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Bloodbath only a few hours away
shardian:
--- Quote from: NinjaEpisode on January 23, 2008, 10:14:32 am ---Not every line-worker is as smrt as Chad and has the ability or know-how to research the best mortgage and consequences of that mortgage. They relied heavily on their loan institutions to tell them what was the right thing to do.
--- End quote ---
if you can't read "An Idiots guide to Homebuying", or at least pay attention when the media screams at you, "DON"T GET AN INTEREST ONLY LOAN!!!!!!", then you really shouldn't be buying a house.
Honestly, I don't understand why anyone would get an interest only loan, or work out a payment that leads to negative amortization. If you're gonna do that, just go ahead and rent. Then you have zero liability to the property other than your security deposit.
ChadTower:
Don't get me wrong... I'm not bashing the people in lower income jobs. Those people work as hard or harder than I ever will. I'm criticizing the thought process of relying on a salesperson to make monster life decisions for you. Would they go into a car dealership and expect the salesman to get them the lowest price and the best financing deal? Or would they expect the car salesman to try and get them to pay the highest price possible with the most profitable car loan? A house is the same - only the stakes are devastatingly higher.
Maybe it makes me an ---uvula--- - I really don't know - but I find it unbearably frustrating when I bust ass for years to achieve something independently, succeed at it, and then see so many others who tried to play the system and failed get bailed out by the gov't. Did that proposed ARM balloon due date freeze ever happen? I can't remember now.
(that last sentence applies mostly to the people who speculated and lost - the ARM "victims" - and the people who spent well beyond their means. I'm not such as ---uvula--- that I can't see there are also many people who simply lost their jobs in a declining economy and haven't been able to recover in time)
NinjaEpisode:
--- Quote from: shardian on January 23, 2008, 10:25:08 am ---Honestly, I don't understand why anyone would get an interest only loan, or work out a payment that leads to negative amortization.
--- End quote ---
I totally agree, but, obviously there are millions(probably more like thousands) of Americans who did just that.
--- Quote from: ChadTower on January 23, 2008, 10:27:33 am ---I'm criticizing the thought process of relying on a salesperson to make monster life decisions for you. Would they go into a car dealership and expect the salesman to get them the lowest price and the best financing deal? Or would they expect the car salesman to try and get them to pay the highest price possible with the most profitable car loan? A house is the same - only the stakes are devastatingly higher.
--- End quote ---
Difference in Michigan is that probably 75-80% of car sales are on an employee purchase plan either because you work directly for the big 3 or have a relative that does. The dealership still assists in getting a loan, but when you work for the manufacturer and can have the payment come right out of your paycheck, it's not too difficult to get a loan.
Not to mention a very common site is to see a brand new vehicle sitting in front of a complete shack of a home. You can drive through the worst neighborhoods in Detroit and see Hummers, Cadillacs, Jaguars parked everywhere and the houses look like they should be condemned.
shardian:
--- Quote from: ChadTower on January 23, 2008, 10:27:33 am --- I'm criticizing the thought process of relying on a salesperson to make monster life decisions for you. Would they go into a car dealership and expect the salesman to get them the lowest price and the best financing deal?
--- End quote ---
Yes. Most definitely yes. The same idiotic people who think "retail price" is a completely fair price.
--- Quote from: ChadTower on January 23, 2008, 10:27:33 am ---Maybe it makes me an ---uvula--- - I really don't know - but I find it unbearably frustrating when I bust ass for years to achieve something independently, succeed at it, and then see so many others who tried to play the system and failed get bailed out by the gov't. Did that proposed ARM balloon due date freeze ever happen? I can't remember now.
(that last sentence applies mostly to the people who speculated and lost - the ARM "victims" - and the people who spent well beyond their means. I'm not such as ---uvula--- that I can't see there are also many people who simply lost their jobs in a declining economy and haven't been able to recover in time)
--- End quote ---
Yes, it does suck to play by the rules and scrape by while other people screw around and get supported/bailed out and come out smelling like roses. That's the way it is though. Government help is abused all the time, but in many cases people who truly need it do get it - even though it seems rare.
Honestly, I don't think unemplyment played that big of a part in this. The way the housing market value was exploding, MANY people thought they could buy, live in, then flip a house and basically net free rent for a year or two and make a few grand on top of that. Then the market saturated, the prices froze, and those desirable short term ARM's came a calling.
shardian:
--- Quote from: NinjaEpisode on January 23, 2008, 10:42:16 am ---Not to mention a very common site is to see a brand new vehicle sitting in front of a complete shack of a home. You can drive through the worst neighborhoods in Detroit and see Hummers, Cadillacs, Jaguars parked everywhere and the houses look like they should be condemned.
--- End quote ---
You might be a redneck dumbass if your car is worth more than your house. :laugh2: :laugh2:
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