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.
I agree with the OP that it's disappointing, especially when you're trying to sell, but to put the sole blame on buyers is also irresponsible. It takes two to tango. Buyers, in some cases, were so illiterate to the fine print on things such as Option-ARM. When a lender approved a buyer for far more than he should have, or for a loan at all, the buyer in many cases saw the beautiful new house and themselves in it and couldn't resist. Is this entirely his/her fault? Should he have been smarter? You would like to think, but the fact of the matter is, you need to pin the blame on those who actually approved the loans, and real estate agents don't always go without blame either - they were looking out for themselves too.
So you have 3 parties looking out only for themselves, but you chose to only blame one. Any reason for that?
And it's hard to even blame those whom are letting their houses foreclose. They're living the high life now because they weren't paying their mortgage for a few months? Oh yeah, renting is so luxurious. In case you've been in a cave, because of supply and demand and due to this foreclosure crisis, there is far more demand, rents have gone way up. Right now I'm paying 1,100 per month for a 1-bedroom when I could be buying for a mortgage on a 200,000 house for less than that. Also, many of those who had a foreclosure lost their job -- how are they living the high life?
You just want someone to blame for your own problems - much the same as they did as well.
The fact of the matter is there's way more to blame than just buyers, and I'd blame them 2nd behind lenders.
Lastly, before you hold out so much blame, maybe you should reconsider the notion that all of the foreclosures are bringing down the market on your house. Nay, while that is a factor in the story, the fact is that people and lenders aren't willing to pay the same price they did in 04, 05 as they are now. The worth simply had to come down. Banks are still withholding foreclosures from flooding out the market - to the tune of over 600,000 foreclosed homes. It's also important to remember what the previous poster said, because you don't understand what paper values are. Why is your house coming down in value? Primarily, because due to the buyers you're blaming, your property was overvalued.
Your best option is to rent out one of your houses and secure continued equity that doesn't come out of your own pockets and if I were you, I'd spend more of my time doing that than I would complaining on a forum about how other people ruined the value of your home - nay, that was inevitable.
If you couldn't read the fine print on your contract, then you should've gotten your mother or someone literate enough to read it for you. In my view, the blame falls 100 percent on the buyers -- I don't care if they couldn't understand English or not.
We waited out the bubble for three years because a simple Google search revealed that we were in a major housing bubble of an unprecendented level and that all indicators showed that the market was going to tank -- why didn't you take the time to do so?
I understand your position OP, I truly do. However, I would say you are lucky to be struggling on a "six-figure income." What if you lost your job and could not find a replacement? Would you have the same feelings? There is a whole other waive of foreclosures on the horizon related to the current economy. These people will be walking away because they simply have no choice.
Second) 5 years is an unrealistic idea and you know it. They likely won't even be eligible to own a home for 7 years and when they do, it won't be on their own terms.
!
Actually a borrower can qualify for a new FHA loan 3 years after a foreclosure and 4 years for a conventional loan. A borrower may be able to qualify even faster than that with their local bank if they have a sizable down payment and the bank beleives they can and will make the payments.
Then there is also the contract for deed option where the borrower can purchase as soon as they want as long as the seller is willing (not necessarily in all states)
If you couldn't read the fine print on your contract, then you should've gotten your mother or someone literate enough to read it for you. In my view, the blame falls 100 percent on the buyers -- I don't care if they couldn't understand English or not.
We waited out the bubble for three years because a simple Google search revealed that we were in a major housing bubble of an unprecendented level and that all indicators showed that the market was going to tank -- why didn't you take the time to do so?
That's how smart people like you and I behave in our lives. We're probably some of the most responsible people on the face of the planet, but there's one thing that most of you are missing:
2-3 buyers didn't ruin it for everyone.
2-3 lenders did.
To allow so many people to take out loans they had no business taking out falls on the lenders, first and foremost. Why? Because they more than anyone knew what might happen if they continued.
Again, of course buyers take responsibility. They lost money, they lost their jobs in some cases, they lost the ability to own homes in the future, they lost their credit (if they had good credit in the first place, some did) and they will lose the best interest rates in the future. They're taking theirs.
This idea, however, that these loans weren't pushed on them, is what's even more infuriating.
I still haven't bought my first home yet because of the inflationary market. I learned pretty early to buy low and sell high. Well, I'm about to buy shortly because I am hoping to get in at rock bottom. So, when I defend buyers, it isn't because I was part of the problem. Nay, it is because when a business suffers, it is those who run the business that caused the most trouble, not those they allowed do business with them.
Quote:
Originally Posted by Trogge
Actually a borrower can qualify for a new FHA loan 3 years after a foreclosure and 4 years for a conventional loan. A borrower may be able to qualify even faster than that with their local bank if they have a sizable down payment and the bank beleives they can and will make the payments.
Then there is also the contract for deed option where the borrower can purchase as soon as they want as long as the seller is willing (not necessarily in all states)
With what type of interest rates? Someone who's gone bankrupt, has ****-poor credit is going to get the same rates as before? My point was he didn't get off scotch free. I've been approved for a loan since I was 18, that doesn't mean I'm going to accept it on those terms.
With what type of interest rates? Someone who's gone bankrupt, has ****-poor credit is going to get the same rates as before? My point was he didn't get off scotch free. I've been approved for a loan since I was 18, that doesn't mean I'm going to accept it on those terms.
Yes, same rates as before. FHA rate would be identical to a person with perfect credit (i.e. a person who was foreclosed upon 3 years ago could qualify for around 5.25% on a 30 yr. fixed rate FHA loan today).
Conventional loan would depend on credit score at that time. However, a borrower would be able to get their score back pretty high after 4 years.
Location: Halfway between Number 4 Privet Drive and Forks, WA
1,516 posts, read 4,589,894 times
Reputation: 677
Quote:
Originally Posted by Trogge
Yes, same rates as before. FHA rate would be identical to a person with perfect credit (i.e. a person who was foreclosed upon 3 years ago could qualify for around 5.25% on a 30 yr. fixed rate FHA loan today).
Conventional loan would depend on credit score at that time. However, a borrower would be able to get their score back pretty high after 4 years.
I understand your position OP, I truly do. However, I would say you are lucky to be struggling on a "six-figure income." What if you lost your job and could not find a replacement? Would you have the same feelings? There is a whole other waive of foreclosures on the horizon related to the current economy. These people will be walking away because they simply have no choice.
I understand that there are people who truly cannot afford their mortgages due to circumstances in life such as a job loss or an illness,etc... and for those people, I am so very sorry.
I was not and am not referring to those people,although,I still say that there are other choices besides just walking away....
However,I am not here to debate those choices.
I am strictly speaking of people that are just doing it because they feel they are better off not paying their mortgage and realize there really is no penalty for doing so.
To allow so many people to take out loans they had no business taking out falls on the lenders, first and foremost.
HUD demanded that more than 50% of FNMA /FHLMC 's portfolio of mortgages be low income borrowers .... people who might not otherwise have qualified for financing.
So when 2 Government Sponsored Enterprises are buying junk, lenders delivered.
For the person who sent me a nice little rep comment "nice rant,but struggling on a 6 figure income,pleeezzz", nice comment....
my question for you is this; would YOU be able to pay for 2 mortgages ,2 HOA fees ,2 sets of property taxes ,1 car payment,and basic life things w/out feeling that you are struggling a little bit???
Did you have to purchase a second home if you already were struggling w/ the other home? In most cases renting is cheaper especially since there is no repairs expense to worry about.
Quote:
Originally Posted by PotterGeek
Yes, let's point the finger at someone else instead of taking responsibility for our own actions...better yet, actually (gasp) *reading* an important document such as a mortgage before signing our names...
Do people really get an opportunity to read those documents though? I was supposed to close next week and asked the lender to give me the closing docs in advance, he said 'he'd try.'
My brother closed on 8 properties, he sometimes got the closing docs in advance (a day or two beforehand). The other times he was able to come to closing an hour earlier and be able to sift through the docs. But really, is an hour enough time to read through those documents and understand it all?
I've read my purchase contract about 5-6 times now so far, and I still don't understand all the details yet. Little by little as I learn about the process and going through other experiences, I am understanding the contract more.
Lenders say in most experiences, people very rarely read the documents. Now if they actually gave the documents beforehand like a week, it at least allows people to read it. But even in a week, can a person finish reading it all? (I'm honestly asking bc I've never purchased a home before, so I never have seen how much paperwork there is). But I heard there is a lot of it.
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.
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.
What if you lost your job?
