some people are just stupid or REALLY bad with money

[episodic]

Where do these people get these loans. I couldn't even get a loan for a 40,000 dollar house.

 

[Gibson486]

Originally posted by: episodic
Where do these people get these loans. I couldn't even get a loan for a 40,000 dollar house.

$40,000 house? maybe they just did not belive the house existed. If it did, maybe they were doing you a favor?

 

[BlahBlahYouToo]

Originally posted by: NL5
It wasn't the house that got her, it was the adjustable rate mortgage combined with the housing slump. She was not the only wage earner living in the house, as there would be no way to afford a 4100 payment on 25k a year. The fact hat the real estate agent assured her she could refinance is a bunch of crap, and in my state is illegal. She paid for professional advice, and was flat out lied to. There in lies the real problem. Professional ethics in the real estate and banking industries went in the crapper in the last 10 years.

no, it was her own stupidity that got her.
you shouldn't purchase a home with the assumption of collecting rent as guaranteed income. unless you have a good amount of savings, your are screwed if your tenant doesn't pay or moves out.

cramming 3 families into one house is ghetto, but that's a whole other thread... hempstead/valley stream is pretty ghetto anyway.

i'll agree that the agent was a crook and the lending institution was also negligent and got what they deserved.

 

[dud]

You can dump on the buyer all day long but (I feel) the real culprits are any/all people who qualified this person for the loan. They know the ins/outs of the mortgage business and what she was up against. the got their commisions/fees and now they're out of the picture.

Yes, buyer beware ... but the people who got her into this loan should be drawn and quartered.

 

[krunchykrome]

lol, thats actually pretty funny

 

[BlahBlahYouToo]

Originally posted by: Regs

Originally posted by: NL5
It wasn't the house that got her, it was the adjustable rate mortgage combined with the housing slump. She was not the only wage earner living in the house, as there would be no way to afford a 4100 payment on 25k a year. The fact hat the real estate agent assured her she could refinance is a bunch of crap, and in my state is illegal. She paid for professional advice, and was flat out lied to. There in lies the real problem. Professional ethics in the real estate and banking industries went in the crapper in the last 10 years.

Thank you sir for your intelligent and reasonable post. I think people who reply without the words "stupid, idiot, or retard" should be rewarded ellite status.

another requirement should be the ability to properly spell elite.

 

[Engineer]

Originally posted by: alchemize

Originally posted by: Engineer
On a side note, take a look at your 401k (or other accounts with mutual funds in it) and see what a nice result from the mortgage mess (above) has done to US ALL (not to mention tax money for bailouts later).

Fantastic buying opportunity?

LOL. The market is back to 2001 levels (or below). I guess we've had a decade long buying opportunity. At some point, people just give up on the market and pull their money alltogether (as CNBC reported individual investors were indeed doing more and more of).

 

[Engineer]

Originally posted by: paulxcook

Originally posted by: Engineer
On a side note, take a look at your 401k (or other accounts with mutual funds in it) and see what a nice result from the mortgage mess (above) has done to US ALL (not to mention tax money for bailouts later).

Sarcasm? My 401k sucks recently.

Sorry, when I said nice, I meant "pitiful" as in "nice fucking". Sorry for the misunderstanding. My and my wife's 5 year old Roths (about 10 funds total across broad range and contributed to each month) are both underwater now because of mess that the mortgage/banking bs has caused.

 

[alchemize]

Originally posted by: Engineer

Originally posted by: alchemize

Originally posted by: Engineer
On a side note, take a look at your 401k (or other accounts with mutual funds in it) and see what a nice result from the mortgage mess (above) has done to US ALL (not to mention tax money for bailouts later).

Fantastic buying opportunity?

LOL. The market is back to 2001 levels (or below). I guess we've had a decade long buying opportunity. At some point, people just give up on the market and pull their money alltogether (as CNBC reported individual investors were indeed doing more and more of).

That's Dave McOwen investing. Buy high, sell low, complain about the man stealing from you...

If you dollar cost average, then your timeframe is 30+ years, what's a decade matter? Chasing bubbles doesn't work! (.com/REITS and mortgage derivatives/Oil stocks/next big thing*)

Of course, I think international diversification and higher liquid holdings are the appropriate moves over the last 2-3 years, maybe even moreso now until the current issues finish.

 

[Pabster]

Originally posted by: Engineer
Wow...just wow. Not only are people stupid, it just goes to show how stupid the lending instituations were in giving out loans. No wonder EVERYONE (including the banks) are going down....and the rest of us that are responsible enough to pay our debts and not get over our heads, take it up the ass by giving a taxpayer bailout.

I blame the lenders on this one. Although I'm a big believer in personal responsibility. I find it almost laughable they would allow a $500,000 mortgage with no documentation and nothing more than a signature on a dotted line. In this case, the lender should eat the loss.

 

[Aberforth]

Let me know if you want to buy my Cabin House for 600 in SC, I never go there much.

 

[rh71]

good credit score qualified her for an adjustable-rate loan that didn't require documentation of her income.

You don't think that's a problem too? Certainly more than 50% of the problem. Banks that trusting? Don't tell me that's still the case...

 

[JS80]

I bet the paperwork was fudged. I blame the salespeople involved (RE agent, mortgage salesman).

 

[NL5]

Originally posted by: BlahBlahYouToo


no, it was her own stupidity that got her.
you shouldn't purchase a home with the assumption of collecting rent as guaranteed income. unless you have a good amount of savings, your are screwed if your tenant doesn't pay or moves out.

i'll agree that the agent was a crook and the lending institution was also negligent and got what they deserved.

I agree she was probably over her head, but her investing strategy was still sound. What got her was the lie that she would be able to refinance. "Don't worry about the 'adjustable' part, you can just refi in a couple years". She was making the payments just fine until the rates jumped, and she couldn't refi due to the housing slump. Her decision was bases on a professional's advice.

I own rental properties, have for going on 15 years. I could never make the mortgages on my salary. Was that a stupid decision too? I'm laughing all the way to the bank. I have complete strangers paying my kids future college tuition.

I guess I am just as big of a moran.

 

[V00DOO]

Originally posted by: edro
$4400 mortgage payment?
That's her entire yearly wage for just 6 months!

What a retard.

Now she is retreating back to Mexico.
At least she wasn't an illegal.

And this doesn't include Property Tax, Insurance, and HOA (If applicable). But hey, Restate always goes up RIGHT.

 

[Engineer]

Originally posted by: Pabster

Originally posted by: Engineer
Wow...just wow. Not only are people stupid, it just goes to show how stupid the lending instituations were in giving out loans. No wonder EVERYONE (including the banks) are going down....and the rest of us that are responsible enough to pay our debts and not get over our heads, take it up the ass by giving a taxpayer bailout.

I blame the lenders on this one. Although I'm a big believer in personal responsibility. I find it almost laughable they would allow a $500,000 mortgage with no documentation and nothing more than a signature on a dotted line. In this case, the lender should eat the loss.

The lender won't eat it and neither will the borrower. You and I, John Q. Taxpayer, will eat a big chunk of this one.

 

[yllus]

I don't mean to be cruel, but I laughed. The margin for error is so incredibly low that there is no way in hell that she, the bank nor her agent should have agreed to the deal.

 

[BlahBlahYouToo]

Originally posted by: Pabster

Originally posted by: Engineer
Wow...just wow. Not only are people stupid, it just goes to show how stupid the lending instituations were in giving out loans. No wonder EVERYONE (including the banks) are going down....and the rest of us that are responsible enough to pay our debts and not get over our heads, take it up the ass by giving a taxpayer bailout.

I blame the lenders on this one. Although I'm a big believer in personal responsibility. I find it almost laughable they would allow a $500,000 mortgage with no documentation and nothing more than a signature on a dotted line. In this case, the lender should eat the loss.

i don't see how you people can blame the lenders?
yes, they were greedy and were only looking to close the deal. but they didn't drag her out of her rental apartment and ask her if she wanted a $500k house.
she sought them out and probably said, i want to live in a nice neighborhood in a big house large enough for my family, and 2 of my daughter's families.

who in their right minds at that income level would even think about purchasing a house that expensive?

 

[Engineer]

Originally posted by: alchemize

Originally posted by: Engineer

Originally posted by: alchemize

Originally posted by: Engineer
On a side note, take a look at your 401k (or other accounts with mutual funds in it) and see what a nice result from the mortgage mess (above) has done to US ALL (not to mention tax money for bailouts later).

Fantastic buying opportunity?

LOL. The market is back to 2001 levels (or below). I guess we've had a decade long buying opportunity. At some point, people just give up on the market and pull their money alltogether (as CNBC reported individual investors were indeed doing more and more of).

That's Dave McOwen investing. Buy high, sell low, complain about the man stealing from you...

If you dollar cost average, then your timeframe is 30+ years, what's a decade matter? Chasing bubbles doesn't work! (.com/REITS and mortgage derivatives/Oil stocks/next big thing*)

Of course, I think international diversification and higher liquid holdings are the appropriate moves over the last 2-3 years, maybe even moreso now until the current issues finish.

I haven't been buying high and selling low. I dollar cost average across a broad range of funds. Sure, 30 years may fix things but it would be a pisser to be on the end of the 30 years this last decade (although it would have been advisable to lower your stock positions anway).

We'll see what the market does over time....past history is no guarantee of future results...but that's another story and destined for another thread....my apologies to the OP for sidestepping into stocks on the mortgage mess.

 

[Engineer]

Originally posted by: NL5


I guess I am just as big of a moran.

LOL.

 

[NL5]

Let's play a little game.

Suppose Johnny goes to the doctor. Doctor says, wow Johnny, looks like you have testicular cancer. I think you should have your balls cut off. (I don't know the technical term - lol). So, Johnny goes and schedules surgery, and they preform it perfectly. Now, they do a post op biopsy, and it turns out the doctor was wrong - no cancer. Now, is Johnny an idiot for following the advice of a medical professional? Or, is the doctor more at fault? Granted, Johnny should bare some responsibility, he could have gotten a second opinion, but who bears the brunt of the responsibility?

 

[Engineer]

Originally posted by: BlahBlahYouToo

Originally posted by: Pabster

Originally posted by: Engineer
Wow...just wow. Not only are people stupid, it just goes to show how stupid the lending instituations were in giving out loans. No wonder EVERYONE (including the banks) are going down....and the rest of us that are responsible enough to pay our debts and not get over our heads, take it up the ass by giving a taxpayer bailout.

I blame the lenders on this one. Although I'm a big believer in personal responsibility. I find it almost laughable they would allow a $500,000 mortgage with no documentation and nothing more than a signature on a dotted line. In this case, the lender should eat the loss.

i don't see how you people can blame the lenders?
yes, they were greedy and were only looking to close the deal. but they didn't drag her out of her rental apartment and ask her if she wanted a $500k house.
she sought them out and probably said, i want to live in a nice neighborhood in a big house large enough for my family, and 2 of my daughter's families.

who in their right minds at that income level would even think about purchasing a house that expensive?

We're blaming both, not just the lenders. You even called greed into this one. It's the lenders responsibility, IMO, to make sure that people have the ability to repay a loan and I don't mean just barely either. Responsibility should be no BOTH sides and in this case, neither side showed responsibility....

 

[Engineer]

Originally posted by: NL5
Let's play a little game.

Suppose Johnny goes to the doctor. Doctor says, wow Johnny, looks like you have testicular cancer. I think you should have your balls cut off. (I don't know the technical term - lol). So, Johnny goes and schedules surgery, and they preform it perfectly. Now, they do a post op biopsy, and it turns out the doctor was wrong - no cancer. Now, is Johnny an idiot for following the advice of a medical professional? Or, is the doctor more at fault? Granted, Johnny should bare some responsibility, he could have gotten a second opinion, but who bears the brunt of the responsibility?

Johnny sues doctor and he and his lawyer retire to private island in the Pacific. And in the end, you and I, John Q. Billpayer pay higher healthcare costs because of it! :Q

/story

 

[BlahBlahYouToo]

Originally posted by: NL5

Originally posted by: BlahBlahYouToo


no, it was her own stupidity that got her.
you shouldn't purchase a home with the assumption of collecting rent as guaranteed income. unless you have a good amount of savings, your are screwed if your tenant doesn't pay or moves out.

i'll agree that the agent was a crook and the lending institution was also negligent and got what they deserved.

I agree she was probably over her head, but her investing strategy was still sound. What got her was the lie that she would be able to refinance. "Don't worry about the 'adjustable' part, you can just refi in a couple years". She was making the payments just fine until the rates jumped, and she couldn't refi due to the housing slump. Her decision was bases on a professional's advice.

I own rental properties, have for going on 15 years. I could never make the mortgages on my salary. Was that a stupid decision too? I'm laughing all the way to the bank. I have complete strangers paying my kids future college tuition.

I guess I am just as big of a moran.

then she was an idiot for trusting that person without doing additional research on her own, and having an understanding or overview of how mortgages and the market works.
even without a solid understanding, she should've known that she was struggling to make payments as it is now, and if they go up, she'd be doomed.

i'm not even going to entertain your second question.

 

[krunchykrome]

Originally posted by: NL5
Let's play a little game.

Suppose Johnny goes to the doctor. Doctor says, wow Johnny, looks like you have testicular cancer. I think you should have your balls cut off. (I don't know the technical term - lol). So, Johnny goes and schedules surgery, and they preform it perfectly. Now, they do a post op biopsy, and it turns out the doctor was wrong - no cancer. Now, is Johnny an idiot for following the advice of a medical professional? Or, is the doctor more at fault? Granted, Johnny should bare some responsibility, he could have gotten a second opinion, but who bears the brunt of the responsibility?

the difference here is that the doctor giving medical advice is educated in his line of work

the people running through the mortgage app with the lady have nothing but a few months of training and a high school diploma

Another point to mention is that the doctor isn't going to try to "sell" you a surgury to boost sales. The mortgage rep will. They provide to different services, and the mortgage rep has an aggressive incentive to get you to sign that paper.