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If you don't have a basic understanding of how real estate markets work, you have no business buying a home.
This is where you are wrong.
Lack of basic understanding of real estate is not what got so many people in trouble.
Its the complexity and structure of these loan programs that hurt people when brokers didn't explain it in the best interest of the client. When things get complex (complexity being relative, of course), people tend to rely on professionals they hire.
We rely on professionals we hire to do right but us, don't we?
I closed on a apartment recently- i can tell you that at closing the lenders attorney hit me with so much more to sign that I ordered him to "just make a pile" so i can go through it one by one. ALot of it was nonsense like signing a statement that says my mortgage payment would not create a financial hardship on me, name affidavit, and other disclosures. I told the lenders counsel that i felt like wiping my ass with his paperwork. They thought i was joking.
I'm a seasoned real estate title examiner and sometimes i still get frazzled by it all.
It was TOO EASY for brokers to scam the "general" population into large loans.
YOu must live in la la land...Do you really think the majority o FIRST TIME home buyers have the knowledge to understand the mountain of papers they are signing? Plus the fact that morrgage compainies LIED TO THEM about their rates being fixed?
No, I've never lived in La La Land, but I have lived in 5 other states and purchased 6 homes. Yes, I expect anyone who is about to buy a HOME to understand just what it is that they are doing whether it is their first home or their 6th home or their 100th home. Why would you expect otherwise?
I understood fully before we made our first home purchase. I also understood my first car loan, the terms on my first CC's and such...as any responsible adult should. Again, I recognize a snake when I see one and take proper precaution. Fortunately, I don't do car loans or CC anymore so I have less snakes in my life. If we ever have to buy another home you can bet we will sit at closing as long as it takes to understand everything before we sign...that's what grown-ups do.
Ok, and that IS a different story, so its not those people that I am talking about. I just get tired of these people who are being "kicked out of houses" that they hardly have any investment in, and that can go back to living in an apartment like they did only a few months ago.
Those who were lied to blatantly, totally different story.
Well that is the jist of it...there are mortgage companies that preyed upon first time home buyers and told them a heep of bull to get them into homes they would soon not be able to afford.
No, I've never lived in La La Land, but I have lived in 5 other states and purchased 6 homes. Yes, I expect anyone who is about to buy a HOME to understand just what it is that they are doing whether it is their first home or their 6th home or their 100th home. Why would you expect otherwise?
I understood fully before we made our first home purchase. I also understood my first car loan, the terms on my first CC's and such...as any responsible adult should. Again, I recognize a snake when I see one and take proper precaution. Fortunately, I don't do car loans or CC anymore so I have less snakes in my life. If we ever have to buy another home you can bet we will sit at closing as long as it takes to understand everything before we sign...that's what grown-ups do.
the mortgage companies LIED TO THE BUYERS. Do you not hear the word LIED? They are being prosecuted for the love...What they did is wrong. I am glad you were on top of your game and nobody took advantage of you and LIED ABOUT YOUR RATES.
You need to read it because the mortgage company LIED to the buyers. Telling them rates would be perm. fixed. And when the rates changes so did their house payments...Hence they suddenly could not afford to live there anymore.
You keep saying this and yet I have not found it in the link you provided, nor do I remember it from any of the articles I read earlier this year. Can you please give a more specific reference or provide a quote here from the article in case I am overlooking it?
I don't recall that being the case with Beazer, especially because in NC an attorney must be present at closing.
You keep saying this and yet I have not found it in the link you provided, nor do I remember it from any of the articles I read earlier this year. Can you please give a more specific reference or provide a quote here from the article in case I am overlooking it?
I must be overlooking it too- I don't see it. I would appreciate seeing it as well.
You keep saying this and yet I have not found it in the link you provided, nor do I remember it from any of the articles I read earlier this year. Can you please give a more specific reference or provide a quote here from the article in case I am overlooking it?
I don't recall that being the case with Beazer, especially because in NC an attorney must be present at closing.
"One of the suits alleges that Beazer Homes Corp. and Beazer Mortgage Corporation conspired to illegally finance unqualified purchasers to buy newly-constructed homes, thus making widespread foreclosure and abnormal property devaluation inevitable."
From the link...
Just google Beazer Homes...you will get all the dirty little details you need.
the mortgage companies LIED TO THE BUYERS. Do you not hear the word LIED? They are being prosecuted for the love...What they did is wrong. I am glad you were on top of your game and nobody took advantage of you and LIED ABOUT YOUR RATES.
Yes, for goodness sake, we can all hear you. What is lacking is evidence that the home owners did not know about their rates or what their payments would be. That is all KNOWN at closing.
The company is being sued because they lied about the income of the buyers to get them qualified for higher mortgages....but that isn't the same as what you are claiming.
At closing you are given specific documentation showing your loan terms, fixed or adjustable, the length of the loan, etc. I don't see how it was possible that people did not understand. They agree to a closing attorney with the seller and have the option of having their own attorney as well. The closing attorney does not represent either party specifically, but is fully in charge of the closing. It is for the protection of the buyer that the attorney is in charge of the closing.
"One of the suits alleges that Beazer Homes Corp. and Beazer Mortgage Corporation conspired to illegally finance unqualified purchasers to buy newly-constructed homes, thus making widespread foreclosure and abnormal property devaluation inevitable."
From the link...
Just google Beazer Homes...you will get all the dirty little details you need.
See above, what is described here is not what you are accusing Beazer of doing. Not at all the same thing.
The lawsuit said Williams, the sales agent, falsified documents to help buyers get loans for Beazer homes. Among the allegations are that assets and debts were misrepresented on loan applications and important information concealed
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