7 replies to this topic

[nimblebear]

They shouldn't have been approved in the first place.

In Detroit, buy a house for the price of a car.

http://www.telegraph.../wdetroit06.xml

[dasein]

nimble, I aagree completely about overextending credit, but OTOH, if someone making 36K pas 20% down on the 240K house, their monthy payments are not over 1200, so with insurance and taxes, that is still less than half the salary - in NYC paying half your salary on rent is the norm, so it is not so bad....I think the old rule of thumb was 5xs the annual salary as a max, and it would not make it under that criteria, but Ive seen people going for 10x their annual salary...of course if you rent out a room as my friend did, you actually make out very well getting a bigger house - she lived rent free with 2 roomates, and sold at a 10x profit. klh

[da_cheif]

They shouldn't have been approved in the first place.

In Detroit, buy a house for the price of a car.

http://www.telegraph.../wdetroit06.xml

detroits a ghetto and been that way for years.......empty lots are appearing rapidly as the city takes down these junkers............the city of detroit is rebuilding from the center outwards....the suburbs of detroit are loaded with palaces........and the suburbs of detroit starts at 8 mile road where the ******** end and the palaces begin and goes out to 30 mile road and beyond....

http://images.google...t...GIC:en&sa=N

[OEXCHAOS]

Didja see the commission the broker got??? This has been a massive theft of fees, I'd say, for the most part. I also predict that there's going to be legislative relief for folks, probably imprudently. What I hope is that a lot of mortgage brokers do some time for fraud. M

[ed rader]

They shouldn't have been approved in the first place.

In Detroit, buy a house for the price of a car.

http://www.telegraph.../wdetroit06.xml

there's no such thing as a $290k mortgage in silicon valley anymore unless you buy a used trailer .

i paid $300k for my house 8 years ago and i can sell it probably for close to $650k now.

it's <900 sq feet, 2 and 1 and almost 60 years old.

what we have here is people making $60k who own homes they paid nearly a million bucks for.

with voo-doo mortgages it's so simple even a caveman can do it .

ed rader

[nimblebear]

nimble,

I agree completely about overextending credit, but OTOH, if someone making 36K pas 20% down on the 240K house, their monthy payments are not over 1200, so with insurance and taxes, that is still less than half the salary - in NYC paying half your salary on rent is the norm, so it is not so bad....I think the old rule of thumb was 5xs the annual salary as a max, and it would not make it under that criteria, but Ive seen people going for 10x their annual salary...of course if you rent out a room as my friend did, you actually make out very well getting a bigger house - she lived rent free with 2 roomates, and sold at a 10x profit.

klh

Wow. I guess i'm way too conservative. My mortgage is twice my salary. I don't like paying a bank any more than I have to. Manageable debt somehow seems prudent. It alllows me to save more and then invest. If you don't have it, then you can't invest it.

[ruffwood]

How do 2 College students in Lubbock TX. get a Mortgage for a $100,000 house. 0 down and no mortgage insurance. I don't know I was amazed, but my daughter and Son in Law did. Luckily they graduated and sold it a year ago, and are now gainfully employed.

[OEXCHAOS]

How do 2 College students in Lubbock TX. get a Mortgage for a $100,000 house. 0 down and no mortgage insurance. I don't know I was amazed, but my daughter and Son in Law did. Luckily they graduated and sold it a year ago, and are now gainfully employed.

I'm going to say that they probably bought that place for less than they were paying for rent.

And I'll bet the mtg. was variable, so perhaps they got a bit lucky, but still it wasn't crazy. They could fairly easily make those payments, even if they had trouble getting jobs in their fields of choice. Crazy is when you loan someone $300K, who can barely make a hokied up interest only payment and when they have little in the way of increased earning power.

If I was a banker, I think I'd have loaned money to college "kids" on a cheap enough property in a good enough market, if I liked their scores (and their parents ) .

Mark