This is topic Foreclosure Bailout Scam in forum General Talk at Northern California Ford Owners  .


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Posted by Yaterstang (Member # 7659) on :
 
http://online.wsj.com/article/SB121314811278463077.html?mod=RealEstateMain_1

I'd think twice if you are wanting to go this route!
 
Posted by Jdub07 (Member # 2728) on :
 
That shit will be nipped in the butt hella quick. Larger banks wont tollerate that either and most likely already have forms and shit to find out if they are being forclosed on. Shit 2 months ago when we purchased our house B of A already had questions like,...do you now own a home, if so is it for sale, short sale, forclosure, rental, second home, primary home. They are retarded. Some will reap the benifits from this and I can't say if I'd do it or not but I will say it wont last long at all.

We got our house for $480,000 and today it's already worth $535,000. How? I have no idea,...maybe because they were asking $620,000 but thus far the housing market hasn't effected us in a bad way.
 
Posted by turbo50 (Member # 6700) on :
 
I don't blame anyone for doing that. Looks like they found a way to fight the system that is fighting them.

I say go for it!!
 
Posted by N8 (Member # 6048) on :
 
My brother pulled this off masterfully and rented his old place in the process. I knew they would slam the door on this soon tho.

But they would have to change the credit requirements drastically or get rid of stated income all together. I may be buying another house soon, and I already qualified for the loan. Just mulling over the idea of it.

[ June 12, 2008, 04:02 PM: Message edited by: N8 ]
 
Posted by BlowN67 (Member # 4229) on :
 
wow just found out the house across the street sold for $270k an one around the corner is starting bid for $159. makes u wonder why people are going this route. it was like 2yrs ago we were appraised at $615k
 
Posted by Chris C. (Member # 1949) on :
 
quote:
Originally posted by N8:
My brother pulled this off masterfully and rented his old place in the process. I knew they would slam the door on this soon tho.
Im curous to hear what happened to the renters during this process.... Did they just get kicked out with no notice?
 
Posted by N8 (Member # 6048) on :
 
quote:
Originally posted by Chris C.:
quote:
Originally posted by N8:
My brother pulled this off masterfully and rented his old place in the process. I knew they would slam the door on this soon tho.
Im curous to hear what happened to the renters during this process.... Did they just get kicked out with no notice?
Well they knew about it actually. He rented to them for a really good price for a really long time. SO it helped him and them.
 
Posted by mustanghp950 (Member # 6589) on :
 
quote:
Originally posted by turbo50:
I don't blame anyone for doing that. Looks like they found a way to fight the system that is fighting them.

I say go for it!!
these people in the news report are pure trash, it was them who bought the house at the top of the market. it is up to them to follow through with the payments. they need to live up the the choices they have made in their life.
 
Posted by turbo50 (Member # 6700) on :
 
quote:
Originally posted by mustanghp950:
quote:
Originally posted by turbo50:
I don't blame anyone for doing that. Looks like they found a way to fight the system that is fighting them.

I say go for it!!
these people in the news report are pure trash, it was them who bought the house at the top of the market. it is up to them to follow through with the payments. they need to live up the the choices they have made in their life.
Easier to stand outside the box and look in.

Think about it for a minute, then put yourself in their position.

It is not about not being able to make the payments it is about losing money in the long run.

....pure trash?

If one of your investments lost 200K and say you needed it to fund your childs college tuition etc and an opportunity presented itself to remedy the situation would you be "trash" and take it? Or "smart" and ride it out because you commited to it??

[Roll Eyes] [Roll Eyes] [Roll Eyes]
 
Posted by Yaterstang (Member # 7659) on :
 
There's no way anybody can believe that this is actually an ok thing. When you screw the bank, it makes things more difficult for them to extend new credit for deserving people who want to buy a house and stay there thorugh thick and thin. Then you screw your neighbors, who are struggling to continue making the payments, which your sorry ass decided you couldnt afford. So anybody with maybe the exception of N8, who's neighbors are a bunch of bitches, should really think twice. They are on to this and if they suspect it and let you buy that new house, Im sure something is gonna go down on your new house. Like the article says, there may be a new lien placed on your new house.
 
Posted by turbo50 (Member # 6700) on :
 
quote:
Originally posted by Yaterstang:
There's no way anybody can believe that this is actually an ok thing. When you screw the bank, it makes things more difficult for them to extend new credit for deserving people who want to buy a house and stay there thorugh thick and thin. Then you screw your neighbors, who are struggling to continue making the payments, which your sorry ass decided you couldnt afford. So anybody with maybe the exception of N8, who's neighbors are a bunch of bitches, should really think twice. They are on to this and if they suspect it and let you buy that new house, Im sure something is gonna go down on your new house. Like the article says, there may be a new lien placed on your new house.
I think it is an OK thing. I have so many friends that are struggling and are hard hard workers. They worked hard and put a good chunk down on that over inflated housing prices. Now the home value is way down and they are still working hard and making those bigger payments when the property across the street is the same and selling for 50% of what they paid.

Do they deserve this? No. Do they work hard? Yes.

The reason I speak of standing outside the box is because many, many of these people have tried to work something out with that bank that they are "thinking" about screwing and the bank won't budge.

Its not about not being able to make the payments or afford the house, it is about having to eat the lost value.

I mean the new folks looking to buy a house in this down market that are "deserving" do get hurt, but to what extent? Also but does this mean that the hard working, existing homeowners aren't "deserving" ???

Im not talking about the jerk offs that lied on their loans and swallowed big mortgages, Im talking about the guy that said ok, my house is $400,000 and my payment is 3200, I can live with that...and continues to pay it. Now that house is worth $250,000 and EVERYONE of those "deserving" new homeowners are in their new homes with about a $2000 payment........

Everyone gets screwed, either way and let me still say:

It is easier to stand outside that box and look in than it is to stand inside that box and look out.
 
Posted by N8 (Member # 6048) on :
 
quote:
Originally posted by Yaterstang:
There's no way anybody can believe that this is actually an ok thing. When you screw the bank, it makes things more difficult for them to extend new credit for deserving people who want to buy a house and stay there thorugh thick and thin. Then you screw your neighbors, who are struggling to continue making the payments, which your sorry ass decided you couldnt afford. So anybody with maybe the exception of N8, who's neighbors are a bunch of bitches, should really think twice. They are on to this and if they suspect it and let you buy that new house, Im sure something is gonna go down on your new house. Like the article says, there may be a new lien placed on your new house.
I agree to an extent, and I am one of those that is going to ride things out with my house. But I do understand the other side of the coin. It really makes total sense to do this. Believe me if there was a way the bank could circumvent owners to make a buck they would. Now is it right? I don't really know. It sounds illegal, but in truth it is not. No law says you cant screw off your credit. And essentially that is what is happening. But they are fast tracking to re-establishing it. I am all for a loop hole and hustle. Hell I am ok with my position currently. But if there comes a time when I feel the need to do this. I will definitely think about it. My brother pulled it off so clean and I cant help but drink to it...lol
 
Posted by turbo50 (Member # 6700) on :
 
quote:
Originally posted by N8:
quote:
Originally posted by Yaterstang:
There's no way anybody can believe that this is actually an ok thing. When you screw the bank, it makes things more difficult for them to extend new credit for deserving people who want to buy a house and stay there thorugh thick and thin. Then you screw your neighbors, who are struggling to continue making the payments, which your sorry ass decided you couldnt afford. So anybody with maybe the exception of N8, who's neighbors are a bunch of bitches, should really think twice. They are on to this and if they suspect it and let you buy that new house, Im sure something is gonna go down on your new house. Like the article says, there may be a new lien placed on your new house.
I agree to an extent, and I am one of those that is going to ride things out with my house. But I do understand the other side of the coin. It really makes total sense to do this. Believe me if there was a way the bank could circumvent owners to make a buck they would. Now is it right? I don't really know. It sounds illegal, but in truth it is not. No law says you cant screw off your credit. And essentially that is what is happening. But they are fast tracking to re-establishing it. I am all for a loop hole and hustle. Hell I am ok with my position currently. But if there comes a time when I feel the need to do this. I will definitely think about it. My brother pulled it off so clean and I cant help but drink to it...lol
Well let me just tell you that if I had bought when my house was appraised at 615K and two years later it sold for 3 something, then I would bail out, regardless of what people "thought" of me.

It just makes sense.
 
Posted by N8 (Member # 6048) on :
 
Dan, I am totally with you. And the banks don't lose much. So I don't feel sorry for them. We sold our last house right on time.
 
Posted by 93PONY (Member # 60) on :
 
It seems every time I hear something about the 'mortgage crisis', the general consensus is that the homeowners should take the bulk of the financial burden.

The general public did not create this housing 'bubble'. The banks did with their lending practices.

I applaud those that have the balls to stand up to the mortgage companies & stick it to them the way they've stuck it to the everybody for years.

How much interest does one pay on a 30 year $100K morgage? Ever work out the #'s?

Compounded 12 times a year, for every $100K you borrow at 6% you'll pay over $600K over the life of a 30 year loan. That means for every $10k you borrow, you pay back $60K.

Compare that to the interest a bank will pay you for depositing $100K. You're lucky to get 2%....which wouldn't even keep up with inflation these days! You're looking at turning that same $100K into $182K over the exact same amount of time.

Banks don't even use their own money! They use the $100K someone deposits at 2% to loan out $500K. Banks are required to keep 20% cash on hand of the loans they have out. That means they *create* 5 times the $$$ out of thin air that we deposit. This is the basis of our Banking system.

This small example of $100k deposit at 2% vs $500K loaned out at 6% nets the bank: (note that the Bank never used it's own money in this example)
$182,120 liability (paid to those that deposited $100K for 30 years)
vs
$750,564 asset (paid by the borrowers of $500K over 30 years)
for a net profit of:
$568,444
From lending out the money (to us) that we deposit.
That's 1/2 MILLION dollars PROFIT to the bank for lending us our own money we deposited. (us and we being the general public)

Now imagine these figures with a few extra zero's on the end....as is the case in the real world.

Who's ripping who off?

Top that off with the greedy banks wanting to make even MORE money (short term) by trading our mortgages on the open market & you end up with an inflated market.....simply because it became even MORE profitable for the banks to lend $$$...so they lowered their mortgage standards in order to process more loans & trade them on Wall Street.

They brought this on & they're now trying to make the general public take on the financial burden.

We, as the general public, need to WAKE UP, stand together & force the banks to do the right thing..... A few of us are doing it through 'loop holes' & other legal means, & now they're throwing out words like 'fraud' to scare us away from doing what makes perfect financial sense.

Fuck the banks. I'll do what I must to take care of my family.

[ June 12, 2008, 07:56 PM: Message edited by: 93PONY ]
 
Posted by turbo50 (Member # 6700) on :
 
quote:
Originally posted by 93PONY:

Fuck the banks. I'll do what I must to take care of my family.
Im with you 100%

Tho, I am not bailing out on my mortgage as I was lucky enough to buy my house right, if I was in the same position you bet your ass I'd bail.


Be careful....you could be considered "trash" [Roll Eyes] [Roll Eyes] [Roll Eyes] [Roll Eyes] [Roll Eyes] [Roll Eyes]
 
Posted by jmcclesk (Member # 1355) on :
 
[Eek!] [Eek!] [Eek!] [Eek!] [Eek!] [Eek!] [Eek!]
 
Posted by 9cobra7 (Member # 2812) on :
 
it's all "economic reality" plain and simple. Things have changed and don't EVER feel sorry your not paying into this if you can get out of it. Even with all these new changes, theres always a new way around this which YOU can benefit from. you just gotta figure it out for yourselves and work backwards to find out how YOU can now benefit if YOUR favor instead of the blood sucking banks.
 
Posted by hidnn.o.s. (Member # 1219) on :
 
quote:
Originally posted by turbo50:
quote:
Originally posted by mustanghp950:
quote:
Originally posted by turbo50:
I don't blame anyone for doing that. Looks like they found a way to fight the system that is fighting them.

I say go for it!!
these people in the news report are pure trash, it was them who bought the house at the top of the market. it is up to them to follow through with the payments. they need to live up the the choices they have made in their life.
Easier to stand outside the box and look in.

Think about it for a minute, then put yourself in their position.

It is not about not being able to make the payments it is about losing money in the long run.

....pure trash?

If one of your investments lost 200K and say you needed it to fund your childs college tuition etc and an opportunity presented itself to remedy the situation would you be "trash" and take it? Or "smart" and ride it out because you commited to it??

[Roll Eyes] [Roll Eyes] [Roll Eyes]
[patriot] [patriot] [patriot]

MUCH easier when you're outside as said above!
 
Posted by Jeff S (Member # 371) on :
 
quote:
Originally posted by 93PONY:


How much interest does one pay on a 30 year $100K morgage? Ever work out the #'s?

Compounded 12 times a year, for every $100K you borrow at 6% you'll pay over $600K over the life of a 30 year loan.
Actually you only end up paying $115,838.45 in interest on a 30 year loan @ 6% assuming you are making P&I payment. 6% interest only for 30 years is $180,000 in interest. [Wink] [patriot]
 
Posted by 93PONY (Member # 60) on :
 
quote:
Originally posted by Jeff S:
quote:
Originally posted by 93PONY:


How much interest does one pay on a 30 year $100K morgage? Ever work out the #'s?

Compounded 12 times a year, for every $100K you borrow at 6% you'll pay over $600K over the life of a 30 year loan.
Actually you only end up paying $115,838.45 in interest on a 30 year loan @ 6% assuming you are making P&I payment. 6% interest only for 30 years is $180,000 in interest. [Wink] [patriot]
Yep...my mistake. That's assuming you're not paying any principal on the loan.....or paying the interest.
Forgot to include payments.

Fixed above #'s. [patriot]

[ June 12, 2008, 07:57 PM: Message edited by: 93PONY ]
 
Posted by svt306snake (Member # 1967) on :
 
i like to see the hard working people find loopholes every once in awhile i say good luck and do whatever it takes
 




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