GrouchieGrumbles's Comments

I am a Realtor and a real estate investor in Indiana, and banks loaned incredibly bad amounts of money on houses. The bailout was/is a bad idea. These banks made bad loans to people who never should have been in a home to begin with.

Actually, all sorts of people are to blame for this. Mortgage brokers/lenders pulled the wool over investor eyes. Brokers/lenders found and exploited loop holes in the system to get more people pseudo-qualified for loans.. Insurance companies(freddie mac, fannie mae, FHA, etc) knew these loop holes were being exploited, but didnt do anything to curtail them.. Brokers/lenders weren't very clear with buyers about terms of loans. Buyers weren't doing due dilligence, or paying attention to the loans they were taking out. Investors weren't paying attention to what they were buying... blah blah blah the loop is endless..

We are in an entitlement generation.. Most people seem to think they are entitled to own a home, a bunch of cars, and have 2.3 kids. You can have that stuff, but you have to EARN that stuff as well.

I saw a house that was worth 30k in great shape, and the seller owes 80k on it.

I have seen people with 335k ARM loans that are now at 10% interest. a 1% increase in a 150k loan is an extra $100 p/month in mtg payment.. This 335k loan guys' payment is now up over $600 p/month from when he got the loan in 2005.

I once made a 95k offer on a house, which was 5k below what the loan amount was. The bank turned me down, because the loan was federally insured via FHA. The banks hands were tied. They knew the house was only worth what I was offering, but that federal insurance was stopping them from accepting my offer. Why should they accept my 95k offer when they can get 100k from FHA. I bought the house 6 months later as a bank foreclosure for 85k(I was top offer at 85k). They probably spent 25-50k foreclosing on that house, and they lost an additional 10k over my initial offer.

8000 short sale listings in my local MLS(multiple listing service) last year, and only 300 of those sold... That tells you that they would rather sell it to the insurer than sell it for what it's worth...

These people don't need a bailout, they need some brains!
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Profile for GrouchieGrumbles

  • Member Since 2012/08/04



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