We were told multiple rates, times and months payment amounts. I asked what I thought the plain question of how much our monthly payment was to be told $1900, I could and can afford that. A few months later we make our first payment, and the next one comes for $3700. The $1900 was an interest only number, she never discussed that with us. Sure we could pay 1900 for ever and in 30 years we'd have owed them a million or more dollars.
After refinancing to get out I refused to sign a mortgage that sounded as bad or worse, and someones else with an interest in the house went forward with a re-fi. They lost the house now and and had to go bankrupt. Thankfully I was only on the deed for the re-fi and not the loan, didn't touch me, but I knew it smelled the second time around. Jacob wrote: > My sister worked for a very large, now defunct, mortgage company back in > 2003/2004. > > When she did underwriting, she came across loans that had the borrows income > stated at $30,000 and trying to purchase a $500,000 house. When she rejected > them, she was told it was be best for her to allow them through if she > wished to continue working for them. She quit the following week. > > She said the company was involved in way too much fraud... changing dates, > income, value of houses after papers are signed. Back in early 2004, she > said that if this keep occurring that there will be a disaster in the > future... > > -----Original Message----- > From: Maureen [mailto:[EMAIL PROTECTED] > Sent: Thursday, September 25, 2008 3:19 PM > To: cf-community > Subject: Re: We just wanted to choose a really large number... > > I would say that most people who can afford to pay their housing cost > will pay, but there is always a group of bogus borrowers who will take > advantage of easy credit to either live free . No money down and no > equity in the house - walking away is easy. > > Not really sure what your point is about Keynes. Maybe you could explain. > > On Thu, Sep 25, 2008 at 2:24 PM, Dana <[EMAIL PROTECTED]> wrote: >> bottom line though, they cannot afford the payments? If people can >> afford to pay their housing costs usually they will, yes? If you agree >> with that statement, then ask yourself what Keynes would say. >> >> On Thu, Sep 25, 2008 at 1:33 PM, Maureen <[EMAIL PROTECTED]> wrote: >>> The problem in the mortgage industry is that people applied for loans >>> with an adjustable rate interest that had low initial rates, but now >>> the higher rate and higher payments are kicking in and they can't >>> afford the payments. Credit has tightened and they cannot no longer >>> qualify for refinancing. Add high gas and food prices to that and you >>> have a recipe for disaster. > > > > ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~| Adobe® ColdFusion® 8 software 8 is the most important and dramatic release to date Get the Free Trial http://ad.doubleclick.net/clk;207172674;29440083;f Archive: http://www.houseoffusion.com/groups/cf-community/message.cfm/messageid:270921 Subscription: http://www.houseoffusion.com/groups/cf-community/subscribe.cfm Unsubscribe: http://www.houseoffusion.com/cf_lists/unsubscribe.cfm?user=89.70.5
