Mortgage issues

[BigSkyBart]

3!

[BrianD]

Originally posted by joeychitwood
So do we as taxpayers make their house payments for them so they don't have to face the consequences of a bad financial decision?

Sounds like it, doesn't it?

It amazes me that people will spend weeks researching the advantages of plasma over LCD, yet the largest financial decision most people will ever make is entered into with little or no professional advice. If I had to spend $4,000 to fix my car, you can bet I would get opinions from several mechanics before proceeding, but people borrow $200,000 and don't get advice from anyone other than the person who makes a buck once they sign on the dotted line.

[gtrestoration]

Many of these people that now risk losing their homes were doing a refinance for what ever reason. If you look at an investigation done by the Seattle Times they report that Ameriquest loans for a purchase were only 1% & 3% in 2004 & 2005 of the total loans nationally. Many of these loans were predatory and one of the reasons Ameriquest forked out over $300 million to settle the suit filed against them.

This isn't just about being young and greedy.

http://seattletimes.nwsource.com/htm...yndication=rss

SteveU

[BrianD]

My hourly rate is about $160. If someone brings in to me some figures on income and expenses, it would take less than an hour to let them know the price of home they could reasonably afford (note that I didn't say the monthly payment they can afford).

So, for under $200 (make it $500 in larger cities), you can have a professional with no vested interest give you advice on how to proceed. There are also personal financial planners certified to do the same task.

The sad reality is that the same people who say they can't afford the $500 are the same people who are spending $500,000 for a house.

There is no crime in being "ignorant" of finances. I am sure Joey doesn't think people are "ignorant" that come to him for help. He has an expertise that they value and one that they couldn't obtain on their own. I don't see the mortgage melt-down as any different. People have to take responsibility, and not hide behind "I didn't know better" excuses.

[BrianD]

Originally posted by gtrestoration
Many of these people that now risk losing their homes were doing a refinance for what ever reason.

Predatory? Why not assign some blame to the people who borrowed this money and within 2 years it is gone with no assets to liquidate to pay it back? Where did the money go?

I can give you an educated guess. They used the money for that vacation they wanted to take, or to pay off their credit cards, or to buy that $20,000 home theater they wanted. These home equity loans were like Santa Claus to borrowers.

As for the settlements paid, I agree that the lending companies were at fault to a degree. However, I don't blame the bartender for the guy who takes the drink.

[gtrestoration]

Originally posted by BrianD
but people borrow $200,000 and don't get advice from anyone other than the person who makes a buck once they sign on the dotted line.

I think some of that is because people want to believe what they're being told by the "consultant" or whatever other term the salesperson has chosen for a title.

SteveU

[gtrestoration]

Well Brian, there are state and federal laws that prohibit predatory lending. More than one major lender has been investigated for the practice so just maybe that's why some of the borrowers are actually not to blame.

SteveU

[psychodave]

Originally posted by gtrestoration
Notary, and two of the three we sat down with both told us it was per signature. If that's not true somehow that doesn't surprise me based on the rest of the experience.

They may have been able to answer the questions but they certainly couldn't resolve the issues I had with the contract. That's why they were sent back empty handed twice and the lender had to make some substantial changes to the docs before I'd sign.


SteveU

That sounds fishy to me...loan packages are prety standard and to get paid per signature just doesnt sound right to me. I wouldnt be surprised if they were lieing to you.

Yeah, they have no controll over the loan docs, only the bank can make changes to them. Good for you for making them do what you wanted before signing...most people just let the escrow officer/notary tell them what to do. Never be afraid to ask questions, after all a home purchase is the single most important investment anyone will ever make!

[BrianD]

Originally posted by gtrestoration
Well Brian, there are state and federal laws that prohibit predatory lending. More than one major lender has been investigated for the practice so just maybe that's why some of the borrowers are actually not to blame.

SteveU

As I said before, I believe some of the lenders acted badly. I would agree they share some of the blame. That doesn't absolve the borrowers of their relative share of the blame.

[jpfelix]

isn't this plan really just an extension of the low interest years? then after someone else is in charge, it goes back up.

is our president acting as a salesman, consultant or wizard?

[The Grim Reefer]

Originally posted by joeychitwood
So do we as taxpayers make their house payments for them so they don't have to face the consequences of a bad financial decision?

Oh hell no but helping them a little with the size of the payment isn't so bad, especially if they have been keeping up with their payments. Having homeowners instead of renters is a good thing but again, gotta draw that line. If someone just jumped in over their heads then no, let them sink. But if we are talking about someone who is a first time home buyer that bought a modest house why not? There are already taxpayer funded programs to buy down interest for first timers that qualify.

[The Grim Reefer]

"The Attorney General's Office obtained the internal Ameriquest records as part of a multistate investigation into predatory-lending allegations against the company. Last year, Ameriquest paid $325 million to 49 states to settle the allegations but admitted no wrongdoing."

Did those states lose the money or was it individuals? Seems to me a bailout program has already been funded.

[gtrestoration]

$325 million might fund the staffing for the research needed to determine the budget needed for a program.



SteveU

[The Grim Reefer]

Originally posted by gtrestoration
$325 million might fund the staffing for the research needed to determine the budget needed for a program.



SteveU

That should provide jobs for the politicians relatives and mistresses for a year or two.

[FunkieReefJunkie]

Debt. 'Tis the American way. http://youtube.com/watch?v=YiOVNWoWTAU
http://www.youtube.com/watch?v=6borpDebEHc&NR=1

[BrianD]

Ok, the political stuff is just getting too much.

Closed.