Related articles from Google NewsOpen Question: PMI or 80/5 Piggyback loan?
We are buying a new house. I have about 57K to put down on the home. At 20% down I will need to bring $67,322 to the closing to buy the house. I was planning on doing a 80/5 piggyback loan to make up the difference to get the 20%. I found out yesterday that the mortgage broker that I am using thought they had that available but turns out they don't.
So now I am looking at a 15% down where I need $51,337 to close. However this makes me pay PMI. Now I've been reading about PMI and they say it's tax deductable and I found out you can pay it in one lump premium instead of monthly which makes it a little cheaper.
My questions are:
In my case, Is it better to do an 80/5 PiggyBack loan or to do a 15% down and pay the PMI?
If 80/5 is good, does anyone know any banks that are still doing 80/5 piggyback loans?
If I do have to do PMI, should I pay it up front in one lump premium or just leave it like they have it as a monthly expense?
I will be renting my current home out. Even though I do have a maintenance agreement on the current house, I was thinking an 80/5 loan might be better because it will give me a little extra cash in case of emergency in the first few months of owning the new home.
I'm using the equity on the first home to come up with the down payment. That equity line is only a 60% LTV so I still have another 40% in the home so I feel it's safe to do that. My wife and I together make over 100K annaully. Is the tax write off based on our combined income? We will both be on the loan.
Open Question: Owner Builder loan?
OWner Builder loan. Builder brings me to bank to get mortgage and buy home package. Tried to fire builder builder but bank was afraid builder would sue and pressure me. Builder sucks all the equity out. Leaves half finished house. Bank won't negotiate wants to foreclose on property. Appraisal was inflated now house worth a lot less.
How do I fight this or keep this off my credit report.
Open Question: My grandma has been laid of, Is their anything we can do about it.?
My Grandma has just been laid of. She went part time in February after turning 60. She works in a small butty shop and has been there for over 21 years.
Her boss telephoned her to say she was sorry and that she had to lay My Grandma of as she couldent afford to pay her or her mortgage. Is their anything we can do about this?
I am extreamly mad at the fact she has been their all these years and just got a phone call to tell her not to come in on thursday and she was laying her of.
Please advise me.
Thank you.
Open Question: Did the price of houses fall in the US during the mortgage crisis?
during the subprime mortgage crisis i mean
Open Question: Manual Underwriting for mortgage?
My mortgage received underwriting approval with conditions (gift letter, appraisal etc.) After the title search the taxes came in higher then my lender first calculated (approximately $120 per month) - the lender now says that it has pushed me to manual underwriting. I am applying for an FHA loan. I have documented income of $86k, my mid score is 612, I am applying with Countrywide. Am I setting myself up for a let down. I have about $5k in credit cards - no lates at all but discharged bankruptcy in the past which brought my score down. Any advice would be helpful.
She called and asked for my landlords info - I am not so worried about the info check because I was completely honest - I just got nervous that this was a bad sign. Thanks!
Open Question: Correct me if I am wrong. Bank of America made donations to Senator's Dodd's Campaign for President?
They took over Countrywides mortgages. Obama's senior advisor steps down.Obama is considering Dodd for Vp? When is our Senate/Congress going to put two, and two together? The guy did recieve a VIP mortgage, and he does sit in that committee. You would think there would be a Senate hearing....
I still believe that the taxpayer's of our Country SHOULD NOT be responsible for another's financial woes. IT states nowhere in OUR NATION'S CONSTITUTION that we have to..
Open Question: In today's grim financial times, would it be better to pay off a house completely or invest in mutual funds?
I have a theorectical question. Suppose you owe $50,000 on your mortgage. You also have $50,000 in mutual funds that have been taking a beating with the rest of the stock market. The funds have been averaging under 5% for the past few years because the market just stinks. With the threat of a recession and even a bigger threat of financial institutions going under and investors not being able to get their money, would it be a good decision to take that money out of the stock market completely and pay off the house in it's entirety? The mortgage is a 7% fixed loan. Without accelerated payments, the note would be paid in 8 years.
The net of it would be zero money to lose in the market and 100% debt free.
Another reason for this question is the concern that terrorist may destroy the US financial platform, targeting our foundation, the stock market. Again, if there is no money in the market, then there is no money to loose.
Only financially educated responses please
Open Question: Details on IVA (individual voluntary arrangement)?
My boyfriend has 40 Thousand pounds of Debt, on credit cards, loans etc.
What are the pit falls of applying for a IVA and what is the difference between this and filing for bankrupcy?
ie, will he be able to get a mortgage, will it effect his credit rating?
Open Question: Where would you lke to live?
was amused last evening while watching an American debate of TV. One of the islamic debaters described the US as 'The wealthiest country in the world'.
He also described it as the place most would like to live in.
I come from Ireland, live on the South Coast of England, my personal piece of heaven.
I attended university in New York and my grandmother was from Boston, Mass.
America has foreign debt running in trillions of dollars, it will take several hundreds of years to tackle it.
In other words, its long-term future is mortgaged.
GIven the choice, I know I live in the only place I wish to be.
Open Question: When there is 1 person on the mortgage but 2 on the deed...?
If they were to part ways, who gets to legally keep the house, is it automatically the one on the mortgage, or is there some crazy process invloved?
What responsibility (if any) does the person not on the mortgage hold? Are they just as responsible for say (just an example, lol), keeping the yard from becoming a public eye soar as the name on mortgage?
And, if you are the party on the deed not on mortgage, what are you listed as as far as residency goes in various paperwork? ie, questions like "are you a renter, home owner, boarder etc.."
Feel free to mention anything else I might find of interest or should know regarding 2 people on a deed with 1 on mortgage... thanks!
Sorry if those are silly Q's. But I 'm trying to grasp all this deed/mortgage stuff before I buy, lol, it's confusing!
Ok, thank you, I appreciate it.
K, 1 more, lol...
Now if the mortgage and deed are both in just one persons name. What would the other party then be considered (again, refering to various paperwork)... "owner, renter, boarder...homeless, lol..?"
Open Question: I need the journal entries for these (continuation 2)?
Our company owns 1,850 sq.m. of land. We bought 1250 sq.m. in 1983 at 200 per sq.m., and the adjacent 600 sq.m. at 400 per sq.m. in 1988. Similar front-beach land is currently selling at 1000 per sq.m. You are aware that these parcels of land were used as collateral to a loan. The balance of the 12% mortgage on the two parcels of land is 300,000 as of the beginning of the fiscal year. We pay 10% of this mortgage every six months, May 1 and November 1 with te corresponding interest.
Our cottages and other equipment cost us 176400 and on the average are 40% depreciated. If we were to replace these cottages and equipment today, we believe we would be conservative in estimating a cost of 300000.
We received our property tax assessment for 2001 for $5500. Our estimated sales tax for the last quarter of the year is 18500, which we have to pay in January.
Open Question: I need the journal entries for these?
The balance of cash as of December 31 as reported on the bank statement was 43825. There were still outstanding checks of 9320 that have not been presented to the bank by our suppliers, and the cash on hand of 5640 will not be deposited until January 4.
Our client owed the company 40500. They will be able to pay early next year.
We owe our supplier 32,000. Our customers already consumed about 75%. We sold them at 25% mark-up. We still have 100 bottles of Brandy at 350, which we were selling at 700 per bottle and 10 bottles of Whisky at 750 each, which we normally sell at 1,500 per bottle.
Our company owns 1,850 sq.m. of land. We bought 1250 sq.m. in 1983 at 200 per sq.m., and the adjacent 600 sq.m. at 400 per sq.m. in 1988. Similar front-beach land is currently selling at 1000 per sq.m. You are aware that these parcels of land were used as collateral to a loan. The balance of the 12% mortgage on the two parcels of land is 300,000 as of the beginning of the fiscal year. We pay 10% of t
Open Question: Mortgage Lender going bankrupt?
I'm on the verge of purchasing land. I'm getting a good deal on price because the seller is 14 months delinquent on his payments and the property is about to go into the foreclosure process. The seller wants to avoid foreclosure and sell me the land instead. Yesterday I learned that his mortgage lender has gone bankrupt (not sure what the consequences are of this). So now I have to deal with a situation where the property is on the verge of foreclosure and the lender has gone bankrupt. Is it a good idea for me to proceed with this purchase? What are the risks?
Open Question: Short Sale: What percent of appraised value will bank accept?
Hi. I'm thinking of making an offer on a home listed at $240K that will be a short-sale. Realtor says bank appraised at $252K, and would likely accept at 80% of value. The house will be sold at sheriff sale in 50 days and also needs some foundation work. Wouldn't the bank go below 80% since it is so close to the foreclosure date? Original mortgage (according to realtor) was $320K still being owed?!?
If the bank has to sink another $167K to buy at sherifff's sale, the bank would be on the hook for $487K, and if it COULD end up selling at appraised $252K, the bank's loss would be $235K.
Is something wrong with my logic, or wouldn't it make sense for the bank to agree to short sale now at 60% or 70% of appraised value to avoid having to go REO?
Thanks in advance for advice- Tim
More detail:
**Bank has not taken ownership yet.
**My $487K number is the original $320K mortgage owed + extra $167K bank will pay at sheriff sale to take ownership
**Realtor likely told existing motgage owed by current owner
**How much of difference on short sale can bank recoup via insurenace on loan?
Open Question: If i earned 70,000 Canadian dollars a year what canadian mortgage could i get? 2.5 times salary?
I ask as im looking to perhaps emigrate there and wonder what sort of budget i would have for house purchasing if i land the job im looking at
Open Question: Am I nuts or are financials way oversold?
Call me crazy but as I look at the landscape at the financial market, I really think that there are tons of stocks at huge discounts, particularly in the big banks. Don't get me wrong, it is still a risky sector but while we may continue to see a rash of bank failures, especially among smaller regional banks. But someones has to rise up from the ashes and I can only think this will give the bigger bank corporations even more market share once the whole subprime mortgage mess runs its course.
Just a couple examples of bank stocks I'm considering:
Bank of America - Still turning a profit, insists that its dividend is safe and acquiring Countrywide means that it'll become the dominant mortgage lender in the nation.
Wells Fargo - Relatively little subprime mortgage exposure compared to the other big banks, Buffett thinks it's the best run bank in the country
Anyone else agree or disagree?
Open Question: I've found a very nice 4-bedroom unit in the suburbs that sells for $170,000.?
Tell me about getting a home loan to finance this house. What questions will the mortgage company ask me that I will have to answer using fractions. (i.e. Loan to Value, Debt ratio, Down Payment).
Open Question: Should I take this bank loan?
Basically, a bank is trying to get me to accept a £5,000 loan to cosolidate my overdraft of £3,000 and credit card bill of £2,000. Thing is, at the end of it all, including insurance and interest, I'll have paid £10,000. Citizen's Advice once told me never to take a loan to pay back a debt - even with a bank and I'm inclined to agree; they're just out to make money on me and I reckon they're just out to get all the small debts back because of the Credit Crunch that's happening and the impending recession. They seem desperate to get me to take it. What I'd really like to know is whether I should hang on and refuse this loan....will things get better for the likes of me - in a recession. I have no mortgage or anything they can take. I know this much about the law - even bailiffs cannot take anything away for a bank or credit card loan - it is a breach of contract and therefore a civil matter.
Open Question: Phenomenal Increase in cost of living??
How is everyone managing with mortgage payments, fuel rises, food prices..... we are struggling big time. Any tips?
Open Question: i move to my friend's house since we are already entered into contract that i will buy his house,?
while we are waiting for the completion,my friend demands me to pay his mortgage,his reason i'm already enjoying the property.i was expecting him to charge me the running rental rate in the market.by trust i moved in even if we don't have contract for the rent.i was really surprised that this problem arise.what ever words of wisdom that you have out there guys,i really need it.
is it right for him to charge me his monthly mortgage while we are waiting for the completion?
thanks guys.
alfred
Open Question: Going overseas - renting my house out - do I notify my mortgage company?
I am going overseas and I'm renting my house out (in Australia) I have a fixed rate mortgage - will my mortgage company charge a fee or change the mortgage rate??
Please only answer if you are in AUSTRALIA as different countries have different regulations/policies
Open Question: What happens to mortgages if the bank goes out of business and no one wants to buy them?
I hear that if a bank goes under other banks will buy these mortgages. But with so many mortgages exceeding values of homes, many banks might not want to buy the mortgages. What would happen if a bank goes under, and no one wants to buy their crappy mortgages?
Open Question: Term loan???
My dad mortgaged our family house. Now there were arrears outstanding for the monthly payment for 110k. I tried to apply for term loans under my name to repay the arrears instead of paying the higher interest rate using the current loan package. However, the valuation report stated that the value for the house is less that the amount of arrears and only valued 90k. I have to stuck in about 20k to cover the additional amount. But i don't have that much money. The bank advised me to get the money or else they won't able to help me much. What else i can do? I don't want to lose the house to the bank. My relatives are unable n won't help. Some people suggested to let the house go n buy a new house. But the house is in a good location.
Open Question: if somebody gets a check from the us government every month can they own land?
my neighbor is mentally challenged...psychosymatic, and a lot more. his mom mortgaged the house and land he lives on and now he struggles every mnth to pay bills and buy food for his 2 sons. im not really sure what kind of check he recieves but its something about ssi...his mom told him that he cant get the land in his own name because of the check.. so can he own a peice of proprety while he receives a check for being retarded? thanks also this is in texas
Open Question: Does Chapter 7 Bankruptcy protects one from the shortage when the foreclosed house is sold?
Also, will they also get hit with a penalty from the IRS if the mortgage company indicates a loss to the IRS? Need a debate settled in In Michigan.
Open Question: how does fannie mae and freddy mac make money?
i looked it up on wiki but i don't understand what it says:
Freddie Mac/Fannie Mae's primary method of making money is by charging a guarantee fee on loans that it has purchased and securitized into mortgage-backed security bonds. Investors, or purchasers of Freddie Mac MBS, are willing to let Freddie Mac keep this fee in exchange for assuming the credit risk, that is, Freddie Mac's guarantee that the principal and interest on the underlying loan will be paid back regardless of whether the borrower actually repays.
thank you in advance
Open Question: Where can I find information about the russian mortgage market?
Stuff like the market attractiveness, size, growth rates and what is making it grow.
Open Question: Buying our first house, are standalone mortgage companies a good idea? any advice will help...?
Open Question: How to combat a protective order?
How would one go about fighting a protective order if they are put out of their OWN house (He/ she is the sole payer of the mortgage, spouse does not work)
Open Question: In light of mortgage collapse, gas prices, job losses, stock crash, what does "conservative" mean?
Have our leaders done a good job of running America in a conservative fashion?
Open Question: Is there an official definition of biweekly mortgage payments versus semimonthly and monthly?
We just refinanced our home with our credit union and specifically asked for biweekly payments to pay off faster. They said it would be just a slighty higher interest rate. Biweekly is on our closing papers. Our first payment was made but our loan balance did not go down and our loan officer is claiming it is not really biweekly and they hold the payment and it reduces once a month. I think she's full of shit, that is not what we signed up for and we made clear what we wanted before we applied for the loan and she agreed it could be done. There is no benefit for a slightly higher interest rate this way. She also messed up the first loan payment because it was supposed to be automically taken from our account. I think we have a dumb loan officer as we have never used her before.
I have had 3 car loans with this CU and never had these problems. Those were all biweekly and worked correctly with the loan balance lowering every 2 weeks so I know they know how to do this as biweekly
Open Question: Mortgage Binder?
I just put an offer on home. I put down a $1000 binder. Do I get this money back when I go to closing?
Open Question: What would be the affect of mortgage forgiveness?
I'm not an economist (got a C in HS econ). But I'd be curious to know the affects of a wide spread mortgage forgiveness if the bank holding your loan goes under.
Let's say the only requirement to have your home free and clear is that you remain in it for 5 years. This would be an interesting debate. I'd think it would boost the economy because of the extra income.
Open Question: advice on foreclosure?
For lack of a better term i was forced to take out a mortgage last year on my home that was paid for. The terms and percentages were awful but thats besides the point.
My income at the time was sufficent to pay my bills and the mortgage.
I ran a successful business for a little over two years until 4 months ago when things went downhill. My mortgage payment is more than most people make in my area in 2-3 paychecks and now im unemployed with a SMALL list of other monthly bills besides the mortgage. I do have about $40k in other unsecured debt from the business and other unsecured creditors from when i was young that i never took care of.
I have thought about bankruptcy, chapter 13 is a no-go mostly because i cant afford the mortgage payments now so why would i waste my time with a 13?Otherwise it could work,but otherwise i dont really need a bankruptcy if were not including the house mortgage because i could just set up monthly payments with my creditors at a small payment.
7 minutes ago - 3 days left to answer.
my monthly expenses are slim so im not worried about that.
My problem seems to stem from my home, i have about 40k worth of equity in a 117k home.
With that kind of equity, it really does not make sense to file a chapter 7 because in my state you lose all equity besides 5k no matter what.
It really doesnt make sense to do a 13 because as already stated i cant afford the payments now,much less the payments to all my creditors plus the mortgage.
And the only other options are selling, of which is not really an option because foreclosure has already been initiated.
Or a deed in lieu of foreclosure, but then im giving them all of my equity for "free" although the foreclosure would likely not show up on my credit report and i could begin to repair the other damage.It would be faster to do this than to wait 10 years for a BK to come off the credit or 7 years for a foreclosure to come off.
OR just let it be foreclosed on......thats not appealing at all ofcourse.
ADVICE?
Open Question: Need advice on foreclosure?
For lack of a better term i was forced to take out a mortgage last year on my home that was paid for. The terms and percentages were awful but thats besides the point.
My income at the time was sufficent to pay my bills and the mortgage.
I ran a successful business for a little over two years until 4 months ago when things went downhill. My mortgage payment is more than most people make in my area in 2-3 paychecks and now im unemployed with a SMALL list of other monthly bills besides the mortgage. I do have about $40k in other unsecured debt from the business and other unsecured creditors from when i was young that i never took care of.
I have thought about bankruptcy, chapter 13 is a no-go mostly because i cant afford the mortgage payments now so why would i waste my time with a 13?Otherwise it could work,but otherwise i dont really need a bankruptcy if were not including the house mortgage because i could just set up monthly payments with my creditors at a small payment.
7 minutes ago - 3 days left to answer.
my monthly expenses are slim so im not worried about that.
My problem seems to stem from my home, i have about 40k worth of equity in a 117k home.
With that kind of equity, it really does not make sense to file a chapter 7 because in my state you lose all equity besides 5k no matter what.
It really doesnt make sense to do a 13 because as already stated i cant afford the payments now,much less the payments to all my creditors plus the mortgage.
And the only other options are selling, of which is not really an option because foreclosure has already been initiated.
Or a deed in lieu of foreclosure, but then im giving them all of my equity for "free" although the foreclosure would likely not show up on my credit report and i could begin to repair the other damage.It would be faster to do this than to wait 10 years for a BK to come off the credit or 7 years for a foreclosure to come off.
OR just let it be foreclosed on......thats not appealing at all ofcourse.
ADVICE?
Open Question: how much rent should my boyfriend pay?
i recently purchased a condo. how much should my boyfriend pay me in rent, since he lives here? it is a 2 bed, 2 bath. he has his own bath. we share the master bedroom. the 2nd bedroom is empty, maybe will be an office / guest quarters. we split the housework, the cooking & the grocery costs. pretty much everything we use on a daily basis (bed, dishes, cookware, couches, table & chairs, etc), i have purchased (with the exception of his tv).
the bills add up to $1300 a month. that includes my mortgage , taxes, association fees, & electric. i originally asked him to pay $500 a month. he already pays for cable and internet, which is $66 monthly.
i just want to know how much is fair for me to ask from him. it has been 2 months and he has so far refused to pay me, complaining that he is broke, although he bought a $1000 tv, a playstation 3, wheels for his car, & lots more crap. he makes $2000 a month after taxes, & has only a car payment, car insurance, phone, & student loan. help!!
Open Question: The company I work for pay me with the company check, but i don't get a paystubs.Can I get a mortgage loan?
Open Question: Not really a question just looking for advice bankruptcy,foreclosure etc.?
For lack of a better term i was forced to take out a mortgage last year on my home that was paid for. The terms and percentages were awful but thats besides the point.
My income at the time was sufficent to pay my bills and the mortgage.
I ran a successful business for a little over two years until 4 months ago when things went downhill. My mortgage payment is more than most people make in my area in 2-3 paychecks and now im unemployed with a SMALL list of other monthly bills besides the mortgage. I do have about $40k in other unsecured debt from the business and other unsecured creditors from when i was young that i never took care of.
I have thought about bankruptcy, chapter 13 is a no-go mostly because i cant afford the mortgage payments now so why would i waste my time with a 13?Otherwise it could work,but otherwise i dont really need a bankruptcy if were not including the house mortgage because i could just set up monthly payments with my creditors at a small payment.
my monthly expenses are slim so im not worried about that.
My problem seems to stem from my home, i have about 40k worth of equity in a 117k home.
With that kind of equity, it really does not make sense to file a chapter 7 because in my state you lose all equity besides 5k no matter what.
It really doesnt make sense to do a 13 because as already stated i cant afford the payments now,much less the payments to all my creditors plus the mortgage.
And the only other options are selling, of which is not really an option because foreclosure has already been initiated.
Or a deed in lieu of foreclosure, but then im giving them all of my equity for "free" although the foreclosure would likely not show up on my credit report and i could begin to repair the other damage.It would be faster to do this than to wait 10 years for a BK to come off the credit or 7 years for a foreclosure to come off.
OR just let it be foreclosed on......thats not appealing at all ofcourse.
ADVICE?
Ok i dont think you guys are reading everything.
Selling the home is pretty much out of the question because of the mediocre or slow real estate market combined with the foreclosure that has already been initiated and would most likely only take 3-4 weeks to be final.
OK any other advice? :-)
Open Question: How do I figure out how much prepaying will save me?
I have a mortgage with 6.125% interest. I have some money that I can use to pay down the balance, or I could use it for other expenses or to save, etc. How do I figure out how much money I will save in the long run by prepaying?
Open Question: How much does the state help foster parents?
How much does the state help foster parents?
My aunts 5 year old daughter has been taken away and in foster care. I have never met her but she needs someone with lots of love and can help her with her anger issues (her dad was abusive) The state has asked my mom to help find her a home with family and I'm the only person that can really take her in. The only prob is that I need to rent out my extra bedroom for $600 per month or I cant pay my mortgage. My roommate is moving out April 2nd. Does anyone one know how much the state help with taking care of the child? BTW I live in Washington State
Try reading the whole thing! I dont have an apartment, you dont pay a mortgage on an apartment!
Open Question: protection insurance?
What is the best insurance that i can get that covers "disability", and "death" that will pay off my mortgage
Open Question: I want to relocate soon, but what do i do with my house and mortgage payments?
I live in the midwest. My house has been on the market for a year and I haven't even had 1 phone call. It's not teh best house and it still could use some work( a new garage door, siding, windows) but i can't afford that stuff unless I get a 3rd mortgage. That would use up all my equity and i wouldn't get much back anyway. besides that my house is in the hood and if I leave would steal the siding anyway. i had the roof repaired, pluming and electricty done and an updated circuit breaker put in. I can do no more and it's time for me to move on. When I get ready to leave I will have to stop paying my mortgage to have gas money to travel. So do I then tell them I want to do a deed in lieu? I almost went through foreclosure when I lost my job over a year ago. They were such jerks about ever discussing how to pay for my home or save it. They said once its in the foreclosure process then they can discuss options. I could rent it out through a company, but I want a fresh start.
I feel like this house has really become a monkey on my back. I would burn it down if i could and not for the money. Suggestions? I've heard from some a deed in lieu is as bad as a foreclosure so whats the point? My credit is already pretty shot and I ever going to be able to clean it up? I guess the only thing about a deed in lieu is that I cant be garnished or forced to pay foreclosure costs. So what are my options?
Please keep negative comments to yourself. I don't need to be told what I already know ' what a mess your in, etc". And last i checked their were thousands of families is the same mess! Atleast i tried to do mostly the right thing and used my mortgage to repair the house while others I guess ran off the acapulco and left their homes behind for the banks to sit on. Thankfully my mortgage is very small, but it's still a lot for me and i want to be done with it.
Open Question: countrywide said that in order to do a pre-qualification?
you need a credit score of 580 to get a mortgage. My fiance is lacking 3 points. Do you think that they could let it slide or stick to the guidelines? He just paid the last thing off and now has nothing on his credit report.
yeah he doesnt have anything on his credit thats bad. He has 2 loans that have been paid ontime and there was one thing that says he was late with one of the loans but we went to the bank and they said it was an error and gave us a letter saying that hes never been late. We just havet o sumit it to the 3 credit bureaus
Open Question: What does it mean in this article on sub-prime that TX is under a protective BUBBLE?
"Ground Zero" Mortgage Crisis 7/14/08
CBS 7 Staff
July 14, 2008
It's being called "Ground Zero" for the sub-prime mortgage crisis that surfaced last summer.
The savings bank called Indymac in California was overcome with roughly six billion dollars in bad loans.
Loans they made for houses to people who could not afford them.
The scandal has ruined millions of lives.
Texas is living under a protective bubble, however, and depositors here have nothing to fear.
John West, President & COO Community National Bank in Midland, said, "The housing industry in Texas is strong and good. So, I would not worry about a savings bank in Texas. I would worry about a savings bank in California or Florida."
The FDIC warns more failures are to come, and they're hiring more people to handle the work.
90 banks are now on their watch list, and they estimate eventual losses at over one trillion dollars worldwide.
Open Question: can i get mortgage loan with poor credit and a fico score of 425 if so where in ga?
Open Question: My parents need advice on refinancing their home. Bush's new plan wont help them because its a manufactured
Ok heres the deal my parents credit isnt the best. They do have bankruptsy on their credit and deleinquit payments on the house. Right now they are up to date besides a couple late fees. My parents tried calling the Lend America that has to do with President Bushs new help the economy BS. Anyways they were going thru the process and a month later the guy calls my parents and tells them that they cant help because they live in a subsidised home ( manufactured home) So my question is does anyone know of a Mortgage company that works with people with less then perfect credit. I really want to help my parents but Im at my ends dont know what else to do. My parents are on an Arm rate right now and everytime the payment goes up its an extra $200 and they cant afford a $1200 payment. There company their with now say they cant put it in a fix rate but wont tell them why. Im ready Im not sure what else to put in for information but if anyone can help I would sure appriciate it.
Also we live in michigan and the lend america say that FHA will not finance a Manufacured home. I know some people dont see a difference but its a Manufactured home not Mobil home.
Open Question: The U.S. Economy mishaps?? [Need economic expert to answer]?
To an Economic expert who can answer these questions:
As we all can clearlysee that the U.S. is going through hard times. It all started out with the war in Iraq, which predicted would stimulate the economy, ywt it backfired on the U.S. We then saw the oil prices rise dramatically and then the Mortgage Crisis along with the Freddie Mac/Fannie Mae ordeal.
What is causing such a Domino Effect of mishaps and downfalls in the U.S. economy? Is it truly that the Americans are living above their means? Is it the war?
Also, how can this be fixed? Can it be fixed? And how bad can this be for America if things continue to crumble like cornbread?
Thanks..!!
Open Question: Has anyone used Richard Geller's Mortgage Relief Formula System?
Open Question: Would I be approved for a mortgage loan?
I know no one on here can tell me for sure, but I wonder if I would qualify for a mortgage loan of about $90,000-115,000? I make in the upper $30s a year, am young and single, have no debt and perfect credit and would be putting down at least 20%.
My dad thinks because of the current economic situation I might not be approved for a loan. I'm just curious if this is true? If I weren't approved, could I have someone "co-sign" for me if necessary? I just want to cover all my bases and be prepared when I really do go out there looking.
Open Question: Is it mortgage fraud??
I knew someone with a $300k house, $275k mortgage....not yet in trouble with mortgage. He goes out to buy an investment property..rents it out for a few months....starts to default on his OWN mortgage....moves to the investment home...and bank forecloses on his first home. His mortgage was wiped clean.....and he's living comfortably in "investment" home..less a lower mortgage payment.
Is that fair?
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Comment by Christopher Whalen
