More housing woes, good credits are defaulting.

[charrison]

Originally posted by: Vic

Originally posted by: charrison

Originally posted by: eskimospy

Originally posted by: Starbuck1975

You can't disagree that stupidity is rampant in the U.S. Haven't you questioned the intelligence of Bush voters on many occasions, and he got 62 million votes last time he ran for anything!

I make sure to pass that on to all of the white collar people in my neighborhood with foreclosure notices on their doors and Obama stickers on their 5-series BMWs.

If you think their houses are being foreclosed on because of anything that Obama has done, you're a moron.

Maybe having the govt bail you out is encouraging foreclure?

That is some potent crack you've been hitting on...

Well according to gen87(i think) his bank told him to stop making payments if he wanted to get his loan redone and he said some of neighbors have been told the same thing.

No doubt that is happening to some scale. BUt lets also be honest, right now the government is subsidizing these upside mortgages, so this is going to cause some people to game the system.

 

[Vic]

Originally posted by: charrison
Well according to gen87(i think) his bank told him to stop making payments if he wanted to get his loan redone and he said some of neighbors have been told the same thing.

No doubt that is happening to some scale. BUt lets also be honest, right now the government is subsidizing these upside mortgages, so this is going to cause some people to game the system.

You're confusing default with foreclosure.

And see my other post above.

Edit: BTW, I replied to Genx87's post in that thread. Let's just say that I know a considerable lot about this issue and that I'd like to ask him more questions about it. In my experience, banks (except for that occasional dipshit loan officer) are not telling customers to stop making payments. The people who are doing that are fly-by-night loan modification outfits that have sprung up. Now those are the ones who are really 'gaming the system.'

 

[charrison]

Originally posted by: Vic

Originally posted by: charrison
Well according to gen87(i think) his bank told him to stop making payments if he wanted to get his loan redone and he said some of neighbors have been told the same thing.

No doubt that is happening to some scale. BUt lets also be honest, right now the government is subsidizing these upside mortgages, so this is going to cause some people to game the system.

You're confusing default with foreclosure.

THis thread was started with info on defaults.

 

[sportage]

Oh...
Test me.
Go into foreclosure THEN try to get help from the bank.
A typical home owner over due 3+ months, and now in foreclosure,
asking to redo the loan... That bank will require a fee of $4000+
up front to redo that loan. If the homeowner had $4000, they'd
simply catch up the loan.

Why do you think now the good credit home owners are going under...?
Nothing has changed...

And like I said, that $8000 first time buyers credit? A fantasy.
You will not see the cash for 6 - 12 months, if even then.

Most of my family is in real estate and financing.
Banks have not changed. Just getting more greedy.
And NOW, gladly taking your tax dollars to boot.
Nothing has changed...

 

[Vic]

Originally posted by: sportage
Oh...
Test me.
Go into foreclosure THEN try to get help from the bank.
A typical home owner over due 3+ months, and now in foreclosure,
asking to redo the loan... That bank will require a fee of $4000+
up front to redo that loan. If the homeowner had $4000, they'd
simply catch up the loan.

Why do you think now the good credit home owners are going under...?
Nothing has changed...

And like I said, that $8000 first time buyers credit? A fantasy.
You will not see the cash for 6 - 12 months, if even then.

Most of my family is in real estate and financing.
Banks have not changed. Just getting more greedy.
And NOW, gladly taking your tax dollars to boot.
Nothing has changed...

You're also confused. Banks can't charge modification or forbearance fees. However, interest doesn't sleep just because the borrower stopped making their payments, and foreclosure proceedings incur expensive legal costs, and if a review of the borrower's income documentation indicates a financial ability to apply towards the reinstatement, then the bank will require that. It's not greed, it's obligation. The borrower signed on 100 dotted lines and took the money. So if you don't like obligation, then don't obligate yourself.

And all your BS aside, I want to know your answer to this question: if you didn't have to pay your rent or mortgage for a year, how much would you have in the bank?
And another question: do you think rising mortgage defaults have nothing to do with your 401k's recent poor performance?
And one more: do you think banks are actually making money by foreclosing in this market?

 

[StageLeft]

Originally posted by: Starbuck1975

If you think their houses are being foreclosed on because of anything that Obama has done, you're a moron.

No I was not suggesting it had anything to do with Obama. There have been a disturbing number of trends of late attempting to correlate conservatism with stupidity. The premise of the comment I responded to is that stupidity is rampant in the U.S., using Bush voters as the proof positive of this premise.

The housing bubble, and subsequent crash, has nothing to do with political ideology. It has everything to do with greed...liberals and conservatives alike quite stupidly and enthusiastically dived into that hole, and both now expect the government to help them out.

^ this

He bought a house 3 years ago for $360k and today it is valued at $165k. He said pride is the only thing keeping him paying.

I have much sympathy for somebody who would do that. In fact, they are playing by the rules. They and the bank had an agreement at the offset with repercussions for non payment. If they accept those repercussions, so be it. Like vic reminds, though, it won't be fun.