wow...

[horsepwr]

Re: wow...

They're doing some stupid shyt right now. Like someone that got in a home before the big housing inflation, so this family had a nice home with good equity and so on. They decide to use some of that equity in these difficult times, and the snakes at the bank realize they have at least one house that's worth more than is owed, so they, the crooks that do the lending, pull a nasty trick to take that home. and take that home they did, because of one day late on the first payment due after the refinance, yes, you heard right, 1 day late. and not because they didn't have the money for the payment, but because they never received a payment book, bill, or brick & mortar address to send payment. not even a live person to speak to. But of coarse this guy never thought he'd loose his home over 1 late payment. He learned otherwise. 1 payment, 1 day past due. I bet if he had overpaid for the house like so many over the past 5yrs, they'd still be in it. But somehow things work out for the better when you least expect it. I know it was hard for this guy to see any light at that time, but he now has his family in a bigger, nicer, newer home that they're happier in.

[T-Man007]

Re: wow...

dude..you didnt even factoer in the fact that home values have been CRUSHED up here....i'm prbobly 20k upside down!!! and times that buy THOUSANDS of houses!! they are truly the dumbest of all biz peeps!!!

Yeah, that adds even more lose to the lender. A grace period makes more sense than foreclosure no matter how you slice it. The only way a grace period would not make more sense woudl be in a market where appreciation is 20% a year. Then, the bank could afford to sit on it and then sell for a profit. However, those days are gone and those areas that were getting those kinds of numbers have suffered the worst drops.

[T-Man007]

Re: wow...

Just for the record- Toyota and BMW waived payments for 3 months due to the storm- they did treat me right!

See, that's what I'm talking about. Those companies get it.

[T-Man007]

Re: wow...

They're doing some stupid shyt right now. Like someone that got in a home before the big housing inflation, so this family had a nice home with good equity and so on. They decide to use some of that equity in these difficult times, and the snakes at the bank realize they have at least one house that's worth more than is owed, so they, the crooks that do the lending, pull a nasty trick to take that home. and take that home they did, because of one day late on the first payment due after the refinance, yes, you heard right, 1 day late. and not because they didn't have the money for the payment, but because they never received a payment book, bill, or brick & mortar address to send payment. not even a live person to speak to. But of coarse this guy never thought he'd loose his home over 1 late payment. He learned otherwise. 1 payment, 1 day past due. I bet if he had overpaid for the house like so many over the past 5yrs, they'd still be in it. But somehow things work out for the better when you least expect it. I know it was hard for this guy to see any light at that time, but he now has his family in a bigger, nicer, newer home that they're happier in.

Wow, now that sucks! That goes against everything I know about purchase contracts and loan contracts. Just about every loan contract has a 15 day grace period written right into it. Those poor people must have been working with a real shady bank. I think most states even require by law a grace period on mortages. Was it a owner carry loan? In cases like that, the owner carries the loan and they can write up the contract however they want. I've seen some owners write up lease to own options with these sneaky little clauses in them. For example, they tell the buyer they will sell them the home in two years at 'today's' value. This way in two years they have equity. But, what they don't tell them is that in the contract if the may a late payment, it nolifies the purchase price. So, these people pay this guys mortgage (and then some in some cases) for two years and when they go to buy the house, it's wort 10% more. So, on a $200k home, that's $220k. Then they show them the contract where it states the late payment thing and then they are forced to either pay more or move out beause the lease is up. At this point, the owner usually doesn't want them in there any more in case they tear up the home out of revenge. So, these poor people lose all this money they invested into this house. Oh yeah, also, some of the contracts will state that a portion of the rent will go towards the pay down of the purchase price. But of course, that is nolified on the late payment too.

There are some sorry ass people in this world, to say the least.

[firstenrgy]

Re: wow...

I do understand where you guys are coming from and the math does add up if you are taking into account that all the people you are talking about will not make any more mortgage payments because the bank won't put any payments to the back of the mortgage. Having said that, if banks made it common practice to roll payment to the back of the mortgage with no penalty just interest only there would be an epidemic of people that suddenly couldn't pay. You also need to consider that all banks are publicy owned companies with shareholders. As president of a corporation you have a fiduciary responsibility first and foremost to those shareholders. Stockholders want there dividends this quarter, not a void of zero income and journal entry on the balance sheet that promises the money 25 years from now.
It is a little more complicated than being compasionate.