Pages: 1 2

 

2009-01-23 11:53:44
cpt.fass1
The Cap'n Can Make it Hap'n
+329|6999|NJ
OK so I'm in the mortgage business and very ethical.. Ask ATG I've given him tips. I will always try to do what's best for my clients, I'm expensive to use but that's because I'm good at my job.

So we've been working on a loan mod for a person who works in our office. Guys got 500 credit scores and a mortgage late(you have to be late to be considered) here's what he gets... A 4.75 interest rate for the first year, a 4.875 rate for the second, and a 5% fixed at the third year for the rest of his loan.. Closing cost are 0% and they take the principle and the late charges on top after giving him two months missed payments.

Where as an other client we have who has 700 scores never been late on her mortgage, full documentation, good LTV and has to pay about 6-8 thousand in closing cost (escrow, title insurance, etx..) and guess the rate? It's a 5.5.

Yes that's right the person who is responsible and making payments has to pay to get a worse rate and the guy who isn't responsible gets the better deal.. I understand that the banks want to make the principle + the rate on the gentleman but shouldn't the borrower who has proven them self get a better rate?

I'm getting so feed up with this shitty business.
2009-01-23 12:17:41
El Beardo
steel woolly mammoth
+150|6024|Gulf Coast

I have always been very careful when making decisions that could negatively affect my credit. Reading things like that feel like a kick in the balls and knowing that the careless end up better off is adding insult to injury tbh.

Last edited by DrPeePeeFace (2009-01-23 12:26:48)

Important
2009-01-23 12:31:29
ATG
Banned
+5,233|6833|Global Command
You don't understand: the banks want everybody to fail.

The more that do, the more funny money they get from the fed, no?

And remember, not everybody in this situation was lazy and stupid and under-qualified. Some have had the rug pulled out from underneath them.
2009-01-23 12:44:13
El Beardo
steel woolly mammoth
+150|6024|Gulf Coast

ATG wrote:

And remember, not everybody in this situation was lazy and stupid and under-qualified. Some have had the rug pulled out from underneath them.
I think most people's credit troubles are self inflicted.
Important
2009-01-23 12:53:31
cpt.fass1
The Cap'n Can Make it Hap'n
+329|6999|NJ
I'm sitting here with a client right now that's gotten a paycut for 50% of his income.. So how is his credit troubles, self inflicted.. Oh and he bought his house and is trapped into it..
2009-01-23 13:10:04
El Beardo
steel woolly mammoth
+150|6024|Gulf Coast

cpt.fass1 wrote:

Yes that's right the person who is responsible and making payments has to pay to get a worse rate and the guy who isn't responsible gets the better deal.. I understand that the banks want to make the principle + the rate on the gentleman but shouldn't the borrower who has proven them self get a better rate?
Sounded like your were comparing a responsible consumer to one that wasn't. I commented on how frustrating that can be from the POV of someone who has been responsible.


cpt.fass1 wrote:

I'm sitting here with a client right now that's gotten a paycut for 50% of his income.. So how is his credit troubles, self inflicted.. Oh and he bought his house and is trapped into it..
Then you kind of shifted gears on me don't ya think?
Important
2009-01-23 13:18:01
ATG
Banned
+5,233|6833|Global Command

DrPeePeeFace wrote:

ATG wrote:

And remember, not everybody in this situation was lazy and stupid and under-qualified. Some have had the rug pulled out from underneath them.
I think most people's credit troubles are self inflicted.
Whenever you get around to moving out of Mommies house...


Nevermind.

Two years ago your statement may have been true, but now you just sound like an ignorant little twat who is typing on a computer somebody else probably paid for.
2009-01-23 13:19:31
cpt.fass1
The Cap'n Can Make it Hap'n
+329|6999|NJ
I'm not totally un-compassionite.. I understand that you can get into bad sit's, it's just going to push people into worse sits if they allow good borrowers good or better benifits..
2009-01-23 13:28:33
ATG
Banned
+5,233|6833|Global Command
I agree that those now solid should have a better deal than the fiscal refuges.
2009-01-23 14:35:36
cpt.fass1
The Cap'n Can Make it Hap'n
+329|6999|NJ
Yeah it really just goes to show how irresponsable lending is making this country go downhill and on top of that how the rich who were born rich probably shouldn't be making the rules..
2009-01-23 14:45:22
Varegg
Support fanatic :-)
+2,206|7114|Nårvei

I totally agree with you on the interest rates, the reason however that there is a difference and the "bad" customer gets a better deal is because the bank is better off getting at least some money of the "bad" customer rather than nothing at all, so in fact the "good" customer helps the bank so they can afford to have some "bad" customers ... and in the given situation that is understandable but not fair ...
Wait behind the line ..............................................................
2009-01-23 15:24:35
Turquoise
O Canada
+1,596|6709|North Carolina

ATG wrote:

You don't understand: the banks want everybody to fail.

The more that do, the more funny money they get from the fed, no?
Pretty much...
2009-01-23 20:23:45
lowing
Banned
+1,662|6955|USA

cpt.fass1 wrote:

OK so I'm in the mortgage business and very ethical.. Ask ATG I've given him tips. I will always try to do what's best for my clients, I'm expensive to use but that's because I'm good at my job.

So we've been working on a loan mod for a person who works in our office. Guys got 500 credit scores and a mortgage late(you have to be late to be considered) here's what he gets... A 4.75 interest rate for the first year, a 4.875 rate for the second, and a 5% fixed at the third year for the rest of his loan.. Closing cost are 0% and they take the principle and the late charges on top after giving him two months missed payments.

Where as an other client we have who has 700 scores never been late on her mortgage, full documentation, good LTV and has to pay about 6-8 thousand in closing cost (escrow, title insurance, etx..) and guess the rate? It's a 5.5.

Yes that's right the person who is responsible and making payments has to pay to get a worse rate and the guy who isn't responsible gets the better deal.. I understand that the banks want to make the principle + the rate on the gentleman but shouldn't the borrower who has proven them self get a better rate?

I'm getting so feed up with this shitty business.
Ok I gotta question,

We were talking about this at work the other night, the following idea came up I would like to know if it is advantagous.

If a person had perfect credit and a mortgage that he is now upside in, could he buy a new house at a rock bottom price now, and let his current over valued and over mortages house go back to the bank?

What would be the worst thing that could happen besides your credit is bad for 7 years and you just merely join the club.

COuld they put a lean on your new home to cover the difference of what the bank lost on your old home?


would this be a bad move?

please list any other pros or cons that I haven't thought of.
2009-01-23 22:27:51
Burwhale
Save the BlobFish!
+136|6526|Brisneyland

lowing wrote:

Ok I gotta question,

We were talking about this at work the other night, the following idea came up I would like to know if it is advantagous.

If a person had perfect credit and a mortgage that he is now upside in, could he buy a new house at a rock bottom price now, and let his current over valued and over mortages house go back to the bank?

What would be the worst thing that could happen besides your credit is bad for 7 years and you just merely join the club.

COuld they put a lean on your new home to cover the difference of what the bank lost on your old home?


would this be a bad move?

please list any other pros or cons that I haven't thought of.
I am not an expert but if you are buying a new place using the equity from your old home, dont you have to get your old home re-valued first. If its value has gone down with the rest of the market, then you may not have the equity to buy the cheaper house. Thats if I am getting what you are saying. If you had the equity in your home, I guess it may work, unles they can chase after your assets when you default on your loan. You could always put it in your wife/kids name I guess.
2009-01-24 01:15:24
HollisHurlbut
Member
+51|6301
I think he's suggesting, however you manage to buy the second home, you let the first one slide into arrears because the mortgage is so much more than the house is now worth.

I'm think anyone who could qualify for a second mortgage for a second home, even with perfect credit, is making so much money that the mortgage on the first home isn't putting too much of a crimp on their lifestyle in the first place.
2009-01-24 02:10:11
Dilbert_X
The X stands for
+1,817|6409|eXtreme to the maX

Lowing wrote:

If a person had perfect credit and a mortgage that he is now upside in, could he buy a new house at a rock bottom price now, and let his current over valued and over mortages house go back to the bank?
Yes, providing he bought for cash and never expected to get a mortgage again.
Not sure if the bank could sue to seize his second home to recover some of its losses on the first home.
Fuck Israel
2009-01-24 03:27:47
lowing
Banned
+1,662|6955|USA

HollisHurlbut wrote:

I think he's suggesting, however you manage to buy the second home, you let the first one slide into arrears because the mortgage is so much more than the house is now worth.

I'm think anyone who could qualify for a second mortgage for a second home, even with perfect credit, is making so much money that the mortgage on the first home isn't putting too much of a crimp on their lifestyle in the first place.
Perhaps, but it is still stupid to pay 265,000 dollars plus interest for a home that is worth only 200,000 dollars.  SO why not use your perfect credit, go buy 300,000 dollar home that is now selling for 200,000 dollars, let your over valued home go back to the bank, and sit on your new home until the market recovers? So, you now have bad credit, just like everyone else, big deal.
2009-01-24 03:30:16
lowing
Banned
+1,662|6955|USA

Burwhale wrote:

lowing wrote:

Ok I gotta question,

We were talking about this at work the other night, the following idea came up I would like to know if it is advantagous.

If a person had perfect credit and a mortgage that he is now upside in, could he buy a new house at a rock bottom price now, and let his current over valued and over mortages house go back to the bank?

What would be the worst thing that could happen besides your credit is bad for 7 years and you just merely join the club.

COuld they put a lean on your new home to cover the difference of what the bank lost on your old home?


would this be a bad move?

please list any other pros or cons that I haven't thought of.
I am not an expert but if you are buying a new place using the equity from your old home, dont you have to get your old home re-valued first. If its value has gone down with the rest of the market, then you may not have the equity to buy the cheaper house. Thats if I am getting what you are saying. If you had the equity in your home, I guess it may work, unles they can chase after your assets when you default on your loan. You could always put it in your wife/kids name I guess.
Well that is just the problem, there is no equity more is owed than what the home is worth. SO screw it give it back to the bank AFTER yo buy a new place to live for a bargain.
2009-01-24 03:56:42
Dilbert_X
The X stands for
+1,817|6409|eXtreme to the maX
Good idea, except you can't usually walk away from a mortgage without declaring yourself bankrupt - not sure how it works in the US.
Fuck Israel
2009-01-24 04:06:48
lowing
Banned
+1,662|6955|USA

Dilbert_X wrote:

Good idea, except you can't usually walk away from a mortgage without declaring yourself bankrupt - not sure how it works in the US.
I don't see why you can't just stop paying yuor mortgage without going bankrupt. Just walk away. My thing is, just do it AFTER you have secured a new place to live BEFORE your credit goes to shit.


I am hoping an expert gets on here and shead some light on this idea. Half the country is getting forclosed on, so what if you join the crowd.
2009-01-24 04:58:30
Varegg
Support fanatic :-)
+2,206|7114|Nårvei

lowing wrote:

Dilbert_X wrote:

Good idea, except you can't usually walk away from a mortgage without declaring yourself bankrupt - not sure how it works in the US.
I don't see why you can't just stop paying yuor mortgage without going bankrupt. Just walk away. My thing is, just do it AFTER you have secured a new place to live BEFORE your credit goes to shit.


I am hoping an expert gets on here and shead some light on this idea. Half the country is getting forclosed on, so what if you join the crowd.
If you join the crowd you will secure the foreclosure of America in general, adding to the amount of already on the brink of bancruptcy will make your society collapse ...

Feeding on others misfortune is a sign of weakness in society in general and will only make it worse, of course it sounds tempting if money is your only God and you have no problems with morality.
Wait behind the line ..............................................................
2009-01-24 05:53:58
lowing
Banned
+1,662|6955|USA

Varegg wrote:

lowing wrote:

Dilbert_X wrote:

Good idea, except you can't usually walk away from a mortgage without declaring yourself bankrupt - not sure how it works in the US.
I don't see why you can't just stop paying yuor mortgage without going bankrupt. Just walk away. My thing is, just do it AFTER you have secured a new place to live BEFORE your credit goes to shit.


I am hoping an expert gets on here and shead some light on this idea. Half the country is getting forclosed on, so what if you join the crowd.
If you join the crowd you will secure the foreclosure of America in general, adding to the amount of already on the brink of bancruptcy will make your society collapse ...

Feeding on others misfortune is a sign of weakness in society in general and will only make it worse, of course it sounds tempting if money is your only God and you have no problems with morality.
I look at in differently, it is the irresponsible and inepts that dragged the responsible down. I see no reason to maintain a loyalty to a defeated morality, when this govt. is going to reward irresponsibility over responsibility.

You are telling me that SOMEONE needs to be responsible, or who are the irresponsible going live off of. If they have no one to mooch from, the country will collapse
2009-01-24 07:01:09
usmarine
Banned
+2,785|7065

"It just doesn't pay to be Fiscally responsible"

works just fine for me.  thanks though.
2009-01-24 07:29:51
ATG
Banned
+5,233|6833|Global Command

lowing wrote:

HollisHurlbut wrote:

I think he's suggesting, however you manage to buy the second home, you let the first one slide into arrears because the mortgage is so much more than the house is now worth.

I'm think anyone who could qualify for a second mortgage for a second home, even with perfect credit, is making so much money that the mortgage on the first home isn't putting too much of a crimp on their lifestyle in the first place.
Perhaps, but it is still stupid to pay 265,000 dollars plus interest for a home that is worth only 200,000 dollars.  SO why not use your perfect credit, go buy 300,000 dollar home that is now selling for 200,000 dollars, let your over valued home go back to the bank, and sit on your new home until the market recovers? So, you now have bad credit, just like everyone else, big deal.
You just explained 1/3rd of the foreclosures.
2009-01-24 07:38:53
Lotta_Drool
Spit
+350|6487|Ireland

lowing wrote:

Dilbert_X wrote:

Good idea, except you can't usually walk away from a mortgage without declaring yourself bankrupt - not sure how it works in the US.
I don't see why you can't just stop paying yuor mortgage without going bankrupt. Just walk away. My thing is, just do it AFTER you have secured a new place to live BEFORE your credit goes to shit.


I am hoping an expert gets on here and shead some light on this idea. Half the country is getting forclosed on, so what if you join the crowd.
If you walk away from your first mortgage and the bank forecloses on it they will still bill you for what they lost on it when they resell the home + realtor fees + penalties.  You will get your new home attached by the bank and your pay check garnished.  Then when you decide to file bankruptcy I don't know what would happen and it would depend on what kind of bankruptcy you file, but I am sure if a judge looked over things you would be in deep dooo dooo.

But yeah, this is a great question because I need to do it.  Fuck credit if I have a house (resonably priced) and I have two cars that are paid off.

 

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