My boss wants to foreclose on her house.

[Epic Fail]

Originally posted by: rbV5

She has $3,000 in equity

She is currently upside down on the house

Does not compute?

$18000/yr in interest alone? sounds like "doomed from the start" loan. Is your Boss responsible for financials at work....?

Most houses in any big cities will land you an interest alone like that, time value of money is not free.

And you can't foreclose your own house unless you work for a bank and is responsible for your own account. :roll:

 

[PowerEngineer]

It seems to me that being "upside down" in the condo has little to do with the payments "bleeding her dry". As mugs says, it sounds like she dove into a mortgage that she couldn't afford right from the start (since 80% is fixed). Also sounds like she took out a second mortgage? Too bad her parents weren't giving her advice earlier...

Foreclosure is a recourse that the bank can take when payments aren't made -- not something the borrower can force. While the deed to the condo is put up as collateral for the mortgage, this doesn't mean that the bank can't go after other assets and/or future wages to make up the "upside down" difference.

She should try to refinace if she can. And maybe cut back on her spending in other areas so that she's living within her means.

 

[AlienCraft]

Originally posted by: waggy

Originally posted by: CPA
This is a direct result of the idiotic bailout plan.

My primary bank (I have a primary and secondary) is slashing the interest rate in half for anyone who has defaulted on their loan in order to keep those folks in the house. Now, what do us folks who played the game fairly and are paying current get? Nada, zero, bunk! A 50% cut in my interest rate would be about $700 extra a month in my pocket. Even if I default purposely, another stipulation is that the new loan put you at 36% debt to income ratio. I'm already at about 28%, so I still wouldn't get help if I defaulted.

thats what pisses me of. we got a place that we could afford. saved the money for the down payments, make sacrifices to be able to pay the damn mortgage.

what do i get? nothing. but idiots that baught to much of a house are getting rate cuts and reduction on the principle.

not to mention with the "bailout" they are saying the odds on getting a good deal on a house is gone. banks cna afford to keep the house now.

Anyone want to say the Republicans DON't redistribute wealth in their own special way? :disgust:

 

[AlienCraft]

Originally posted by: PowerEngineer

It seems to me that being "upside down" in the condo has little to do with the payments "bleeding her dry". As mugs says, it sounds like she dove into a mortgage that she couldn't afford right from the start (since 80% is fixed). Also sounds like she took out a second mortgage? Too bad her parents weren't giving her advice earlier...

Foreclosure is a recourse that the bank can take when payments aren't made -- not something the borrower can force. While the deed to the condo is put up as collateral for the mortgage, this doesn't mean that the bank can't go after other assets and/or future wages to make up the "upside down" difference.

She should try to refinace if she can. And maybe cut back on her spending in other areas so that she's living within her means.

In my research prior to buying my condo, I found most people fail to properly budget that Condo / HOA association dues and their increases into their budget. That's what forces a lot of sales, failure to keep current on dues.
Could be her problem as well, cause that cuts into your "fun money", big time.

 

[dawp]

I walked away from a house last year. that purchase was the biggest mistake of my life. it had been a flipped house and they did just enough to sell it. bad plumbing, no insulation, bad wiring and it would have cost more than i was willing to put into it. I let a former GF talk me into it and then a couple of years later she walked out on me. If the home inspector had did his job like he was suppose to, I wouldn't have been suckered into that house. I don't feel sorry at all for the housing industry that more interested in selling houses and not promoting quality.

I say if it help her get a better deal, all the more power to her.

 

[HardcoreRobot]

if she forecloses she should never be allowed to own property again in her lifetime

 

[rbV5]

Originally posted by: mugs

Originally posted by: rbV5

She has $3,000 in equity

She is currently upside down on the house

Does not compute?

$18000/yr in interest alone? sounds like "doomed from the start" loan. Is your Boss responsible for financials at work....?

He means she paid off $3k of the principle... which of course is not equity, but whatever.

Paying $3k toward the principle vs $36k in interest does seem pretty bad. I think you'd have to have a high interest rate or a negative amortization loan to get those numbers. I plugged some numbers into an amortization calculator, and got about $3k/$36k for the first two years of a $200k loan @ 9%.

Edit: Maybe she meant she made $36k in mortgage payments, which includes escrow for taxes and insurance.

Hard to say without all the numbers? However, I remember when it was somewhat awkward to discuss personal finances with friends let alone your employees....strange times these are.

 

[Ninjja]

Originally posted by: George P Burdell
People like this are part of the reason we're in this mess.

yes. and it fucking makes it so that those genuinely don't get the help they do need (not to mention the general hate the rest of the taxpayers feel towards these people)

 

[Fenixgoon]

Originally posted by: AlienCraft

Originally posted by: waggy

Originally posted by: CPA
This is a direct result of the idiotic bailout plan.

My primary bank (I have a primary and secondary) is slashing the interest rate in half for anyone who has defaulted on their loan in order to keep those folks in the house. Now, what do us folks who played the game fairly and are paying current get? Nada, zero, bunk! A 50% cut in my interest rate would be about $700 extra a month in my pocket. Even if I default purposely, another stipulation is that the new loan put you at 36% debt to income ratio. I'm already at about 28%, so I still wouldn't get help if I defaulted.

thats what pisses me of. we got a place that we could afford. saved the money for the down payments, make sacrifices to be able to pay the damn mortgage.

what do i get? nothing. but idiots that baught to much of a house are getting rate cuts and reduction on the principle.

not to mention with the "bailout" they are saying the odds on getting a good deal on a house is gone. banks cna afford to keep the house now.

Anyone want to say the Republicans DON't redistribute wealth in their own special way? :disgust:

it helps keep americans in houses, just like the democrats wanted, right? :disgust:

 

[KlokWyze]

Originally posted by: George P Burdell
People like this are part of the reason we're in this mess.

Or the bank that made the loan? No actually it's our fault since we are paying for it.

 

[cpals]

Originally posted by: waggy

Originally posted by: CPA
This is a direct result of the idiotic bailout plan.

My primary bank (I have a primary and secondary) is slashing the interest rate in half for anyone who has defaulted on their loan in order to keep those folks in the house. Now, what do us folks who played the game fairly and are paying current get? Nada, zero, bunk! A 50% cut in my interest rate would be about $700 extra a month in my pocket. Even if I default purposely, another stipulation is that the new loan put you at 36% debt to income ratio. I'm already at about 28%, so I still wouldn't get help if I defaulted.

thats what pisses me of. we got a place that we could afford. saved the money for the down payments, make sacrifices to be able to pay the damn mortgage.

what do i get? nothing. but idiots that baught to much of a house are getting rate cuts and reduction on the principle.

not to mention with the "bailout" they are saying the odds on getting a good deal on a house is gone. banks cna afford to keep the house now.

That's exactly how I feel... I bought a house I could afford last year for $165k that is now worth $130k. We got a home that was a lot smaller than we would have liked, but at least we can make the payments on it. Houses like mine are now selling for anywhere from $80k to $100k easily in my area now.

A friend recently foreclosed on his new house and bought a different house around here that is similar in size to mine, but he has payments that are half of what I pay. People that are not being responsible are benefiting while I try and make my payments, but am still upside-down on my house.

Are lenders actually adjusting the balance of loans for people who pay on time? I have Countrywide so I doubt I could get any help.

 

[AlienCraft]

Originally posted by: Fenixgoon
[
it helps keep Americans in houses, just like the democrats wanted, right? :disgust:

Fixed it for you.
Are you saying Republicans don't want American's to buy and own property? Gee, how Pre- Magna Carta can you get?
What?! They only sell to each other? I knew it was a secret, exclusive club despite the propaganda.
That might seem to be an elitist, classist position, which we all know is antithetical to the Republican Platform of Spreading DEmocracy and equal opportunity for all (that can pay to play).

 

[mugs]

Originally posted by: AlienCraft

Originally posted by: Fenixgoon
[
it helps keep Americans in houses, just like the democrats wanted, right? :disgust:

Fixed it for you.
Are you saying Republicans don't want American's to buy and own property? Gee, how Pre- Magna Carta can you get?
What?! They only sell to each other? I knew it was a secret, exclusive club despite the propaganda.
That might seem to be an elitist, classist position, which we all know is antithetical to the Republican Platform of Spreading DEmocracy and equal opportunity for all (that can pay to play).

If you want to have a political discussion, go to P&N

 

[AlienCraft]

Originally posted by: mugs

Originally posted by: AlienCraft

Originally posted by: Fenixgoon
[
it helps keep Americans in houses, just like the democrats wanted, right? :disgust:

Fixed it for you.
Are you saying Republicans don't want American's to buy and own property? Gee, how Pre- Magna Carta can you get?
What?! They only sell to each other? I knew it was a secret, exclusive club despite the propaganda.
That might seem to be an elitist, classist position, which we all know is antithetical to the Republican Platform of Spreading DEmocracy and equal opportunity for all (that can pay to play).

If you want to have a political discussion, go to P&N

I'm simply answering comments in the thread I'm involved in.
It's location is not of my doing.
If it's content isn't to your liking, either change the direction of topic you're reading, or log off entirely. But interjecting like this contributes little.

 

[RU482]

Originally posted by: Blieb
Read this ... then stab her in the face. (really, read it)

http://forums.anandtech.com/me...id=38&threadid=2232501

I do get it. the post keeps saying people are getting out of the mortgages with no recourse. Doesn't this fuck their credit, and in this market make is unlikely that they will get another mortgage?

 

[JimRaynor]

Originally posted by: compman25

Originally posted by: JimRaynor
She bought a condo 2 years ago.

Her income has increased in that time and she has made all her payments on time.

She has two mortgages. One is like 80% of the loan (fixed) and the rest is variable.

She has $3,000 in equity and has made $36,000 in interest payments (what she told me).

She is currently upside down on the house (she owes more than the house is worth).

She called and threatened foreclosure to try and bait them into reducing her payments or refinancing but they said they wouldn't do anything until she stops paying (big surprise right?). Her parents told her she should sell the home cause it's bleeding her dry and to take the credit hit.

Plan of action? What should she do?

Why are you responsible for running her life?

She asked me what she should do. I told her that she should do what she agreed to do when she signed the contract. Asking someone for advice is running their life?

 

[JimRaynor]

[/quote]Hard to say without all the numbers? However, I remember when it was somewhat awkward to discuss personal finances with friends let alone your employees....strange times these are.[/quote]

Well we have been working together for years and it's not really an office type environment.

I think she paid around 180 and now it's worth like.... 140ish.

 

[senseamp]

I love how people expect to have the terms of their mortgage adjusted and still retain their good credit rating.
PSA: If you need a bailout, you are not a good credit risk. Good credit risks live up to the terms of their financial obligations.

 

[AlienCraft]

Originally posted by: mugs


"Corporate America" can't just walk away from debts that they can afford to pay. Individuals often can thanks to states requiring non-recourse first mortgages. Meaning even if she had $1 million in the bank, they couldn't touch it. Of course, that's a good reason to require 20% down, to provide a big disincentive to walking away (and also to provide a buffer before the owner is upside down). But lenders got greedy, homeowners got stupid, and here we are.

Yes they can and they do and have and will continue to do so. Their human officers are protected from prosecution by the Corporate Veil, and an army of lawyers that no single human could ever need. Coupled with a roomful of bonus driven CPA's and voila, a way will be found to make it happen, no matter the legality. If time allows, they simply lobby to have the law changed to favor them. Something no human posses the resources to do, save the top 1% of the population. Corporations have no soul, no "feelings" and exist only to provide profits for the few at the expense of the rest of us.
The fact that any product is produced or service is actually performed is secondary to the main goal of acquiring wealth by any means necessary.
This is the Modern American Corporate Model.

They can do anything they want and simply drag it out in court, if they want to badly enough.
Never forget that it was Corporate America that got the bankruptcy laws changed so that MORE responsibility is placed on HUMANS than CORPORATIONS and more leeway and forgiveness is extended to Corporations than to humans in similar circumstances.

 

[AlienCraft]

Originally posted by: senseamp
I love how people expect to have the terms of their mortgage adjusted and still retain their good credit rating.
PSA: If you need a bailout, you are not a good credit risk. Good credit risks live up to the terms of their financial obligations.

Tell that to the Corporate Scum that paid for phoney credit ratings on the toxic crap they packaged as gold. That appears to have been outright Fraud, yet they go to the head of the line for the payouts for the Corporate Socialists.
Yeah, that fair, just and right. :disgust:

 

[JS80]

AlienCraft = posterchild for :roll:

 

[waffleironhead]

Tell her to keep paying on the property. The current value is subjective, while her debt is fixed. Best case scenario is that the market will rebound in a few years and her property will be worth what she paid for it again.

 

[Throckmorton]

Why do people care so much about what the value is and whether they're upside down? Why does it matter if they aren't going to sell? Would they likewise be in hog heaven if they were rightside up due to appreciation??

 

[HardcoreRobot]

Originally posted by: Throckmorton
Why do people care so much about what the value is and whether they're upside down? Why does it matter if they aren't going to sell? Would they likewise be in hog heaven if they were rightside up due to appreciation??

no, they would immediately take another loan out on the appreciation

true story

 

[zzuupp]

Originally posted by: Throckmorton
Why do people care so much about what the value is and whether they're upside down? Why does it matter if they aren't going to sell? Would they likewise be in hog heaven if they were rightside up due to appreciation??

Excellent point. The OP should ask the boss: since she's been upside down on her car from the second she drove it, is she planning on walking away from that too?