Here we go again... govt telling banks to "loan"

[Bird Hunter]

So how do you know if you are going to be paid back or not? There are some people who had the best credit you could have and went bust! It's a gamble either way! But one thing is for sure you can not lend what you don't have and that is what happen in the first place. There is a lot of no existent money floating around in the system. A lot of misplaced money too!

It's all a risk, it's just how much of a risk you want to take.. I would be more comfortable making a loan to someone who has a permanent job/adequate income/good credit history, etc., compared to someone with good credit but lacking the other factors... The credit score can be deceptive, as there are plenty of people with a great score only because they have a very small but positive credit history.. Definitely doesn't make them risk worthy.. As far as missplaced $$ OMG, that is a definite !!! Corruption has definitely hit an all time high in America, IMO....

 

[shawnski]

Yeah, I wouldn't clean it either !!

Shawn, just think of the payments you have made as rent. When you are back to making more $$, start saving for a new place. When you do find one, try to make sure it's something you could most likely afford if times get tough again.. My house is not the best in the world, but it's comfortable and I can still make the payment even with the reduction in pay we have had..

the most frustrating thing is dealing with these banks and unprofessional people who answer the phone and each one have different story for you. last nite i was told by one that they are reviewing my modification and this morning the other person said it was declined as of december 11th which was 4 days ago!!!!!... it is all lies!!
believe me... i have no intension to buy a house again if i lose this one, i am single, no kids and i be happy to rent me a condo or townhome with the half the rent i am paying now, no gas bill, cheaper elecricity, no home warranty, no yearly home ass.fee!! and things break down they come fix it for you etc..etc.. and i won't have equity but i am not upside down either.!!!
more money in the bank and PEACE OF MIND!!!

 

[m_ridgeway]

Credit default swaps are also a large part of this problem.
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[Bird Hunter]

the most frustrating thing is dealing with these banks and unprofessional people who answer the phone and each one have different story for you. last nite i was told by one that they are reviewing my modification and this morning the other person said it was declined as of december 11th which was 4 days ago!!!!!... it is all lies!!
believe me... i have no intension to buy a house again if i lose this one, i am single, no kids and i be happy to rent me a condo or townhome with the half the rent i am paying now, no gas bill, cheaper elecricity, no home warranty, no yearly home ass.fee!! and things break down they come fix it for you etc..etc.. and i won't have equity but i am not upside down either.!!!
more money in the bank and PEACE OF MIND!!!

That is definitely a good way to go !! I thought about that myself when I was looking to buy again after my ordeal.. With the way the economy is and direction our government has been heading over the years, the tax break on the interest we pay for our mortgage is probably going down, if not completely away, so just one more reason not to own...

 

[skydivr]

Shawnski, I wish you the best of luck in these hard times.

There are a lot of people that fell into the "I have GOT to have THAT home" Syndrome. After all, it was constantly plastered in our faces every day on TV. People got to expecting that a) their home would gain in value, and b) they they had a steady income; well, both those myths have now been shattered. There are a lot of people like you out there that had the BEST intentions of paying if the status quo had been maintained, but few rarely purchased based on a worse-case scenario. Houston home prices are in the toilet. And those greedy people that were speculating in the first place got plastered (and they SHOULD have).

Now, having said that, a 5% down payment (which means you are paying PMI) was an accident waiting to happen. Hindsite is 20/20, so not trying to kick you when you are down. It may well be that, if you can't get a refi, then you may have to let them have it. Yes, it will ruin your credit, but most peoples' are ruined anyway. You may have to chaulk this up to inexperience and start over. The bank would really like to keep you in the house than to toss you out of it, expecially now in Houston. But they are overwhelmed with the workload and are going to be difficult to deal with. Send everything CERTIFIED mail return receipt.

I would HIGHLY recommend you take a look at Dave Ramsey; he's excellent in helping people to find 'financial peace'. He's on the radio and tv, and his program is top notch.

Lastly, I know you aren't the kind of guy to trash the place as you leave. Not the honorable thing to do, no matter how ticked off you may be.

 

[skydivr]

Mr. Brown, I don't know what's worse, that I don't have any experience in government, or those elected officials don't have any experience in BUSINESS....just sayin'...

I think I'd be a better elected official than I think most of them could be business people...

 

[skydivr]

I'd go take a hard look at my PMI policy and see what the terms are....

 

[Mr Bogus]

you know in the middle east, you need typically 90% down... I think there are actually laws on their books banning anything under 85% down payments on homes..

My boss is from Syria and was telling me about how homes are sold there... was pretty amazing.. load defaults run at like .01% go figure...

I just wish there were people on the ground to ferret out the guys that are good and were not just playing the system, 2.5 trillion in bailouts and good guys losing homes..

 

[Bird Hunter]

Mr. Brown, I don't know what's worse, that I don't have any experience in government, or those elected officials don't have any experience in BUSINESS....just sayin'...

I think I'd be a better elected official than I think most of them could be business people...

Agreed here...

 

[F=MA]

Shouldve put down 20 plus. I'm kinda tired but isn't 5 percent about 8k? Thats a drop in the bucket if you finance 175k. I'm guessing you were on a 30yr loan? Shouldve been on a 15 or paying that rate at least. Also your taxes should match your homes value not debt.
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Keep in mind not everywhere is Oklahoma. His $175k house is probably no different from your $50k house...except it's located somewhere where more people want to live.

20% down on a $50k house is about the same capital as 5% down on a $175k property. The difference is in much of the U.S. it isn't reasonable to expect someone to raise a family in the type of neighborhood where this property will be located.

 

[mzrsq]

While you bash our government for encouraging small business lending, let me remind you that it was not small business that got us into the current mess. It is however small business that is suffering. While big brother has handed out billions to save the big, us small business owners have been left to fend for ourselves. I'm currently trying to get a business loan for some desperatley needed new CNC Machine equipment. I have found it all but impossible, when 2 years ago these same lenders were begging to give me money.

 

[shawnski]

Shawnski, I wish you the best of luck in these hard times.

There are a lot of people that fell into the "I have GOT to have THAT home" Syndrome. After all, it was constantly plastered in our faces every day on TV. People got to expecting that a) their home would gain in value, and b) they they had a steady income; well, both those myths have now been shattered. There are a lot of people like you out there that had the BEST intentions of paying if the status quo had been maintained, but few rarely purchased based on a worse-case scenario. Houston home prices are in the toilet. And those greedy people that were speculating in the first place got plastered (and they SHOULD have).

Now, having said that, a 5% down payment (which means you are paying PMI) was an accident waiting to happen. Hindsite is 20/20, so not trying to kick you when you are down. It may well be that, if you can't get a refi, then you may have to let them have it. Yes, it will ruin your credit, but most peoples' are ruined anyway. You may have to chaulk this up to inexperience and start over. The bank would really like to keep you in the house than to toss you out of it, expecially now in Houston. But they are overwhelmed with the workload and are going to be difficult to deal with. Send everything CERTIFIED mail return receipt.

I would HIGHLY recommend you take a look at Dave Ramsey; he's excellent in helping people to find 'financial peace'. He's on the radio and tv, and his program is top notch.

Lastly, I know you aren't the kind of guy to trash the place as you leave. Not the honorable thing to do, no matter how ticked off you may be.

thanks for advise and i check on ramsey.

 

[skydivr]

you know in the middle east, you need typically 90% down... I think there are actually laws on their books banning anything under 85% down payments on homes..

My boss is from Syria and was telling me about how homes are sold there... was pretty amazing.. load defaults run at like .01% go figure...

I just wish there were people on the ground to ferret out the guys that are good and were not just playing the system, 2.5 trillion in bailouts and good guys losing homes..

That's because bad debt in the Middle East is like stealing, and you KNOW how they treat thieves over there!

Really, if you are single, with no family, this isn't so bad. While I hate to say it, you might be better off to stop paying anything for the next few months and save up a rent payment and walk away from it. Really, go talk to DAVE RAMSEY.

 

[Mr Brown]

so pick a side... one post you seem to think I am full of **** and the next you are bashing the govt for over extended roles...

You fail to acknowledge that the govts role in sub-prime mortgages is what drove the housing prices to such artificial highs.. Supply and demand dictate value (relative or otherwise)

When you give millions of people money to buy homes that otherwise do not have the income, money management skills or both to every purchase a home, you force an artificial demand.. I am one of the lucky ones, housing values in our city never skyrocketed and so never crashed.. Talk to people in CA, or AZ about this..

As payments started to rise from these "bad loans", the bubble began its decline until it burst... The housing market bust was predicted as were the consequences of it in 2003-05.. They were just premature in the year, not the consequences..

I don't think you're full of ****, I just think the way you phrased it was.
The government's role in the sub-prime mess was a noble effort, (to offer the "American Dream" to those who wouldn't otherwise have had the opportunity) I don't hold them responsible for the greed of the banking industry, other than not stepping in sooner to check it.
I want the government out of the private sector, BUT, since they meddle on behalf of those with money, I think it only fair that they do the same for the rest of us.
I lived in SoCal from 1983-1999. My parents bought a house in 83 for 129k, when they sold it in 95 it went for 505k. Granted they had made some improvements, but not enough to justify that kind of increase. The bubble had to burst, and there is certainly some element of personal responsibility involved in its demise (don't buy more than what you can afford), but people were turing to professional bankers for advice and were lied to. The whole thing was just a giant ponzi scheme, and we the taxpayers were left holding the bag.

 

[Bird Hunter]

While you bash our government for encouraging small business lending, let me remind you that it was not small business that got us into the current mess. It is however small business that is suffering. While big brother has handed out billions to save the big, us small business owners have been left to fend for ourselves. I'm currently trying to get a business loan for some desperatley needed new CNC Machine equipment. I have found it all but impossible, when 2 years ago these same lenders were begging to give me money.

Best of luck with your company.. I sincerely feel for anyone trying to make it in our current situation...

 

[m_ridgeway]

Keep in mind not everywhere is Oklahoma. His $175k house is probably no different from your $50k house...except it's located somewhere where more people want to live.

20% down on a $50k house is about the same capital as 5% down on a $175k property. The difference is in much of the U.S. it isn't reasonable to expect someone to raise a family in the type of neighborhood where this property will be located.

25k=8k?
20percent would be about 35 which is not unresonable for anyone to put down on a 175k home. I could mover an hour north and my house would have cost at least 2x as much. Me and several others raise childrend there. No bubbles no troubles.
I am more aware than most about cost of living adjustments. I spen about 2 weeks in my home in 08 and about 3months in 09. I travel all over the us and stay for periods of time in diff locations rural and urban. No matter what I've noticed when I look at property (which I do every where I go) there's the homes market at young people all new and nice shiny for a lot more than the middle aged marketed homes that aren't perfect but still very solid and excellent starter homes for a reasonable price.
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[Mr Brown]

Mr. Brown, I don't know what's worse, that I don't have any experience in government, or those elected officials don't have any experience in BUSINESS....just sayin'...

I think I'd be a better elected official than I think most of them could be business people...

One of the problems is that government has BECOME a business...
Experience in govenment leads to more of the same old $hit, one of the reasons I thought Obama might actually be better.
Experience in business isn't required for success either, lots of people have gotten rich doing things differently.
If you could actually represent the people that elected you then you would be better than what we have now......

 

[shawnski]

Keep in mind not everywhere is Oklahoma. His $175k house is probably no different from your $50k house...except it's located somewhere where more people want to live.

20% down on a $50k house is about the same capital as 5% down on a $175k property. The difference is in much of the U.S. it isn't reasonable to expect someone to raise a family in the type of neighborhood where this property will be located.

... and i thought i made a good decision buying my house 15000 dollars below market value 5 years ago knowing that i have equity in this house and not knowing in 2009 it worth 128000!

 

[Mr Bogus]

While you bash our government for encouraging small business lending, let me remind you that it was not small business that got us into the current mess. It is however small business that is suffering. While big brother has handed out billions to save the big, us small business owners have been left to fend for ourselves. I'm currently trying to get a business loan for some desperatley needed new CNC Machine equipment. I have found it all but impossible, when 2 years ago these same lenders were begging to give me money.

Small business is what makes this country work... If Govt wants to help, they need to quit shifting all the tax burden on to small business's backs..

What the govt is doing is encouraging the same lending practices that started this mess to start with... (that is what has tightened up the credit market to the point of strangulation for many)

 

[sweet tea man]

.
Tell ya what, since you have it all figured out why don't you run for the presidency, and then all the people that are in the right part of the country, the right industry and of the right race will be taken care of.
Oh wait, you don't have any experience in government so you wouldn't be the right guy for the job.

Why not? Obama didn't have experiance either......and he made it in
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