Comments on: What are they going to do, put the ‘frig in their car after the foreclosure? http://loanworkout.org/2007/12/what-are-they-going-to-do-put-the-%e2%80%98frig-in-their-car-after-the-foreclosure/ Loan Modification & Home Loan News Sun, 21 Mar 2010 16:56:28 -0700 http://wordpress.org/?v=2.9.2 hourly 1 By: JacMac http://loanworkout.org/2007/12/what-are-they-going-to-do-put-the-%e2%80%98frig-in-their-car-after-the-foreclosure/#comment-2868 JacMac Sun, 30 Dec 2007 21:31:58 +0000 http://loanworkout.org/2007/12/18/what-are-they-going-to-do-put-the-%e2%80%98frig-in-their-car-after-the-foreclosure/#comment-2868 Juli, I am so sorry that you are in this situation, a situation that so many of us faced. The lenders and underwriters it seemed, when they got greedy enough, didn't care who they loaned money to or how. They were toxic loans and they gave it to us all. Juli, I am so sorry that you are in this situation, a situation that so many of us faced.

The lenders and underwriters it seemed, when they got greedy enough, didn’t care who they loaned money to or how. They were toxic loans and they gave it to us all.

]]> By: Juli http://loanworkout.org/2007/12/what-are-they-going-to-do-put-the-%e2%80%98frig-in-their-car-after-the-foreclosure/#comment-2867 Juli Sun, 30 Dec 2007 21:07:47 +0000 http://loanworkout.org/2007/12/18/what-are-they-going-to-do-put-the-%e2%80%98frig-in-their-car-after-the-foreclosure/#comment-2867 We put nothing down. Interest only. Basically, everything that you shouldn't do, we did. My husband's credit wasn't as good as mine and we had to have a stated income loan which was the reason we were given for the type of loan we got. Then we stupidly refinanced to get out of our original bad loan and that's when we REALLY got taken for a ride! Bait & switch, unnecessarily high interest rate (as a contact at Countrywide later told me), we were lied to about the terms of our new loan. We were stupid to trust. Also, the price of the house has decreased since we bought it. It was at $610K. Now it's worth $572K. However, when we refinanced they appraised it for $780K so we could get into our new horrible loan. Basically, everyone has made money off of us. I'm not saying we'll never buy again but we will do so only when we have enough saved up to put 20% down and we will consider a 30-year fixed rate mortgage only. Plus, we will now need time to allow our credit to recover from this debacle. Add to that the fact that my husband has lost a lot of his income but the bills keep pouring in, and we have no savings left at all. I even looked into suing the bank to no avail. I could probably pursue but at this point, I don't even have enough money to pay the regular bills let alone an attorney. We are learning the hard way. We definitely didn't do this to "play" the system. We weren't looking to make a quick buck. We honestly thought that if we didn't buy when we did that we would NEVER be able to afford to buy a house. We trusted everyone and it's only after the fact that I've come to the conclusion that an attorney is mandatory to have in these transactions. It's too late to save the house. I just need this nightmare to end so we can rebuild our life. Yes, we were financially unsophisticated at the time we bought but now I have learned so much. I research everything, am well informed about the mechanics of a short sale, the tax implications of foreclosure and short sales; I even watch Suze Orman so I can learn how to invest wisely (if we ever have money again). I never intend for this to happen to me again, and knowledge is the only weapon I have in this unsavory business. We put nothing down. Interest only. Basically, everything that you shouldn’t do, we did. My husband’s credit wasn’t as good as mine and we had to have a stated income loan which was the reason we were given for the type of loan we got. Then we stupidly refinanced to get out of our original bad loan and that’s when we REALLY got taken for a ride! Bait & switch, unnecessarily high interest rate (as a contact at Countrywide later told me), we were lied to about the terms of our new loan. We were stupid to trust.

Also, the price of the house has decreased since we bought it. It was at $610K. Now it’s worth $572K. However, when we refinanced they appraised it for $780K so we could get into our new horrible loan. Basically, everyone has made money off of us.

I’m not saying we’ll never buy again but we will do so only when we have enough saved up to put 20% down and we will consider a 30-year fixed rate mortgage only. Plus, we will now need time to allow our credit to recover from this debacle. Add to that the fact that my husband has lost a lot of his income but the bills keep pouring in, and we have no savings left at all.

I even looked into suing the bank to no avail. I could probably pursue but at this point, I don’t even have enough money to pay the regular bills let alone an attorney.

We are learning the hard way. We definitely didn’t do this to “play” the system. We weren’t looking to make a quick buck. We honestly thought that if we didn’t buy when we did that we would NEVER be able to afford to buy a house. We trusted everyone and it’s only after the fact that I’ve come to the conclusion that an attorney is mandatory to have in these transactions.

It’s too late to save the house. I just need this nightmare to end so we can rebuild our life. Yes, we were financially unsophisticated at the time we bought but now I have learned so much. I research everything, am well informed about the mechanics of a short sale, the tax implications of foreclosure and short sales; I even watch Suze Orman so I can learn how to invest wisely (if we ever have money again). I never intend for this to happen to me again, and knowledge is the only weapon I have in this unsavory business.

]]> By: proinc http://loanworkout.org/2007/12/what-are-they-going-to-do-put-the-%e2%80%98frig-in-their-car-after-the-foreclosure/#comment-2866 proinc Sun, 30 Dec 2007 11:38:21 +0000 http://loanworkout.org/2007/12/18/what-are-they-going-to-do-put-the-%e2%80%98frig-in-their-car-after-the-foreclosure/#comment-2866 Juli, how much did you put down on your house? You do seem to have been duped due to the fact that you had an 800 score and you're not in a fixed. Also, what was the price of your home when you bought it? Juli, how much did you put down on your house? You do seem to have been duped due to the fact that you had an 800 score and you’re not in a fixed. Also, what was the price of your home when you bought it?

]]> By: Juli http://loanworkout.org/2007/12/what-are-they-going-to-do-put-the-%e2%80%98frig-in-their-car-after-the-foreclosure/#comment-2865 Juli Sat, 29 Dec 2007 17:48:54 +0000 http://loanworkout.org/2007/12/18/what-are-they-going-to-do-put-the-%e2%80%98frig-in-their-car-after-the-foreclosure/#comment-2865 JacMac is the only one who I completely commiserate with. I am a distressed homeowner, soon to be in foreclosure. Before this mess started, my credit was close to 800. Now it is in the toilet. My husband and I were lied to by the realtor, the broker, AND the bank. (The bank may be the most evil of all.) We trusted "professionals" to lead us through a very unwieldy process. I have tried everything in my power to save us from our sorry situation, to no avail. We were not looking to be bailed out. We tried short sale, deed in lieu of foreclosure, loan modification, another refinance, everything. The only thing we could not do was keep paying our mortgage which was already more than $5K per month (my husband has suffered a serious loss of income this year). In 2008 our mortgage is due to re-set at $7K+ per month. Its cap will be somewhere around $10K per month. I feel incredibly stupid for having gotten into this situation. Now I just want my life back. I'm not going into the details of how badly we were deceived. Yes, I'm angry with those who deceived us. But I'm also angry with myself for having allowed it to happen. I trusted when I shouldn't have. I am a clear example of an honest person who thought she was doing something good for her family (buying a lovely home my son would inherit someday). My husband is self-employed and this year his business took a serious, 75% loss-of-income hit. All I know for sure is that next time I buy a house (several years from now; I'm not in any rush and we have lost all of our reserve savings simply trying to pay our other obligations due to the lost income), I will hire an attorney. I have come to the unsavory conclusion that you can't trust anyone, not the bank, the broker or the realtor. All you can do as a consumer is educate yourself and not be in a hurry to sign papers. Stupid me. JacMac is the only one who I completely commiserate with. I am a distressed homeowner, soon to be in foreclosure. Before this mess started, my credit was close to 800. Now it is in the toilet. My husband and I were lied to by the realtor, the broker, AND the bank. (The bank may be the most evil of all.) We trusted “professionals” to lead us through a very unwieldy process. I have tried everything in my power to save us from our sorry situation, to no avail. We were not looking to be bailed out. We tried short sale, deed in lieu of foreclosure, loan modification, another refinance, everything. The only thing we could not do was keep paying our mortgage which was already more than $5K per month (my husband has suffered a serious loss of income this year). In 2008 our mortgage is due to re-set at $7K+ per month. Its cap will be somewhere around $10K per month.

I feel incredibly stupid for having gotten into this situation. Now I just want my life back. I’m not going into the details of how badly we were deceived. Yes, I’m angry with those who deceived us. But I’m also angry with myself for having allowed it to happen. I trusted when I shouldn’t have. I am a clear example of an honest person who thought she was doing something good for her family (buying a lovely home my son would inherit someday). My husband is self-employed and this year his business took a serious, 75% loss-of-income hit.

All I know for sure is that next time I buy a house (several years from now; I’m not in any rush and we have lost all of our reserve savings simply trying to pay our other obligations due to the lost income), I will hire an attorney. I have come to the unsavory conclusion that you can’t trust anyone, not the bank, the broker or the realtor. All you can do as a consumer is educate yourself and not be in a hurry to sign papers. Stupid me.

]]> By: Moe http://loanworkout.org/2007/12/what-are-they-going-to-do-put-the-%e2%80%98frig-in-their-car-after-the-foreclosure/#comment-2864 Moe Sat, 29 Dec 2007 14:20:52 +0000 http://loanworkout.org/2007/12/18/what-are-they-going-to-do-put-the-%e2%80%98frig-in-their-car-after-the-foreclosure/#comment-2864 Thanks Virginia and everyone else who made this a very insightful debate. Without you all, I would be blogging alone ;) I wish everyone the best in 08' and Happy New Year! Thanks Virginia and everyone else who made this a very insightful debate. Without you all, I would be blogging alone ;)

I wish everyone the best in 08′ and Happy New Year!

]]> By: proinc http://loanworkout.org/2007/12/what-are-they-going-to-do-put-the-%e2%80%98frig-in-their-car-after-the-foreclosure/#comment-2863 proinc Sat, 29 Dec 2007 11:50:27 +0000 http://loanworkout.org/2007/12/18/what-are-they-going-to-do-put-the-%e2%80%98frig-in-their-car-after-the-foreclosure/#comment-2863 The truth is that probably everyone reading this cares about the industry and is more or less honest, that's why we are all still around and interested in this stuff. The problem was all the bad apples that came in. They outnumbered the good. What is going on now in the industry will weed them out (hopefully) and those left will only be the educated and honest (hopefully). The only questions is when this works itself out what will be left of the industry. There have been so many posts here that I have not been able to read them all fully, but i'm sure everyone had good points and from what I've seen there is at least some truth in all of them (although some might lean one way or the other). It will just take some time to work out and then we will see where we are. Hopefully the changes that are made will make it harder for those who have destroyed this industry to can back in, and if they do get in, that there are severe penalties when they act unethically. I hope everyone had a great holiday and HAPPY NEW YEAR (hopefully it's better then 2007) proinc The truth is that probably everyone reading this cares about the industry and is more or less honest, that’s why we are all still around and interested in this stuff. The problem was all the bad apples that came in. They outnumbered the good. What is going on now in the industry will weed them out (hopefully) and those left will only be the educated and honest (hopefully). The only questions is when this works itself out what will be left of the industry. There have been so many posts here that I have not been able to read them all fully, but i’m sure everyone had good points and from what I’ve seen there is at least some truth in all of them (although some might lean one way or the other). It will just take some time to work out and then we will see where we are. Hopefully the changes that are made will make it harder for those who have destroyed this industry to can back in, and if they do get in, that there are severe penalties when they act unethically. I hope everyone had a great holiday and HAPPY NEW YEAR (hopefully it’s better then 2007)

proinc

]]> By: Virginia http://loanworkout.org/2007/12/what-are-they-going-to-do-put-the-%e2%80%98frig-in-their-car-after-the-foreclosure/#comment-2862 Virginia Fri, 28 Dec 2007 04:30:34 +0000 http://loanworkout.org/2007/12/18/what-are-they-going-to-do-put-the-%e2%80%98frig-in-their-car-after-the-foreclosure/#comment-2862 Thank you Moe and Jacmac for your comments and Moe, for providing this forum. Jacmac: Good luck and thank you for providing your insights as a consumer. Thanks Mike, Joe, Abe, Msrk and Todd. This was a very satisfying and cathartic experience for me. I think we went over the situation, in detail, and know what we all have to do or continue to do. While I agree that reform is absolutely necessary, I don't agree with all of the proposed regulations. I will be watching closely and continue to be involved in the process. Hey Alan! We never heard back from you since Christmas! I hope you had a joyous holiday and hope you keep an open mind about the mortgage broker. If you need any help with mortgage financing, there are some excellent professionals here on the board to help! Here's to 2008! May we be healthy and all have a better year! Thank you Moe and Jacmac for your comments and Moe, for providing this forum. Jacmac: Good luck and thank you for providing your insights as a consumer. Thanks Mike, Joe, Abe, Msrk and Todd. This was a very satisfying and cathartic experience for me.

I think we went over the situation, in detail, and know what we all have to do or continue to do. While I agree that reform is absolutely necessary, I don’t agree with all of the proposed regulations. I will be watching closely and continue to be involved in the process.

Hey Alan! We never heard back from you since Christmas! I hope you had a joyous holiday and hope you keep an open mind about the mortgage broker. If you need any help with mortgage financing, there are some excellent professionals here on the board to help!

Here’s to 2008! May we be healthy and all have a better year!

]]> By: JacMac http://loanworkout.org/2007/12/what-are-they-going-to-do-put-the-%e2%80%98frig-in-their-car-after-the-foreclosure/#comment-2827 JacMac Thu, 27 Dec 2007 22:52:46 +0000 http://loanworkout.org/2007/12/18/what-are-they-going-to-do-put-the-%e2%80%98frig-in-their-car-after-the-foreclosure/#comment-2827 "Jac mac i feel for you i am sorry one of my brothers in bussines mistreated you i wish i would have known you then u would not be here now but everything happens for a reason we would have never had this forum if not for ya\'e2\'80\'a6\'e2\'80\'a6.. merry christmas"~ Abe Abe, thanks for your sentiments, really. I am truly touched and I appreciate you seeing me as who I am: A single mother, with two children to feed and clothe and shelter. I believe as you do, that everything happens for a reason. Experience is what you get when you don't get what you expected. I AM learning from this mistake. "but i really feel sorry for the self-employed borrower who cannot prove their income enough to qualify (if they have a good cpa)." ~ Stephanie. Stephanies, thanks for giving voice to my struggle. I have worked as a Sole Proprietorship since I was 18. I have always paid my bills on time and have excellent credit. I don't deserve to be in this situation. Educating the consumer is the key, and Moe is doing his part in providing this excellent forum so that consumers can get an insight to what is going on in the industry, what the motivation is for some of the players, the mindset and mentality of some of the Mortgage Brokers (whether good or bad) and what to do now, and if they ever purchase a home again. I would hate to be a crooked Mortage Broker, Appraiser, Loan Officer or lender or bank at the table with ME in the future. I am now an Educated Consumer. But more importantly, I'm not afraid to WALK AWAY. I know what can happen and what's at stake if I don't. “Jac mac i feel for you i am sorry one of my brothers in bussines mistreated you i wish i would have known you then u would not be here now but everything happens for a reason we would have never had this forum if not for ya\’e2\’80\’a6\’e2\’80\’a6.. merry christmas”~ Abe

Abe, thanks for your sentiments, really. I am truly touched and I appreciate you seeing me as who I am: A single mother, with two children to feed and clothe and shelter. I believe as you do, that everything happens for a reason. Experience is what you get when you don’t get what you expected. I AM learning from this mistake.

“but i really feel sorry for the self-employed borrower who cannot prove their income enough to qualify (if they have a good cpa).” ~ Stephanie.

Stephanies, thanks for giving voice to my struggle. I have worked as a Sole Proprietorship since I was 18. I have always paid my bills on time and have excellent credit. I don’t deserve to be in this situation.

Educating the consumer is the key, and Moe is doing his part in providing this excellent forum so that consumers can get an insight to what is going on in the industry, what the motivation is for some of the players, the mindset and mentality of some of the Mortgage Brokers (whether good or bad) and what to do now, and if they ever purchase a home again.

I would hate to be a crooked Mortage Broker, Appraiser, Loan Officer or lender or bank at the table with ME in the future. I am now an Educated Consumer.

But more importantly, I’m not afraid to WALK AWAY. I know what can happen and what’s at stake if I don’t.

]]> By: Are Mortgage Brokers Ancient History in 08? | Loan Modification & Loan Workout News http://loanworkout.org/2007/12/what-are-they-going-to-do-put-the-%e2%80%98frig-in-their-car-after-the-foreclosure/#comment-2857 Are Mortgage Brokers Ancient History in 08? | Loan Modification & Loan Workout News Thu, 27 Dec 2007 19:36:14 +0000 http://loanworkout.org/2007/12/18/what-are-they-going-to-do-put-the-%e2%80%98frig-in-their-car-after-the-foreclosure/#comment-2857 [...] long time veterans like Joe who believe and hope for they will survive; I have been in the mortgage business as a broker since [...] [...] long time veterans like Joe who believe and hope for they will survive; I have been in the mortgage business as a broker since [...]

]]> By: stephanie http://loanworkout.org/2007/12/what-are-they-going-to-do-put-the-%e2%80%98frig-in-their-car-after-the-foreclosure/#comment-2860 stephanie Thu, 27 Dec 2007 16:25:39 +0000 http://loanworkout.org/2007/12/18/what-are-they-going-to-do-put-the-%e2%80%98frig-in-their-car-after-the-foreclosure/#comment-2860 the bottom line is that all of these products were offered and being pushed. if you have a LENDER/BANK willing to loan 100% to a 520 credit score then i do not see why the fingers are being pointed at the brokers. they are not funding the loan. And yes, the loan officers should have the decency to tell the borrower that they are not in a financial position to get such a mortgage (and many did) but as soon as that would happen, the borrower would go down to road to another broker and get the loan done. i saw it happen over and over. the united states is a consumer nation who want what we want NOW. no one can argue this fact. just look at all of our fat a$$es in debt personally and as a nation. why anyone decided that to offer a 30 year debt to someone who has never paid a bill in their life is beyond me but everyone did. now these people are not paying their mortgages. DUH! so lets refinance them.....once again, a lot of these people should have never gotten the loan in the first place and it is damn near impossible to get them out of it now. the fha secure is b.s. b/c unless the lender will turn their head on other factors of the loan such as DTI then these people do not qualify. stated is practically a thing of the past unless you have 700+ credit scores and those people are really not the problem. investors are running away from MBS' right now and i don't blame them. i wouldn't want to loan these people any money, especailly now that there are so many declining markets? so what do we do now? seems that lender's have chosen to stick with cookie cutter deals for now. fine by me, but i really feel sorry for the self-employed borrower who cannot prove their income enough to qualify (if they have a good cpa). this industry is just a mess right now and i am really just so tired of finger pointing. everyone is to blame. lender's offered the loan, brokers put them into the products being pushed, borrower's accepted the loan and did not do any reasearch on the biggest investment and longest debt of their life and now we will all suffer in some way. if anyone has any PRODUCTIVE ideas or solutions i would love to hear those thoughts instead of constant negative. the bottom line is that all of these products were offered and being pushed. if you have a LENDER/BANK willing to loan 100% to a 520 credit score then i do not see why the fingers are being pointed at the brokers. they are not funding the loan. And yes, the loan officers should have the decency to tell the borrower that they are not in a financial position to get such a mortgage (and many did) but as soon as that would happen, the borrower would go down to road to another broker and get the loan done. i saw it happen over and over.
the united states is a consumer nation who want what we want NOW. no one can argue this fact. just look at all of our fat a$$es in debt personally and as a nation. why anyone decided that to offer a 30 year debt to someone who has never paid a bill in their life is beyond me but everyone did. now these people are not paying their mortgages. DUH! so lets refinance them…..once again, a lot of these people should have never gotten the loan in the first place and it is damn near impossible to get them out of it now. the fha secure is b.s. b/c unless the lender will turn their head on other factors of the loan such as DTI then these people do not qualify. stated is practically a thing of the past unless you have 700+ credit scores and those people are really not the problem. investors are running away from MBS’ right now and i don’t blame them. i wouldn’t want to loan these people any money, especailly now that there are so many declining markets?
so what do we do now? seems that lender’s have chosen to stick with cookie cutter deals for now. fine by me, but i really feel sorry for the self-employed borrower who cannot prove their income enough to qualify (if they have a good cpa).
this industry is just a mess right now and i am really just so tired of finger pointing. everyone is to blame. lender’s offered the loan, brokers put them into the products being pushed, borrower’s accepted the loan and did not do any reasearch on the biggest investment and longest debt of their life and now we will all suffer in some way.
if anyone has any PRODUCTIVE ideas or solutions i would love to hear those thoughts instead of constant negative.

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