Home Forclosures hit record high

[Louisiana_CRX 5,000+ posts]

Gotta love people who make $30k a year and buy a $300k home. Probably the same people who lease a mercedes too. //content.invisioncic.com/y282845/emoticons/rolleyes.gif.c1fef805e9d1464d377451cd5bc18bfb.gif

Thats not very unusual in this day and time.....

 

[SethPhillips 5,000+ posts]

flip it? sale it?
What is house flipping to you? what is your definition of it?

basicly refurbish the house... make it like new... new roof, floors, walls, all if needed...

sale sale sael..

 

[tommyk90 5,000+ posts]

Thats not very unusual in this day and time.....

The old saying "live within your means" comes to mind...

 

[tommyk90 5,000+ posts]

That's not very American of you.

//content.invisioncic.com/y282845/emoticons/crap.gif.7f4dd41e3e9b23fbd170a1ee6f65cecc.gif

 

[Zakerid 10+ year member]

stupid people buying stuff they can't afford.... it drives me nuts.

 

[squeak9798 5,000+ posts]

stupid people buying stuff they can't afford.... it drives me nuts.

They could afford it.....in the beginning.

Then their ARM began adjusting and their payments have steadily increased several hundred dollars, to the point where they can't afford the "new" payments.

I've talked to more than a few people who've had their payment increase $200-$300 or more in the past few years.

Ofcourse it's their own fault.....getting into something they didn't actually understand.

 

[Flipx99 5,000+ posts]

They could afford it.....in the beginning.
Then their ARM began adjusting and their payments have steadily increased several hundred dollars, to the point where they can't afford the "new" payments.

I've talked to more than a few people who've had their payment increase $200-$300 or more in the past few years.

Ofcourse it's their own fault.....getting into something they didn't actually understand.

But shouldn't the seller have some responsibility in explaining the product they are selling?

 

[IgnoreMe 5,000+ posts]

But shouldn't the seller have some responsibility in explaining the product they are selling?

i guess it depends on who you ask.

some will say the seller has a responsibility to tell you how it works.

while others will say, you need to research the stuff yourself and understand it or dont do it at all.

i know i certainly wouldnt just trust someone right off the batt like that, who IMO, it just trying to get me to sign a paper, with not a care in the world for me after that.

 

[Rmsanger 10+ year member]

I see it from both parties perspective.
On one hand, why would the bank lend the money in the first place if the know they may not collect.

On the other hand, they shouldn't trap customers.

However all banks anticipate prepayment.

2 problems here FLIP:

1) The incentives are no inlined correctly for banking institutions as the salesman, Finance leaders, and CR analysts are all paid and given bonuses on the money being lent out the door.

2) The regulatory agencies whom monitor both the quantity and quality of lending portfolios did not do their job from 1999 - 2004. Lower interest rates caused "free" money to be lent across the US.

Most banks then pooled these loans and sold them off to the market, thus the lending agency was seperated from the risks they have underwritten... Such a flawed system...

We make lending regulations for a reason, when the money was flowing everyone was happy flipping houses and builing new properties. A few people made alot of money and now we are looking to bail out the many whom have lost a portion of it. It shouldn't happen be had both ways. If an institution wants to break lending regulations and become greedy they should have to go bankrupt or pay for their actions...

I guess only in a perfect world... Ron Paul for pres!!!