Post by: archery288 on March 23, 2010, 11:47:04 AM
http://finance.yahoo.com/real-estate/article/108957/borrowers-miss-out-on-billions (http://finance.yahoo.com/real-estate/article/108957/borrowers-miss-out-on-billions)
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Post by: boneaddict on March 23, 2010, 12:15:28 PM
Post by: jjhunter on March 23, 2010, 12:35:58 PM
My conscience would not allow me to sell a product like this - everything about it is fundamentally wrong.
Post by: jjhunter on March 23, 2010, 12:42:40 PM
105% loan to value........... :chuckle: This stuff kills me. If you are stupid enough to get into this situation, then you are stupid enough to make it worse.
My conscience would not allow me to sell a product like this - everything about it is fundamentally wrong.
Let me clarify - not the refi part. If you want to refi for a better rate and it makes sense financially - by all means. It the raping your home of "equity" or adding refi charges to your principal when you are already upside/down.
Post by: archery288 on March 23, 2010, 12:52:36 PM
105% loan to value........... :chuckle: This stuff kills me. If you are stupid enough to get into this situation, then you are stupid enough to make it worse.
My conscience would not allow me to sell a product like this - everything about it is fundamentally wrong.
Our government is the one selling the product like this! It is allowing people that are burried in their loans and possibly on an arm or interest only loan, to get off of that and on to a fixed rate loan and actually start paying down the balance to help them recover. It may not be an ideal situation for those in that circumstance you are correct, however, by allowing someone an option to help them with their current situation and be able to recover it is a very good program! For most people who have purchased a house within the last 4 years they are in this boat. It's not the home owner's fault in most cases. 81% of the housing in Las Vegas the borrowers are under water because of the economy; some of which purchased years and years ago. One nice thing about the program is it allows people to escape mortgage insurance. (Not hazzard / home owners insurance, but mortgage insurnace for those on an FHA type loan etc.) No more payments adjusting and strapping someone on their monthly bills once it's fixed. It's an ideal program to help out indivuals who need it.
Post by: washingtonmuley on March 23, 2010, 01:16:24 PM
Our government is the one selling the product like this!
That there is the problem
Post by: jjhunter on March 23, 2010, 01:34:02 PM
105% loan to value........... :chuckle: This stuff kills me. If you are stupid enough to get into this situation, then you are stupid enough to make it worse.
My conscience would not allow me to sell a product like this - everything about it is fundamentally wrong.
Our government is the one selling the product like this! It is allowing people that are burried in their loans and possibly on an arm or interest only loan, to get off of that and on to a fixed rate loan and actually start paying down the balance to help them recover. It may not be an ideal situation for those in that circumstance you are correct, however, by allowing someone an option to help them with their current situation and be able to recover it is a very good program! For most people who have purchased a house within the last 4 years they are in this boat. It's not the home owner's fault in most cases. 81% of the housing in Las Vegas the borrowers are under water because of the economy; some of which purchased years and years ago. One nice thing about the program is it allows people to escape mortgage insurance. (Not hazzard / home owners insurance, but mortgage insurnace for those on an FHA type loan etc.) No more payments adjusting and strapping someone on their monthly bills once it's fixed. It's an ideal program to help out indivuals who need it.
I agree with most of above; however, I do not agree that it is not "someone's fault" that they are upside/down on their home loan. Call it what you will, but anyone could look at the "rabbit hutches" that were selling for $450K and say "where is it?" Where is the 450K? Bottom Line - Consumer's made poor buying decisions - they did not rely on the fundamentals.........the lending industry supported and profited greatly from this........I myself, chose not play. In fact, I am building my first home as we speak. Saved 50K, built a credit score of over 800, and built "in the dip". I'm not a genious, but knew well enough to recognize value - or lack there of.
Additionally, you will have a hard time selling to me the fact that lending someone money who is upside/down in their homes and had bad enough judgement to leap into the unkowns of an ARM or interest only, is anyone to put good faith and trust in with additional debt......let's face it, they are not going to hand over a check for the refinancing charges. This will be added to principle. Which leads to another lost lending fundamental - PRINCIPLE - we don't think in terms of ever paying anything off. Whether it's toys, vehicles, or homes. Long-term planning is a thing of the past......principle is a thing of the past. It's all about PAYMENT, baby.
Take off your Loan Officer/Mortgage Broker hat, put on your financial advisor/analyst hat. It doesn't make sense! For 80% of the people in this boat, we will just delay the inevitable. I double majored in Finance/Econ, not sure what you learned in your classes, but I don't remember government intervention strengthening the free market system........the market will correct itself - let it be, let them fall. We'll be stronger in the end.
Post by: archery288 on March 23, 2010, 01:42:18 PM
105% loan to value........... :chuckle: This stuff kills me. If you are stupid enough to get into this situation, then you are stupid enough to make it worse.
My conscience would not allow me to sell a product like this - everything about it is fundamentally wrong.
Our government is the one selling the product like this! It is allowing people that are burried in their loans and possibly on an arm or interest only loan, to get off of that and on to a fixed rate loan and actually start paying down the balance to help them recover. It may not be an ideal situation for those in that circumstance you are correct, however, by allowing someone an option to help them with their current situation and be able to recover it is a very good program! For most people who have purchased a house within the last 4 years they are in this boat. It's not the home owner's fault in most cases. 81% of the housing in Las Vegas the borrowers are under water because of the economy; some of which purchased years and years ago. One nice thing about the program is it allows people to escape mortgage insurance. (Not hazzard / home owners insurance, but mortgage insurnace for those on an FHA type loan etc.) No more payments adjusting and strapping someone on their monthly bills once it's fixed. It's an ideal program to help out indivuals who need it.
I agree with most of above; however, I do not agree that it is not "someone's fault" that they are upside/down on their home loan. Call it what you will, but anyone could look at the "rabbit hutches" that were selling for $450K and say "where is it?" Where is the 450K? Bottom Line - Consumer's made poor buying decisions - they did not rely on the fundamentals.........the lending industry supported and profited greatly from this........I myself, chose not play. In fact, I am building my first home as we speak. Saved 50K, built a credit score of over 800, and built "in the dip". I'm not a genious, but knew well enough to recognize value - or lack there of.
Additionally, you will have a hard time selling to me the fact that lending someone money who is upside/down in their homes and had bad enough judgement to leap into the unkowns of an ARM or interest only, is anyone to put good faith and trust in with additional debt......let's face it, they are not going to hand over a check for the refinancing charges. This will be added to principle. Which leads to another lost lending fundamental - PRINCIPLE - we don't think in terms of ever paying anything off. Whether it's toys, vehicles, or homes. Long-term planning is a thing of the past......principle is a thing of the past. It's all about PAYMENT, baby.
Take off your Loan Officer/Mortgage Broker hat, put on your financial advisor/analyst hat. It doesn't make sense! For 80% of the people in this boat, we will just delay the inevitable. I double majored in Finance/Econ, not sure what you learned in your classes, but I don't remember government intervention strengthening the free market system........the market will correct itself - let it be, let them fall. We'll be stronger in the end.
I can't say that I disagree with you - very well put.
Post by: boneaddict on March 23, 2010, 02:09:56 PM
Post by: archery288 on March 23, 2010, 02:17:02 PM
Thats why I find it interesting that I can't get a loan. I have a credit score of over 800, have equity in my home, and have great debt to credit and a pretty good job I think...hell I even have my own health insurance, and don't qualify for an EOC, but I can't get a re-finance because my home is a 100,000 manufactured home on a foundation. LOL I must be a loser. :chuckle:
Nice Doug! :chuckle:
Post by: bow4elk on March 23, 2010, 02:57:17 PM
Precisely stated. Governement stimulus doesn't allow the free enterprise system to "live" - it's a dynamic system of winners and losers, weeded and sorted by free market capitalism. And guess what, it works!
If you look at technology, for example, where did HP, Dell, Intel, Apple, and many others get their start? From basements, apartments, and garages! They were born from private citizens with a passion to invent and create! If government would make it EASY for this sort of behavior, we'd see a flurry of innovations, start-ups, and a rebuilding of America from the ground up.
Ok, sorry Jon. My soapbox is going back under the desk...I'm going go look for some blacktail sheds now.
Post by: quadrafire on March 23, 2010, 03:41:00 PM
I don't think it is you personally. Anyone that I have talked to w/ Modulars or mobiles are in the same boat. I am not sure why have never checked, but it sucks!