BoA OWNED by person

[101lifts2]

Originally Posted by Homeslice

Which puts more discredit on the idea that this was some master plan, because if the banks suspected that the market could tank, they'd have required bigger downpayments.

Well...it wasn't planned to fail...it was just destined to fail. See the difference.

[101lifts2]

Originally Posted by Particle Man

See that totally floored me. I wouldn't have even imagined TRYING to buy a house without at least 20% down (preferably more)

80/20 FTW!

[Particle Man]

Originally Posted by 101lifts2

80/20 FTW!

Same.

[shmike]

Originally Posted by 101lifts2

80/20 FTW!

Let's not even get into how bad bank #2 gets screwed in the foreclosure proceedings.

[Captain Morgan]

Heck, I'm one of the people that put 0% down. But that's because I qualified for a VA loan, so I don't need PMI. Also, I made absolutely sure to buy a house I could truly afford. At the time, I got a 30 year mortgage at 6.875. I refinanced a month ago and got a 15 year at 4.25 (actually got approved 3 months ago but there were countless problems with communication between the bank and the VA). Now my payment on a 15 year fixed is a whopping $30 more per month than what I was paying on a 30 year fixed. I actually hope to have the house paid off in 5 years, but not positive I'll be able to pull that off.

[101lifts2]

Originally Posted by Particle Man

Same.

80% first loan...20% second loan..0 down with no principle payments for 5 years with a low 5 year interest rate FTW!

[Captain Morgan]

Originally Posted by 101lifts2

80% first loan...20% second loan..0 down with no principle payments for 5 years with a low 5 year interest rate FTW!

Sounds like FTL to me. Seems like nothing more than throwing money at interest, not gaining any equity. Almost sounds like renting, except person gets to also pay for all repairs and take care of all maintenance out of their own pocket. Yeah, sounds an awful lot like FTL to me.

[Homeslice]

Originally Posted by Captain Morgan

Sounds like FTL to me. Seems like nothing more than throwing money at interest, not gaining any equity. Almost sounds like renting, except person gets to also pay for all repairs and take care of all maintenance out of their own pocket. Yeah, sounds an awful lot like FTL to me.

[goof2]

Originally Posted by Papa_Complex

Perhaps not but they can profit in the sale, of that property, and have received payments towards it. They make money, on virtually every foreclosure. Believe me; both my parents were in banking for their whole lives

Explain it to me. How is a bank making money on a foreclosure when there was little to no down payment (or in some cases the lender actually cut a check to the buyer whose purchase they were financing) virtually no principle has been paid (or all to often absolutely no principle has been paid) and the home has lost at a minimum 50% of its value? If your parents have an answer for that they should come out of retirement and move to America. There are quite a few banks were they could dictate their salaries.

Maybe it wasn't like this everywhere but from the early 2000s a lot of people in Florida bought houses like stupid people bought cars, by paying as little as possible initially and only worrying about getting the lowest initial payment possible. Hey, who cares if you can't afford it when the teaser rate ends, the payments go up by 40 or 50%, and you can no longer afford them. Just sell it and your biggest problem will be how to spend the profit! That stops working when the value of the home drops 30-40% in the more stable areas, 50-70% in the areas built out when the majority of the bad loans were written, or 70-80%+ for condos/townhouses.

In my opinion the best way to buy a house (or a car) is to work out a purchase price you can actually afford and getting a good interest rate for the life of the loan, not just the first 2, 3, or 5 years. Do that and everything else will take care of itself. If it makes anyone feel any better I don't have much remorse for people who get surprised by large balloon payments on their car or bike loans either.

[goof2]

Originally Posted by Captain Morgan

Sounds like FTL to me. Seems like nothing more than throwing money at interest, not gaining any equity. Almost sounds like renting, except person gets to also pay for all repairs and take care of all maintenance out of their own pocket. Yeah, sounds an awful lot like FTL to me.

It is, but as I said in my above post they thought the house would continue to have big gains in value every year. They would make almost as much as the suckers with substantial down payments and (temporarily) higher fixed interest rates, only they would have extra money to fill the house with furniture and electronics (that they also bought on credit). As I said in my first post there was plenty of greed on both sides.