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Well the Banks have done it again!

Discussion in 'Off Topic Threads' started by W.R.Buchanan, Feb 14, 2011.

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  1. W.R.Buchanan

    W.R.Buchanan Member

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    Well the Big 4 banks, B of A, Wells Fargo, Citibank, and JPMorgan/Chase, have came out today and said they would not close a loan that has an interest buy down written into the loan. This essentially stops mortgage lending.

    It has been one edict after another for the last 3 months from these guys, and the whole push by these banks and the FED is to allow the Big 4 to take over the entire housing market.

    This was largely facilitated by our friend in the treasury business Mr Tim Geitner.

    Essentially they are making it virtually impossible to obtain a mortgage or to refinance your existing loan. This will affect everyone who has a mortgage eventually and those that have adjustable rate mortgages as soon as they start to adjust.

    This was done to insure that all loans will be at or above the current interest rate. This is also to insure a steady flow of foreclosures which as you know by a post here yesterday, the banks are making big money on.

    You people who have adjustable rate mortgages who will need to refinance (like I do ) are screwed. They won't lend to you!

    I need you all the get the gravity of this situation!!!!!. This will mean no body will be able to get a mortgage in this country! Let alone afford it!!!!

    You need to be writing your Congress People and Senators, to shut down the FED and get Geitner and Obamas new COS Mr Charles Daly of the Chicago Daly's and more properly the CEO of JPMorgan/Chase. OUT!!! With Daly in the banks are assured of getting everything they want and more. You won't like any of it because it is all AT YOUR EXPENSE!!!

    The financial well being of this country is at stake and they almost have the whole show wrapped up.

    It all must stop NOW. Please help.

    If you already have what you think is a secure mortgage then I can assure you they will change it so it puts you in Jeopardy. If you read your loan papers you'll find little gotcha clauses that essentially allow them to do whatever they want. You will be affected!

    You are not safe!!! Nobody is safe!!!

    This is not a joke or a prank post, this is serious big time!!!

    This amounts literally to a coup de tat of this country!!!

    What are YOU going to do when some Chinese guy shows up at your front door with the Marshall and tells you "He owns your house, get out!"

    Randy
     
  2. Bisi

    Bisi TS Member

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    Okay I'll bite. How is this going to allow the big banks to take over the housing market?

    My understanding of the mortage buy back is something like this - you or someone else wants to buy a house for 150K and the going mortage rate is 5%. The buyer can't qualify for the loan because the payments would be too high at 5%, so the seller or the buyer "offers" (or buys) $7500 to the bank to get the mortage rate down to 3% for the first 3 or 4 years of the mortage so the buyer can qualify for the loan.

    Is that correct?

    If that is correct isn't that how we got in this mess in the first place? People were buying houses they couldn't afford when the interest rate went up, so they walked.

    Now the banks don't want to offer those loans anymore? We should be happy then, because wouldn't that cut down on people walking away from loans who couldn't afford then at the normal interest rate?

    I could see where it would make selling a house harder, because with no more interest buy down loans you will have fewer potential buyers??

    Set me straight if I'm wrong.
     
  3. waverider

    waverider Well-Known Member

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    Try talking with your local Credit Union(s).

    Jason
     
  4. KRE

    KRE TS Member

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    On the flip side, this opens up and area that small builders may what to look at. Why not get the back side money as well. $90 to 100K homes sell faster than 300K + money pits anyway. Last home I built in Fla. circa 87, I was out of pocket 37K including dirt, to key turn, and total built time was 68 days. Home was appraise same day at 89K. Lots of room left for holding a mortgage. That 59-60% number is still doable in todays market if you know what your doing.

    Kenneth
     
  5. Barrelbulge(Fl)

    Barrelbulge(Fl) TS Supporters TS Supporters

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    Never had a mortgage with the big banks, always dealt with the smaller savings banks. I only had 2 mortgages and they were with the same bank. Too boot they never sold the mortgage off. They serviced it. You don't have to deal with the big banks, just make sure you keep your credit rating A-1 and don't bite off more than you can chew. Bulge.
     
  6. oletymer

    oletymer Member

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    I cured that by paying cash for my homes. The last one for 360K. It is better to save your money and pay for what you want, if you can.
     
  7. W.R.Buchanan

    W.R.Buchanan Member

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    Doggai: yes I just got a copy of that BS today, and as an appraiser I have heard some really fun things coming too. Problem is all of the stuff the banks are trying to ram down our throats is for the sole purpose of NOT LENDING MONEY.

    If you can't refi your adjustable rate mortgage then you are stuck with what you have got. After the mortgage adjusts you are screwed and you will default in which case the bank will make more on your foreclosure immediately than they would have made otherwise.

    Bisi: an interest buydown is where you are applying for a 5% interest loan and when you close you buy the rate down buy giving the lender a point or 1% of the loan amount in cash due at closing, it is added to the closing costs. IE: you are applying for a $200K loan at 5%. By giving the lender $2000 at closing you can buy down the interest rate to 4.875 or 4.75% depending on how generous they feel. That way your monthly payment is lower, and also your loan will not accrue as much interest.

    Not allowing this insures that the banks retain a higher rate for the loan which makes the loan easier to sell to an investor. It also insures that more loans will default and the bank will be paid for its loss by the FDIC.

    Watch this video, it is real easy to understand why there are so many foreclosures and you never seem to hear about those mortgage modifications you heard so much about, but don't seem to exist when you look for one.

    If needed, watch it again.

    http://www.youtube.com/user/fiercefreeleancer

    Randy
     
  8. W.R.Buchanan

    W.R.Buchanan Member

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    Here it is again as a link hope it works

    This was just posted this weekend on this site by someone else and EVERYBODY NEEDS TO SEE IT!

    CAll your congressmen and demand this is stopped.

    Randy
     
  9. Barrelbulge(Fl)

    Barrelbulge(Fl) TS Supporters TS Supporters

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    I sent it to my Congressman after i posted it here, also sent it to John Boehner. No reply. Bulge.
     
  10. otnot

    otnot Active Member

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    Randy it's your right under RESPA 6 to request to see the chain of title. Let me warn you however that it opens a can of worms that in my case required an attorney to get them off my back. The link above may be of help.
     
  11. W.R.Buchanan

    W.R.Buchanan Member

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    otnot: I'm not in a postion to need to open the can of worms right now. Plus I think my chain is intact, however when I need to refi in a couple of years, and nobody will do it, then I will be in aposition to either dump the place or make a move in court, depending on what options are available.

    My loan is at a bank who has not taken any TARP funds, but I don't know if they still have the loan or are just servicing the loan. If they are just servicing then chances are there is title problems.

    The attorney will be retained first and will block any and all negative repercussions.

    Until then I can pull the title chain at my local recorders office without raising any flags to see if there is any wrong doing evident.

    If there is, then we hire that attorney to execute a seazure of my property from the banks who can't prove who owns it.

    If not then we leave sleeping dogs lie.

    Thanks for the link. I book marked it.

    Randy
     
  12. Donm

    Donm Active Member

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    Chase took no tarp money.
     
  13. W.R.Buchanan

    W.R.Buchanan Member

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    JP Morgan Chase just paid their TARP money back 3 months ago. Along with Bof A and Wells. Citi has not yet.

    Randy
     
  14. SeldomShoots

    SeldomShoots Active Member

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    Sounds like we ought to get oletymer to adopt us.
     
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