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<blockquote data-quote="flutterbee" data-source="post: 198945"><p>My last neighborhood was primarily built on the no money down and a buy down in the interest rates. I bought my house that way. I knew that I could afford the mortgage and the subsequent increase in interest. However, they tried to get me to buy more house. Yeah, I could have afforded it the first year. Barely. But, after that? Nope. </p><p></p><p>There were 7 foreclosures on my street out of about 25 houses. A good 1/3, if not more, of my neighborhood foreclosed. Then when I became ill and started missing work and couldn't make my mortgage payments, I couldn't even sell my house for the balance on the mortgage. My house made 8 foreclosures. Another one has recently gone on that street. The couple divorced and the guy couldn't afford it on his own and couldn't sell it. His was a beautiful house with gorgeous landscaping.</p><p></p><p>They broke ground on my house on 9/14/01 - 3 days after 9/11. I had put the contract on the house in May of that year. Job losses were big in Ohio and wages have been stagnant since. We never really recovered from the downturn following 9/11. People couldn't afford their mortgages. And I live in the fastest growing county in the state and in the top 10 of fastest growing counties (or used to be, anyway) in the country. There was too much competition from builders and resale homes in neighborhoods like mine were hard to move. </p><p></p><p>A friend of mine, admittedly stupidly, got into $180,000 in mortgages on her house that at most would have appraised for $130,000. There was a lot of that going on. Appraisers appraising homes for way more than they were worth so companies could write mortgages on them. Admittedly, she was one that refinanced often to roll in credit card debt and she would roll in the closing costs and it just builds and builds. But, that much in mortgages should have never been written on that house, especially with their credit rating. They almost got into an ARM one time with an early payoff penalty. The broker told them pretty much the exact opposite of what the paperwork read. They count on people trusting them and not reading. Fortunately on that one she brought it to me and I told her it was a bad loan and they got out of it in that 3 day grace period. Didn't stop them from losing their home, though. Just an example, however, of what was going on.</p><p></p><p>Mortgage brokers were big business around here - and probably all over the country. The salesman that sold us easy child's car had his own brokerage company and a year ago had 20 people working for him. Now, he's selling cars. </p><p></p><p>It's just a mess. And if they're going to bail out these banks, there needs to be more help for the homeowner in trouble. Otherwise, things are just going to continue to get worse. House values are still falling. This bail out won't change that.</p></blockquote><p></p>
[QUOTE="flutterbee, post: 198945"] My last neighborhood was primarily built on the no money down and a buy down in the interest rates. I bought my house that way. I knew that I could afford the mortgage and the subsequent increase in interest. However, they tried to get me to buy more house. Yeah, I could have afforded it the first year. Barely. But, after that? Nope. There were 7 foreclosures on my street out of about 25 houses. A good 1/3, if not more, of my neighborhood foreclosed. Then when I became ill and started missing work and couldn't make my mortgage payments, I couldn't even sell my house for the balance on the mortgage. My house made 8 foreclosures. Another one has recently gone on that street. The couple divorced and the guy couldn't afford it on his own and couldn't sell it. His was a beautiful house with gorgeous landscaping. They broke ground on my house on 9/14/01 - 3 days after 9/11. I had put the contract on the house in May of that year. Job losses were big in Ohio and wages have been stagnant since. We never really recovered from the downturn following 9/11. People couldn't afford their mortgages. And I live in the fastest growing county in the state and in the top 10 of fastest growing counties (or used to be, anyway) in the country. There was too much competition from builders and resale homes in neighborhoods like mine were hard to move. A friend of mine, admittedly stupidly, got into $180,000 in mortgages on her house that at most would have appraised for $130,000. There was a lot of that going on. Appraisers appraising homes for way more than they were worth so companies could write mortgages on them. Admittedly, she was one that refinanced often to roll in credit card debt and she would roll in the closing costs and it just builds and builds. But, that much in mortgages should have never been written on that house, especially with their credit rating. They almost got into an ARM one time with an early payoff penalty. The broker told them pretty much the exact opposite of what the paperwork read. They count on people trusting them and not reading. Fortunately on that one she brought it to me and I told her it was a bad loan and they got out of it in that 3 day grace period. Didn't stop them from losing their home, though. Just an example, however, of what was going on. Mortgage brokers were big business around here - and probably all over the country. The salesman that sold us easy child's car had his own brokerage company and a year ago had 20 people working for him. Now, he's selling cars. It's just a mess. And if they're going to bail out these banks, there needs to be more help for the homeowner in trouble. Otherwise, things are just going to continue to get worse. House values are still falling. This bail out won't change that. [/QUOTE]
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