Foreclosures at record as household wealth falls (Page 8/19)
Indyellowgt MAR 07, 07:25 PM

quote
Originally posted by maryjane:

subprime loans..............? ? ? ?
Explain that term please-in layman's terms--and why anyone would elect to go that route.



Exactly... It burns my A$$ that people that were willing to bite on these crappy rates are now singing the blues.I got in at under 5%,and have never ever missed or been late on any mortgage payments(10 years now) I'd like a shave off of my %,but I won't get it,because I am responsible...
Don't get me wrong.Folks that have fallen into financial despair and divorce and all that stuff,they are hurting.

But between the greedy lenders,and people blind enough to take on a loan,that really was in black and white.Who's to blame....The buyer. Simple. Now they are getting a bail out? (in so many words)

I'll pass on my next 10 payments and see the help I get....
84fiero123 MAR 07, 07:53 PM


Just trying to show that Todd has said in the past that real-estate would always increase in value, I found these when looking for that statement .

Now just how good is that deal now with the price of real-estate values going down instead of up?

Indyyellowgt hey I got one of those regular loans 12 years ago, I was almost paid off had just a few grand left on the place and had my stroke. I almost lost my home because of other reasons than those who have gotten those ARM’s. No one helped me ether. But I now own it outright, owe nothing but the taxes every year and the insurance ever year now.

I don’t think it is fair that the government is talking about bailing out the banks because they were greedy and are getting what they did to all those people who took on those ARM’s.

I also don’t think it’s fair that they are trying to bail out those people who took out those ARM’s.

But I also don’t think it is just their own stupidity. They listened to those who are educated in the housing market that said “It’s a win, win situation. Hey the places are only going to increase in value. You can sell it for more than you paid for it in a couple of years.”

People like Todd and the banks told them that and they took their word for it, hey they have the education, they studied economics.

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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.

maryjane MAR 07, 09:13 PM
There's some truth to just about everything ever said.

In every investment--and a home and homesite is a very big investment--there is both risk and cyclic highs and lows. There is also a good chance of good returns. Depends how long a person holds and when they sell. The difference regarding homes, is that they can be foreclosed on, before they become a financial asset to the buyer. I emphasize financial asset, because unlike other investments, a home becomes a personal and emotional asset almost as soon as the buyer signs the papers. Peace of mind, stability, a sense of belonging, permanence, and safety that do not come with renting. I too have always thought that a person can't go wrong with buying property, and still believe so, as long as a person has the will and the resources to weather the storms. Right now, my family owns a piece of property that will likely never be in my lifetime-worth what was paid for it. Not a big investment, but worrisome, because taxes and maintenance costs are increasing, and we are ready to sell it for 1/2 what was paid for it. So, no one is immune--I know that. I think I'm fairly well informed-tho my ignorance is evident in the subprime questions, but still, I would be very hesitant to buy a home based mostly on what a banker, real estate agent, or seller told me. People have to educate themselves before commitment. but, in these current times, there is PLENTY of blame to go around.

1st on my list, in order of culpability--would be the mortgage companys. They, more than anyone else, knew the high risk factors with these loans and the higher than normal risk of lending to folks on borderline ability to meet their obligations.

2nd on my list of culpability is banks. They are on the lower end of the lending spectrum when it comes to $100K+ loans. Most local banks don't have the resources and are more likely to investigate a borrower more extensively.

3rd would be realators. Tho the financial part of it isn't really supposed to be part of a realator's job, most realators do in fact help a prospective buyer to find financing. I know this from personal experience. It's to their advantage to find the buyer a mortgage house or bank that will lend the cash.
Most realators, have developed relationships with lenders in their areas, and most expereinced realtors have adeveloped a "feel" for the prospective buyer. Tho not nearly 100% effective, most realtors know pretty quickly into the scheme whether a buyer can really afford the house.A good reputable realtor will tactfully tell a buyer he/she perhaps should look for a less expensive home--or wait .

4th would be the culpability of the buyer. I truly do understand it is really really hard for a guy to look at his young family and NOT take advantage of a APR. He just wants a home for his wife and kids--he's the only part of this not driven by financial gain. Just wants some stability, safety, and a sense he provided for his family. Yes, the buyer chould have done things differently, but that's water under the bridge.

You guys who want to beat Puckhead while he's down-have at it. IMO, it Says way more about you than it does him.

I don't know what the answer is, but I am dead set against a bailout for the lenders, and I stand to lose a good chunk of change if local banks start failing.
I am in favor of some sort of relief-bailout-support etc for the homebuyers. Just haven't made up my mind how it should work-or how far it should go.

[This message has been edited by maryjane (edited 03-07-2008).]

pokeyfiero MAR 07, 10:33 PM

quote
Originally posted by 84fiero123:
Just trying to show that Todd has said in the past that real-estate would always increase in value, I found these when looking for that statement .

Now just how good is that deal now with the price of real-estate values going down instead of up?

Indyyellowgt hey I got one of those regular loans 12 years ago, I was almost paid off had just a few grand left on the place and had my stroke. I almost lost my home because of other reasons than those who have gotten those ARM’s. No one helped me ether. But I now own it outright, owe nothing but the taxes every year and the insurance ever year now.

I don’t think it is fair that the government is talking about bailing out the banks because they were greedy and are getting what they did to all those people who took on those ARM’s.

I also don’t think it’s fair that they are trying to bail out those people who took out those ARM’s.

But I also don’t think it is just their own stupidity. They listened to those who are educated in the housing market that said “It’s a win, win situation. Hey the places are only going to increase in value. You can sell it for more than you paid for it in a couple of years.”

People like Todd and the banks told them that and they took their word for it, hey they have the education, they studied economics.




Real estate will always increase in value.

You nit pik at a timeline and blame brokers and lenders for people's decisions to pay more than they earn.

I have money to loan and do. If you have the equity and are willing to sign then for 14 percent you get my money. Interested? I'm gonna take your house if you don't pay. Am I a bad evil doer? If I took your house was it my fault you lost everything?
84fiero123 MAR 07, 11:32 PM

quote
Originally posted by pokeyfiero:
Real estate will always increase in value.

You nit pik at a timeline and blame brokers and lenders for people's decisions to pay more than they earn.

I have money to loan and do. If you have the equity and are willing to sign then for 14 percent you get my money. Interested? I'm gonna take your house if you don't pay. Am I a bad evil doer? If I took your house was it my fault you lost everything?



Time line my ass, this has been going on since I started my thread a year ago.

The ones in charge say it may go on for another 2 or 3 years before prices stabilize. If that’s true a lot more people are going to be without homes and a lot more banks are going to go under.

I don't want your money, I don't need your money, and I wouldn't take YOUR MONEY anyway.

What gets me is people here are blaming just those who took the loans out, not the banks, or brokers, or agents, just those who took the loans. Hey they all had a hand in it. I’m not saying just those in the banks are at fault or just the realtors, everyone here is to blame.

But mostly the bankers, they got to greedy and it is biting them in the ass, and in turn will bite the rest of us.

We are all gona loose, well except the bankers, they already made their money and tucked it away in some Caiman (SP), or Swiss bank.

They new this would happen and they just lead everyone else on into the trap and collected until it was to late.

Now everyone but them will pay.

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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.

Phranc MAR 07, 11:36 PM
Don't take out loans you can't pay and you wont get the blame you deserve for not paying it.
84fiero123 MAR 07, 11:41 PM

quote
Originally posted by Phranc:

Don't take out loans you can't pay and you wont get the blame you deserve for not paying it.



See that’s just what I am talking about.

Hey everyone told those people it was safe, homes would go up in value in a year or 2 and they could refi or sell and make more.

But just blame it on the small guy, the bankers are not at fault at all, right Phranc?

I mean they knew last year what was happening, hell I saw it and no one believed me them.

Yet those same bankers kept giving out those same high risk loans.


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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.

[This message has been edited by 84fiero123 (edited 03-07-2008).]

aceman MAR 07, 11:45 PM
Mr Bitter,
Do you complain about a car dealership? They do the same damn things. People go out and get cars they really can't afford. Repos happen every day. We all look at the people that get their car repo-ed as idiots. Same thing with a house. Nothing is hidden in these mortgage contracts!
84fiero123 MAR 07, 11:50 PM
These are not all ARM loans that are going bad.

Some people are getting laid off right here, because of what’s happening.
Now they may loose their homes. Even though they didn’t take out an ARM.

So is that their fault?
That they lost their job because this is trickling down to people who didn’t have an ARM.

If you loose your job, just how long can you live and pay bills?

A lot of people in this country today it’s just a matter of weeks, many more just a few months.

If you can’t find a job right away you can loose it all.

------------------
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.

84fiero123 MAR 07, 11:56 PM
I was lucky when I had my stroke I had enough put away to last more than a year before I got behind on my home loan and it was a regular loan.

Luckily I didn’t loose it, others would have.

There are more reasons than an ARM that people get behind on home loans Ace, a lot.

We have several members right here in the last year that I can remember that have had injuries, life changing disabilities, and more.

------------------
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.