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'Bankrupt' Mortgage Lenders Unveil The Zero-Money-Down "Friends-And-Family" Mortgage
Ripping straight from the pages of the "those who failed to learn from history are doomed... period" book of centrally-planned desperation to maintain American Dream 'wealth' by unsustainably levitating home prices, the government's bankruptcy mortgage guarantors have just announced "HomeReady Mortgages." These so-called 'enhanced affordable lending products - provided by the US taxpayer - enable 97%-plus Loan-to-Value loans to borrowers based not on their income (which is too low) but on "non-borrowers" like extended family or children! "Whatever it takes" to maintain the illusion of normalcy and hand out more money just reached peak Einsteinian insanity.
In its latest 'offering' letter for HomeReady Mortgages, Fannie Mae offers what it calls 'innovative underwriting flexibility'...
- Offers an innovative new feature that supports extended family households: will consider income from a non-borrower household member as a compensating factor in DU to allow for a debt-to-income (DTI) ratio >45% to 50%.
- Allows non-occupant borrowers, such as a parent.
- Permits rental income from an accessory dwelling unit (such as a basement apartment).
- Allows boarder income (updated guidelines provide documentation flexibility).
In other words, as KARE11 tries to defend...
"It could be a credit problem, it could be an income problem, it could be an employment history problem, it could be a debt-ratio problem. There are a number of things that can affect a person's situation," said Chris O'Connell, a licensed mortgage loan officer with Nations Reliable Lending in Edina.
Mortgage giant Fannie Mae recognizes these hardships, and in response will soon offer a new kind of mortgage with new rules designed to add flexibility for borrowers.
"They've recognized that households have changed and our guidelines need to change with it," said O'Connell.
HomeReady will consider incomes from others planning to live in the house without being a borrower on the loan.
This means, if you live with parents, siblings, working children or maybe a roommate, as long as they make 30 percent of the household income, Fannie will include their money to help you qualify for a loan.
These are being called "non-borrowers" by Fannie.
Non-borrower backed mortgages!!??
Also, non-occupants of the home can add further income to the mortgage. Perhaps parents living elsewhere but willing to help pay the loan.
"The typical household has changed now. It's not the household we used to know 20 years ago because there's a lot of extended family. Parents are living with the family, children are staying home longer, and it allows you to consider their income too," said Tousley.
But it gets even better... If you don't have the down-payment (of 3% or less of the home's value) then there is a solution for you too...
Flexible sources of funds can be used for the down payment and closing costs with no minimum contribution required from the borrower’s own funds
Gifts, grants, Community Seconds®, and cash-on-hand permitted as a source of funds for down payment and closing costs.
And what is a "Community Second" we hear you cry? Well...
An alternative financing option for low- and moderate-income households under which an investor purchases a first mortgage that has a subsidized second mortgage behind it. The second mortgage may be issued by a state, county, or local housing agency, foundation, or nonprofit organization. Payment on the second mortgage is often deferred and carries a very low interest rate (or no interest rate at all).
Part of the debt may be forgiven incrementally for each year the buyer remains in the home.
So, to sum up - if you don't have any savings, the government will give you some to use as a down-payment (which as long as you stay poor will be forgiven over time).. and then the government will allow you to borrow 97% of the value of the home on the basis not of your income and ability to pay but of any rag-tag bunch of friends, family, or pets you can gather under your 'new' roof... and all subsidized by the good 'ol US Taxpayer... for your own good.
And why are they doing this? Aside from the obvious desperation to keep home prices higher via unsustainable demand? Simple... because it's fair... it is everyone's right - no matter how poor, how uncreditworthy, how under-employed, how much of a drag on the rest of society, or how ignorant - to leverage themselves (at the US taxpayer's dime) at 30-40 to 1 into record high US home prices... as they explain themselves...
(Aligned with Fannie Mae’s regulatory housing goals and may help lenders meet applicable Community Reinvestment Act goals)
So do not claim when this all goes utterly pear-shaped that this was not the government's doing... it was! and is!
* * *
To torture an analogy to death, give a nation just enough 'rope' and it will drown itself in generational debt servitude... or perhaps that was/is the plan all along... certainly makes it 'easy' to vote for the party with all the handouts?
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Ill take two please!!
The banksters are rehypothicating our families! What'll those boys downtown think of next?
Charge those roaches and rats some rent rehypothocate and you can afford to buy the whole roach motel
Non-Whites only.....for the children.
Duplicate
<-- Financial terrorism
<-- Valid sensible business model
Helicopter cash....WW3 coming soon......
http://beforeitsnews.com/conspiracy-theories/2015/12/road-to-ww3-time-to...
Damn right. This is Bernanke's helicopter cash.
Not a thing will be done about it.
I'm holding out for a NIRP mortgage a la Denmark. Those will be the next bright idea.
Be careful what you wish for - a friend of mine went to Denmark to look into those negative interest rate Danish mortgages. Check this out: one minute he was standing on the sidewalk, minding his own business, and the next minute some cops grabbed him, dragged him into a vacant house, and told him it was a "negative eviction".
Then they piled a bunch of new IKEA stuff against the door so he couldn't get out.
The HORROR of it all !
"The second mortgage may be issued by a state, county, or local housing agency, foundation, or nonprofit organization. Payment on the second mortgage is often deferred and carries a very low interest rate (or no interest rate at all). "
IF the 3% Down Payment is deffered/low interest then the loan is a direct subsidy.
IF the 3% Down Payment is a grant then it could also be argued that the loan is mildly negative front-loaded bias.
Conceivibly 3% of the money is immediately booked as 'equity'. This is NOT new commercial loan money but instead a capital infusion from outside the borrow's savings.
Logically ,there is little reason to restrict this sort of direct treasury funding of mortgages if it is going to be supplied.
IF governemnt is going to encourage home ownership, or entrepreneurship or myriad other goals, then maybe it would be better for government to have simple guaranteed no frills limited/base costs seed funding to meet various goals.
-& just keep middlemen, banks and interest charges, extra bureaucracy, etc.. out of the ROI equation.
.GOV injecting new treasury money ( inflation ) directly into the economy via asset securitizations such as mortgages could be utilized to target an inflation rate.
Or we could just get the federal government out of the housing market.
If home prices were not being forced higher by government / fed actions then more people could afford to buy them.
It is the constant diddling by government that in the long run fucks everything up - like the cost of college and health care.
I'd like to take an equity loan on my neighbors house. Where do I sign?
Let's chase some yield....even if it is a ghost.
what it enables is scumbags to move in next door to you. then you have to move and the whole neighborhood goes to shit and property values plummet for everyone. all in the name of helping the maggots. then later the scumbags try to find out where you moved to because they can't stand the old neighborhood either and want decent neighbors even though they suck ass and trashed their old house and defaulted on their mortgage. repeat ad nauseam because owebomba will finance anyone all the time.
Why so hateful and racist? You belong in a FEMA camp.
This is more likely an attempt to put a floor under the coming crash. I seriously doubt they'll let many truly low income types into these loans. If anything it will allow "Nuclear Family 2.0" multi generational types to buy the larger 2500 SQFT plus homes in the metros and suburbs which are most vulnerable to serious price declines. I SERIOUSLY doubt your going to see the incomes of 6 family members with McJobs approved to buy 400k 4 and 5 bedroom homes.
You are thinking ahead. You are not supposed to think ahead.
Rememer the executive order that made HUD take out the 'if you have fraud' in you background you can't make any loans to anyone. All you need to know in a nut shell
Wow. Seriously. Just Wow.
Mako.........''The bank doesn't have a big pile of Federal Reserves Notes sitting there, and then when you ask for a loan they give you those FRN. They take the mortgage note put it in a checking account in your name, write a check against YOUR acccount, give you the other party the check and then claim they gave you loan, which is nonsense. It would be illegal for the bank to lend you their credit and no they don't have a big pile of legal tender sitting there. ''
http://www.zerohedge.com/article/karl-denninger-explains-foreclosure-gat...
I miss Mako
THanks for the reminder for the newbees
RIPS
Makes sense to me. New concept, "community loans"! If you don't make enough to qualify, we will now consider your neighbors income to see if you now meet the threshold DTI to borrow. I think this will work pretty well.
As an addendum, we will consider up to 3 different neighbors that you may or may not know but they have to live within 10 miles of your mortgaged residence. You just pick up to 3 people and we will use their income to help you qualify for these loans! What could be easier???
Next up, those 3 chosen will automatically be co-signers of your note!
Hey Maude! Lookie them thar places on Park Avenue and 17 Mile Drive!
How do you steal money from people that don't have any?
Simply by having taxpayers directly or indirectly covering the loss. The courts and lawyers make out too as we both well know. I see certain folks snagging up those foreclosed homes for next to nothing as the banks are responsible for the taxes etc. on said properties. The investors and turning them into section 8 housing here. I have never in my life seen such a friggin fiasco. I am so shocked at the how fucking useless the new tenants are to society in general. I guess their votes count more than the rest of us.
The only thing surprising about this ruling is that it took so long to be made. This is black letter law, folks, the logical extension of the Court's Ibanez decision.
Without a promissory note, a foreclosing plaintiff cannot show a legal injury, i.e., does not have standing to sue. Without standing, the action before the court does not qualify as a "case or controversy" under Article III of the constitution. Courts can only make rulings on "cases or controversies;" advisory opinions are a legal nullity. Consequently, a court that purports to enter a "judgment" where it has no subject matter jurisdiction has in fact entered a legal nullity on its docket; that "judgment" is void as a matter of law.
As such, any such "judgment" entered where the plaintiff had no standing is open to collateral attack in any subsequent proceeding. What is more, subject matter jurisdiction cannot be waived; were that the case, parties could falsely induce courts to make binding rulings--obviously non-sensical.
The procedural posture of this particular case is unusually serpentine, no doubt. In any event, there is nothing controversial--as a legal proposition--about this case. I'm sure the banks, who are now shitting their pants over the implications of this case, see it differently, but they're just wrong.
---
Source - Amnova
On Oct. 18th, 2011 the Massachusetts Supreme Judicial Court handed down their decision in the FRANCIS J. BEVILACQUA, THIRD vs. PABLO RODRIGUEZ – and in a moment, essentially made foreclosure sales in the commonwealth over the last five years wholly void. However, some of the more polite headlines, undoubtedly in the interest of not causing wide spread panic simply put it "SJC puts foreclosure sales in doubt" or "Buyer Can't Sue After Bad Foreclosure Sale."
In essence, the ruling upheld that those who had purchased foreclosure properties that had been illegally foreclosed upon (which is virtually all foreclosure sales in the last five years), did not in fact have title to those properties. Given the fact that more than two-thirds of all real estate transactions in the last five years have also been foreclosed properties, this creates a small problem.
The Massachusetts SJC is one of the most respected high courts in the country, other supreme courts look to these decisions for guidance, and would find it difficult to rule any other way in their own states. It is a precedent. It's an important precedent.
Here are the key components of the Bevilacqua case:
1. In holding that Bevilacqua could not make "something from nothing" (bring an action or even have standing to bring an action, when he had a title worth nothing) the lower land court applied and upheld long-standing principles of conveyance.
2. A foreclosure conducted by a non-mortgagee (which includes basically all of them over the last five years, including the landmark Ibanez case) is wholly void and passes no title to a subsequent transferee (purchasers of foreclosures will be especially pleased to learn of this)
3. Where (as in Bevilacqua) a non-mortgagee records a post-foreclosure assignment, any subsequent transferee has record notice that the foreclosure is simply void.
4. A wholly void foreclosure deed passes no title even to a supposed "bona fide purchaser"
5. The Grantee of an invalid (wholly void) foreclosure deed does not have record title, nor does any person claiming under a wholly void deed, and the decision of the lower land court properly dismissed Bevilacqua's petition.
6. The land court correctly reasoned that the remedy available to Bevilacqua was not against the wrongly foreclosed homeowner but rather against the wrongly foreclosing bank and/or perhaps the servicer (depending on who actually conducted the foreclosure)
When thinking about the implications of Bevilacqua – the importance of point six cannot be overstated.
The re-foreclosure suggestion is not valid
Re-foreclosing on these properties in not likely as has been suggested by bank layers in light of the Bevilacqua ruling. We aren't talking about Donald Trump here and we have a funny feeling he won't be affected either. Mostly it's guys like Bevilacqua who bought single or multi units, in the "hundreds of thousands" range. It seem unlikely that the majority of these folks would have the capital to eat their existing loses, re-foreclose at great expense, and on top of all of that come out as the highest bidder on the very property they formerly thought was their own. In many cases, as was the case in Bevilacqua, the original purchaser of the foreclosure may have already resold the property and moved on, thus leaving in their wake an even more serious problem; the likelihood of a property owner, who had nothing directly to do with a foreclosure, but is left with all the fallout of a post-Bevilacqua world.
Re-bidding on these properties in a re-foreclosure scenario would be done in what is soon to be a new inflationary environment (most originally bid in a deflationary environment for housing), thus making the "re-foreclosure" blank threat all the more unconvincing and unlikely.
However, it should be easy enough for investors similarly situated to Bevilacqua to simply hire fee contingent attorneys who can sue the banks and servicers for conveying fraudulent deeds – that seems like a much easier and logical proposition. When the potentially millions of lawsuits are added to the complaints filed by investors in MBS, we think the banks will finally be revealed as wholly insolvent. The only other way it could happen faster, is if the average American home owner, realizing he may never obtain clear title to his home (short of an indemnity from his bank), finally stops making his monthly payments on his invalid note (which completely lacks a valid security instrument). In this way, the existing insolvency of banks would be recognized in a matter of days rather than months or years...
Dude, I'm calling BS and I did downvote you for posting an article from 2011.
Please, the banks don't follow the law. You should be aware of that by now.
Got spirit? /S
http://www.leif.org/research/Al-Gore-Receives-News-Global-Warming-has-St...
"Taxpayer" as a term is used to obsure the truth that we are simply slaves. By getting some slaves to call themselves "taxpayers", they create a divide and conquer scenario where some victims get angry at other victims instead of the slavemaster.
The actual ways that those frauds have become electronic, while those are backed by weapons of mass destruction, like atomic bombs, have resulted in pretty well the total population of "taxpayers" no longer being significant factors. Rather, it is barely possible to imagine the degree to which the development of inanimate energy sources, ENFORCING FRAUDS, have left the world of flesh and blood taxpayers behind in the dust, in ways whereby they have become relatively too trivial for the bankers' systems to care about anymore, especially since those bankers can count upon enough of those taxpayers continuing to act like incompetent political idiots, particularly because even when a few do understand somewhat better, they still have no practical ways to participate effectively within the established systems of POLITICAL FUNDING ENFORCING FRAUDS, which have also already become orders of magnitude BIGGER than the budgets of those flesh and blood "taxpayers."
Remember that the people who made lots and LOTS of money out of the mortgage companies, such at that previously known as Countrywide, got to KEEP IT! Similarly, everyone who gets to take home a piece of the pie enabled by the kinds of control frauds embodied in HomeReady Mortgages will surely be allowed to keep that personal profit.
Anyone who studies the history of Countrywide Financial will observe how POLITICAL FUNDING ENFORCING FRAUDS works through vicious spirals, that are politically impossible to stop automatically getting worse. People like William K. Black have documented the ways that "THE BEST WAY TO ROB A BANK IS TO OWN ONE," as well as provided detailed recommendations regarding how to prevent those kinds of control frauds. However, the basic situation has become such runaway, triumphant control of civilization through the vicious spirals of POLITICAL FUNDING ENFORCING FRAUDS, that it is no longer politically possible to stop that from continuing to automatically get worse, faster ...
Since what now EXISTS are globalized electronic frauds, backed by atomic bombs, as the ways that money is measurement backed by murder, it has been possible to amplify those systems to astronomical sizes, by as many orders of magnitude as electronics and atomic energy are greater than paper frauds, backed by gunpowder weapons. Therefore, the lives of flesh and blood people have become relatively trivial compared to the virtual world where the banksters have been able to make "money" out of nothing to gamble with.
All of the "money" that flesh and blood taxpayers use to pay for food or fuel, etc., has become insignificant inside the virtual world of electronic "money" made out of nothing, which the banksters can use to gamble with. Overall, the flesh and blood taxpayers no longer count in any significant way. Once upon a time, those people provided the backing to enable the systems of the public "money" made out of nothing as debts to be developed, and to grow at an overall about exponential rate. However, after that exponential growth of those integrated systems of legalized lies, backed by legalized violence, or of FRAUDS ENFORCED, developed for decade after decade, for more than a Century, the final results are now too mind boggling to be able to fully comprehend.
Indeed, not even the banksters, that originally made and maintained those systems, are now able to fully understand, nor continue to control, their globalized systems of electronic money, backed by atomic bombs. Moreover, most of the taxpayers do not even bother to attempt to understand that, while the few that partially do then continue to still collapse back to old-fashioned bullshit "solutions," rather than go forward to attempt to think through what it means to have globalized systems of electronic frauds, backed by atomic bombs. The "best" we tend to get being publicly presented are bogus "solutions" based upon people misunderstanding the world as if it was still like the old-fashioned paper frauds, backed by gunpowder weapons.
Theoretically speaking, only series of intellectual scientific revolutions, which were consistent with the profound paradigm shifts that made the technologies possible to become globalized electronic frauds, backed by atomic bombs, to actually EXIST could be consistent with the actual magnitudes of those problems. Theoretically speaking, any genuine resolutions of the real problems would require MONETARY REVOLUTIONS which were comparable in magnitude to the scientific revolutions that enabled Neolithic Civilization to develop globalized electronic frauds backed by atomic bombs. However, by and large, the few people who do understand the POLITICAL FUNDING ENFORCING FRAUDS continue to stay stuck inside of their misunderstand that world as still being the same as back in those days when those systems used to be paper frauds, backed by gunpowder weapons. Those who stay within that context, and therefore, propose various "monetary reforms," are not even close to being in the right ball park anymore!
IT IS THE BASIC NATURE OF THE MAD MONEY AS DEBT SYSTEMS THAT THOSE WHO HAVE THE ASTONISHING PRIVILEGE OF LEGALLY CREATING THE PUBLIC "MONEY" SUPPLIES OUT OF NOTHING AS DEBTS FIND EVERY POSSIBLE EXCUSE TO DO THAT AS MUCH AS THEY POSSIBLY CAN! That has overall been getting worse at an exponential rate for more than a Century in the USA, as well as pretty well everywhere else. For instance, the development of credit cards was one of the major ways that the automation of electronic frauds advanced. We ALL operate through fundamentally fraudulent financial accounting systems. However, most people only noticed that after it became more and more excessively blatant.
As the article above stated, the MAD Money As Debt systems have necessarily been following their strategy of doing "whatever it takes" to maintain the illusion of normalcy and hand out more money just reached peak Einsteinian insanity. However, pretty well nobody fully appreciates the awesome magnitude of that "Einsteinian insanity," since it has become the threat of atomic bombs which is backing up electronic frauds, so that trillions and trillions of units of the public "money" supply can legally be created at the push of a button by privately controlled banks, whose powers to do that are enforced by governments.
THE FACT THAT ATOMIC BOMBS GO BOOM SHOULD HAVE CHANGED THE WAYS THAT PEOPLE THINK ABOUT POLITICAL PROBLEMS. HOWEVER, SO FAR, THAT HAS MOSTLY NOT HAPPENED. INSTEAD, WE ARE COLLECTIVELY SUFFERING FROM RUNAWAY "Einsteinian insanity" BECOMING ORDERS OF MAGNITUDE WORSE, BECAUSE OUR POLITICAL SCIENCE HAS NOT GONE THROUGH SERIES OF PROFOUND PARADIGM SHIFTS THAT INTEGRATED AND SURPASSED THOSE ALREADY ACHIEVED IN PHYSICAL SCIENCE, AS DEMONSTRATED BY THE FACT THAT ATOMIC BOMBS GO BOOM!
The overall magnitudes of the runaway "Einsteinian insanity" that we collectively suffer from are demonstrated by the degree to which there is the collective MADNESS of MAD Money As Debt systems, backed by MAD Mutual Assured Destruction systems, such that there are globalized systems of electronic monkey money frauds, backed by the threat of force from apes with atomic bombs. The previous systems of paper frauds, backed by the force of gunpowder weapons, have been amplified to astronomical sizes by prodigious progress in physical science, so that the technologies based upon ideas like the special theory of relativity have rapidly become millions, then billions, then trillions of times GREATER ... However, meanwhile, political science has not progressed, due that requiring enormous magnitudes of profound paradigm shifts, that it would take in order for that kind of progress in political science to perhaps happen.
Flesh and blood citizens and/or taxpayers no longer matter much, because their absolute magnitude has actually become relatively trivial inside of runaway systems of electronic frauds, backed by atomic bombs. The so-called "taxpayers" are no longer even significant as debt slaves, due to the magnitude of the runaway debt insanities generating numbers which have left them so far behind the automated electronic creation of the public "money" supplies out of nothing as debts that their total participation has become too trivial to matter.
It is excessively optimistic to still think that "taxpayers" are "slaves," or that they matter enough to continue to bother to divide and conquer. Rather, the flesh and blood human beings have become useless hostages inside of the systems based upon electronic frauds backed by atomic bombs. Those people are especially more and more useless because they deliberately refuse to understand that the days of old-fashioned paper frauds, backed by gunpowder weapons are GONE... But nevertheless, politics continues to be dominated by old-fashioned religions and ideologies, which adamantly refuse to face the facts regarding the development of electronic frauds, backed by atomic bombs.
It's such a juggernaut about the only thing a regular ordinary person can do to fight back is resist playing their game at all costs.
Give it to them.
Yes, the money is looking for people for the same reasons as the last go 'round. Bundle debt into "shitty deals" multiple times signed Linda Green, bet against payment, credit default swaps, etc. Then the lenders cry they're victims for just trying to be nice, and get bailed out @ par plus interest. When it's over froeclose, then blame the borrowers for tricking them. Bill goes on the public's tab which is so big it can't be paid back in a million years as it is.
You nailed it with the famous quote "Shitty Deals"
This is why "interest" (usury) was invented.
What the fuck?
The one and same organization that ran the private sector out of doing this because they were predatory and irresponsible now fills the void and performs the very same act.
Empire building via power of the sword.
Next up, FRB buys all the equities outstanding, Congress takes direct control of FED balance sheet and viola!, the Goobermint owns the means of production and all employment, lock stock and barrel.
And you thought there were some responsible people out there.
There is a way to go as Japan, back in the 1980's, countered very high property prices with the concept of 'multi-generational' mortgages ie the parents (sort-of because legally a bit unsound) pledged the income of their currently unworking (or even unborn) children.
They wound up with a situation where the Emperors Palace (admittedly a very large lot + lots of buildings in a prime spot) was worth more than the estimated total value of all real estate in California.
Of course, it all fell apart in the end...
Watson
We beat them to it with $100 trillion in national debt. How many generations would it take to pay that off, not that it was ever intended to be paid off.
Japan's debt/GDP is much worse than the US's, and they have a rapidly ageing population.
Most Japanese debt is held domestically by an unusually loyal population, which probably means their debt/GDP can further.
That doesn't mean the US is OK, it has been overspending based on debt finance since at least the 1960's.
Which is a shame, because the US was founded in frugality, both gov and the people.
And, like Victorian England (which was the same) grew rich and strong off that frugality.
The US has the advantage of being the world's reserve currency (for now, but for several years China has been putting the pieces in place for that to change).
The US does have (and I think, in due course will use) one 'hail mary' option.
That is to selectively default on US debt held overseas.
Watson
Do they need concent or just custody? Before they sell them into debt servitude?
That's what I was thinking. Maybe they will go the route of Sally Mae and be all sweet and offer forbearances etc,. then they drop the hammer and pass laws or reveal the fine print that those people are liable, bankruptcy will not apply and they cannot leave the country unless they pay.
I probably have one relative that wouldn't mind borrowing my SSN.
there is a steep mortgage insurance policy attached to that loan that bumps the apr more than a point above good credit. this loan takes advantage of the extended family living under the same roof. that may be where it could work with east and south asian families where three or even 4 generations of family under the same roof may not be unusual but the program is ripe for abuse. it turns inventory and that is the only purpose for any of this.
It would be more sucessful if they proposed swapping guns for debt.
Promise not to purchase any firearms and they give you a paid mortgage and an armed guard to protect you.
I think I get it. "Non-borrowers" are like co-signers, except they don't have to sign anything and they're really not co-anything either.
This is beyond beyond.
Pik-a-Parent Loans
Perfect for non documented California families. In California they can even rent it to uncle Pablo and his family and then trash it and then evict Pablo but the court will make them put Pablo up while they fix the place, of course getting subsidised throughout the entire process.
FUBAR.
This is great! A ghetto rat without a pot to piss in can have a window to throw it out, at least until the house goes into foreclosure. I rent to ghetto rats and they do not think beyond the next drink, toke, or orgasm. This should end well.
The banks are sitting on so many homes stolen from people whose livelihoods collapsed because of the banks. "Banks" in this case is just one facet of the larger oligarch structure.
Yet here in comments some people are angry this massive inventory doesn't remain rotting instead of being returned to market. In a system where scarcity is obsolete, some people are angry that their scarce resource won't float higher in value due to the false and artificial scarcity that keeps the old system afloat, the very system they hate.
Some people's self worth is determined by how much better they are than other people, as measured by a system of dollars that is contrived to place slaveowners at the top.
Why buy into your own slavery?
Here we go, another NINJA loan reincarnation, this time you may include dead relative income from Spring of 1929 adjusted for inflation, while few credit worthy borrowers can't get a shit outbidden by the scam of speculators.
Housing market is dead monopolized by the drug mafia and Chinese fleeing with the loot; mind the real estate exception from money laundering monitoring.
They are all cesspool of thugs and gangsters/banksters, drug kingpins and low live parasites. All the MSM is lying about real estate like they did in late 2005 when housing crisis started in the US.
Here you may find a diametrically different look at the real estate fraudulent market as well as on whole ownership society BS.
https://contrarianopinion.wordpress.com/economy-update/
Zillow is a fun way to gauge the RE martket. Save some of the McManses in better areas and watch the price markdowns and foreclosures over time. Contrary to what the media says, the RE market rebounded for 1/2 second when Obama bailed a lot of the ghetto rats out of their overpriced boxes in gated subdivisions which just put off the inevitable foreclosures by a year or two. Beyond that, slews of dubiously architectured "big develper" boxes are on the market as 5-10 y/o homes now at prices substantially below their original purchase prices. It will be intersting to see what happens to DiVosta, Lennar, Toll Bros, AmPac, Hovnanian, and the like if they don't complete and sell their new slew of 500K-1M 2000 -3000 sq ft junk heaps before the current bubble bursts. It seems that in most areas, these builders ramped up builiding new communities in the last 3 years worse than they did prior to the last bubble bursting.
Hot money coming in from China as cash sales seems to be drying up and now its been eclipsed by normal mortgages. I'm still asking who, in this service economy, can handle a $720,000 home? What industry are they working in and what are they making take home to pay that mortgage payment that's been pushing 4% since August?
And when a whole neighborhood starts putting up for sale signs, new construction comes in and puts 10 units on a 3 unit property sold together, along with 3 new 'luxury' apartment complexes with over 40 apartments I've got to ask - besides the hassle of traffic now, who's paying the premium prices?
As Randy says - "we can't afford it. i had to take a 2nd mortgage on the house b/c of whole foods'
http://southpark.cc.com/full-episodes/s19e09-truth-and-advertising
In Vegas, they have Mountains Edge. A master plannned community in the middle of no where with no grocey stores or schools. Its not close to anything useful like the airport, strip or restaurants. Still dumb ass Mormans are lining up to buy this shit. Them and the Chinks. I would not live out there for a million dollas.
Whatever else this is, it's a concession to the awful truth that many people of prime house-buying age will never be able to afford a house without a substantial loan from the Bank of Mom and Dad.
Mom and Dad have figured out that the equity in their only significant asset---their house---is not going to be enough to live on for the 30 years they plan on taking to die. So when they start slowing down they'll make a big show of offering their sons the money for a downpayment on a real family home---on condition they get to live in the spare bedroom and can guilt-trip their daughter-in-law into becoming the 24/7 nurse their pension or savings (if any) could never hope to afford.
("Of COURSE we'll help with the grandchildren!" Yeah, Mom, sure you will. Even if son and daughter-in-law can afford children on top of your prescriptions, all you'll do is complain that daughter-in-law does everything wrong. You won't lift a finger to help even while you still have the mental and physical energy.)
And now Uncle Sugar will give them even more help ruining their kids' lives.
Spare Bedroom??? Fuck that! I'm finally going to get a chance to buy that 10 bedroom house with 12 Baths and 2 kitchens! Now all I have to do is talk my kids to moving in to help me with the mortgage payment! And I'll need one helluva bigger garage. I'll refinance! What a concept!!
A dream come true!!
The Old Man
I think we have seen the last generation that will ever conceive of being debt free. I also suspect that all the powers that be are insuring that the highest possible number of people are in the most amount of debt possible, so when things fall apart again ( not that they haven't already ) these debt slaves will go along with whatever is imposed on them. I also see that people are being convinced that owning the things you pay for is just silly. Pay as you go. So even if you don't have debt, your life is rented in every way. Lose some income, and something in your life has to be forfeited. Of course you can always charge the monthly bills for a while.
Owning things, being out of debt, is too much ownership and security of your life. Gives a person some solid ground to make a stand. Can't be tolerated.
I don't know... my father charged me 21% on the loan for my first car. He (9 years) later gave me a bill for every single dime I had cost him since my 16th birthday -plus a nice vic of 7% per annum.
I hate the man like poison, but I have never been in debt since.
A good lesson learned. Trouble is, the system is making never ending , increasing debt, the norm. Not something to be avoided or ended. A good citizen pays the never ending dues in money and ever more labor. Not enough left to pay the dues of time and money to support a good government for them, not against them.
...just think.... all of this... just because the Banksters refuse to Go Quietly off the top of a building or out a twenty story window like they did during the first American Great Depression.
Shouldn't the educating the buyer be the first bullet ?
What's the negative rate I get?
Wolf Richter has an article stating that the fool from Countrywide is now at PennyMac which is the nation’s sixth largest mortgage lender and largest nonbank mortgage lender. And then there's this:
The LA Times:
But another regulator isn’t so sanguine about the breakneck growth of these new nonbank lenders: Ginnie Mae, which guarantees FHA and VA loans that are packaged into structured mortgage backed securities, has requested funding for 33 additional regulators. It’s fretting that these nonbank lenders won’t have the reserves to cover any losses.
“Where’s the money going to come from?” wondered Ginnie Mae’s president, Ted Tozer. “We want to make sure everyone’s going to be there when the next downturn comes.”
But the money, like last time, may not be there.
http://wolfstreet.com/2015/12/01/subprime-alt-mortgages-from-nonbanks-ru...
My Gerbil. What about my pet Gerbil. Can he help me get a mortgage?
Sure, c'mon down. He got a pulse, don't he? He can fog a mirror, can't he? If he can make his mark on the dotted line, he can co-sign. Or, if he can round up his extended family, they can all help him borrow to own. That multi-level gerbil-town with the deluxe wheel is within his reach. And there's no better time. It costs peanuts to take out a 50-year loan... oh, wait, a gerbil? Three year life span, max? We'll sign him up for a ten-year with a balloon at the end, no problems...
Around and around and around the merri-go-round we go!
"The banks knew securities based on shit-bag mortgages were risky!"
https://www.youtube.com/watch?v=OqYTQB6lrQQ&feature=youtu.be&t=52s
Both Fannie Mae and Freddie Mac have had a 97% loan to value mortgage on the books for a long time now. They both require mortgage insurance, logically. Until recently, Freddie Mac would allow a non-occupying co-borrower to apply with the main borrower to blend debt to income ratios and incomes, so the occupying borrower could qualify with help. Just recently, Fannie joined that club. Both programs allow clients to pursue grant programs to receive "free" funds to cover almost all of the down payment and closing costs. That "free" money comes at a higher mortgage rate. Guidelines are easing, and substatially. As they say, this isn't our first rodeo. We know where it's all headed. But the NAR says "Buy now!" as prices can only go up and as "mortgages rates will go up in 2016." FHA is only 3.5% down and USDA is 0%, as is a VA loan type.
Puke.
The program fact sheet:
https://www.fanniemae.com/content/fact_sheet/homeready-overview.pdf
I love the last bit. Take a 4-6 hour class, pay $75 and get your certificate on buying and owning a home...
Though I am wondering, what the hell this means...
"Supports manufactured housing up to 95% and HomeStyle® Renovation (approved lenders) to 95%.
"
I lived in a foreclusure (inherited in an estate) for six years without paying anything other than court filing fees to sue the pricks.
They finally decided - after paying more than 20K in taxes and more in other crap, a couple of law firms - to pay me almost $10k to drop my lawsuit (pro se) and vacate.
House was worth maybe $50k when I left, but probably needed 40k of repairs just to get it up to current standards, so I bailed. Besides, the neighborhood was getting shitty and will continue to degrade.
So far, nine months out, seems I made a good move.
Banks suck dick. Period. End of story.
Why did you sue them, i.e., on what grounds?
i have seen it in my sisters neighborhood: junk cars in the driveway and 4 more parked on the street; and 8-10 family members under the roof in a house that used to be home to just Dad, Mom & 2 kids.
lynnybee, it's good to see you back. I was mentally listing you as one of our Dear Departed, glad it isn't so.
Agenda 21 (repo truck) is in Huntingon Beach. The citizens revoked the condensed living/apartments and were taken to a "re-education" seminar. Told state determines show a city plan is designed, and the citizens have no voice. The rise in population is the mystery, however, my guess is rural population will be lifted out of their homes via high tax burden.
https://www.youtube.com/watch?v=MbSCli3imqc 16 min of seminar in Huntington Beach -
Ill wait until next week when they are more desparate. If they are willing to do all this now then next week they will even provide a bogus applicant name with a new SSN.
Ill buy a hotel and offer assisted living. Use all the customers as signers to the loan and clean up.
It is buy at the top season again.
!!! Suckers !!!
I am just about debt free. I plan to sit back, eat some popcorn and watch this shitshow self destruct. I might die in the violence which is sure to come. Piss on it. I am old and have lived a good life. I suppose that everyone, at the moment of death, wishes for more time. Not gonna happen. Maybe the next system will not be based on fraud and lies, altho the odds are it will be even worse.
A bad storm is coming, prepare to take care of your family and friends as no one else will give a shit about them.
Read the book " Enjoy The Decline " by Aaron Clarey, it will make you feel better and is cheaper than booze, drugs, or Zoloft.