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| Foreclosures at record as household wealth falls (Page 14/19) |
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84Bill
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MAR 08, 09:06 PM
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| quote | Originally posted by 84fierotrevor:
btw I have no idea who's point I just helped argue. if any. But I am not sticking up for ether one of your sides. bill should be spending his arguing time with his kids. and aceman needs more expert training on how to detect a racist thru the internet  |
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LOL
| quote | Originally posted by 84fierotrevor:
I dunno what this thread is about beyond the title. i didn't read anyone's posts. I just wanted to say I will prolly be losing my house. but not because of the economy or global warming. or any of that bullshit. i simply failed at life when I ****ed up and made a huge business mistake causing me to lose both my stores. now If I don't open something that makes me money like my old places soon I will lose alot. I also have to learn from my mistake and not stop opening stores when I feel I am confrotable so a big giant company doesn't come shove me out like last time. |
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Nahhh man Cmon!!! You didnt fork up.. It's the fear mongers fault.. FEAR MONGERRRRRRRSSSS I SAY!
Really hope you get out of the funk though. 
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84Bill
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MAR 08, 10:19 PM
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| quote | Originally posted by aceman:
Find me articles that show that a majority of or a large percentage of the housing market crash is due to layoffs at the factories and unemployment, reductions in workers pay or a mysterious outbreak of disabilities and deaths to the homeowners and THEN you'll have a RATIONAL OPINION BASED ON FACTS.
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I didn't say it was due solely to layoffs and whatever blaaah blahh you just concocted. Sorry but you are confusing me with someone else... bub.
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I base my facts off the articles that show that foreclosures and the market meltdown are because people took out loans that they couldn't pay because they figured that if they couldn't pay when the rates went up, they'd sell because the housing prices would go up.
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Banks gave it away so I don't fault the guy needing the loan when the issuer does not make sure the person they are lending to is able to pay it back. Their lending practices were VERY shoddy.
The banks came up with ARMs and interest only loan scams to cash in on people who mistakenly "trust" the banks judgment. The people didn't spend years pouring over data to come up with a target range of people who they knew would fail at repaying their loans leaving the banks to make a quick flip for more cash.
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Too many people bought overinflated market valued houses because they figured that the sky and outer space was the limit for the housing prices to go up and should their payments go higher than their paycheck......SELL. OOPS! Some rational people said......"BULLSH!T!!!! I can't afford and I won't buy a $175,000 house for $225,000. The guy selling it, bought it for $165,000 2 years ago when it was really only worth $150,000." Some dumbsh!t idiot that bought the house for $165,000 two years ago when it was only really worth $150,000 back then, now is left holding the bag on a house worth maybe $175,000 now. What's his options?
A) Hope to sell for $175,000 and walk away with ZERO $$$$ in hand but no house payment on an overinflated house.
B) Stay in the house and bust ass trying to make ends meet to pay the mortgage
C) Say HELLO to foreclosure.
In the end, who was the idiot? a) The Real Estate Agent? b) The Buyer? c) The Bank?
If you chose b), you are CORRECT!
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Okay Toddster! 
The over inflation problem is a direct result of house flipping.
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84fiero123
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MAR 08, 11:11 PM
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No one ever said it was due solely to one thing in particular except ace and phranc.
They blame it all on those who took out the ARM loans.------------------
Technology is great when it works,
and one big pain in the ass when it doesn't.
Detroit iron rules all the rest are just toys.
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84fiero123
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MAR 08, 11:18 PM
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And anything ace says is fact, at least in his mind.
No one can find anything as far as what % of home loans are ARM’s and what % are regular loans.
See the thing is this is going to hurt everyone, even ace, see he still owes on his house and if the current trend keeps up as far as devaluing homes he may not get what he paid for his home because it will be worth less than what he paid for it.
This is going to affect everyone, homeowner or not.
Companies are already laying off people because of this, I have already posted links.
But ace said they have nothing to do with this, even though it said right in the article it was because of this.
------------------
Technology is great when it works,
and one big pain in the ass when it doesn't.
Detroit iron rules all the rest are just toys.
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ditch
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MAR 08, 11:21 PM
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| quote | Originally posted by 84Bill:
The people didn't spend years pouring over data to come up with a target range of people who they knew would fail at repaying their loans leaving the banks to make a quick flip for more cash.
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That's an interresting theory, but it's not true. If you look into it you'll find that banks lose money in foreclosures regardless of the strength of the housing market. Owning a house is not good for a bank. They don't win by acquiring a home via foreclosure, they win by collecting mortgage payments on that home.
Think about it. You loan someone $120,000 for 30 years at 6% interrest. If they fulfill their obligation, you'll end up receiving about $250,000 on that loan. If they default, you're stuck with the house. If you're lucky, you can sell it for the loan amount ($120,000) + foreclosure costs + other expenses such as damage done to the house, taxes/maintenance/utilities while it is vacant, etc. If you're extremely lucky you'll break even.
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84fiero123
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MAR 08, 11:21 PM
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See ace is the perfect example of what I call an educated idiot.
He has so much education he is always right even when he is wrong he is right.
Eventually it catches up with people like him.
Hopefully he won’t take to many people with him.
No matter what anyone says or proves he was right, because he has an education.
------------------
Technology is great when it works,
and one big pain in the ass when it doesn't.
Detroit iron rules all the rest are just toys.
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maryjane
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MAR 08, 11:28 PM
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| quote | Originally posted by 84Bill:
Banks gave it away so I don't fault the guy needing the loan when the issuer does not make sure the person they are lending to is able to pay it back. Their lending practices were VERY shoddy.
The banks came up with ARMs and interest only loan scams to cash in on people who mistakenly "trust" the banks judgment. The people didn't spend years pouring over data to come up with a target range of people who they knew would fail at repaying their loans leaving the banks to make a quick flip for more cash.
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AMEN Brother Bill!!!! I say do I hear a Halleleauha???
Just like Capital One and a lot others bulk mailed out tens of thousands of offers of 'pre-approved' Credit Cards to people who didn't even have a bank account--or a job for that matter.
No, they didn't force them to accept them, but the bait was awfully tempting to people that were flat downand out.[This message has been edited by maryjane (edited 03-08-2008).]
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ditch
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MAR 08, 11:32 PM
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| quote | Originally posted by 84fiero123:
No one ever said it was due solely to one thing in particular except ace and phranc.
They blame it all on those who took out the ARM loans.
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I think that most rational people can agree that the blame lies with more than one party.
You have the lenders who gave money to people with crappy credit.....poor decision
You have the buyers who borrowed more than they should have.....poor decision
Then you have the realtors, but I'm not ready to flame them. I have had much experience with realtors and in my opinion they have little part in this. The buying process is simple. You go to the bank and get approved for a given amount. You let your realtor know what that amount is and they look for houses in that price range. The bank is the one who evaluated your income, etc, and they are the ones who approved you for XXX amount of $, not the realtor.
I'd love to say "let the banks and homeowners fry", but that affects the market tremendously and people who did the right thing are paying for this as well. I'm just glad that I'm in my early 30's and there is plenty of time for the market to come back before I retire. If I was close to retirement, I'd be pretty upset concerning my investments.[This message has been edited by ditch (edited 03-08-2008).]
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maryjane
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MAR 08, 11:35 PM
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| quote | Originally posted by ditch:
That's an interresting theory, but it's not true. If you look into it you'll find that banks lose money in foreclosures regardless of the strength of the housing market. Owning a house is not good for a bank. They don't win by acquiring a home via foreclosure, they win by collecting mortgage payments on that home.
Think about it. You loan someone $120,000 for 30 years at 6% interrest. If they fulfill their obligation, you'll end up receiving about $250,000 on that loan. If they default, you're stuck with the house. If you're lucky, you can sell it for the loan amount ($120,000) + foreclosure costs + other expenses such as damage done to the house, taxes/maintenance/utilities while it is vacant, etc. If you're extremely lucky you'll break even. |
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You and Bill are both right. Bill in saying the target was a high risk category-you in saying the banks really have no way to break even on mass foreclosures. The banks took the word of economists that the economy would remain strong, and underestimated the total # of people accross the country who were actually taking these loans.
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maryjane
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MAR 08, 11:40 PM
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| quote | Originally posted by ditch:
The buying process is simple. You go to the bank and get approved for a given amount. You let your realtor know what that amount is and they look for houses in that price range. The bank is the one who evaluated your income, etc, and they are the ones who approved you for XXX amount of $, not the realtor.
I'd love to say "let the banks and homeowners fry", but that affects the market tremendously and people who did the right thing are paying for this as well. I'm just glad that I'm in my early 30's and there is plenty of time for the market to come back before I retire. If I was close to retirement, I'd be pretty upset concerning my investments.
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Been a few decades since I bought thru a realtor, but back in the day, it was not unusual at all for the realtor to match a buyer up with financing company. I did it myself in Pensacola while in the military.
Went to a realtor, told him what I was looking for, he ask how much I wanted to spend, and he helped me find a mortgage. Probably because I knew no one in Pcola, had just become stationed there and had a growing family. May have just been something more common around military bases than in general population.
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