Turning short sales into big profit (foreclosed, HOA, mortgage)

[Krulik]

Originally Posted by Sunny-Days90

Come on, if they cannot make a decision on their own then they have not right to even buy a house. If people are that stupid to get that suckered then so be it.

As it was mentioned by someone else in this thread, there has been more than shady practices in the lending/mortgage business. Some of these practices came to public scrutiny when the largest mortgage companies went under. These practice were motivated by greed.

Personally, I preach financial caution and I agree that many people who bought houses should not have done so because their mortgage payments were way above what it should have been with regard to their income.

However, to call them stupid as you do is extremely offensive and unjust. Not everyone spend their life checking the real estate market, flying down to Florida to check a bargain house from a "hot sheet" and making profit in the real estate business. A lot of people have a very limited knowledge of the real estate market, they work hard and have a dream of buying a house. Does that make them stupid? I don't think so!

[Sunny-Days-in-Florida]

Originally Posted by TampaOrNotTampa

As it was mentioned by someone else in this thread, there has been more than shady practices in the lending/mortgage business. Some of these practices came to public scrutiny when the largest mortgage companies went under. These practice were motivated by greed.

Personally, I preach financial caution and I agree that many people who bought houses should not have done so because their mortgage payments were way above what it should have been with regard to their income.

However, to call them stupid as you do is extremely offensive and unjust. Not everyone spend their life checking the real estate market, flying down to Florida to check a bargain house from a "hot sheet" and making profit in the real estate business. A lot of people have a very limited knowledge of the real estate market, they work hard and have a dream of buying a house. Does that make them stupid? I don't think so!

First of all I do not spend hardly any time checking real estate but I want to move to Florida and will take advantage of a good buy.

I would be stupid not to. I also never called any particular person stupid as you put it, if someone did purchase a home for 350k and its only worth 130k then what else would you call it?

Just it make it clear for you, I did not call anyone stupid. I said buying a home that was overpriced that far is stupid. So please don't reword my sentences.

If I myself bought my home for 325k and it is now worth 130k then it is my fault and I would not be to darn smart myself.

Dang, we cannot hold everyone's hand.

When you sign the dotted line you are suppose to be a responsible adult. I know things happen in peoples lives but pleeease.... you know people overpaid for homes they could not afford at the get go. No one forced them to sign a darn thing and they all had the right to have an attorney present to make sure everything was reasonable.

To blame realtors, bankers and appraisers like you did is flat out wrong. I know many of that group who are good hard working honest people and to lump them into one ball is wrong.

We are all responsible for our own actions, you will never learn from your mistakes in life if you do not own up to them.

[Krulik]

If you are into clarifications, let's clarify (to make it easy, I quoted you in blue and i quoted myself in red).

1. Now you are claiming: "Just it make it clear for you, I did not call anyone stupid. I said buying a home that was overpriced that far is stupid."

Your exact words: "If people are that stupid to get that suckered then so be it."

For me this sentence qualifies as calling people stupid. Maybe you should think twice about it.

2. Now you are accusing me: "To blame realtors, bankers and appraisers like you did is flat out wrong. I know many of that group who are good hard working honest people and to lump them into one ball is wrong."

If you had read what I wrote, it said:”There is something that I would call "moral values" that is lacking in a fraction of people dealing with real estate: banks, lenders, real estate agents, owners. Please note that I said a fraction.”

[Sunny-Days-in-Florida]

Originally Posted by TampaOrNotTampa

As it was mentioned by someone else in this thread, there has been more than shady practices in the lending/mortgage business. Some of these practices came to public scrutiny when the largest mortgage companies went under. These practice were motivated by greed.

So it is all the lenders fault. Give me a break.

There were plenty of shady buyers also.

If you get taken by a shady lender that is YOUR FAULT.

Hire an attorney if you cannot figure it out or have any second thoughts.

So all of these foreclosures were lenders, realtors, bankers etc fault when the buyer knew they could not afford most of those from the beginning???

I know the credit industry very well and can tell you how many people fudged records and incomes to get a loan they later lost because they lied.

I can tell you more then one case where the BUYER told an appraiser I know how much money they needed a home to appraise for. And then offered to pay them extra to bump it up a little so they would qualify for it.
The appraiser of course said no way.

I also know of a lawsuit near me that the buyer sued the appraiser for tons of money because they felt the appraiser caused them to lose their home because he over appraised it. WRONG, buyers fault again. If it was appraised wrong hire another appraiser. Willing to bet they told the appraiser how much they needed!!

So if we want to blame everyone else then we need to make sure we blame the person who signed the contract first and work our way down the list.

I have seen it all and know buyers of homes very well and I can tell you that most of them were the greedy ones who thought they were going to make a small fortune on the homes and when they got greedy and did not sell during the high times, it now someone else's fault.

[Sunny-Days-in-Florida]

Originally Posted by TampaOrNotTampa

If you are into clarifications, let's clarify (to make it easy, I quoted you in blue and i quoted myself in red).

1. Now you are claiming: "Just it make it clear for you, I did not call anyone stupid. I said buying a home that was overpriced that far is stupid."

Your exact words: "If people are that stupid to get that suckered then so be it."

For me this sentence qualifies as calling people stupid. Maybe you should think twice about it.

2. Now you are accusing me: "To blame realtors, bankers and appraisers like you did is flat out wrong. I know many of that group who are good hard working honest people and to lump them into one ball is wrong."

If you had read what I wrote, it said:”There is something that I would call "moral values" that is lacking in a fraction of people dealing with real estate: banks, lenders, real estate agents, owners. Please note that I said a fraction.”

Talk about moral values, like paying your bill that you signed a contract on?

So not paying someone you owe is moral?? Ok....

Read however you want, your fraction leads me to believe it could be 99.9% of all lenders, realtors etc operate with no morals.

So overpaying for a house is plain stupid. Not a directive towards anyone other then saying that it is stupid to overpay for a house.

If I overpaid for my house and lost it, I would be stupid!
Far to many ways to make sure you do not over pay and far to many ways to make your house payment if you lose your income to just toss your house back to the bank when they were good enough to lend it to you.

Your quote is a direct hit on bankers, realtors etc which is wrong.

[bentlebee]

All involved were at fault...Realtors who sold houses to people when they were told "we are looking for a house not over $ 250K" and than start showing homes over $ 250K..

Appraisers who appraised for whatever amount...loan officers who approved without checking and knowingly approved false applications.

Lying buyers and buyers who tried to get the "right" appraiser who was willing to apprais a home higher than others, and buyers who knew upfront the application was filled out wrong, or who knew they never could afford it....and buyers who spend the money/equity on other things instead of paying the bills!

IMO if you sign papers you are responsible and you can blame who ever you want, but in the end it was you who signed!

[Sunny-Days-in-Florida]

Originally Posted by bentlebee

All involved were at fault...Realtors who sold houses to people when they were told "we are looking for a house not over $ 250K" and than start showing homes over $ 250K..

Appraisers who appraised for whatever amount...loan officers who approved without checking and knowingly approved false applications.

Lying buyers and buyers who tried to get the "right" appraiser who was willing to apprais a home higher than others, and buyers who knew upfront the application was filled out wrong, or who knew they never could afford it....and buyers who spend the money/equity on other things instead of paying the bills!

IMO if you sign papers you are responsible and you can blame who ever you want, but in the end it was you who signed!

+1 for you. No one I know of was ever forced to sign the legal and binding contract document to buy their house.

[Alatex]

Its called do not pay more then 25% of your earnings for your home.

I agree with that sentiment, and that a lot of people did overleverage and so forth, but will add that there are also lots of buyers who made what would be generally considered sound decisions based on the earnings they had when they bought the property, then lost their jobs and/or took cuts in pay.
My next-door neighbors in Alabama were in that situation. He had his hours cut back and she had to close her small business. If they had planned on buying at 25% of their earnings even a year or two ago, they might be in trouble now. Thankfully, they're just renting and are living within their means.

[TatersFan]

Only. In. Florida.

[bentlebee]

In my area the situation is and was much different. People bought homes beyond their means and since they saw others buying homes and selling them so fast or taking equity out, they decided to do the same but they had no money so they went for zero down ARM mortgages...and than couldn't sell and the ARM reset faster than they could ever think it would happen...Others took equity out and started to buy fitness stuff, cosmetic surgery was done, new cars and other fancy stuff...than the market went down and their mortgages sky rocket...some of them even worked in the mortgage industry and some others were wannabee realtors who stepped in the market in 2005 and thought what others could do they could do also....well since they are all called professionals I don't feel sorry for them and I'm glad some of them had to foreclose and other bought their homes as a bargain.

So far we haven't seen any one loose their job or having a health issue and losing their home..just an area were every one wanted a piece of the pie, but had no money to buy the piece so they used "other" money which ended up in losing a house they never owned...so tell me what did they exactly loose...IMO it is mostly their credit score that plunged, the rest was hot air and other peoples money.