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I was watching the news today. Lennar is HQ in Miami, protesters were outside, because they felt Lennar was a Predator Lender. Which is probably true. When one lady was interviewed why she was there protesting. She said because Lennar was taking her home. When asked what happened. She explained she took out a $400k loan on a home that Lennar approved. When I heard she was a cashier at a grocery store and her husband worked at the same grocery store behind the deli counter, it just made me so upset. How could this woman ever believe she could afford a $2,700 or $2,800 a month mortgage. And she is blaming the lender for this. It just boggles my mind how she and her husband ever thought they could afford a $400k mortgage. I heard a simaliar store about a woman who is a bus driver and the home was worth $600k at the time she took out the loan, and now she is losing the house. I just don't get these people, how could they ever think they should be living in a 400k or 600k home on their salaries, just is crazy?????
It's the new "Entitlement" attitude that people have. They want it all, but don't want to pay for it. And they expect someone else (govt via taxpayers) to bail them out. People do not take any responsibility for themselves or their actions anymore. Every bad thing that happens to them is always someone's else's fault.
It's the new "Entitlement" attitude that people have. They want it all, but don't want to pay for it. And they expect someone else (govt via taxpayers) to bail them out. People do not take any responsibility for themselves or their actions anymore. Every bad thing that happens to them is always someone's else's fault.
For starters, in unionized grocery stores around Chicago it is entirely possible that a front end cashier and deli worker to have an income high enough to qualify for that size loan.
Note sure if the same is true in Florida.
Incomes are all over the map, and the stability of most jobs is not great. Still, if the lender approved em and there was no fraud...
Even if they were each working 40 hours a week and making $15/hour, they were only grossing $5200 a month. P&I on a $400K loan is 2100-2800/mo depending on the rate. (could be higher!) Add in taxes of at least $400/mo, home owners insurance of $100/mo. They probably had an HOA and PMI as well, but I'll assume they didn't. Bare minimum monthly payment $2600 is a 50 front end.
That loan should never have been made, the borrowers should never have even dreamed of owning that home without a drastic change in their careers. Both are equally to blame.
The news said their monthly mortgage was $2700 or $2800 (I can't remember exactly) not sure if that include the insurance or not. Home Insurance on a $400k home here in Miami is at least $4000k and that is being conservative. Oh and the taxes were probably closer to $600-700 a month, 2% of the sale price.
Its just crazy that they got the loan and they even believed that they could afford a 400k home. To me its just common sense, that a family making a combined salary of 60k (I am going to guess) can't buy a 400k home.
Last edited by doggiebus; 04-15-2009 at 02:44 PM..
that is the whole thing right there. I can accept stupid people. I cannot accept a banker, supposedly a specialist and professional, approving this loan. the stupidity of the people is not at question, but they should not be prosecuted for stupidity. It is the lender who packaged the loan regardless of the quality that is the true criminal in this......he KNEW it was bad up front, and took advantage of stupid people.
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