Sub-Prime Mortgage Meltdown

[Mavafanculo]

Most the members on EF are not not smart enough to understand you....Just so you know

He's talking about food, right?

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[Spartacus]

People are morons. When the market went crazy a few years ago everyone got in and had no idea what they were doing. There was ZERO cash backing the earnings of most stocks then. When the market tanked everyone was up in arms!
In the last year in Ma. mortgage defaults were up 90%.
How is that possible you ask. The dumbass's were getting adjustable rate mortgages.
People don't seem to research big decisions in their lives. It blows my mind.
I think the new qualification standards for lending should help save people from themselves...

doing well in the bookie forum lately aren't you?

 

[jnevin]

These companies set people up with loans and interest rates that were obviously impossible based on income, etc. They don't plan to be out thousands. They intend to gvie the loans at outrageous interest rates, foreclose, resell the house and do it all over again.

In my experience, some of the loans were not even in default. They would erroneously send them to foreclosure. Then, when the homeowners called and provided PROOF of payments that the lender said were missed, they couldn't even get anyone to review the documentation. Why? Because they hire 19 year olds who didn't even know how to look at the amortization charts.

I've also seen plenty of cases where the lender entered into a forbearance agreement with the homeowner to make up missed payments. So the homeowner would send the lender, for example, $3000 and agree to make up the difference in the arrearage over 6 months along with their monthly mortgage payment. The lender then broke the written forbearance agreement and foreclosed anyway knowing that the homeowner would have no money left to file a counterclaim in the foreclosure to assert the validity of the forbearance agreement.

They are POS. Thank god I don't have to deal with them anymore.

You're talking Household and Ameriquest there. I'd have to agree with you on those, but making a blanket statement about the whole industry is off.

 

[heatherrae]

You're talking Household and Ameriquest there. I'd have to agree with you on those, but making a blanket statement about the whole industry is off.

I probably already said too much. I'm talking about 90% of the lenders out there that do those sorts of loans. They were even nasty for their own attorneys to deal with.

 

[Lestat]

what do you think of reverse mortgages?

 

[heatherrae]

what do you think of reverse mortgages?

Theoretically okay. In practice in the real world, I've seen lots of old people get snowed/scammed.

 

[Lestat]

Theoretically okay. In practice in the real world, I've seen lots of old people get snowed/scammed.

exactly. better ways to leverage the value of your home to get some disposable income

 

[Gymgurl]

He's talking about food, right?

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Food would be more entertaining...