Ever gone through foreclosure?

[nick1091]

Originally Posted by O_V_N

You just answered your own question.

Again, it's not fair to the bank. But it's better than a full-blown foreclosure.

We're in agreement it's better, but mikejet's statement was that "no one gets hurt," which is not the case.

A punch to the stomach (losing $245K) usually does not hurt as much as a knee to the groin (foreclosing and most likely losing much more), but it still hurts.

[Teabaggins]

buyer beware.....especially if said buyer is a retard .........we must assume the seller is looking to rip us off in all situations.

[mikejet]

Originally Posted by nick1091

We're in agreement it's better, but mikejet's statement was that "no one gets hurt," which is not the case.

A punch to the stomach (losing $245K) usually does not hurt as much as a knee to the groin (foreclosing and most likely losing much more), but it still hurts.

OK I used the wrong words but my point is clear, it's in everyone's best interest to rewrite these loans.

Have you seen some of the houses these people have walked away from? Many of them get left in ruin. Then they get sold "AS IS".

[Another_Dude]

Originally Posted by Teabaggins

buyer beware.....especially if said buyer is a retard .........we must assume the seller is looking to rip us off in all situations.

So if Joe makes around 36k a year, and his wife stays home with their four kids, then they don't have the right to live in a 280k house?

Thats not very American!

I find it very hard to blame someone (banks) for selling a crappy product when there are lines out the door of people that want to buy what they're selling. There are retards on both sides of these transactions, and they all have their hands out to those of us that live in, and pay for, houses that we can actually afford.

Can't afford your house or can't get paid on a loan you made? Not my problem. Do NOT try to make it my problem.

[nick1091]

Originally Posted by mikejet

OK I used the wrong words but my point is clear, it's in everyone's best interest to rewrite these loans.

Have you seen some of the houses these people have walked away from? Many of them get left in ruin. Then they get sold "AS IS".

Absolutely, I hear what you're saying. All I'm saying is there's a difference between "I'm in a financial crunch and need the bank to work with me so I can stay in home," versus "I don't feel like paying this much for a house because the value's gone down, so I'm going to extort the bank into losing money."

[Chordata]

Originally Posted by Another_Dude

Can't afford your house or can't get paid on a loan you made? Not my problem. Do NOT try to make it my problem.

That's only part of the problem (and it's not even the point of this thread).

A lot of homebuyers in the last 5 years WERE and ARE able to afford their mortgages, it's just that the value of the home when purchased was inflated, and the real market value is significantly less. They literally cannot afford to sell their home now.

[mikejet]

Originally Posted by nick1091

Absolutely, I hear what you're saying. All I'm saying is there's a difference between "I'm in a financial crunch and need the bank to work with me so I can stay in home," versus "I don't feel like paying this much for a house because the value's gone down, so I'm going to extort the bank into losing money."

That's why I'm upset with banks over the handling of the bailout money. The money should have been used to offset their bad debt reserves and then they would be in a profitable position to lend more money and rewrite loans. Then pay back the government over time.

The banks didn't do that though. They had a field day buying up smaller banks and stayed in the red.

Also, they really shouldn't televise those damn flipping shows. It gives people the wrong idea thinking anyone can do it.

I told my wife she should get a real estate license considering it's such a buyers market right now.

[My_Two_Cents]

Originally Posted by nick1091

Absolutely, I hear what you're saying. All I'm saying is there's a difference between "I'm in a financial crunch and need the bank to work with me so I can stay in home," versus "I don't feel like paying this much for a house because the value's gone down, so I'm going to extort the bank into losing money."

Exactly. Every homeowner in the country (practically) is in that boat right now. Our homes are not worth today what they were a year ago. That's the risk you take with real estate. Do I like the situation? No, but I'm not going to sit here, blame the banks for this and demand THEY eat the loss in value and refinance my loan by arbitrarily lowing the principle owed. That's just ridiculous. You want to blame someone for this, start looking at the regulators and lawmakers who (in the interest of 'fairness') started this whole mess.

[MCT]

Originally Posted by mikejet

Also, they really shouldn't televise those damn flipping shows. It gives people the wrong idea thinking anyone can do it.

totally agree. Everyone thinks they can be the next damn Warren Buffet. "hey, if Joe Schmoe did it, why cant I? It's so EASY!" The old adage rings true, though. If it's too good to be true.....

[DetroitSportsFan]

Originally Posted by O_V_N

A lot of homebuyers in the last 5 years WERE and ARE able to afford their mortgages, it's just that the value of the home when purchased was inflated, and the real market value is significantly less. They literally cannot afford to sell their home now.

Add to the falling home values the fact that thousands of people have had to take pay cuts or lost their jobs completely, and that fueled the foreclosures even more. I'm sure there's many families that were gainfully employed 5-10 years ago and bought a home and *poof*, their jobs are gone.

[mikejet]

Originally Posted by DetroitSportsFan

Add to the falling home values the fact that thousands of people have had to take pay cuts or lost their jobs completely, and that fueled the foreclosures even more. I'm sure there's many families that were gainfully employed 5-10 years ago and bought a home and *poof*, their jobs are gone.

I'd say about 10% since the national unemployment is getting damn close to hitting double digits.

[Chordata]

Originally Posted by DetroitSportsFan

Add to the falling home values the fact that thousands of people have had to take pay cuts or lost their jobs completely, and that fueled the foreclosures even more. I'm sure there's many families that were gainfully employed 5-10 years ago and bought a home and *poof*, their jobs are gone.

Exactly. Some people are ACTUALLY victims of circumstances, and not "retards" or "idiots", as some people claim...

[beefytwinkie]

I got a lot of different perspectives reading through this thread. Good conversations.

I remember this one news broadcast a while back where a bunch of people were going to "help meetings" to try and get together and figure out how to deal with all the foreclosures they were experiencing. I remember this one lady said she had a yearly salary of $30,000 and got a mortgage for $500,000 and now the adjustable interest rate kicked in and she was in trouble. That was pretty funny and sad at the same time.

[Monkey]

Originally Posted by nick1091

I'm sorry, but if they could afford the monthly payments and the only thing they had a problem with is that their house is worth less now, that's a pretty lousy thing to do.

I bought my house at the top of the market, and I'm sure I'd probably have to take a loss if I decided to sell. But just because my home is worth less than when I bought it, I don't see any reason why that's the bank's fault or problem. I asked them to front a certain amount for home purchase and I agreed to their payment terms.

Let's say someone asked me to borrow $20 for a Blu-Ray, and I said yes and they purchased it. A week later, it goes on sale somewhere else for $15. Does that mean my friend should only have to repay the $15 cause that's all it's worth now?

Excellent post!

[My_Two_Cents]

Originally Posted by beefytwinkie

I got a lot of different perspectives reading through this thread. Good conversations.

I remember this one news broadcast a while back where a bunch of people were going to "help meetings" to try and get together and figure out how to deal with all the foreclosures they were experiencing. I remember this one lady said she had a yearly salary of $30,000 and got a mortgage for $500,000 and now the adjustable interest rate kicked in and she was in trouble. That was pretty funny and sad at the same time.

Even with all of the mandated "fair housing" requirements imposed on lenders and a possible interst-only loan, I can see no viable scenario where a person making $30K would be approved for a $500K mortgage. Someone wasn't presenting the whole truth. At 6%APR, the interest alone on $500K would be $30K per year. Wouldn't happen.

[MCT]

she probably got one of those toxic stated-income loans. That's irresponsible of both parties to even entertain the thought that a $30K salary could support that mortgage payment, nevermind actually entering INTO the deal. Madness.

[beefytwinkie]

From what I recall her interest rate was like 1.5% for the first seven years. And now the seven years are up and her interest went up to n% (I don't remember what exactly) and she can no longer make the payments.

As MCT said, it was irresponsible of both parties to even think that a $30,000 per year salary can even come close to maintaining payments on a $500,000 mortgage.

[MCT]

and see, the majority of those people were sold a dream. They were told that their interest rate would be at some ridiculously low rate of 1% for a set amount of years, and by the time that trial period was over, they could refinance to a fixed rate, pull some cash out of the property, and live happily ever after. Obviously, it was all an illusion.

[Beta Man]

Never been through one...... but purchased our home because of someone else's misfortune... and from what I hear..... since we paid less than the bank did for it..... the person who owned still has that debt too.....

So if she owed $275k on the place.... and the bank paid $240k for it, and we bought it for $200k, then she owes the difference of $75k on a house she no longer has......

Once you go into foreclosure, you're pretty much over the barrel..... filing bankruptcy in the process is a completely different scenario though.

[jkwest]

if anyone here is in trouble with their place, you really should look into help. Just bailing on a house hurts yourself and everyone else who owns one. I was in a predicament of owning two houses when the market collapsed. My renters backed out and I couldn't sell....finally, we were able to sell at a substantial loss..$40k less than value...

even federal assisted loans are better than foreclosure..they will reassess the value of your home and you may even qualify for a 1% APR...srsly. Look it up..all of these foreclosures are killing the housing market..don't do it!!!!!!!