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Thread: Lenders keep doing it, your 401Ks will soon be gone

  1. #1
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    Default Lenders keep doing it, your 401Ks will soon be gone

    My mother knows this woman who just today received a new mortgage on a house. Neither her nor her husband currently have a job. Her husband just got let go from a $12 an hour job.

    This woman's mother gave her money for down payment and they will have to pay $2K per month just for interest for 10 years. After 10 years (considering she makes it that far) she will probably have to pay nearly $3K per month.

  2. #2

    Default Re: Lenders keep doing it, your 401Ks will soon be gone

    Amazing.
    "All my life I have tried to pluck a thistle and plant a flower wherever the flower would grow in thought and mind." -- Abraham Lincoln

  3. #3

    Default Re: Lenders keep doing it, your 401Ks will soon be gone

    Could they have found a less expensive house?

  4. #4
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    Default Re: Lenders keep doing it, your 401Ks will soon be gone

    Maybe there are some neighborhoods they don't want to live in.

    Maybe they don't want to move out of town to buy a house they can live in.

    Maybe they were just looking around, and the lender gave them a high-pressure sale.

    Actually, the payments don't sound that high. A key fact is that the husband just got laid off. Presumably they applied for the mortgage before that event.

    Hypothetical: lender calls you unsolicited and says, "Based on your stellar credit and work history, and the equity you have in your current house (say $15,000), I can get you a loan for $300,000. Would you like that?"

    Do you tell this nice man to get lost or do you say you'll think it over? Do you then ever dream about what you could do with $300K--even though you weren't thinking about buying another house at the time? Would your spouse ever dream of what you could do with $300K?

  5. #5
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    Default Re: Lenders keep doing it, your 401Ks will soon be gone

    matclone,

    None of that even happened actually. Notice that they will have to pay interest only for 10 years to make the payments lower. This program is called "Unverifiable income program". They don't even look at your income and credit history.

    From what I was told, its you want a loan, you got it. The only prerequisite I think was the $30K downpayment, which the bank will keep when this family forecloses.

  6. #6

    Default Re: Lenders keep doing it, your 401Ks will soon be gone

    Do you tell this nice man to get lost or do you say you'll think it over? Do you then ever dream about what you could do with $300K--even though you weren't thinking about buying another house at the time? Would your spouse ever dream of what you could do with $300K?
    I live within my means.

    For example, I have credit cards, but choose not to use them.

    If I had an emergency and NEEDED to use them, I would. However, I wouldn't buy things (a house included) if I couldn't afford it.

    I someone wishes to foolishly use their credit and they get burned, I have no sympathy for them.

  7. #7
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    Default Re: Lenders keep doing it, your 401Ks will soon be gone

    Quote Originally Posted by Big View Post
    matclone,

    None of that even happened actually. Notice that they will have to pay interest only for 10 years to make the payments lower. This program is called "Unverifiable income program". They don't even look at your income and credit history.

    From what I was told, its you want a loan, you got it. The only prerequisite I think was the $30K downpayment, which the bank will keep when this family forecloses.
    Well, another version of the live check.

  8. #8

    Default Re: Lenders keep doing it, your 401Ks will soon be gone

    What does any of this have to do you losing 401ks?

  9. #9

    Default Re: Lenders keep doing it, your 401Ks will soon be gone

    Why would you even WANT to buy a house if you are both unemployed? Who's to say that you will find a job that's convenient to your home? Maybe you'll find a great job 60 miles away, or in another area entirely.
    "All my life I have tried to pluck a thistle and plant a flower wherever the flower would grow in thought and mind." -- Abraham Lincoln

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