Foreclosures...

JROCK · Jul 9, 2007

Da_Sperm said:
But that is with EVERY LOAN, not just the sub-prime ones.

You are stretching it..........First, let's make it clear that all real estate loans are not made by "brokers." Secondly, let's understand that when brokers "do deals," in many instances the prospective buyers set up the guidelines. Prospective buyers go on "spreads." If the lending guideline don't fit the profile, it will not be bought. Of course all loans go through the normal due diligence. The difference is your prime loans don't have as much risk, have better debt ratios, and most often fix with lower rates. Thus, unaffordability is inconsequential compared to a sub prime customer. The fact that they went through the same process compared to the sub prime customer is moot.

JROCK · Jul 9, 2007

Suge said:
Here we go again, the victim mentality. It is always someone else's fault, and no one ever takes the responsibility.

Using your same example MD, if that friend knows that he can't pay the money back, then he shouldn't borrow it. There is still some personal responsibility that must be factored in. And that is a much greater factor in foreclosures etc. than the "big bad" predatory lenders.

You statement about affordability leaves out too many important variables. Many of the borrowers are sold on the fact that when the payments become unaffordable, they will be able to refinance it. Many of these people bank on the economy having an upswing, interests rates to drop or remain stable, more income among other variables. Very few if any go into a mortgage deal with expectations of not being able to retain their home. Keep in mind that this is not a black problem but rather an American problem.

Suge · Jul 10, 2007

I never said it was a "black" problem. Nowhere have I mentioned race being a factor. I rarely will infuse race into a discussion when it does not apply. My point is the same.....you mention many of the other factors that come into play, and I agree that they are part of the issue, but I still say that is all the responsibility of the homeowner.

mighty hornet · Jul 10, 2007

Da_Sperm said:
But that is with EVERY LOAN, not just the sub-prime ones.

I don't know of many companies that loan money and then "could CARE LESS if the person makes ONE PAYMENT on the loan"

Suge said:
Using your same example MD, if that friend knows that he can't pay the money back, then he shouldn't borrow it.

And in that example, you KNEW before you loaned the money to him, that he couldn't pay it back. But you loaned it anyway.
So, while I agree that he "shouldn't borrow it", it can easily be argued that you shouldn't have loaned it.

btw, I ain't MD. Even though we're both intelligent Bamas, we're different.

JSU/99 · Jul 10, 2007

ABE said:
Buying a big arsed house and not realizing that big houses require MAINTENANCE.

Yard Services
Multiple AC Units
Multiple Hot Water Heaters
Pool Service
HOA fees
etc.....

Exactly. I do my own pool service and its very expensive and time consuming. Yard service costs a grip(no time to do it myself) and lets not even talk about the other costs you mentioned. I've been toying with the idea of starting a class at my church for potential home-buyers, so they can be aware of the pitfalls I had to deal with.

Shamocha · Jul 10, 2007

Well the way I see it, it falls on the consumer to know their rights and what they are getting into. You know the banks and lenders aren't loaning you money out of the goodness of their hearts, they are doing it to make a profit. It's nothing personal, just business. Before you sign a contract you need to know good and well what you're getting into, especially if you are signing up for 15-30 yrs. I haven't purchased a house yet but I have spent a lot of time researching the different types of mortgages and costs associated with homeownership. With all of these stories and articles talking about predatory lenders you would have to have your head in the sand to not know what's going on. As a consumer I cannot blame someone else for not paying attention to what's going on. If I KNOW I can't really afford a house, car, pair of shoes, I'm not going to let someone convince me that hey I really can. It all comes down to how you manage your money. Get your finances straight, then get all the things you want. If your credit is bad, get some counseling and clean it up and then get a loan with the interest rate you want. Quit trying to keep up with everyone else and do things when it's right for you.

SLT · Jul 10, 2007

Shamocha said:
Well the way I see it, it falls on the consumer to know their rights and what they are getting into. You know the banks and lenders aren't loaning you money out of the goodness of their hearts, they are doing it to make a profit. It's nothing personal, just business. Before you sign a contract you need to know good and well what you're getting into, especially if you are signing up for 15-30 yrs. I haven't purchased a house yet but I have spent a lot of time researching the different types of mortgages and costs associated with homeownership. With all of these stories and articles talking about predatory lenders you would have to have your head in the sand to not know what's going on. As a consumer I cannot blame someone else for not paying attention to what's going on. If I KNOW I can't really afford a house, car, pair of shoes, I'm not going to let someone convince me that hey I really can. It all comes down to how you manage your money. Get your finances straight, then get all the things you want. If your credit is bad, get some counseling and clean it up and then get a loan with the interest rate you want. Quit trying to keep up with everyone else and do things when it's right for you.

:clap:

Add to that, even if you can afford it at the present time, make sure you are prepared in case of death of spouse, job loss, etc. You have to consider if you can keep up the note due to these circumstances. If not, that home is NOT for you.

CriTAUcal · Jul 10, 2007

Shamocha said:
Well the way I see it, it falls on the consumer to know their rights and what they are getting into. You know the banks and lenders aren't loaning you money out of the goodness of their hearts, they are doing it to make a profit. It's nothing personal, just business. Before you sign a contract you need to know good and well what you're getting into, especially if you are signing up for 15-30 yrs. I haven't purchased a house yet but I have spent a lot of time researching the different types of mortgages and costs associated with homeownership. With all of these stories and articles talking about predatory lenders you would have to have your head in the sand to not know what's going on. As a consumer I cannot blame someone else for not paying attention to what's going on. If I KNOW I can't really afford a house, car, pair of shoes, I'm not going to let someone convince me that hey I really can. It all comes down to how you manage your money. Get your finances straight, then get all the things you want. If your credit is bad, get some counseling and clean it up and then get a loan with the interest rate you want. Quit trying to keep up with everyone else and do things when it's right for you.

:tup: :tup: And that's why me and my hubby are going at a snails pace on getting our first home. It's GOT to be RIGHT and where we KNOW we can comfortably afford it. As much as we both want to be in a house (LORD KNOWS I'M READY!), we're not moving until we get the right deal and the right house.

Shamocha · Jul 10, 2007

I've been told several times I can get into a home with no money down. OK well that sounds great but ummm when I get into that home am I going to be able to afford taking care of it? Sure I know a big, pretty yard would be nice but I know my butt isn't getting out there to maintain it. In an apartment if anything goes wrong you just call maintenance, in a house you have to take care of that yourself. I never lived in an apartment until I moved to Atlanta so I'm aware of the pros and cons of living in a house. I know I need to have a little stash put aside for emergency. It sounds good when folks tell me about what I could have or what I could qualify for, but I'd rather be a little uncomfy now than be a whole lot uncomfy getting put out of a house. I'll just chill for another year or so to save and capitalize on all the foreclosures I pass by everyday. There's no excuse for falling prey. There are too many 1st time home buyer programs, seminars, and classes for you to not know what you're getting into.

CriTAUcal said:
:tup: :tup: And that's why me and my hubby are going at a snails pace on getting our first home. It's GOT to be RIGHT and where we KNOW we can comfortably afford it. As much as we both want to be in a house (LORD KNOWS I'M READY!), we're not moving until we get the right deal and the right house.

Da_Sperm · Jul 10, 2007

mighty hornet said:
I don't know of many companies that loan money and then "could CARE LESS if the person makes ONE PAYMENT on the loan"

The people who do the work (underwriters and loan processors) are working off COMMISSIONS. It is their job to prove to the bank that you can pay the loan. They will go as far as to put your light bill on your credit report to prove you have some type of payment history. Once they get you approved and the deal closed, they get PAID that 2%.

I don't know of ANY Loan processors or underwriters that CARE if you make a payment after you close on the house. They move on to the next file as soon as they get you taken care of.

Jam Piper Jam · Jul 10, 2007

Foreclosures In the ATL

Increasing Rate of Foreclosures Upsets Atlanta

Published: July 9, 2007
ATLANTA ? Despite a vibrant local economy, Atlanta homeowners are falling behind on mortgage payments and losing their homes at one of the highest rates in the nation, offering a troubling glimpse of what experts fear may be in store for other parts of the country.

A Slumping Market The real estate slump here and elsewhere is likely to worsen, given that most of the adjustable rate mortgages written in the last three years will be reset with higher interest rates, said Christopher F. Thornberg, an economist with Beacon Economics in Los Angeles. As a result, borrowers of an estimated $800 billion in loans will be forced in the next 12 months to 18 months to make bigger monthly payments, refinance or sell their homes.

A big reason the fallout is occurring faster here is a Georgia law that permits lenders to foreclose on properties more quickly than in other states. The problems include not just people losing their homes, but also sharp declines in property values, particularly in lower-income and working-class neighborhoods.

For example, a three-bedroom house near Turner Field, where the Atlanta Braves baseball team plays, fetched a high bid late last month of $134,000 at an auction by the bank that took possession of it. Almost three years ago, the new home was bought for $330,000.

While the surge in foreclosures in other big cities like Cleveland, New Orleans and Detroit can be attributed to local economic challenges, Atlanta more closely reflects the nation. Its unemployment rate, 4.9 percent in May, is low and close to the national average of 4.5 percent. And businesses here are adding jobs, albeit at a slower pace than they were last year.

read

SLT · Jul 10, 2007

Don't get mh started, hea?

CriTAUcal · Jul 10, 2007