Wow, 175,000 foreclosures per month in the US. I guess 107% financing wasn't such a good idea after all. The rich will buy up these bargain properties which will lead to a further separation of the haves and have nots. The government has failed doing its job yet again - distribution of wealth.
[A href="jvascript: window.close()"][img class=image title="greatstory.jpg Click image to close this window" height=303 alt="" src="vny!://www.picpop.com/gallery/albums/userpics/0822/greatstory.jpg" width=450 border=0][/A].
The government has failed doing its job yet again - distribution of wealth.
LOL, THE GOVERNMENT IS A MACHINE MANAGING THE OPPRESSION OF ONE CLASS BY THE OTHER, PLEASE GET REAL.
ANYWAY, WHERE'S YOUR SOURCE, I WOULD LOVE TO READ THAT NEWS. PLEASE POST A LINK.
(sorry not shouting' i just have to work in caps lock now)
Is the previous poster really that dumb?
Is the previous poster really that dumb?
stretchedout wrote:
Wow, 175,000 foreclosures per month in the US. [FONT style="BACKGROUND-COLOR: #ffff00"] I guess 107% financing wasn't such a good idea after all. [/FONT]The rich will buy up these bargain properties which will lead to a further separation of the haves and have nots. The government has failed doing its job yet again - distribution of wealth.[/DIV]
How is the homeowner hurt? Property is financed 107%!!!!!.........therefore it means no money downed....the 7% financed the closing costs....ie. no out of pocket costs. Most likely got hell of good financing deal (like interest only and adjustable for the first few years); paid no rent; wrote off interest and property taxes paid in yearly income tax returns; probably able to write off losses due to foreclosure also.
The mortgage companies are the losers......and they can blame themselves for that for offering these creative mortgage loans
The people who have to leave their homes are the losers!
I don't fully understand all the ins and outs of mortgages etc. .....but how can the mortgage company ever be the loser, 49er? Exactly what did they lose?
They aren't - 49er has no idea what he is writing about!
P.C. wrote:
I don't fully understand all the ins and outs of mortgages etc. .....but how can the mortgage company ever be the loser, 49er? Exactly what did they lose?[/DIV]
the property is collateral for the loan. Initially, the mortgage company figured that the value in the property was enough to cover the loan and expenses........that's why they send out their assessors before approving the loan. If the homeowner walks away, the mortgage is left holding the collateral which is now worth less then before.
Observer wrote:
They aren't - 49er has no idea what he is writing about!
The original poster quoted US statistics........and thats what my comments refer to. Canadian mortgage transactions may differ.[/DIV]
We can't write off our primary residence or our property taxes :(
If we could, we'd be out spending money like the Americans.
yup and you'd be in debt too, living in denial thinking the economy is doing awesome!
the property is collateral for the loan. Initially, the mortgage company figured that the value in the property was enough to cover the loan and expenses........that's why they send out their assessors before approving the loan. If the homeowner walks away, the mortgage is left holding the collateral which is now worth less then before.
Let me get my pea-like brain around this....lol
The mortgage company doesn't actually give a loan for the purchase of the property (as in cold hard cash.....all paperwork.....yes, no?
The mortgage company doesn't actually own the property that the purchaser is mortgaging....yes, no?
If the homeowner walks away, the mortgage company now owns the property...yes, no?
Why is the property necessarily worth less than before? Could it not just as easily be worth more than before?
Don't they receive money monthly that they can now get all over again for the same property?
Where is the loss to the mortgage company ?
I'm still confused.
Lil Me wrote:
We can't write off our primary residence or our property taxes :(
If we could, we'd be out spending money like the Americans.
...... and making a house your residence for a total of 24 months in the last 5 years....a couple filing jointly don't have to pay taxes for the first $500K of capital gains. Life is sweet!!!
and y'all can use your cold, hard cash to pay your medical bills!!!!
my medical bills suck up money like no tomorrow.
P.C. wrote:
The mortgage company doesn't actually give a loan for the purchase of the property (as in cold hard cash.....all paperwork.....yes, no?
Yes. Transaction is handled by escrow company. They verify title of the property is free of liens, etc. They collect money from the lender and buyer and pay the seller. They draw up the property deed and record it with the county
The mortgage company doesn't actually own the property that the purchaser is mortgaging....yes, no?
Yes. the lender is recorded in the deed. After the loan is paid off the lender draws up a conveyance to be recorded with the county. The homeowner is provided a copy of the county stamped conveyance after recorded. If the property is sold before the loan is paid off the escrow company will issue them a check to pay off the loan.
If the homeowner walks away, the mortgage company now owns the property...yes, no?
Yes. Thats what foreclosure is.........its all spelled out in the loan contract. They get to dispose off the property and whatever is left after they deducted the loan balance and expenses incurred is returned to you
Why is the property necessarily worth less than before? Could it not just as easily be worth more than before?
Property value is based on what price someone else is willing to pay to buy your property. When times were good there were buyers waiting in line to submit proposals. Properties were selling 20%-30% over the asking price in my area last year
Don't they receive money monthly that they can now get all over again for the same property?
Where is the loss to the mortgage company ?
Investors buy properties planning to sell after a year or two ..... gambling that values will go up 20-30%. They minimize putting out their own money. What better way to make $200K - $300K in 15-24 months on a $1 million property with someone else money!
I'm still confused. Clear as mud?
Lil Me wrote:
and y'all can use your cold, hard cash to pay your medical bills!!!!
Nope.........I will use a small amount of my cold hard cash to purchase health insurance!!
All that gets me is a 4hr wait in an 'urgent care' where 5 people are waiting with me for care as well.
Oh and they've botched surgeries before on me too. And I've got the 'best' hospital in the country apparently. lol
Thanks 49er.
Although it's not crystal clear.....it's clearer.......than mud.
Is this your line of work, or just very knowledgeable about these things ?
No....its not my line of work. Just knowledge from past transactions and shoping for loans
many serious homeowners...ie. not the investors...... bought homes with the best of intentions. They see home prices going up so fast that they felt they had to jump in to participate in the American dream.
A conventional loan on a $1 million loan.....30 year 6.5% fix rate is a monthly payment of $6,300. To qualify requires a monthly gross income of $19,000 and be debt free at the time of the loan application. Many folks will not qualify........end of story!
Lenders then come up with flexible rate loans with a very low first year introductory rate offer.....like 2%. Many folks now qualify because monthly payment on the same loan amount is now $3,700. All they need is a monthly gross income of $11,100. But after the first year, monthly payment more than doubles.......they struggle for a few months and realising they cannot even break even by selling the property they are forced into foreclosure.
Hmm... it seems that for a lot the dream is over temporarily.
Whatever that means?
Nobody would expect you to understand anything - lol! The AMERICAN DREAM dumbass!