Quote:
Originally posted by fabsroman
The government wouldn't be giving the bad loans to the people that defaulted. The government would be buying these loans from the banks, seeing how they pan out, and then trying to unload them. For most of these loans, I am willing to bet that the home had already been foreclosed on and the previous owner kicked out. In about 9 hours, my wife and I will be looking at a home owned by the bank. The guy bought the place in 2000 for $650K, and the bank is asking $460 for it today. We can actually afford it and it is on a decent piece of land, so I am hoping that the house is at least inhabitable.
Forgot to add that a mortgage payment that equals 40% of income isn't a good idea either. The old lending limit used to be that a monthly mortgage payment could only consist of 28% of the borrowers monthly income before tax. Some people say one third (i.e., 33%), but that is stretching it a bit.
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The bank will take less Fabs....make your best deal and good luck. Oh and by the way I liked your explanation a couple of post ago.....the other really bad thing is refinancing people did. Now they owe more than the property is worth...real estate was a milking cow for many ....My friend pulled out every bit of "fake equity" in her condo on a ARM . Now she owes roughly three times what its worth today..she has to walk away, but here in south florida a foreclosure can take up to 18 months to finally have to leave the property...know how much money someone can save each month living for free?
Oh for you stock people....FRO...Frontline is my personal favorite.....I try and buy as much of that as I can ...I like that stock and dont have to watch it too much.....