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View Full Version : 60 minutes....who owns your house?



Qtec
04-05-2011, 04:31 AM
Only in America.

In LA, 37,000 people turned up , some camping outside for more than 2 days!, to try and get their mortgage adjusted.

watch it..15 mins (http://www.cbsnews.com/video/watch/?id=7361572n&tag=contentMain;contentBody)

<div class="ubbcode-block"><div class="ubbcode-header">Quote:</div><div class="ubbcode-body">It's bizarre but, it turns out, Wall Street cut corners when it created those mortgage-backed investments that triggered the financial collapse. Now that banks want to evict people, they're unwinding these exotic investments to find, that often, the legal documents behind the mortgages aren't there. Caught in a jam of their own making, some companies appear to be resorting to forgery and phony paperwork to throw people - down on their luck - out of their homes.

In the 1930s we had breadlines; venture out before dawn in America today and you'll find mortgage lines. <span style='font-size: 14pt'>This past January in Los Angeles, 37,000 homeowners facing foreclosure showed up to an event to beg their bank for lower payments on their mortgage. Some people even slept on the sidewalk to get in line.</span>

So many in the country are desperate now that they have to meet in convention centers coast to coast.

<span style='font-size: 14pt'>In February in Miami, 12,000 people showed up to a similar event. The line went down the block and doubled back twice.</span> </div></div>
read it (http://www.cbsnews.com/stories/2011/04/01/60minutes/main20049646.shtml)


The banks caused a world collapse and the greatest depression in the USA since 1933 and made a fortune doing it.

Now they are hammering the bottom 99% to pay for it.

Q

LWW
04-05-2011, 04:44 AM
And these people could have avoided this all by simply making their payments on time.

Qtec
04-05-2011, 05:26 AM
What does that have to do with the subject of the thread?

I realise that you make 2 posts per minute, so it obviously went over your head.

Just for you.

In their rush to sell high priced mortgages to anyone who would sign a piece of paper, it got so out of hand they skipped the documentation. Even if you are not under foreclosure, the point is the bank can't tell you who owns your mortgage!
So, when you go to the markt tomorrow and come home you might find you possessions on the lawn and the locks changed...even if you own the house outright!

Q.

Gayle in MD
04-05-2011, 05:41 AM
<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: Qtec</div><div class="ubbcode-body">What does that have to do with the subject of the thread?

I realise that you make 2 posts per minute, so it obviously went over your head.

Just for you.

In their rush to sell high priced mortgages to anyone who would sign a piece of paper, it got so out of hand they skipped the documentation. Even if you are not under foreclosure, the point is the bank can't tell you who owns your mortgage!
So, when you go to the markt tomorrow and come home you might find you possessions on the lawn and the locks changed...even if you own the house outright!

Q. </div></div>

62% of foreclosures were the result of illness, and being dropped by health insurance crooks!

The Financial Sector destroyed the economy, not those who were bilked by predatory lenders, who created documents that decieved, intentionally, and massive Wall St. greed, and corruption.

American Corporations are destroying this country, and we're subsidizing them while they're doing it.

G.

LWW
04-05-2011, 06:50 AM
<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: Qtec</div><div class="ubbcode-body">What does that have to do with the subject of the thread?

Q. </div></div>

Everything.

I don't have an OptionARM ... even though I have a credit score in excess of 800 and my income during this heyday would have qualified me for a $2M+ loan ... because I have a brain.

Anyone who takes out a negative amortizing loan at a floating interest rate on their home just because it allows them to have a nicer home upfront is a fool.

Anyone who believes that markets will continue to rise by 20%+ per year for eternity is a fool.

LWW
04-05-2011, 06:51 AM
<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: Gayle in MD</div><div class="ubbcode-body">62% of foreclosures were the result of illness, and being dropped by health insurance crooks!

G. </div></div>

Absolutely fabricated statistic.

LWW
04-05-2011, 07:11 AM
<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: Gayle in MD</div><div class="ubbcode-body">The Financial Sector destroyed the economy, not those who were bilked by predatory lenders, who created documents that decieved, intentionally, and massive Wall St. greed, and corruption.

G. </div></div>

Absolutely false statement.

To get a mortgage in the USA at the time one must:

- File an application, at which point the law requires that a "good faith estimate" disclosing rates, payments, adjustment periods, length of loan, late payment fees, and all closing costs involved.

- Pay for an appraisal of the property.

- Receive an updated GFE upon loan approval.

- Decide whether they wish to lock the rate at approval or let it float until closing.

- Receive another GFE at least 24 hours prior to closing.

- Receive another GFE, which must match the last GFE exactly, at closing.

- Have the closing conducted by a third party.

- Have the third party review the appraised amount, the percentage of appraised value being borrowed, rates, payments, adjustment periods, length of loan, late payment fees, and all closing costs involved.

- Have the right to have one's own attorney at closing and/or review docs.

- Have three days after signing to review the documents and cancel the loan if they desire.

The truth is that with the vast majority of these case what happened is that:

- A false market due to FANNIE/FREDDIE criminality pushed values artificially high.

- People who had a $1,000.00 payment on what had been a $125K home now had a $1K payment on a $175K home.

- People who were struggling because they had a $1K house payment, two $500 car payments on $50K worth of auto debt, and $400 in CC payments on $20K CC debt ... could borrow $175K on the artificial value of the house to pay off the mortgage, both cars, all CC debt, and get $5K cah back to take a vacation at close.

- This swapped $2,400 in monthly debt for $1,700 in monthly debt ... plus $5K in your pocket.

Now, to a family fighting for financial survival ... this could actually make a lot of sense compared to a bankruptcy. Granted, they never should have got in this mess in the first place ... but it tossed them a lifeline, and if they were smart in this scenario they would have banked the $5K as a cushion against hard times.

Sadly, Americans have been raised to believe they can have whatever they want whenever they want it, especially the under 40 crowd.

So, what happened more often than not is that they:

- Blew the $5K on a trip to Disney World.

- Traded in the 2 cars for 2 nicer cars with 2 new $500 payments.

- Took out a second for an extra 10% of the $175K, or another $17.5K.

- Blew the $17.5K on flat screens and iPods and laptops and designer crap.

- Put their family in a deeper debt and payment position than they were in before.

And, then, when the house turned out to have only actually been $125K in the first place, they are still owing $192.5K and crying foul.

Sorry, I have no sympathy.

Dolts such as myself kept their debt low and their cash high and aren't effected by this nonsense ... other than this regime wants to rob me to bail them out.

Qtec
04-06-2011, 04:39 AM
educate yourself....read it. (http://www.slate.com/id/2189576/)

<div class="ubbcode-block"><div class="ubbcode-header">Quote:</div><div class="ubbcode-body">Inside the Liar's Loan
How the mortgage industry <u>nurtured </u>deceit.


Here's the narrative we've heard about the mortgage meltdown: miscalculation and unfounded optimism, clueless investors, cash-strapped home buyers clobbered by rate resets.

But there's one piece of the mortgage-meltdown tale that virtually every article or television program dances around without ever quite confronting. It's the simplest aspect of the crisis to understand and also the most troubling, because it's not about complicated financial dealings and can't be fixed with bailouts. It's about an astounding breakdown of social norms.

It's the story of the liar's loan.

The term is mortgage-industry slang for what's more formally called a "stated income" mortgage—a mortgage that a lender gives without checking tax returns, employment history, or pretty much anything else. Many of the loans that are in trouble now, or will be in trouble soon, fall into this category. But the term gives only the barest hint of the pervasive failure involved.

The original idea of the stated income mortgage was that it would benefit salespeople who work on commission, people who own their own businesses, and others for whom predicting next year's income isn't just a matter of looking at last year's.

At the height of the mortgage boom, however, especially in pricey markets, the liar's loan became a routine way of doing business; for some lenders—both smaller ones like IndyMac and WMC as well as big ones like Countrywide and Washington Mutual—it was the main way. In 2006 in some parts of the country, these loans made up as much as half of new mortgages, for both subprime borrowers and for homebuyers with high credit scores.

Under ordinary circumstances, we think of lying as something that a few people do. But the nickname "liar's loan" is stunningly apt. The vast majority of the people who took these loans out exaggerated at least a little. Most lied a lot. And it's likely that most of the liar's loans—including those given to people with excellent credit histories—will go bad.

Think about that for a second. Imagine a city center where running red lights isn't something that the occasional drunken driver or road-rage victim does, but where everybody does it all the time. That's a lot like the mortgage market in big swaths of the country one or two years ago </div></div>

Q

LWW
04-06-2011, 06:20 AM
Here's what you leave out ... the borrower had to sign a statement saying that they made the amount claimed and had to receive a GFE showing that they were being surcharged for the stated income loan.

Yes, they were liars loans.

Now, let's review who the liars were:

1 - The lender had to lie.

2 - FANNIE/FREDDIE had to lie in insuring these as A grade loans backed by the US taxpayer.

Now, as a mortgage lender, if you have the US gubmint telling you that if you can find borrowers willing to lie about their income we will buy those loans for 101.5% of the loan amount ... would you refuse to accept easy and legal profits while shaking your head at the madness? Or, would you refuse to play the game and go out of business?

Qtec
04-07-2011, 03:36 AM
<div class="ubbcode-block"><div class="ubbcode-header">Quote:</div><div class="ubbcode-body">1 - The lender had to lie. </div></div>

You got it in one.

Q

Qtec
04-07-2011, 03:40 AM
lender

Definition
<span style='font-size: 20pt'>A private, public or institutional entity which makes funds available to others to borrow.</span>

Read more: http://www.investorwords.com/2767/lender.html#ixzz1IpRQETkx

Well said.

Q

LWW
04-07-2011, 03:59 AM
So, why would a lender make a loan that they knew was a high default risk?

Answer that and you will approach enlightenment.

Qtec
04-07-2011, 04:35 AM
<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: LWW</div><div class="ubbcode-body"><span style='font-size: 17pt'>So, why would a lender make a loan that they knew was a high default risk?</span>

Answer that and you will approach enlightenment. </div></div>

You don't know?

Q

LWW
04-07-2011, 05:12 AM
Actually ... I do.

Obviously ... you don't.

The reason is that they knew they could sell it before it defaulted, and they had a buyer as soon as the first payment was collected.

Now ... why would anyone buy such a loan?

I'm helping you all I can ... think dude, think.

LWW
04-07-2011, 06:49 AM
<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: Qtec</div><div class="ubbcode-body"> <div class="ubbcode-block"><div class="ubbcode-header">Quote:</div><div class="ubbcode-body">1 - The lender had to lie. </div></div>

You got it in one.

Q </div></div>

Who did they lie to?