U.S. CitiesCity-Data Forum Index
Covid-19 Information Page
Go Back   City-Data Forum > General Forums > Economics
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 12-21-2008, 08:04 AM
 
8,945 posts, read 7,908,000 times
Reputation: 7321

Advertisements

Their credit is already damaged by the delinquent payments. The foreclosure will eventually come off the credit report, usually by the time the real estate cycle bottoms.

Even in good times, loan modifications have had high rates of re-default. The system was able to put off the defaults because of the rapid prices increases and the repetitive refinancing to pull out cash and keep payments up to date. Without lending standards allowing for very high loan-to-value ratios, this Ponzi scheme wouldn't have been available.
Reply With Quote Quick reply to this message

 
Old 12-21-2008, 08:28 AM
 
Location: Nebraska
4,178 posts, read 9,650,776 times
Reputation: 9592
Quote:
Originally Posted by HappyTexan View Post
I think it would have been an excellent program had some regulations been in place to make sure people got homes/mortgages they really could afford.

They (the gov't) were acting like it was only a high interest rate problem with ARMs resetting when it was actually much, much more. Interest resets were the least of their problems.
The whole problem started when Congress (with Obama's FULL support, BTW) decided to demand that lenders 'put everyone in a home' and lower their qualifications for getting loans. Sorry, everyone does NOT 'deserve' to own their own home- especially when they have no income, no credit record, and no inclination to pay off their debts even prior to purchasing a home. Congress demanding that the restrictions be eliminated or lowered is what caused the problem in the first place - now they get to pretend to be saviors.

I know a girl who worked minimum wage, a 40-hour-a-week job, hubby worked 15 hours a week as a magician, and they had two young children. She was 'qualified' for a $256,000 home - and then bought a brand new car right afterwards. They never made a single payment on the house, lived in the house for two years before the bank reposessed - but they were 'qualified'. As someone who has worked all her life to get what she wanted, I was appalled at who was getting loans - and as far as I'm concerned, getting evicted is their just desserts. No sympathy here. Those who think that the world or taxpayers 'owe' them a living - be they individuals, banks, or Congresscritters - ought to get what they deserve. Sady, they rarely do.
Reply With Quote Quick reply to this message
 
Old 12-22-2008, 09:28 AM
 
Location: Great State of Texas
86,068 posts, read 74,801,293 times
Reputation: 27602
Re-defaults on the rise. Even with modifications many people still could not afford the home they bought.

Mortgage re-defaults rising with no sign of slowing - Yahoo! News (http://news.yahoo.com/s/nm/20081222/bs_nm/us_financial_defaults_4 - broken link)
Reply With Quote Quick reply to this message
 
Old 12-22-2008, 05:11 PM
 
Location: Los Angeles Area
3,306 posts, read 3,559,622 times
Reputation: 592
Quote:
Originally Posted by neil0311 View Post
So allowing a foreclosure, walking away, and ruining your credit is better than living in the house for a few years until the market improves? It's not a "clean slate". It's a damaged credit record . I don't understand that logic.
Yeah, in a "few years" when the market improves.... Going to take much longer than a mere "few years" for nominal prices to return to peak.....unlikely to see a return in real pricing in our life time.
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Economics
Similar Threads
Follow City-Data.com founder on our Forum or

All times are GMT -6.

© 2005-2020, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35 - Top