to pay for 2 mortgages,2 electric bills,2 homeowner ins.policies,etc...
We cannot sell our home because our builder is trying to build out of this community and in trying to do so, is selling the remaning homes and lots for drastically less than others here paid for their homes. In less than a year, our exact model home is on the market here for almost $120K LESS.
We cannot sell our home because the 20yr olds that bought their $400K house can't afford it now and are yes,walking away... We cannot sell our home because of the greediness and irresponsibilities of others,and now,because of them, we are going to sacrafice our life savings to pay 2 mortgages,2 electric bills,2 homeowners insurance policies,etc...
We aren't just walking away....... who is going to bail us out?
just wondering...........
I'm sorry for your situation, but I was talking about irresponsible borrowers who use the bailout as a walkaround. Almost every homeowner in America is in your situation. The values of our homes have gone down, too-- sometimes by a lot more than yours. If we want or need to move, we're facing the same situation. And if we actually made a significant down payment, we're really screwed because we're going to lose it and there goes our nest egg. Many people have had to pay double mortgages because of a relo. I had to do it for an entire year last time down. It's no fun, but it's what happens when you have the misfortune to buy at a market peak, right before it cycles down. Buyers forget that owning homes comes with a price-- and a risk. Real estate is not a liquid asset, and buying it is a long-term commitment. Short-term fluctuations are the norm, and every up market is always followed by a downturn. Always.
That's why this bailout is so ridiculous. It can't begin to address the number of people who have been harmed by this, the number of life savings it has wiped out. It rewards those who borrowed foolishly, while doing nothing for those who just happened to get caught in a bad situation-- like you. It has even stretched into the stock market, decimating the retirement savings of people in very conservative investments, like Fannie Mae and Freddie Mac bonds, Lehman preferred stock and some of the top mutual funds holding undisclosed SIVs filled with toxic mortgages. No bailout for any of them, just like there's no bailout for you and many of the rest of us. It's not even a finger in the dyke and it's plugging the wrong hole. That's why it's such a waste.
Last edited by goodbyehollywood; 11-14-2008 at 08:53 AM..
Mortgage lenders got a huge bail-out from the government. In return,
under the "Hope for Homeowners" program lenders are required to forgive
massive portions of defaulting loans
Instead of being foreclosed on and having ruined credit, consumers can
get a defaulting loan forgiven by trading their risky loan for 30-year fixed
rate loans with lower rates. Their old loan is replaced with a new one set
at 90 percent of the current value of the home. The consumer shares the
remaining 10 percent equity with the government. Lenders absorb the
difference, whether it's $600 or $60,000.
In exchange for being able to stay in their home, having the chance to clean up their credit and not have the embarrassment or stigma of a foreclosure consumers agree to share half the value their home gains with the federal government when they do sell.
What a deal for them! They would have had nothing at all to share, if they lost it in a foreclosure.
We've been hearing all sorts of rumors that homeowners facing foreclosure will get some sort of "deal" whether it is in the form of a reduced rate, lowering the loan, what have you. Specifics are still up in the air from what I gather but maybe others have heard otherwise.
I'm not a homeowner for this reason: when the market was getting inflated I knew better. I knew better than to buy into the whole "it's time to buy" craze, that a 1200sqft home in upstate new york was worth over $400K; I knew better than to be able to afford too much house; I knew better than to live beyond my means or having to keep up with the Jones'. I knew better. Period.
But alas, we are in this financial crisis and obviously something has to be done about it. Something has to happen. I am not arguing that. However, all these bailouts for people in trouble, just crawls under my skin b'c of the hard working people who weren't stupid enough to buy more house than they could afford. What about those people? The ones keeping up with their payments but are still affected b'c their rates increased? They can get by but they are suffering, too. It's just they're not getting behind on their mortgage but have to spend less on other things like groceries or gas. They are barely getting by but nonetheless, getting by. What about those people? Is it fair to them not to get a bailout?
It's like we're rewarding the "wrong-doers".
Now, I'm not totally blaming the homeowners. EVERYONE is at fault, including the lenders and the agents. Everyone got greedy. Everyone went over their heads.
That's just my 2 cents.
Regardless of how you feel, the debt has to be written off the books somehow because it cannot be paid. The interest on the debt in our system is diverting too much money out of the economy and it continues to grow and double. As any economist worth his salt will tell you, the debt must be written down.
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