From $70K to food bank, one family's struggle....

[Pablo]

And you would be wrong. I got a gun, want a loan?

So the FBI thinks some laws were broken. Interesting - of course those must be laws that don't exist.

"The problem is that banks weren't doing their due diligence,"

Good one.

We can not blame working folks for the bundling and the lack transparency when these bad mortgages were bundled, but many of these people lied on the applications, and did not know what they were getting into, even though it was right in front of them. Personal responsibility can be a tough teacher....

 

[rjundi]

I think its a simply bad time for a divorce given the ownership of a home likely upside down.

On the flip side during he crazy peak house boom there were some really happy divorced couples selling homes at top dollar. I know a a divorced couple who dumped their home at peak dollar now bargain hunting in glee for their new dream homes.

 

[javacontour]

My ex was so "in love" with the guy she ran off with when she left me, that she put some low (probably realistic, but not at the time) value on the home, and wanted her 1/2 of the equity based on this low ball amount. So I asked once if she wanted the home appraised, and she said no, so I took the deal.

That was an extra $25K in my pocket.

Since this was a 130K house, percentage wise, she left a lot of money on the table.

Works for me!

Originally Posted By: rjundi
I think its a simply bad time for a divorce given the ownership of a home likely upside down.

On the flip side during he crazy peak house boom there were some really happy divorced couples selling homes at top dollar. I know a a divorced couple who dumped their home at peak dollar now bargain hunting in glee for their new dream homes.


PS, I guess it wasn't true love, wasn't her soul mate, as she has moved on to a more local man. Soul mate was a married, retired Navy Lt Cmdr. who was willing to leave his 30 some year marriage for some 30 something who could have been his daughter. Crazy world!

 

[Gary Allan]

Quote:
In 2004, when house values were soaring and the mortgage industry booming, an FBI criminal division official, Chris Swecker, sounded a prescient warning to Congress:

"If fraudulent practices become systemic within the mortgage industry and mortgage fraud is allowed to become unrestrained, it will ultimately place financial institutions at risk and have adverse effects on the stock market," he said."


I guess, for being a crack pot, cracked brained, buffoon, I'm in very good company.

Heretics UNITE!!!!

 

[Racerjk]

Housing prices are unreal. I just can't get over what people try to sell a house for these days!

 

[Shannow]

Ridiculous down here in that it doesn't matter where you live, you can't buy any house for less than 4 years of average pre tax wages.

Live in a city, and it's more like 8.

This bloke

should be in jail IMO.

Introduced "non bank" loans ages ago, by trading on the difference between US interest rates and Oz rates, undercutting the banks significantly.

No probs with that.

Then started with the "banks won't give you a loan" caper.

No probs with that.

Sub prime hit, and he's feeling the pinch, so gets on the news, and starts advising people to sell at a loss "to avoid the horror of bankruptcy"...what he really meant was that if they defaulted, he was left with a loan that the property couldn't cover. If they sold at a loss, they still owed him money.

Should not have been on TV as an adviser given his (huge) vested interest in his advice.

Tonight, Oz interest rates are 9% plus.

He's back on the evening news, offering advice for people feeling the squeeze.

Firstly, don't lock in your rates, as they are near the peak (Oz inflation is still through the roof, and the tax cuts come in in 3 months)

Secondly, to free up "cashflow" of up to $200/month on an average home loan, homeowners should approach their bank, and convert to interest only.

He (and the new agencies that put him in the apparent position of an advisor) should be fronting ASIC (Australian Securities and Investment Commission), and explaining themselves.

 

[Gary Allan]

Some criminals operate 100% legal and in plain sight. Oz is just catching on to this

 

[brianl703]

Welcome to Manassas, VA, where that sort of [censored] has been going on for the last 4 years now.

 

[Pablo]

http://www.federalreserve.gov/newsevents/press/other/20080401a.htm

 

[Steve S]

Them CEO from Countrywide got something like a 19 million $$$ golden parachute for running the company into bankruptcy I would do it for 14 million,even 12 million.

 

[Pablo]

Originally Posted By: Steve S
Them CEO from Countrywide got something like a 19 million $$$ golden parachute for running the company into bankruptcy I would do it for 14 million,even 12 million.


In the good old days we would tar and feather the losers. Now in the information age, people just seem to stay away from these lousy businesses.

Executive overpay is a serious issue....we tossed our bum Chairman out and he's getting 15 million........to leave!

 

[oilyriser]

If it takes 8 yrs wages to buy a house, I'd get a house sooner if I built it myself by hand.

 

[Kestas]

You have to afford the land first! Not all of the price is the physical house per se.