Results 1 to 17 of 17

Thread: Other "victims" of mortgage "crisis"

  1. #1

    Other "victims" of mortgage "crisis"

    I put those two words in quotes because I never consider myself a victim and the word crisis is thrown around so often these days.


    I live in an area of San Antonio that has one of the highest foreclosure rates. I've only lived in my neighborhood for 2˝ years now and there are realtor signs and foreclosure signs all over the place. What I fear most is that the banks, who definitely don't want to have these properties on their books, will drastically slash prices to get rid of them. Then I'm left with neighbors who may not have originally been able to afford this neighborhood and a reduction in my own property value.


    People like me, who were financially qualified to borrow the money, and who have been responsible home owners are basically screwed. Those damn mortgage brokers who lent money to anyone that asked, should be prosecuted. Don't get me wrong, the borrowers are to blame too, but they shouldn't have been loaned the money in the first place.

    I remember years ago, if you didn't have a sizeable down-payment, a good credit score, and a salary that was a certain number of multiples higher than your debts, you weren't allowed by buy a home. :mad:

  2. #2
    [QUOTE=SanAntonio_JetFan;2635376]I put those two words in quotes because I never consider myself a victim and the word crisis is thrown around so often these days.


    I live in an area of San Antonio that has one of the highest foreclosure rates. I've only lived in my neighborhood for 2˝ years now and there are realtor signs and foreclosure signs all over the place. What I fear most is that the banks, who definitely don't want to have these properties on their books, will drastically slash prices to get rid of them. Then I'm left with neighbors who may not have originally been able to afford this neighborhood and a reduction in my own property value.


    People like me, who were financially qualified to borrow the money, and who have been responsible home owners are basically screwed. Those damn mortgage brokers who lent money to anyone that asked, should be prosecuted. Don't get me wrong, the borrowers are to blame too, but they shouldn't have been loaned the money in the first place.

    I remember years ago, if you didn't have a sizeable down-payment, a good credit score, and a salary that was a certain number of multiples higher than your debts, you weren't allowed by buy a home. :mad:[/QUOTE]

    I truly feel sorry for you mate: you've taken the right path but are still being punished for it.

    Unfortunately, my view of the credit crunch is that it is the harbinger of an 8 - 10 year period where everything is going to go down the toilet. A deflationary period in which everyone suffers.

    There are not only too many bad debts in the US and in other places around the world, but also too much debt full stop - the housing market bubbled over because of it, as have share markets and commodities (like oil) the problem is what happens after the bubble, which is something people like you are becoming well aware of.

    If you have any debts, my advice would be to settle them - start saving as much cash as you can, and around the time when everything is in the toilet, it will be time to start swapping cash for stocks/commodities/real estate. It's the only way to make the best out of what is now looking like a very very bad situation. Because soon after I think things will start to turn around dramatically - it is always darkest before the dawn.
    Last edited by Soberphobia; 07-19-2008 at 10:25 AM.

  3. #3
    [QUOTE=Black Death;2635382]I truly feel sorry for you mate: you've taken the right path but are still being punished for it.

    Unfortunately, my view of the credit crunch is that it is the harbinger of an 8 - 10 year period where everything is going to go down the toilet. A deflationary period in which everyone suffers.

    There are not only too many bad debts in the US and in other places around the world, but also too much debt full stop - the housing market bubbled over because of it, as have share markets and commodities (like oil) the problem is what happens after the bubble, which is something people like you are becoming well aware of.

    If you have any debts, my advice would be to settle them - start saving as much cash as you can, and around the time when everything is in the toilet, it will be time to start swapping cash for stocks/commodities/real estate. [B]It's the only way to make the best out of what is now looking like a very very bad situation. Because soon after I think things will start to turn around dramatically - it is always darkest before the dawn[/B].[/QUOTE]


    I hope you're right. I tend to be optimistic, but things sure look dark right now.

    I can't stand the bail-outs that are going on with Fanny Mae and Freddie Mac. We all take risks as individuals. THink the fed would bail us out? I've lost over 11% of my 401k since January. THink they'll refund that?

  4. #4
    All League
    Join Date
    Sep 2004
    Location
    Parsippany, NJ
    Posts
    3,704
    [QUOTE=SanAntonio_JetFan;2635432]I hope you're right. I tend to be optimistic, but things sure look dark right now.

    I can't stand the bail-outs that are going on with Fanny Mae and Freddie Mac. We all take risks as individuals. THink the fed would bail us out? I've lost over 11% of my 401k since January. THink they'll refund that?[/QUOTE]

    If you think your area is bad take a look at Saginaw, Michigan. You can buy houses there for not much at all. That's gotta be a depressing place to live.

    [url]http://www.realtor.com/search/searchresults.aspx?ctid=29021&mxp=5&typ=7[/url]

  5. #5
    [QUOTE=adb280z;2635440]If you think your area is bad take a look at Saginaw, Michigan. You can buy houses there for not much at all. That's gotta be a depressing place to live.

    [url]http://www.realtor.com/search/searchresults.aspx?ctid=29021&mxp=5&typ=7[/url][/QUOTE]


    I didn't have to read any further than Saginaw, Michigan. :D

    But you're right. There's always someone who has it worse than you.

  6. #6
    [QUOTE=SanAntonio_JetFan;2635432]I hope you're right. I tend to be optimistic, but things sure look dark right now.

    I can't stand the bail-outs that are going on with Fanny Mae and Freddie Mac. We all take risks as individuals. THink the fed would bail us out? I've lost over 11% of my 401k since January. THink they'll refund that?[/QUOTE]

    Totally agree with your stance on what the Fed is doing: total populism at the expense of doing what is right for the economy - propping up bad businesses is not good for anyone in the long run and someone else will be paying for this tenfold down the track somewhere.

    BTW: you may be interested in this article - the Fed Bailout Scorecard:

    [url]http://blogs.wsj.com/marketbeat/2008/07/14/the-bailout-bonanza-scorecard/[/url]

  7. #7
    I agree 100%...banks are crying because they lended to high risk borrowers, and hang on for this one, those high riskers are defaulting! Shock and surprise:eek:

    I feel for ya buddy, and everytime I see the real estate signs go up, I cringe for the same reasons you do. While the turn in housing is noticeable around here, it hasn't fallen apart...yet. The houses are selling a bit cheaper though, and stay on the market a little longer than they used to.

    Here's the only saving grace that might bail out your neighborhood. I don't know how bad it is there, or how much they'll cut prices, but you would think banks learned their lesson and will lend to better qualified buyers. Good luck!

  8. #8
    If interest rates start going thru the roof it may get worse. We had our house on the market for a months and dropped the price twice the realtor wanted us to drop it again, we just pulled it off the market!

  9. #9
    Jets Insider VIP
    Join Date
    Feb 2006
    Location
    Van down by the river
    Posts
    23,195
    It doesn't matter who loaned money to what unqualified person. Every vinyl siding and partical board sh*thole built has been overpriced since the mid 1990's. You can't take a collection of parts worth 45,000, throw them together and then "POOF"! have it be worth 300,000. Where the hell did that money come from? Thin freaking air?

    Sh*tholes....

  10. #10
    JetsInsider.com Legend
    Join Date
    Dec 2005
    Location
    Jets Stadium Section 246
    Posts
    37,076
    No downpayments, negative amortization, Alt-A loans, etc. were the real demise here. People who put down 20% are mostly still in their homes and won't stop paying the mortgage.

    The idea that "anyone who wants to own a home in America should be able to" is complete idiocy. It is not a right. It should be that "anyone who can afford a home in America should be able to own one."

    A shift to encouraging home ownership for those not equipped for it was plain stupid.
    Last edited by jetstream23; 07-21-2008 at 02:20 PM.

  11. #11
    Stay classy Countrywide.

    [url]http://ag.ca.gov/newsalerts/release.php?id=1582[/url]

    [QUOTE]Countrywide operated an extensive telemarketing operation in which it touted its expertise and claimed to find the best financial options for customers. The company’s deceptive marketing practices, designed to sell costly loans while hiding or misrepresenting the terms and dangers, included:

    • Encouraging borrowers to refinance or obtain financing with complicated mortgage instruments like hybrid adjustable rate mortgages or payment option adjustable mortgages
    • Marketing complex loan products by emphasizing a very low “teaser” rate while misrepresenting the steep monthly payments, increased interest rates and risk of negative amortization
    • Dramatically easing underwriting standards to qualify more people for loans
    • Using low or no-documentation loans which allowed no verification of stated income
    • Hiding total monthly payment obligations by selling homeowners a second mortgage in the form of a home equity line of credit
    • Making borrowers sign a large stack of documents without provider time to read the paperwork
    • Misrepresenting or hiding the fact that loans had prepayment penalties

    The company pushed these loans by emphasizing a low “teaser” or initial rate, often as low as 1 percent for pay option ARMs. Countrywide obscured the negative effects--including rising rates, prepayment penalties and negative amortization--which would inevitably result from making minimum payments or trying to refinance. The company misrepresented or hid the fact that borrowers who obtained its home loans--including exploding adjustable rates and negatively amortizing loans--would experience dramatic increases in monthly payments.[/QUOTE]


    [QUOTE=jetstream23;2636392]No downpayments, negative amortization, Alt-A loans, etc. were the real demise here. People who put down 20% are mostly still in their owns and won't stop paying the mortgage.

    The idea that "anyone who wants to own a home in America should be able to" is complete idiocy. It is not a right. It should be that "anyone who can afford a home in America should be able to own one."

    A shift to encouraging home ownership for those not equipped for it was plain stupid.[/QUOTE]

  12. #12
    I hate to sound like "that guy" but the housing crisis was beneficial to me...


    I just finished a short sale purchase

    I just closed on a house in an area that 5-10 years ago I would not have been able to afford...bought a house originally listed at 489,000 for 305,000.

    I got a great rate (5.35%) and I put 20% down (didn't pay to put more, so I am going to push to have it paid off in 15 years or less.)

    I got very lucky and bought at the right time....

    houses were overpriced a few years ago...and people used their equity like an atm..

    these people just put way too much work into this house..and got in too deep....living above their means.....

  13. #13
    Hall Of Fame
    Join Date
    Jan 2006
    Location
    Not bababooey and I resent the implication
    Posts
    21,029
    [QUOTE=SanAntonio_JetFan;2635376]I put those two words in quotes because I never consider myself a victim and the word crisis is thrown around so often these days.


    I live in an area of San Antonio that has one of the highest foreclosure rates. I've only lived in my neighborhood for 2˝ years now and there are realtor signs and foreclosure signs all over the place. What I fear most is that the banks, who definitely don't want to have these properties on their books, will drastically slash prices to get rid of them. Then I'm left with neighbors who may not have originally been able to afford this neighborhood and a reduction in my own property value.


    People like me, who were financially qualified to borrow the money, and who have been responsible home owners are basically screwed. Those damn mortgage brokers who lent money to anyone that asked, should be prosecuted. Don't get me wrong, the borrowers are to blame too, but they shouldn't have been loaned the money in the first place.

    I remember years ago, if you didn't have a sizeable down-payment, a good credit score, and a salary that was a certain number of multiples higher than your debts, you weren't allowed by buy a home. :mad:[/QUOTE]

    Agreed. :steamin:

    I really would like them to fine mortgage brokers heavily and use that money for the bailouts. These guys made boatloads of money originating bad loans for banks often times with dummied up paperwork.

  14. #14
    All League
    Join Date
    Oct 2005
    Location
    Forked River, NJ
    Posts
    4,747
    [quote=SanAntonio_JetFan;2635376]I put those two words in quotes because I never consider myself a victim and the word crisis is thrown around so often these days.


    I live in an area of San Antonio that has one of the highest foreclosure rates. I've only lived in my neighborhood for 2˝ years now and there are realtor signs and foreclosure signs all over the place. What I fear most is that the banks, who definitely don't want to have these properties on their books, will drastically slash prices to get rid of them. Then I'm left with neighbors who may not have originally been able to afford this neighborhood and a reduction in my own property value.


    People like me, who were financially qualified to borrow the money, and who have been responsible home owners are basically screwed. Those damn mortgage brokers who lent money to anyone that asked, should be prosecuted. Don't get me wrong, the borrowers are to blame too, but they shouldn't have been loaned the money in the first place.

    I remember years ago, if you didn't have a sizeable down-payment, a good credit score, and a salary that was a certain number of multiples higher than your debts, you weren't allowed by buy a home. :mad:[/quote]

    I don't know how old you are, but if you recall, we had a similar situation in the late 80's. If your situation allows you to wait it out, the cyclic real estate market will return and prices will once again rise- beyond where they were prior to the downturn.

    For those people that bought when prices were at their highest, they are likely in a negative equity situation at this time. I feel for them, since they are victims of the economy through no fault of their own. I hope you aren't one of them.

    For all others, the only thing to do is wait it out. The whole situation sucks, but it will get better at some point.

  15. #15
    Hall Of Fame
    Join Date
    Oct 2007
    Location
    Dallas Via Brooklyn NY
    Posts
    3,159
    San Antonio why dont you buy a few of the houses below market value, rent them out, then sell them for a profit when the market turns back upward. Then move the hell outta there. Pays to think Positive. ;)

  16. #16
    the crisis is on the credit side - no one cares about the home owners. when banks start failing, that's a crisis.

  17. #17
    [QUOTE=SanAntonio_JetFan;2635376]I put those two words in quotes because I never consider myself a victim and the word crisis is thrown around so often these days.


    I live in an area of San Antonio that has one of the highest foreclosure rates. I've only lived in my neighborhood for 2˝ years now and there are realtor signs and foreclosure signs all over the place. What I fear most is that the banks, who definitely don't want to have these properties on their books, will drastically slash prices to get rid of them. Then I'm left with neighbors who may not have originally been able to afford this neighborhood and a reduction in my own property value.


    People like me, who were financially qualified to borrow the money, and who have been responsible home owners are basically screwed. Those damn mortgage brokers who lent money to anyone that asked, should be prosecuted. Don't get me wrong, the borrowers are to blame too, but they shouldn't have been loaned the money in the first place.

    I remember years ago, if you didn't have a sizeable down-payment, a good credit score, and a salary that was a certain number of multiples higher than your debts, you weren't allowed by buy a home. :mad:[/QUOTE]

    you have the Federal Reserve banking system to thank
    "banking institutions are more dangerous to our liberties than standing armies" -Thomas Jefferson
    "our financial system is a false one and a huge burden on the people...the worst legislative crime of the ages is perpetrated by the Federal Reserve Act" -Rep. Charles Lindbergh Sr, member of House banking and currency committee
    Last edited by JetsCrazey; 07-21-2008 at 12:30 PM.

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •  

Follow Us