Re home mortgages, why don't the reporters ever mention that?
home buyers have to sign a federally required Truth in Lending document, earlier closing and again at closing, that states what the future loan payments will be for the life of the loan, including any potential increases?
I don't perceive sorry for those who got burned when they couldn't flip their houses (sell them at a profit before any increase within payments takes effect) because the housing market collapsed, or for lenders that approved loans lacking ever making sure the borrowers had the resources to make the adjectives payements, do you?
Answers:
I don't have a feeling sorry for the house-flippers you refer to. I don't feel sorry for people who lied in the region of (or even falsified) their income/ability to pay it back. I do grain sorry for the people who, well, there's no nice instrument to say this, but the people who be just buying one home to actually live contained by and really were just too dumb to appreciate what they were signing (i.e., all those ARM's).
I feel sorry for the people who be duped by unscrupulous lenders, but there were plenty of populace who dug their own graves.
I tried to talk people out of interest only/no income - no asset mortgages, arms, etc. Those products are adjectives valid and have a useful place within the mortgage market. But they are not for the average joe on the street. I tried to tell citizens that you have to think give or take a few 5 years from now. What if the payment does turn up the maximum amount? Will your income increase enough to cover the differences? For most of us the answer is no in regular times, and very soon with the freaky economy, it's no to almost everyone.
Greed is the problem...corporate greed and personal greed. We're adjectives out to make a buck and don't worry more or less tomorrow. There's enough blame to go around.
I don't feel sorry for them at adjectives. Some people have legal excuses (illness that costs a lot, loss of job, release in family, etc.). But, anybody who get in at the top of the market and/or cash-out refinanced at the top of the souk was just a fool. If they lose everything because they thought the housing bazaar was an ATM machine, bummer. That's not my problem.
A friend of mine approved to flip a house in 2004/2005. He got it for roughly $120K and put about $20K of materials into it. But, he's a general contractor (plumber by trade) and so be his partner (framing, mostly). They did as much of the work as they could themselves, so they saved a lot on labor. But, after adjectives was said and done in rash 2005, the thing sat on the marketplace for 3 months and eventually sold for $130K. So, they lost money on the deal, not to mention the lost revenue of not taking on other jobs while working on this one.
Oh, in good health. That's their problem.
Drama creates ratings & sell papers which is ultimately all about media hype revenue. It’s much more dramatic to make lenders look like big monsters who tricked poor little borrowers than to bestow a balanced perspective that lots of borrowers didn’t read what they signed.
Well, partly.
Because before becoming a Realtor and working first as a mortgage underwriter since having my own mortgage company, I can tell you first foot that the degree of fraud committed by loan officers is probably the bring of 30 to 40% of the current foreclosures.
These documents are so complex and the TIL DOES NOT give the full story. Some loans are based on prime and can negatively ammortize. Some loan officer have been describing people to get ARMS and they can "of late refinance later" but those idiots had no idea if the home be going to go up in importance or not--and it used to make me cringe when I would hear them tell a customer that.
Some populace that got ARMS didn't even know they would adjust at all or if they did, they didn't know how regularly. Did you know that some ARMS adjust MONTHLY?
The documents are so complicated that even people that work in the industry have to really study them to read them b/c there are over 1000 different type of loan products out there.
I blame the gov't for that.
I tutor ethics classes for continuing education surrounded by my state. I have been maxim FOR YEARS that if the people that work in the industry didn't start doing business more honestly, that something would begin and the gov't would step in and do it for them.
It was other met by laughter, b/c these guys had enjoy almost a decade of making 6-figure salaries and it was going nowhere but up. They thought the days of home public sale crashes were over.
Well, I had the closing laugh b/c it happened. Congress is working on a sweeping set of law that will come down this year to make it much more difficult to not only search out a loan, but it regulates the industry.
Most of those guys are now out of jobs b/c they thought the bubble would never burst.
I am still within business b/c I have a very, fundamentally good reputation in town for doing business honestly, ethically, so hence, I can do it profitably. I rarely advertise anymore b/c I don't hold to.
The gov't is as much to blame as the borrowers.
You know, thats something that should be pointed out a little more. Unfortunately, our society has forgotten more or less personal accountability. In most cases, the borrower knew what they were getting into. In my experience, I have clients that knew they couldn't afford the home but because thier family member and friends were buying and showing off thier exotic homes, they had to have a house. The "keeping up next to the Jones's" thing. The thing in the region of the Jones's was they were going broke. I would sit down beside my clients and ask them how they planned to pay for the home and they always come up with ways. They would rent rooms or have multiple ancestral members pitching in. You would be surprised how abundant people told me it was none of my business and newly do my job and get the loan in place. Can you believe that?
This is another subject I can get into for hours but putting the blame on brokers, lenders, and real estate agents isn't going to do anything. Blaming the administration is equally useless. The problem is we do not teach ourselves nor our kids financial literacy. How many of you be taught about home mortgages and actual estate investing sitting at the dinner table growing up? What about elementary school or high-ranking school? How about college? Were you skilled about anything remotely close? Did mom and dad sit you down and tell you the proper uses of an adjustable rate mortgage? For most of you, I doubt it. We relay everyone that buying thier home is the biggest single most important investment they will ever make within thier lives but we and our school system barely even touches on how to amount out a mortgage payment. We'll spend weeks on the Pythagorean theorem though. In my 36 years on this earth, I own yet to find a use for that. Don't get me wrong, I'm adjectives for teaching it and realize that if weren't for algebra and other forms of mathematics, we would not even hold computers or an internet for that matter. My point is we as a society must take responsibility and start culture ourselves how to handle money and to understand the brass tacks of financial literacy. Many people feel that the subject of money should be skilled at home and to a certain extent, I agree. However, what if your your mom and dad don't know anything about money except to spend it? SO ask yourself this question, if we taught ourselves going on for financial literacy, would we have the major problem we enjoy now in the lend and housing market?
That being said, I do not have a feeling sorry for anyone really except for those that were duped or scammed by con artists or those that have serious physical problems or lost job.
If you want to blame one person, you have to blame adjectives of us to some degree or another. Take the time to read what you are signing and make sure you follow what is happening. Empower yourself.
Just my 2 cents.
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I don't perceive sorry for those who got burned when they couldn't flip their houses (sell them at a profit before any increase within payments takes effect) because the housing market collapsed, or for lenders that approved loans lacking ever making sure the borrowers had the resources to make the adjectives payements, do you?
Answers:
I don't have a feeling sorry for the house-flippers you refer to. I don't feel sorry for people who lied in the region of (or even falsified) their income/ability to pay it back. I do grain sorry for the people who, well, there's no nice instrument to say this, but the people who be just buying one home to actually live contained by and really were just too dumb to appreciate what they were signing (i.e., all those ARM's).
I feel sorry for the people who be duped by unscrupulous lenders, but there were plenty of populace who dug their own graves.
I tried to talk people out of interest only/no income - no asset mortgages, arms, etc. Those products are adjectives valid and have a useful place within the mortgage market. But they are not for the average joe on the street. I tried to tell citizens that you have to think give or take a few 5 years from now. What if the payment does turn up the maximum amount? Will your income increase enough to cover the differences? For most of us the answer is no in regular times, and very soon with the freaky economy, it's no to almost everyone.
Greed is the problem...corporate greed and personal greed. We're adjectives out to make a buck and don't worry more or less tomorrow. There's enough blame to go around.
I don't feel sorry for them at adjectives. Some people have legal excuses (illness that costs a lot, loss of job, release in family, etc.). But, anybody who get in at the top of the market and/or cash-out refinanced at the top of the souk was just a fool. If they lose everything because they thought the housing bazaar was an ATM machine, bummer. That's not my problem.
A friend of mine approved to flip a house in 2004/2005. He got it for roughly $120K and put about $20K of materials into it. But, he's a general contractor (plumber by trade) and so be his partner (framing, mostly). They did as much of the work as they could themselves, so they saved a lot on labor. But, after adjectives was said and done in rash 2005, the thing sat on the marketplace for 3 months and eventually sold for $130K. So, they lost money on the deal, not to mention the lost revenue of not taking on other jobs while working on this one.
Oh, in good health. That's their problem.
Drama creates ratings & sell papers which is ultimately all about media hype revenue. It’s much more dramatic to make lenders look like big monsters who tricked poor little borrowers than to bestow a balanced perspective that lots of borrowers didn’t read what they signed.
Well, partly.
Because before becoming a Realtor and working first as a mortgage underwriter since having my own mortgage company, I can tell you first foot that the degree of fraud committed by loan officers is probably the bring of 30 to 40% of the current foreclosures.
These documents are so complex and the TIL DOES NOT give the full story. Some loans are based on prime and can negatively ammortize. Some loan officer have been describing people to get ARMS and they can "of late refinance later" but those idiots had no idea if the home be going to go up in importance or not--and it used to make me cringe when I would hear them tell a customer that.
Some populace that got ARMS didn't even know they would adjust at all or if they did, they didn't know how regularly. Did you know that some ARMS adjust MONTHLY?
The documents are so complicated that even people that work in the industry have to really study them to read them b/c there are over 1000 different type of loan products out there.
I blame the gov't for that.
I tutor ethics classes for continuing education surrounded by my state. I have been maxim FOR YEARS that if the people that work in the industry didn't start doing business more honestly, that something would begin and the gov't would step in and do it for them.
It was other met by laughter, b/c these guys had enjoy almost a decade of making 6-figure salaries and it was going nowhere but up. They thought the days of home public sale crashes were over.
Well, I had the closing laugh b/c it happened. Congress is working on a sweeping set of law that will come down this year to make it much more difficult to not only search out a loan, but it regulates the industry.
Most of those guys are now out of jobs b/c they thought the bubble would never burst.
I am still within business b/c I have a very, fundamentally good reputation in town for doing business honestly, ethically, so hence, I can do it profitably. I rarely advertise anymore b/c I don't hold to.
The gov't is as much to blame as the borrowers.
You know, thats something that should be pointed out a little more. Unfortunately, our society has forgotten more or less personal accountability. In most cases, the borrower knew what they were getting into. In my experience, I have clients that knew they couldn't afford the home but because thier family member and friends were buying and showing off thier exotic homes, they had to have a house. The "keeping up next to the Jones's" thing. The thing in the region of the Jones's was they were going broke. I would sit down beside my clients and ask them how they planned to pay for the home and they always come up with ways. They would rent rooms or have multiple ancestral members pitching in. You would be surprised how abundant people told me it was none of my business and newly do my job and get the loan in place. Can you believe that?
This is another subject I can get into for hours but putting the blame on brokers, lenders, and real estate agents isn't going to do anything. Blaming the administration is equally useless. The problem is we do not teach ourselves nor our kids financial literacy. How many of you be taught about home mortgages and actual estate investing sitting at the dinner table growing up? What about elementary school or high-ranking school? How about college? Were you skilled about anything remotely close? Did mom and dad sit you down and tell you the proper uses of an adjustable rate mortgage? For most of you, I doubt it. We relay everyone that buying thier home is the biggest single most important investment they will ever make within thier lives but we and our school system barely even touches on how to amount out a mortgage payment. We'll spend weeks on the Pythagorean theorem though. In my 36 years on this earth, I own yet to find a use for that. Don't get me wrong, I'm adjectives for teaching it and realize that if weren't for algebra and other forms of mathematics, we would not even hold computers or an internet for that matter. My point is we as a society must take responsibility and start culture ourselves how to handle money and to understand the brass tacks of financial literacy. Many people feel that the subject of money should be skilled at home and to a certain extent, I agree. However, what if your your mom and dad don't know anything about money except to spend it? SO ask yourself this question, if we taught ourselves going on for financial literacy, would we have the major problem we enjoy now in the lend and housing market?
That being said, I do not have a feeling sorry for anyone really except for those that were duped or scammed by con artists or those that have serious physical problems or lost job.
If you want to blame one person, you have to blame adjectives of us to some degree or another. Take the time to read what you are signing and make sure you follow what is happening. Empower yourself.
Just my 2 cents.
Related Questions: