What exactly is so complicated about purchasing and financing a house? Mortgage brokers and real estate agents are salespeople. You shouldn't need an expert for something as simple as financing a four bedroom home.
Originally posted by: jonks
Originally posted by: 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....
Agreed, but ask yourself which party is in the better position and has more experience in helping to avoid the creation of a mortgage that in all likelihood would be impossible for the debtor to repay? A BANK and a REAL ESTATE BROKER who toil day in and day out with issuing mortgages, overseeing real estate sales, and making determinations as to whether a particular buyer has the financial means and stability for the purchase, OR, an immigrant working in a factory making $25,000 a year.
Yes, both are to blame, but there is a term called "predatory lending" and this one fits the bill.
Originally posted by: Wheezer
Listen all you bleeding hearts, it does not matter if we are talking about a bank, a realtor, a doctor, a nurse, a teacher or any other professional...NO ONE...I repeat...NO ONE will have your best interest more at heart than you....not even mommy.
If you blindly follow the advice of ANYONE for ANYTHING and take their word as gospel without doing some investigating on your own so you don't get burned....fuck you...you get everything coming to you.
Is it that hard to write down some goddamned questions and seek second opinions?
When people get off their asses and quit putting their well being in the hands of others who don't give 2 shits on if you live or die, succeed or fail, this country will be a lot better off.
Originally posted by: Wheezer
Originally posted by: NL5
Originally posted by: Wheezer
a few key punches in a calculator would tell you that ona 25k salary you CANNOT afford a 500k home.
No shit.
Did you read the article? Most people have more income than just a salary. She had substantially more. You must have missed that part.
Also, everybody saying having renters is no guarantee of income - do you think any source of income is guaranteed? If you do, there is a very good chance that sometime in your life you will get one hellava eyeopener. My rental income has been substantially more reliable than my income from actually working. (thank god for that)
I can't imagine a world like you are wishing for. You talk about responsibility, in your dream world nobody has ANY. That would be swell - personally, I'm all for it - not very noble, but in a no rule contest for survival of the fittest, screw everybody in your path kinda world, I'd be at the top.
nice try, but lets go back over this.
I did read the article hence my statments about everyone else who was involved.
SHE only made 25,000 SHE was counting on other people in her family to pick up the slack....REMEMBER:
she makes $25,000 a year at the factory
She and one daughter split the two bedrooms upstairs, while her older daughter lived on the ground floor with her husband and two young children. With her daughters each paying $1,500, she could cover the remaining $1,100.
so she was not making any more money, she was counting on other people that could be taken out of the picture at any given time for any reason, or through the loss of a job...re-read my post....I was pretty clear on this.
and to your point....NOTHING is guaranteed in this life which is why you do not live beyond your means....those that do are morons and deserve everything they get.
If you are not going to learn from the mistakes others have made then the only way is for you to learn it by yourself and suffer.
It's like seeing your buddy touch the hot stove and burn his hand....most people are intelligent enough to not touch the hot stove, but then you have those idiots that need to see for themselves and then cry bitch when they get burned...boo fucking hoo.
The world I live in is simply this...be responsible for your own actions, you break it....fix it, you mess it up, clean it up, don't expect someone to walk behind you for the rest of your life cleaning up your fuckups.
With television, the news and the internet we all have the same opportunity to learn what is going on around us and how to avoid the pitfalls.....if you chose to ignore the signs and end up screwed because of it....well, too bad....maybe next time you'll pay more attention.
I agree that she should have done more research, but all that really matters to me is that the lenders took advantage of this woman's ignorance. The banks should have to reap what they've sown, but unfortunately tax payers are probably just going to bail them out. Apparently corporate responsibility is a foreign concept to these people.Originally posted by: Wheezer
Originally posted by: Xavier434
Originally posted by: Wheezer
Listen all you bleeding hearts, it does not matter if we are talking about a bank, a realtor, a doctor, a nurse, a teacher or any other professional...NO ONE...I repeat...NO ONE will have your best interest more at heart than you....not even mommy.
If you blindly follow the advice of ANYONE for ANYTHING and take their word as gospel without doing some investigating on your own so you don't get burned....fuck you...you get everything coming to you.
Is it that hard to write down some goddamned questions and seek second opinions?
When people get off their asses and quit putting their well being in the hands of others who don't give 2 shits on if you live or die, succeed or fail, this country will be a lot better off.
It's not that black and white. You do not need to follow a professional's advice blindly in order for something really bad to happen as a result of missing just one important detail or to be misinformed during your own research. This is why professionals exist in the first place. This is why we pay them. If doing it ourselves were easy and the margin of error were small then these people wouldn't have a job.
no, you are making it far more complicated than it needs to be.
a few key punches in a calculator would tell you that ona 25k salary you CANNOT afford a 500k home.
What she did was quite simple...she allowed her wants to override her needs.
How many of you have turned down a car salesman? He tried to sweet talk you into a new car that you KNEW you could not afford and you walked away?
How is this any different?
Its not, it is as simple as sitting down with a calculator, a pencil and some paper BEFORE you go out searching for a home and you limit what you will purchase.
that DOES NOT require a CPA.
She got all frothy mouthed when someone else told her what she could afford, she justified it in her own mind, forget that she could have lost anyone of those people in an accident, forget anyone of those people could have lost their job, forget that anyone of those people could have gotten pissed off at her and walked out at any given time and left her high and dry.
I feel absolutely no pity for anyone that finds themselves in this kind of circumstance.
she fucked herself, plain and simple, and now she is fucking the rest of us just like all the other slobs that did the same thing.
I hope they rot in hell.
Originally posted by: NL5
Originally posted by: Wheezer
Originally posted by: NL5
Originally posted by: Wheezer
a few key punches in a calculator would tell you that ona 25k salary you CANNOT afford a 500k home.
No shit.
Did you read the article? Most people have more income than just a salary. She had substantially more. You must have missed that part.
Also, everybody saying having renters is no guarantee of income - do you think any source of income is guaranteed? If you do, there is a very good chance that sometime in your life you will get one hellava eyeopener. My rental income has been substantially more reliable than my income from actually working. (thank god for that)
I can't imagine a world like you are wishing for. You talk about responsibility, in your dream world nobody has ANY. That would be swell - personally, I'm all for it - not very noble, but in a no rule contest for survival of the fittest, screw everybody in your path kinda world, I'd be at the top.
nice try, but lets go back over this.
I did read the article hence my statments about everyone else who was involved.
SHE only made 25,000 SHE was counting on other people in her family to pick up the slack....REMEMBER:
she makes $25,000 a year at the factory
She and one daughter split the two bedrooms upstairs, while her older daughter lived on the ground floor with her husband and two young children. With her daughters each paying $1,500, she could cover the remaining $1,100.
so she was not making any more money, she was counting on other people that could be taken out of the picture at any given time for any reason, or through the loss of a job...re-read my post....I was pretty clear on this.
and to your point....NOTHING is guaranteed in this life which is why you do not live beyond your means....those that do are morons and deserve everything they get.
If you are not going to learn from the mistakes others have made then the only way is for you to learn it by yourself and suffer.
It's like seeing your buddy touch the hot stove and burn his hand....most people are intelligent enough to not touch the hot stove, but then you have those idiots that need to see for themselves and then cry bitch when they get burned...boo fucking hoo.
The world I live in is simply this...be responsible for your own actions, you break it....fix it, you mess it up, clean it up, don't expect someone to walk behind you for the rest of your life cleaning up your fuckups.
With television, the news and the internet we all have the same opportunity to learn what is going on around us and how to avoid the pitfalls.....if you chose to ignore the signs and end up screwed because of it....well, too bad....maybe next time you'll pay more attention.
Wow. I got a gig to head to, or I'd answer this a bit more in depth.
She clearly makes more than 25k. I know that is a hard concept to grasp, but she is essentially renting the rooms out. Not essentially, she IS. Otherwise, you have to include the other peoples wages in the mortgage calculations and loan. It's that simple, and smart business. You would be shocked at how much money I get for doing all but nothing. She was making more in rent than she was from her J O B.
Yes, she got herself in over her head, but at the advise of a professional. One who should be held accountable. Oh wait, you don't believe in responsibility........
That type of loan should never have been made.
Originally posted by: alkemyst
actually they were very smart as we are helping to bail them out and give them help.
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?
Originally posted by: EagleKeeper
The fact that she was renting to others, should have ensured that with proper tax preparation, her tax liability would be Zero.
Claim the rent as income against the expense of the house, all costs for living are divided by 3 and then she gets the depreciation to offset her own income tax liability.
At her stated income, the only tax deductions from her check should be the SS 7.5% Less than $40 / paycheck.
Assuming no decrease in principle then she has a 489K note - the article indicates that the debt stood at 503K.
The debt increased 15K. that is $3K/month.
It sounds like she stopped making some payments when the increase happened.
$300/month for 6 months + interest on the $300 and late fees does not add up to $15K.
Me smells a rat.
Originally posted by: edro
Now she is retreating back to Mexico.
At least she wasn't an illegal.
Originally posted by: 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.
Originally posted by: sswingle
So the family had 3 incomes (husband didn't work apparently?) and they couldn't scrape together another $300 a month?
Originally posted by: RagingBITCH
How she got preapproved, and then approved for a loan is beyond me for that much.
Originally posted by: Wheezer
Listen all you bleeding hearts, it does not matter if we are talking about a bank, a realtor, a doctor, a nurse, a teacher or any other professional...NO ONE...I repeat...NO ONE will have your best interest more at heart than you....not even mommy.
If you blindly follow the advice of ANYONE for ANYTHING and take their word as gospel without doing some investigating on your own so you don't get burned....fuck you...you get everything coming to you.
Is it that hard to write down some goddamned questions and seek second opinions?
When people get off their asses and quit putting their well being in the hands of others who don't give 2 shits on if you live or die, succeed or fail, this country will be a lot better off.
Originally posted by: Yreka
That's what I was thinking too.. We are talking about 300 bucks here, I would bet a dollar there is a car / SUV financed somewhere in that household for more than that.
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.
Rios knew when she bought the house she'd have to skimp to make the mortgage payments. But she felt it was worth it. "It was a sacrifice but at least we'd have a home," said Rios, ...
The real estate agent said she could refinance within two years and lower her payments.