Understanding Sub Prime Mortgages
- Thread starter Fate
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Keep in mind though that the fine print NEVER mentioned that they would not refinance you if you didn't have 20% equity.
When I bought my home 4 years ago it was 100% financing. And the brooker told me, "I'll see you in 5-7 years to refinace your adjustable arm".
Now 4 years later the BANKS have changed the rules. We will only finance if you have 20% equity. What?? Nobody ever mentioned that before. And how the heck am I supposed to have 20% equity when the market has crashed?
The banks are forcing foreclosures and shortsales because they won't refinance. If they're that stupid, F#ck them! And they are giving good shortsale deals(banks taking all of the loss) to those that haven't been making their payments? :wtf: While telling those of us who aren't behind, who have perfect credit, we won't refinance you and if you shortsell you take all the loss.
And for predicting the market drop, its like gambling. If you're saying you knew this was going to happen, its like saying I new the King of spades was the next card.
Don't be so quick to throw the home owners in loan trouble all in the same basket. There are a lot of us who didn't take any money out. And plenty of us who could continue making payments IF the bank would just refinance us the way they were 4 years ago.
When I bought my home 4 years ago it was 100% financing. And the brooker told me, "I'll see you in 5-7 years to refinace your adjustable arm".
Now 4 years later the BANKS have changed the rules. We will only finance if you have 20% equity. What?? Nobody ever mentioned that before. And how the heck am I supposed to have 20% equity when the market has crashed?
The banks are forcing foreclosures and shortsales because they won't refinance. If they're that stupid, F#ck them! And they are giving good shortsale deals(banks taking all of the loss) to those that haven't been making their payments? :wtf: While telling those of us who aren't behind, who have perfect credit, we won't refinance you and if you shortsell you take all the loss.
And for predicting the market drop, its like gambling. If you're saying you knew this was going to happen, its like saying I new the King of spades was the next card.
Don't be so quick to throw the home owners in loan trouble all in the same basket. There are a lot of us who didn't take any money out. And plenty of us who could continue making payments IF the bank would just refinance us the way they were 4 years ago.
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I could have taken a zero down 100% loan myself on a 5 year ARM... there was NO WAY I was going to take a shot a that... was far to long a shot for me to even consider.. so yea I did think about it.. I instead drained my capitol and got a 30 year fixed... I had a choice and took the one I thought was safer.. I had seen the results of ARM before and was not going to get greedy (I could have had twice the home I have now)
The only thing I see by this bail out is they are going to make every taxpayer the looser in stead of the banks and people that took the loans out in the first place, why should I pay for that error ?
Not knocking anyones situation, it could have been me, I just chose a different finance option..
The only thing I see by this bail out is they are going to make every taxpayer the looser in stead of the banks and people that took the loans out in the first place, why should I pay for that error ?
Not knocking anyones situation, it could have been me, I just chose a different finance option..
Why doesn't the gov or the banks consider refinancing those in good standing?? We can make the payments. That's a bailout that doesn't cost taxpayers any money. Risk, what risk. We've been paying our mortgage for over 4 years...
Its only the market crash that has all the equity gone. Around here, they are predicting 6 years for the home prices to get back up to what they were. Refinance those in good standing on another 7 year arm, and in 6 years we'll have equity and can refinance into a
standard loan. The bank will get another $120,000 in interest payments from each one of us and the taxpayers pay nothing.
Its only the market crash that has all the equity gone. Around here, they are predicting 6 years for the home prices to get back up to what they were. Refinance those in good standing on another 7 year arm, and in 6 years we'll have equity and can refinance into a
standard loan. The bank will get another $120,000 in interest payments from each one of us and the taxpayers pay nothing.
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Don't forget that this is SoCal, were the homes are $$$. The homes we are talking about are 3 bed, 1.5 bath, 1260 sq ft, on a 5200 sq ft lot, built in the 50s with no upgrades. People here weren't going for twice the house, they were just trying to get into a house. It wasn't about getting greedy and getting a lot, it was about just getting one.
At least for some of us. I understand that there were many people that got greedy. Either bought twice the house our took money out for toys. But not all of us are like that.
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I could stand behind that 120% ... I think forcing the ARM to a fixed 6% rate would be fine as well...
NO COMMISSIONS
NO BONUS
no anything for the lender except a steady payment.. Greed in the lending business really backfired in their own faces...
NO COMMISSIONS
NO BONUS
no anything for the lender except a steady payment.. Greed in the lending business really backfired in their own faces...
+100 Only people benefiting from this 700 Billion dollar buy out are the dumb azz executives of the banks, not the public.
that is my fear... I see some fatazz banker type rubbing his hands together in some greedy anticipation of this bailout.... makes me want to throwup...
They will kill the US economy in their own greedy grab for more money... disgusting....
My mortgage is $2000/month. But like you said, me and Jenny work our butt's off and pay our bills on time every month. I have no sympathy for people who got in over their heads and now are screwed.
That's why I'm not for the 700 billion dollar bailout. It won't help the the average joe who bought a house who wasn't greedy.
It'll only bailout the greedy home buyers who aren't making their mortgage payments and the banks and big money guys who are making tons of money off of us anyway.
I agree with you on almost everything you said in this tread.
One exception.... WTF those lousy buyers should pay 6% fixed when they already benefited from 2% ARM for a few years?
I didn`t. I paid 20% @ closing and keep making payments at 5.25% all 4 years when those who took the risk paid 1/2 of what I am paying... and now they want equal treatment? I don`t think so.
It ticks me off that I made good finacial decisions and paid all my bills, and now I'm going to have to pay to bail out people who made poor decisions and can't pay for them.
Amen Dennis, plus all the greedy bastards in the mortgage business that took the $$$ and ran!
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And one of the reasons the market is still declining is because of the banks. Those idiots won't refinance people who can pay forcing them to shortsell or foreclose. But with all the foreclosures and shortsales out there(about half in my zip code), there is too much competition selling houses dirt cheap. There are realtors selling to home investors for 70cents on the dollar! And the bank is taking the loss in the shortsale because the banks are too stupid to realize what they are doing. Which is causing the housing market to fall even more.
If the banks fugging woke up and refinanced some people, instead of half the market being dirt cheap foreclosures or shortsales it would be houses selling at higher prices and a LOT less houses on the market for sale.
But hey Banks, go right ahead and keep driving the housing market into the ground. Nothing like shooting your own foot off...
If the banks fugging woke up and refinanced some people, instead of half the market being dirt cheap foreclosures or shortsales it would be houses selling at higher prices and a LOT less houses on the market for sale.
But hey Banks, go right ahead and keep driving the housing market into the ground. Nothing like shooting your own foot off...
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i do my best to keep my opinions to myself most of the time but i am sick and fed up with my money going to pay the mortgages and rent, raise the children, buy the medicine, etc. of all the greedy, low-life, lazy azz POS that live in this wonderful country...i made the right decisions (most of my life) and should be able to benefit from it...those that made poor decisions should suffer and pay the price
i could have bought a home for 5X the amount i did (was approved) but didn't need it and don't have anyone in this world i need to impress...i paid it off in 3 1/2 years (no extras during that time) and even waited until i was done with that and raised the cash to buy my Busa...i make sure to live well below my means and am continuing to set myself up for the future
i do not begrudge those that want it all and want it now and am happy for them if it works out...however, if they fall flat on their faces, don't look to me to pick them up...why should the fruits of my labor go to bailing them out? let the housing market crash and i'll be able to scoop up a nicer home since i can pay cash and then rent out my small home to someone else who lost theirs
i feel for those that are caught in the middle of a bad situation like Charlesbusa but really don't see why my taxes should go up to pay off some banker that made risky investments just to keep his portfolio performing up to par...let them crash too
while we're at it and i'm on a roll, i also think anyone who have two or more children they can't afford should be sterilized so they can't produce an even greater strain on the economy...i know anyone can have an accident but if they continue their irresponsible behavior, they should pay the price...why should i have to pay to help raise other people's kids?
prisoners? make the criminals earn their own keep...i have to out here in the free world so why should they get to lay around and watch cable because they got caught breaking the law?
sorry for the long rant, i'm just tired of feeling like i'm trying to make my way through life while most other people stand around waiting for a handout...that's why i like the people on this board, most of you are responsible, good people and i am proud to call you my friends
i could have bought a home for 5X the amount i did (was approved) but didn't need it and don't have anyone in this world i need to impress...i paid it off in 3 1/2 years (no extras during that time) and even waited until i was done with that and raised the cash to buy my Busa...i make sure to live well below my means and am continuing to set myself up for the future
i do not begrudge those that want it all and want it now and am happy for them if it works out...however, if they fall flat on their faces, don't look to me to pick them up...why should the fruits of my labor go to bailing them out? let the housing market crash and i'll be able to scoop up a nicer home since i can pay cash and then rent out my small home to someone else who lost theirs
i feel for those that are caught in the middle of a bad situation like Charlesbusa but really don't see why my taxes should go up to pay off some banker that made risky investments just to keep his portfolio performing up to par...let them crash too
while we're at it and i'm on a roll, i also think anyone who have two or more children they can't afford should be sterilized so they can't produce an even greater strain on the economy...i know anyone can have an accident but if they continue their irresponsible behavior, they should pay the price...why should i have to pay to help raise other people's kids?
prisoners? make the criminals earn their own keep...i have to out here in the free world so why should they get to lay around and watch cable because they got caught breaking the law?
sorry for the long rant, i'm just tired of feeling like i'm trying to make my way through life while most other people stand around waiting for a handout...that's why i like the people on this board, most of you are responsible, good people and i am proud to call you my friends
teamorion22
Registered
I live in a cheap apartment and have very little debt all for school. Alot of people do not understand how close they are to losing their home. One job loss or one kid or medical emergency and that family could be homeless. Sad. For those of you that made such good decions my hats off to you. Sub prime lending is a problem. Congress has rules banks need to follow but they do not enforce them. This needs to change. I do not know a whole lot about the economy or the bailout details. But everyone here is going to pay taxes anyway and not a single one here knows were that money goes. Other countries have much higher taxes but everyone knows where that money is going and their system works well from what I've read (Denmark and other scandinavian countries).
I dont think helping other Americans is tougher situations than your self is such a bad thing.
I dont think helping other Americans is tougher situations than your self is such a bad thing.
Norway was the first country in the world to eradicate poverty, and as a result there's not one single soul that lives in that country that doesn't have what is necessary to exist as a decent human being. Europe in general is much more people -oriented than the US. Europeans pay a little bit more taxes but nobody needs to worry about not having medical insurance or the hardship that comes with one losing his job. I read somewhere that 90% of americans are only two weeks away from being bankrupt if anything bad happens, like getting sick, or the company going under,or anything that would translate into not getting that paycheck for more than a couple of weeks.
Here everybody wants the comfort of their own home(even though it becomes yours after 15 or 30 years, and after the payments you've made represent four times the amount you actually bought the house for), and that's how the concept of Suburbia came into play. It's like saying,I don't want to know my neighbours, and I don't want my kids to do anything else but go to school and sit in front of the computer all day. Americans have this hard to understand mentality of isolating themselves, the "castle syndrome",this ridiculous sense of property that actually erects walls between people. Not a lot of people own their apartment in Europe. A house, unless inherited , is out of reach for probably 90% of the population. The european countries don't have the land to build 7,000 square feet mansions with a four car garage for two old farts to live in it. It is a disgrace anyways. Anybody with a little bit of common sense knows that this lavish lifestyle is nothing but a form of living in oblivion. I've met people hiding behind ; It's my money and I can do whatever I want. It's a free country! It's all bullcrap and everybody with a brain and a sense of humility would agree with me. It's called living beyond ones means while suffering of the imortality syndrome. After all we're all on a planet that spins through space...
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teamorion22
Registered
I understand. Mentality and attitude is a problem and people need to look at themselves with a microscope instead of scanning the horizon with binoculars. For the economy of this country sub prime lending needs to b stopped.
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