so whats a good career path nowadays? thats what everyones trying to figure out.what wont be eliminated or outsourced through technology or globalism?What is a safe solid career path that you can throw tens of thousands of dollars in education at and years of your life and know it will still be around, solid, and stable enough to raise a family on and buy a home.
Some comments above are misleading.... Sub-prime refers to credit-grade (or credit worthiness) basd on scoring (e.g. FICO). Generally its people with crappy credit history. There are subprime loans of all sorts, ARMS (adjustable rate) and fixed rate (e.g. 15 yr, 30 yr). Problem is when you get into ARMS and more exotic versions of them. Option ARMs a big no-no if you don't know what you're doing. Many of them allow a min payment (at a teaser rate like 1.75%). This doesn't even cover the normal interest so you get negative amortization (e.g. even after making payments, you owe MORE), interest only (no principle paid-- you only pay interest), full amort (P and I paid). Some lenders were also lending at 100% value of the house (e.g. 100% Loan to Value or LTV). So no down payment, no equity, no reduction in principle-- all adds up to a mess. Now add, low interest rates and rising housing values. Many people were approved credit on the min. payment at low rates, not at the full amortization. As rates started rising, many of these ARMs adjusted to much higher interest rates. With crappy credit/payment history, people couldn't afford their homes anymore. Now add that some homes lost value-- now you owe more than your house is worth. People would just walk away. One more issue, people were also getting greedy. They'd have a first mortgage, then as home values significantly increased, borrowed more money (based on new higher value) to buy other things. OH, and lastly, there were also lenders that were extending credit with low or no documentation on income levels/credit history.Stupid is as stupid does
That's a load of s**t. It is people with bad credit buying more than they could afford. Nobody forces anybody to buy more than they can. You can always rent or buy in a cheaper place. There needs to be accountability of on both the lenders and the borrowers. Many of those sub-prime people were NOT poor-- they just had s**tty credit and bought more than they should have.
Some comments above are misleading.... Sub-prime refers to credit-grade (or credit worthiness) basd on scoring (e.g. FICO). Generally its people with crappy credit history. There are subprime loans of all sorts, ARMS (adjustable rate) and fixed rate (e.g. 15 yr, 30 yr). Problem is when you get into ARMS and more exotic versions of them. Option ARMs a big no-no if you don't know what you're doing. Many of them allow a min payment (at a teaser rate like 1.75%). This doesn't even cover the normal interest so you get negative amortization (e.g. even after making payments, you owe MORE), interest only (no principle paid-- you only pay interest), full amort (P and I paid). Some lenders were also lending at 100% value of the house (e.g. 100% Loan to Value or LTV). So no down payment, no equity, no reduction in principle-- all adds up to a mess. Now add, low interest rates and rising housing values. Many people were approved credit on the min. payment at low rates, not at the full amortization. As rates started rising, many of these ARMs adjusted to much higher interest rates. With crappy credit/payment history, people couldn't afford their homes anymore. Now add that some homes lost value-- now you owe more than your house is worth. People would just walk away. One more issue, people were also getting greedy. They'd have a first mortgage, then as home values significantly increased, borrowed more money (based on new higher value) to buy other things. OH, and lastly, there were also lenders that were extending credit with low or no documentation on income levels/credit history. Stupid is as stupid does
when i was in LA I had a roommate who bragged to me how he was closing 130% loans.Down here in miami people are floating ashore and getting setup with houses and cars with fake documents and stated income. Its incredible.
krnldmpAug 17, 2007
WE.
cixelAug 17, 2007
so whats a good career path nowadays? thats what everyones trying to figure out.what wont be eliminated or outsourced through technology or globalism?What is a safe solid career path that you can throw tens of thousands of dollars in education at and years of your life and know it will still be around, solid, and stable enough to raise a family on and buy a home.
unclefireAug 17, 2007
Some comments above are misleading.... Sub-prime refers to credit-grade (or credit worthiness) basd on scoring (e.g. FICO). Generally its people with crappy credit history. There are subprime loans of all sorts, ARMS (adjustable rate) and fixed rate (e.g. 15 yr, 30 yr). Problem is when you get into ARMS and more exotic versions of them. Option ARMs a big no-no if you don't know what you're doing. Many of them allow a min payment (at a teaser rate like 1.75%). This doesn't even cover the normal interest so you get negative amortization (e.g. even after making payments, you owe MORE), interest only (no principle paid-- you only pay interest), full amort (P and I paid). Some lenders were also lending at 100% value of the house (e.g. 100% Loan to Value or LTV). So no down payment, no equity, no reduction in principle-- all adds up to a mess. Now add, low interest rates and rising housing values. Many people were approved credit on the min. payment at low rates, not at the full amortization. As rates started rising, many of these ARMs adjusted to much higher interest rates. With crappy credit/payment history, people couldn't afford their homes anymore. Now add that some homes lost value-- now you owe more than your house is worth. People would just walk away. One more issue, people were also getting greedy. They'd have a first mortgage, then as home values significantly increased, borrowed more money (based on new higher value) to buy other things. OH, and lastly, there were also lenders that were extending credit with low or no documentation on income levels/credit history.Stupid is as stupid does
unclefireAug 17, 2007
That's a load of s**t. It is people with bad credit buying more than they could afford. Nobody forces anybody to buy more than they can. You can always rent or buy in a cheaper place. There needs to be accountability of on both the lenders and the borrowers. Many of those sub-prime people were NOT poor-- they just had s**tty credit and bought more than they should have.
unclefireAug 17, 2007
Some comments above are misleading.... Sub-prime refers to credit-grade (or credit worthiness) basd on scoring (e.g. FICO). Generally its people with crappy credit history. There are subprime loans of all sorts, ARMS (adjustable rate) and fixed rate (e.g. 15 yr, 30 yr). Problem is when you get into ARMS and more exotic versions of them. Option ARMs a big no-no if you don't know what you're doing. Many of them allow a min payment (at a teaser rate like 1.75%). This doesn't even cover the normal interest so you get negative amortization (e.g. even after making payments, you owe MORE), interest only (no principle paid-- you only pay interest), full amort (P and I paid). Some lenders were also lending at 100% value of the house (e.g. 100% Loan to Value or LTV). So no down payment, no equity, no reduction in principle-- all adds up to a mess. Now add, low interest rates and rising housing values. Many people were approved credit on the min. payment at low rates, not at the full amortization. As rates started rising, many of these ARMs adjusted to much higher interest rates. With crappy credit/payment history, people couldn't afford their homes anymore. Now add that some homes lost value-- now you owe more than your house is worth. People would just walk away. One more issue, people were also getting greedy. They'd have a first mortgage, then as home values significantly increased, borrowed more money (based on new higher value) to buy other things. OH, and lastly, there were also lenders that were extending credit with low or no documentation on income levels/credit history. Stupid is as stupid does
cixelAug 17, 2007
when i was in LA I had a roommate who bragged to me how he was closing 130% loans.Down here in miami people are floating ashore and getting setup with houses and cars with fake documents and stated income. Its incredible.
lodwarAug 17, 2007
this is so true ,it's not even funny :)
freakzyDec 4, 2007
Heres some good info on the industry. <a class="user" href="http://mortgages.weblogsinc.com/2004/10/04/opportunity-for-mortgage-industry/">http://mortgages.weblogsinc.com/2004/10/04/opportu ...</a>
linageeFeb 20, 2008
Is food that expensive?
joanwestFeb 19, 2009
"A way has ALREADY been here to get us out of this terrible housing collapse and frightening recession, but the home lenders aren’t willingly doing it. Why? Uncle Sam has had since 2005 that Home Loan Modifications are the REQUIRED way to avoid foreclosure, but the mortgage lenders are NOT willingly doing them. Why?Is Your Lender A Patriot Or Terrorist? Part 2, <a class="user" href="http://www.babelation.com/?q=node/1730.">http://www.babelation.com/?q=node/1730.</a>Just Do The Required Home Loan Modification, <a class="user" href="http://reno.broowaha.com/article.php?id=4070&quot;">http://reno.broowaha.com/article.php?id=4070&quot;</a><a class="user" href="http://www.npr.org/templates/story/story.php?storyId=100804758">http://www.npr.org/templates/story/story.php?story ...</a>
aabjoraFeb 20, 2009
Owning a full set of body organs will be also a privilege soon? What a mortgage mess! my space:<a class="user" href="http://www.mortgagerefinancingloanz.com/">http://www.mortgagerefinancingloanz.com/</a>