Equity Loans and Refinances Caused More than Half of Foreclosures

[TrophyHusband 0]

oops, people shouldn't have bought houses they couldn't afford or taken out home equity loans, got arm's, or chosen the "balloon payment" plans.

"Your scrotum is quite nice" - Skymama
www.kjandmegan.com

[jcd11235 0]

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oops, people shouldn't have bought houses they couldn't afford or taken out home equity loans, got arm's, or chosen the "balloon payment" plans.

Nor should lenders have lent money they knew their customers would be unable to pay back, or offered mortgages structured in such a way as to allow the principle to be larger than the collateral.

Nor should the Fed have created an environment that encouraged such behavior on the part of the lenders and borrowers.

There's plenty of blame to go around. No single group deserves all of it.

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[KidWicked 0]

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oops, people shouldn't have bought houses they couldn't afford or taken out home equity loans, got arm's, or chosen the "balloon payment" plans.

Huh? My point was that if you are suffering financially because your wife is in the military, then maybe you should have thought about that before she signed up.

Coreece: "You sound like some skinheads I know, but your prejudice is with Christians, not niggers..."

[kelpdiver 2]

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>Sad to say but there are many people who do not take repaying a loan seriously.

Yep. As Dekker mentioned, we now have the example set by the US government - and sadly a lot of people are following it.

Which loans is the government walking away from? Their problem is spending more than they make, but they can't even dream of skipping payments, because then no one will buy any more treasuries.

I feel part of the reason people will skip out of houses in the middle of the night (or broad daylight) is that they really didn't invest anything into the house in the first place.

[jcd11235 0]

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I feel part of the reason people will skip out of houses in the middle of the night (or broad daylight) is that they really didn't invest anything into the house in the first place.

Isn't it the lender's responsibility to ensure the asset used as collateral is worth more than the principle of the loan?

Math tutoring available. Only $6! per hour! First lesson: Factorials!

[TrophyHusband 0]

i was being facetious to make a point. the people getting foreclosed on should have thought about it before they signed up. the point i'm trying to make is that they entered into a contract. if they are not expected to hold up their end of the bargain, neither should anyone else. as far as the banks that did the lending, they are the last ones that need to be bailed out. they were fully aware of the risks they were taking and took them anyway. fuck 'em. if i start a business and make a poor business decision, no one will bail me out, nor should they.

"Your scrotum is quite nice" - Skymama
www.kjandmegan.com

[kelpdiver 2]

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I feel part of the reason people will skip out of houses in the middle of the night (or broad daylight) is that they really didn't invest anything into the house in the first place.

Isn't it the lender's responsibility to ensure the asset used as collateral is worth more than the principle of the loan?

the lender's obligations aren't germane to the post, but yeah, that's something they choose not to do and are now suffering as a result. In response, it is now extremely difficult to get loans for 3 and 5% down. It used to be possible to get credit quickly after a bankrupcy or foreclosure, but I expect that won't be true anymore.

[DrewEckhardt 0]

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The worst markets have over 1% of their home owners in forclosure, everyone is worried about falling property values, and the big banking companies are loosing billions on their bad loans.

We can't have THAT!

Exactly. The big banks need to be able to buy their congress people ... I mean pay their lobbyists.

[georgerussia 0]

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I suspect that this is an issue in a number of places, as well. Not just here in Fresno. Big money meaning big spending.

All of it borrowed money.

This is an issue in Bay Area as well. We're now going to open houses every Sunday, and in EVERY short sale open house we see a HUGE plasma TV in a living room, most of them being HDTV. We've seen well over ten short sales now, and it's everywhere.

One of those houses was full of poor-looking Mexicans, and needed some maintenance. But - as you guess - a huge TV and a 2008 Ford Mustang outside. And the owner was trying to tell me how bad he feels to lose "his" home - which, in fact, was never his. Not only he did nothing to earn a little equity himself, they have also lost what the market gave them.

I do not feel sorry for such people anymore.

* Don't pray for me if you wanna help - just send me a check. *

[Andy9o8 3]

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One of those houses was full of poor-looking Mexicans

Wait, don't leave us in suspense - you forgot to tell us the ethnic appearance of the people in the other houses - and...you know, whether that made them look poor, too.



What?

[georgerussia 0]

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Wait, don't leave us in suspense - you forgot to tell us the ethnic appearance of the people in the other houses - and...you know, whether that made them look poor, too.

I didn't say the ethnic appearance made them look poor. It was the overall appearance of the house and of the tenants. And this was the first (and the only) open house, which was _full_ of people.

Wait! I just understood! They were not poor, since how could a poor person afford a plasma HDTV and Ford Mustang?

Or it wasn't the point? I got confused.

* Don't pray for me if you wanna help - just send me a check. *

[Andy9o8 3]

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And this was the first (and the only) open house, which was _full_ of people

That's nothing. You should see them in their cars.