Well good for you. You know, many Americans lost their jobs and retirement over greedy banks and many are still underwater in their mortgages from the crash. I was not one of them but I feel for those who ended up losing so much at no fault of their own. When a bank denies someone, it makes them think about why. When a bank caps the payment, people see why after they start paying and are grateful to the banks for that. I don't agree with subprime mortgage lending and I don't think I ever will. They prey on the wrong people and it causes a big mess for the entire country.
People should always be responsible but many first time home buyers are not educated. And they think they can handle it but really cannot. I was uneducated when i bought our first home and i trusted a person in a position of trust that they were working out all the kinks and i believed them when they said, call me in a year and we will get you refinanced. If i knew i would end up trapped, i would have NEVER went through with it. i paid my mortgage on time for 1 year called and it was like i was talking to a totally different person. If someone with a bad credit score can only get approved for a First Premier credit card with a $300 limit, how is it that they should be trusted with $150,000? Secured may be your answer but the bank and Federal govt still takes losses due to foreclosures and when there are many, the high interest rates and fees don't do much to offset the risk. This is proof that this is not an adequate way to manage risk. But yet, the banks are trying it again. That's insanity! I can't wait to see if the bank in the article is still around five years from now. I bet you they won't be. The US Economy is everyone's responsibility. If we turn a blind eye, everyone suffers. One thing I went through because of the housing market crash, was having to come into work every 6 months and hear the cries and the screams in the background while sitting at my cubicle of people getting laid off. I would pray each time that I didn't have an email, voicemail, or note on my desk for me to see my manager that morning. I dodged 4 layoffs in 2 years! After so many rounds, you start cutting the good folks that may not walk on water but still do a great job. I am one of those people. I'm not irreplaceable but I work hard.
Hopefully if an increase in foreclosures occur, someone in govt will shut them down before we end up in The Great Depression II.
People should always be responsible but many first time home buyers are not educated. And they think they can handle it but really cannot. I was uneducated when i bought our first home and i trusted a person in a position of trust that they were working out all the kinks and i believed them when they said, call me in a year and we will get you refinanced. If i knew i would end up trapped, i would have NEVER went through with it. i paid my mortgage on time for 1 year called and it was like i was talking to a totally different person. If someone with a bad credit score can only get approved for a First Premier credit card with a $300 limit, how is it that they should be trusted with $150,000? Secured may be your answer but the bank and Federal govt still takes losses due to foreclosures and when there are many, the high interest rates and fees don't do much to offset the risk. This is proof that this is not an adequate way to manage risk. But yet, the banks are trying it again. That's insanity! I can't wait to see if the bank in the article is still around five years from now. I bet you they won't be. The US Economy is everyone's responsibility. If we turn a blind eye, everyone suffers. One thing I went through because of the housing market crash, was having to come into work every 6 months and hear the cries and the screams in the background while sitting at my cubicle of people getting laid off. I would pray each time that I didn't have an email, voicemail, or note on my desk for me to see my manager that morning. I dodged 4 layoffs in 2 years! After so many rounds, you start cutting the good folks that may not walk on water but still do a great job. I am one of those people. I'm not irreplaceable but I work hard.
Hopefully if an increase in foreclosures occur, someone in govt will shut them down before we end up in The Great Depression II.
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I like your last statement Foofighter, "buying a home is a privilege not a right". But everything else that you wrote contradicts that. For example, driving is a privilege and not a right. If folks could pay a large sum of money to get their license out of suspension, then driving would be a right. If people could just pay a large sum of money to get out of prison, what is the lesson learned? I can keep selling drugs because I can just pay my way out of the prison system.
There are credit scores for a reason. If you have a 640, you earned the privilege of owning a home. Paying higher interest and fees because you didn't make the cut, makes owning a home a right and I disagree with that.
There are credit scores for a reason. If you have a 640, you earned the privilege of owning a home. Paying higher interest and fees because you didn't make the cut, makes owning a home a right and I disagree with that.
Hmmm...still don't agree with ya. We will have to agree to disagree. You just said you had to wait on a mortgage because your wife filed bankruptcy. Why don't we just make bankruptcy seem like peanuts? Why don't we just approve someone for a home loan right after they file a Ch 7? That makes sense right? No it doesn't because BKs scream irresponsibility just how low credit scores scream irresponsibility. A few filed due to no fault of their own...but most filed due to irresponsibility. The banks shut out the bankrupt for a period of time, why should people with low credit scores be treated any differently? I think a score says a lot as it is based upon how you use credit, how you pay for credit, and your derrogatory-ness. Yes there are errors but they are sporadic, not widespread. Because if so, there would be millions complaining to consumer protection about all the errors.
You're really exaggerating with the $700 a month income for a $300,000 home. In my case, I made $75K and bought a $322K home. The income just barely made it. The default is obvious if someone made only $700 a month as the mortgage payment for a $300K home is about $2000 a month. The risk of default in 2008 wasn't that obvious. They squeezed people into homes they could barely afford not into homes they obviously could not afford which is why the sampling on Wall St turned out erroneous. People do things for the money but if you don't do it right, you get fired. Everyone in their respective careers have the responsibility to do something right. If you don't, there are consequences. There should always be consequences for irresponsibility. If there aren't, you never learn. Therefore, validating my analogies as accurate.
There is way more to mortgages then just the payment. My homebuyers class I had to take for this mortgage we have right now was 8 hours long. I had to split it up over a span of days to get through it all. Most people don't know not even 10% of what mortgages are all about. And not everyone is deep in finance to fully understand what exactly was happening on Wall St. Point is that there are many types of people in the world that are very different regarding their financial knowledge and behaviors. Lenders are there to explain the math and all that goes into a mortgage payment. When they lie, make false representations, cheat, and prey on those that have very little knowledge on the subject to make a big commission is abuse of trust and should not be allowed. We have experts in subjects for a reason because an individual cannot be an expert on everything. Nor do these experts have the time to make us experts ourselves. They tell us what we need to know that directly affects our responsibility and we make a decision. When these Brokers were straight out lying to people, folks made bad decisions because of it. It was the banks carelessness and recklessness that caused the crash because they were the ones that ultimately lent the money to these misinformed people!
No one wants background checks because everyone gun owner should be personally responsible. But you have mentally ill and just plain crazy people in the world that you cannot fathom why they would do such horrendous things. Society must be protected from these people. People who continue to make bad decisions must be denied until they have gotten it together.
I don't think we have ever agreed on anything. People have their own opinions based on what they have experienced in their life, and because of that, you can't persuade people to think like you because experience trumps opinion.
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