Ramhock Posted August 15, 2007 Share Posted August 15, 2007 A lead from yesterday was looking to get out of her neg am ARM and back into a fixed situation. Her income was 54K(no other income), the mortage was 251K, originally 243K! You don't need Encompass to tell you the D/I is too high for any product these days. Turns out she bought her dream home 4 years ago getting into a 5.5%, 30-year fixed, 185K loan. Last year, she called a broker because she wanted to do some renovations and was talked into a 2/28, because I am sure that is the only way she could qualify for the cash out. A responsible broker would have explained to her that she had a great loan and should save up for her renovations. In a 30 minute turndown, I told her yesterday to sell her house. There was much crying. For a fee of a few thousand, they basically caused this woman to lose her home. This is a prime example of what types of loans will cause grief for a few million citizens, in addition to all related industries. Quote Link to comment Share on other sites More sharing options...
The Holy Roller Posted August 15, 2007 Share Posted August 15, 2007 Once this whore pulled a knife on me while I.... Oh, my bad. You wanted a horror story. Seriously, what a scumbag thing to do to a person. Quote Link to comment Share on other sites More sharing options...
geeteebee Posted August 15, 2007 Share Posted August 15, 2007 That sucks, but somebody with an income of $54k should never have had a mortgage of $243k in the first place. There is no way she should have ever qualified for the original mortage in the first place. Quote Link to comment Share on other sites More sharing options...
dmarc117 Posted August 15, 2007 Share Posted August 15, 2007 once again, both parties are in the bad. the scumbag mortgage co deserves to go bankrupt. but they wont cause probably a reseller. the lady had to know that there was no way she could afford that house on her income. if it looks too good, probably is. Quote Link to comment Share on other sites More sharing options...
Ramhock Posted August 15, 2007 Author Share Posted August 15, 2007 (edited) That sucks, but somebody with an income of $54k should never have had a mortgage of $243k in the first place. There is no way she should have ever qualified for the original mortage in the first place. Original was 185K. Edited August 15, 2007 by Ramhock Quote Link to comment Share on other sites More sharing options...
DemonKnight Posted August 15, 2007 Share Posted August 15, 2007 Thats a horrible thing to do to someone. What would payments on a 185k loan be? My landlord is raising my rent $100 for ths second year in a row and I've only lived there 2 years. Needless to say, it would be nice to buy something. Quote Link to comment Share on other sites More sharing options...
Dbaxx Posted August 15, 2007 Share Posted August 15, 2007 Unfortunately, it's going to get worse and you are going to see more and more of those. We have seen a lot of adjustments being made and there is NO way it's happening... Quote Link to comment Share on other sites More sharing options...
Ursa Majoris Posted August 15, 2007 Share Posted August 15, 2007 (edited) Original was 185K. That still must have been pushing the limit but at least it was probably manageable. While I sympathize with the woman to a certain extent, you have to ask if she ever got past Grade 2 math. Caveat emptor - you have to know what you're getting in to. Any sensible person would ask what happens after 2 years on a 2/28 and if the answer isn't certain, you don't sign. If she's a victim of anything, she's a victim of her own "I want it now" mentality - the renovations she wanted should have waited, which is what you said. My place needs a new kitchen, a bathroom refit, a new driveway, a patio extension and a few other things. All of them are going to wait until I have the cash even though I have six figures worth of equity. Edited August 15, 2007 by Ursa Majoris Quote Link to comment Share on other sites More sharing options...
AtomicCEO Posted August 15, 2007 Share Posted August 15, 2007 You should tell her to stop being such a selfish bitsh and get a husband to take care of her financially in return for her housecleaning labor and sex. If she's got to hop up on the treadmill... go ahead and get it started now. Some people really don't see the answer when it's so obvious. Quote Link to comment Share on other sites More sharing options...
Coffeeman Posted August 15, 2007 Share Posted August 15, 2007 If she's got to hop up on the treadmill... is this a euphamism for a sex thing? please 'splain.... Quote Link to comment Share on other sites More sharing options...
polksalet Posted August 15, 2007 Share Posted August 15, 2007 We go to our banker/broker. Hi, you can borrow up to $325k on your wife's income. Ok, we want to borrow $80k Why just $80k? It is the house we want. You can afford so much more!! You are wrong. No really P, let's look at some things. Banker, do you make as much as we do? No Do you own a $300k house? No cool Quote Link to comment Share on other sites More sharing options...
Big Country Posted August 15, 2007 Share Posted August 15, 2007 is this a euphamism for a sex thing? please 'splain.... It's a euphamism for her getting her fat arse off the couch, her hand out of the nag of the Doritos, and up on a treadmill to lose the jiggle in the middle so she ca nget a man to pay for her. Now, I on the other hand want to wirk it the opposite... find me a rich woman to pay my way....... Quote Link to comment Share on other sites More sharing options...
polksalet Posted August 15, 2007 Share Posted August 15, 2007 Now, I on the other hand want to wirk it the opposite... find me a rich woman to pay my way....... There is iron in your words. Quote Link to comment Share on other sites More sharing options...
The Irish Doggy Posted August 15, 2007 Share Posted August 15, 2007 There is iron in your words. ... for all Comanche to see. Quote Link to comment Share on other sites More sharing options...
hoopsnakes Posted August 15, 2007 Share Posted August 15, 2007 What are the current rates (30 year fixed) at and where do you guys see them going? Quote Link to comment Share on other sites More sharing options...
Missoula Griz Posted August 15, 2007 Share Posted August 15, 2007 What are the current rates (30 year fixed) at and where do you guys see them going? 30 year is around 6.5%. I dont see a big change in rates. Too much uncertainty in the markets currently. Quote Link to comment Share on other sites More sharing options...
alexgaddis Posted August 15, 2007 Share Posted August 15, 2007 30 year is around 6.5%. I dont see a big change in rates. Too much uncertainty in the markets currently. +1...6.5% Here's a horror story, my boss is a real douchebag and I don't get paid enough... Quote Link to comment Share on other sites More sharing options...
Missoula Griz Posted August 15, 2007 Share Posted August 15, 2007 +1...6.5% Here's a horror story, my boss is a real douchebag and I don't get paid enough... Very tough market Quote Link to comment Share on other sites More sharing options...
Big Country Posted August 15, 2007 Share Posted August 15, 2007 +1...6.5% Here's a horror story, my boss is a real douchebag and I don't get paid enough... So, you're a street ho's hooha? Quote Link to comment Share on other sites More sharing options...
The Holy Roller Posted August 15, 2007 Share Posted August 15, 2007 It's a euphamism for her getting her fat arse off the couch, her hand out of the nag of the Doritos, and up on a treadmill to lose the jiggle in the middle so she ca nget a man to pay for her. Now, I on the other hand want to wirk it the opposite... find me a rich woman to pay my way....... Worked for me. But lately she's been interested in buying a treadmill....for me! Quote Link to comment Share on other sites More sharing options...
proninja Posted August 16, 2007 Share Posted August 16, 2007 A lead from yesterday was looking to get out of her neg am ARM and back into a fixed situation. Her income was 54K(no other income), the mortage was 251K, originally 243K! You don't need Encompass to tell you the D/I is too high for any product these days. Turns out she bought her dream home 4 years ago getting into a 5.5%, 30-year fixed, 185K loan. Last year, she called a broker because she wanted to do some renovations and was talked into a 2/28, because I am sure that is the only way she could qualify for the cash out. A responsible broker would have explained to her that she had a great loan and should save up for her renovations. In a 30 minute turndown, I told her yesterday to sell her house. There was much crying. For a fee of a few thousand, they basically caused this woman to lose her home. This is a prime example of what types of loans will cause grief for a few million citizens, in addition to all related industries. I'm going to assume taxes/insurance run about $250 a month. I have no way of knowing if that's accurate or not. $256k at 6.5% on a 30 year interst only is 1386. Add taxes/insurance and it's $1636. $54k a year is $4500/month. That's a 36% front end ratio, which isn't out of the ordinary at all. As long as she can verify her income and has decent credit and some sort of reserves, that sounds like a DU approval waiting to happen on a 30 year interest only provided she's under 80% LTV. If she's got a 680 FICO, she can still go stated income/assets with conforming rates up to 95%. Now, she'll be in an interst only loan, but it will have a fixed payment for 10 years, and will turn into a 20 year fixed in month 121. It's a great product. Her payment will jump by 40% or so, but if you take inflation into account, a dollar today is going to be about a dollar forty in ten years, so she'll have just about the same net cost when all is said and done in ten years. This doesn't add up to me. Does she have a lot of other debt service? Why not sell her car instead of her home? Why not take out a LOC behind this new loan to reduce revolving debt payments (don't put 'em on the first to avoid the cash out hit.) Also, a 2/28 is not a neg am loan, that refers to a two year fixed interest rate and a 28 year variable rate. 95% of neg am loans have a 5 year neg am period where the payment jumps 7.5% per year. I think there's hope here, unless you're not telling the entire story. Soemeone making $54k can afford a $256k mortgage, I see it all the time. There's got to be something else. This doesn't seem like doom and gloom yet. Oh, and that @#$@# broker who didn't tell her to just get a HELOC needs to @#$@ himself in the 2#$@# Quote Link to comment Share on other sites More sharing options...
proninja Posted August 16, 2007 Share Posted August 16, 2007 What are the current rates (30 year fixed) at and where do you guys see them going? Anybody that tells you what they expect to happen in the mortgage market and with rates with any certainty is either God, delusional, or a liar. Quote Link to comment Share on other sites More sharing options...
proninja Posted August 16, 2007 Share Posted August 16, 2007 That still must have been pushing the limit but at least it was probably manageable. While I sympathize with the woman to a certain extent, you have to ask if she ever got past Grade 2 math. Caveat emptor - you have to know what you're getting in to. Any sensible person would ask what happens after 2 years on a 2/28 and if the answer isn't certain, you don't sign. If she's a victim of anything, she's a victim of her own "I want it now" mentality - the renovations she wanted should have waited, which is what you said. My place needs a new kitchen, a bathroom refit, a new driveway, a patio extension and a few other things. All of them are going to wait until I have the cash even though I have six figures worth of equity. Yeah, at the end of the day she signed on the dotted line and she made the choice, and if she didn't understand the consequences it's not the loan's fault, nor is it the broker's fault. He may have done her no favors whatsoever, and pushed her into a product she didn't need - which I find repulsive as it gives my industry a bad (deserved) reputation. Still, at the end of the day, she's responsible for her own financial choices. Period. Speaking of grade 2 math, I'm still having trouble seeing how a single person can't afford a $1700 mortgage with a $4500 income. Take out 25% for taxes and insurance, and she's left with $3375. She's got $1675 left. Food - $200 Fun - $200 Insurance - $50 Gas - $100 Clothes - $100 Cell - $50 Internet - $50 Cable TV - $50 Investment - $500 Other stuff - $300 More other stuff - $75 Total - $1675 I'm sure I missed a few things, but I've got $375 to cover 'em. Also, there's some fluff in there. I'm totally shuke at how this is an "end of the world" type situation. Quote Link to comment Share on other sites More sharing options...
AtomicCEO Posted August 16, 2007 Share Posted August 16, 2007 I would never dream of trying to cover a 256K mortgage with a 54K salary. Your numbers are way off. $50 for insurance? What insurance? 25% for taxes? What country do you live in? My house was 186 and my monthly is 1300 at 5%. How is a 256K mortgage at 6% only $300 more? That was a dumb loan to make, and a dumb loan to take. Quote Link to comment Share on other sites More sharing options...
twiley Posted August 16, 2007 Share Posted August 16, 2007 That sucks, but somebody with an income of $54k should never have had a mortgage of $243k in the first place. There is no way she should have ever qualified for the original mortage in the first place. Agree 100% Quote Link to comment Share on other sites More sharing options...
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