Low income mortages

[auditingjustice]

Home prices were going through the roof, everyone was out to make a buck, processors, underwriters, escrow & title officers, appraisers, loan officers, brokers, lenders, banks, title companies, funders, investors, secondary market, Wall Street, etc. It wasn't about the idea of not knowing if and when the market was going to crash. It was about seizing the moment, investing into the American Dream of owning a home, which created an adrenaline high among many borrowers. Everyone was doing it, if you wanted something bad enough you could get it. Many of these homeowners were qualified into owning these homes under predatory lending practices. It's not the borrowers fault for wanting more in a home, it's the Fiduciary Responsibility of the Loan Officer to properly calculate their DTI, LTV, and Housing Ratios to better determine the price of home that they truly qualified for.

There are many homeowners barely making it today, because their income has been cut, loss of job, and or living expenses have risen. So, pointing the finger at certain races and or classes is not an intelligent way of looking at the current problems we as a nation are going through, every case is handled individually.

In the future, if you know someone needing help in saving their home, try helping them and less talking about them. The more good you do in life; the better you'll feel when done.

Lastly, having your Mortgage Documents investigated thoroughly can have great rewards. As a Fraud Investigator, I personally work hard in an attempt to create equal borrower-lender relationships as a result of the predatory lending practices that may have qualified you into originating or refinancing that loan. If you know of or would like to help someone get into a mortgage account that they can better manage, remember there are other options available verses a short sale, walking away, or bankruptcy. Not all companies available will do a Forensic Loan Audit and take your case to Federal Court. Furthermore, having a home at Current Market Value, Low Interest Rate on a Fixed Term, Low monthly payments, and to have some or all cash invested into the home from the time of the origination or refinance returned back to you is phenomenal. Contact me if you'd like more information. Good Luck to those individuals that are out there making a difference today.

[amerifree]

The days of home purchasing by anyone making less than 200k/yr. is close at hand.
By the end of 2012, these people will be renting and only responsible Americans will be home owners. We're working on a number of Land Baron projects that will ensure positive cash contributions from generations of families to come.
Viva America!

[PurpleLove08]

Originally Posted by hawkeye2009

Question to libs-


With the collapse of the housing market being fueled to a great extent by the failure of mortgages given to low income citizens who could not afford homes in the first place, do libs still advocate this practice? Why or Why Not? This was a cornerstone of lib politics since the Carter administration. Is it still a good idea?

I thought the housing market collapse was more about a breakdown of regulation.

Sure there were people buying homes that didn't need mortgages but let's not act like these people acted alone.

As one poster said, it was more predatory lending than anything.

[Greatday]

Originally Posted by hawkeye2009

With the collapse of the housing market being fueled to a great extent by the failure of mortgages given to low income citizens who could not afford homes in the first place, do libs still advocate this practice? Why or Why Not? This was a cornerstone of lib politics since the Carter administration. Is it still a good idea?

Let's be clear: Residential underwriting (qualifications) guidelines were lowered to allow different "classes" of mortgages that could be sold to the secondary mortgage market (Fannie Mae, Freddie Mac, Ginnie Mae).

MANY, MANY of the owner occupant borrowers were not "low income" - unless you classify someone making $60,000 to $100,000 (or more) low income. What happened was, a type of loan, the Adjustable Rate Mortgage, which has been around for a long time, the guidelines allowed lenders to make loans based on the initial year / years payment. Now, when the interest rate for the initial years was 2%, and the loan amount was $500,000, the payment would be $1,848. That means the person making around $70,000 a year could qualify. And, they did.

But, 3 to 5 years down the road, the interest rate adjusted to say, 7% - still a good rate. But, now the payment adjusted to over $3,300 a month. To qualify for that payment, you would need income of around $145,000 a year - and the borrower now could not afford the loan. They defaulted.

Then, prices of homes, because of the laws of supply and demand, escalated tremendously - a lot of what is known as "flipping" was going on. So some, including investors, were buying these homes and actually borrowing more than what the property was worth (it is called loan to value - LTV) - say the home was worth $200,000 - they might take out a $225,000 loan - and get cash in their pockets at close of escrow (there were a lot of "infomercials" on doing this at the time). But, because the payment was so low, they were able to cover the payment with a renter. But suddenly, their interest rate went up - and suddenly they were "upside down" - not enough income to make the payment. The investors walked from the property / loans.

Both situations came together starting in great numbers in 2006 - and the rest as they say is history.

Yes, there were some low income people who got loans - but, more importantly was, these people were convinced to purchase "more of a home" than they could realistically afford. And therein lies the problem.

There are literally 10's of 1000's of lawsuits, all across America, where these buyers are suing their REALTORS, the loan companies, Homebuilders, Title and Escrow companies, for, in some cases, misrepresentation, fraud and a myriad of other allegations.

But, there appears to be some light at the end of the tunnel -