What is a "Foreclosure Victim"?

Brad Murphy · #1 09-25-2008, 06:27 AM

Isn't it just someone who signed up for a mortgage that they could not afford, knowing FULLY in advance that their interest rate could change at any time? I purposely did NOT get an adjustable rate mortgage on either of the two properties I have owned because of this, and live in a more inexpensive house than I could have purchased if I had done an adjustable rate mortgage.

Why should the government help these people at all, when it is their own fault they are in this situation in the first place?

AmazingGrace · #2 09-25-2008, 07:04 AM

I think a foreclosure victim is the cousin of the man who left his keys in his car and doors unlocked and got upset when his car got stolen or.. brother of the man who never paid his credit card bill and then got upset when the card was shut off???? Maybe?!

TRFrance · #3 09-25-2008, 07:14 AM

Quote:

Originally Posted by Brad Murphy

Isn't it just someone who signed up for a mortgage that they could not afford, knowing FULLY in advance that their interest rate could change at any time? I purposely did NOT get an adjustable rate mortgage on either of the two properties I have owned because of this, and live in a more inexpensive house than I could have purchased if I had done an adjustable rate mortgage.

Why should the government help these people at all, when it is their own fault they are in this situation in the first place?

It's not that cut and dried bro.

There are some people thought they were getting a fixed rate, and didnt even know it was adjustable. I know of one particular case in which a woman was given a mortgage that was adjustable, but "fixed for 3 years", but it was explained to her as being a "fixed rate", not that it was adjustable after that 3 years. Near the end of the 3 years,her bank sent her a letter notifying her that her rate was going to adjust in 90 days ,and of course she was perplexed. When she called the guy at the mortgage company who sold her the mortgage, he didnt work there any more, and she was on the hook.

There was a lot of fraud in the business, and a lot of people who were elderly, minorities, had bad credit, or just werent financially savvy were easy prey to a lot of deceitful mortgage brokers. Yes, the person signed the paperwork, and are resonsible for whatever they sign, but often they werent really explained what they were signing, and they were taken advantage of.

So yes, some people were irresponsible and bit off more than they could chew. But there are many who were also deceived, and could properly be considered "foreclosure victims".

Brad Murphy · #4 09-25-2008, 07:19 AM

Quote:

Originally Posted by TRFrance

It's not that cut and dried bro.

There are some people thought they were getting a fixed rate, and didnt even know it was adjustable. I know of one particular case in which a woman was given a mortgage that was adjustable, but "fixed for 3 years", but it was explained to her as being a "fixed rate", not that it was adjustable after that 3 years. Near the end of the 3 years,her bank sent her a letter notifying her that her rate was going to adjust in 90 days ,and of course she was perplexed. When she called the guy at the mortgage company who sold her the mortgage, he didnt work there any more, and she was on the hook.

There was a lot of fraud in the business, and a lot of people who were elderly, minorities, had bad credit, or just werent financially savvy were easy prey to a lot of deceitful mortgage brokers. Yes, the person signed the paperwork, and are resonsible for whatever they sign, but often they werent really explained what they were signing, and they were taken advantage of.

So yes, some people were irresponsible and bit off more than they could chew. But there are many who were also deceived, and could properly be considered "foreclosure victims".

I remember being taught to read a contract completely before signing it and if you don't understand something to pay a lawyer review it with/for you.

TRFrance · #5 09-25-2008, 07:30 AM

Quote:

Originally Posted by Brad Murphy

I remember being taught to read a contract completely before signing it and if you don't understand something to pay a lawyer review it with/for you.

Yes, yes, we know.
There are a lot of things that we should do in a perfect world, that we dont do.

And there are some who take advantage of this, for their own financial gain. And that happens a lot in the financial services industry.

tamor · #6 09-25-2008, 07:34 AM

Quote:

Originally Posted by Brad Murphy

Isn't it just someone who signed up for a mortgage that they could not afford, knowing FULLY in advance that their interest rate could change at any time?

Not everyone who has an adjustable rate mortgage bought a house that they could not afford. And I would dare say that most people who have these mortgages knew the interest rate would change, they just didn't expect it to change so drastically.

Brad Murphy · #7 09-25-2008, 07:36 AM

So they took a gamble and we get to pay for it... I get it.

rgcraig · #8 09-25-2008, 07:43 AM

Quote:

Originally Posted by Brad Murphy

So they took a gamble and we get to pay for it... I get it.

That's exactly it! I heard it explained last night and there were investors that were taking this gamble.

Brad Murphy · #9 09-25-2008, 07:49 AM

I do understand that some people were deceived, but in this day and age people cannot be so trusting... this isn't that "perfect world" TRFRANCE mentioned above, and none of us live in Mayberry or on Walton Mountain. I understand that, but obviously those people who did not review their contracts properly did not.

ManOfWord · #10 09-25-2008, 07:52 AM

Caveat emptor!

A few years ago, we got an interest only LIBOR loan. We planned to make more than just the interest payment and bring our principle down. We knew the that the loan would "convert" to an ARM at the end of the original term. No problem. When that time came, we got out of that loan and into a fixed rate loan. We used the tool to help us than we got out.

I understand that not everyone is mortgage savvy, but most of the people bought houses way above their means and yes many homes were way over valued as well. But I do not expect the Gov't to bail me out of a bad move on my part. If they want to give the industry LOANS, then make them do the exact same thing that Chrysler did under Iacocca, and that was pay it ALL back. Help is one thing, a freebie is another.