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Hahaha 80% of mortgages are illegal around here then. Maybe 90.
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Jun 28, 2016 21:51
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Most of my friends and most of my wife's family around where I live have illegal loans going by the headshot. I'm not going to, but that may just be because neither set of parents has the resources to help out with a meaningful loan. It's really something that is only going to matter if law enforcement has another reason to want to nail you, they're probably not actively looking for headshot loans or most people in booming real estate areas (NYC, SF, Seattle, parts of Chicago) would be hosed. Nail Rat fucked around with this message at 22:05 on Jun 28, 2016 |
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Jun 28, 2016 22:01
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What? Most people don't lie about where the downpayment comes from and the banks will typically do some diligence on the funds if they are claimed as a gift. As for the original question, $6k on a $170k house is probably an FHA loan. wyoak fucked around with this message at 22:54 on Jun 28, 2016 |
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Jun 28, 2016 22:52
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wyoak posted:probably an FHA loan. Which, itself, is BWM. They now require PMI on the whole life of the loan instead of 5 years/78% balance-to-loan ratio.
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Jun 28, 2016 23:00
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Leon Trotsky 2012 posted:It definitely is, but I don't see how they are going to get approved. I'm 99% sure her mom is going to take the mortgage out and they are going to pay her. This is why new Zealand not having FDIC is pretty lol because whatever place is issuing that loan is doing it with their client's money. You don't need a financial crisis to go out of business and gently caress your clients
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Jun 29, 2016 02:06
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Not sure if this has changed since I haven't worked with loans since 2008, but 2nd and 3rd mortgages were pretty drat common. Between multiple loans you could get 100% of the house value. On an 80/20 loan or similar, the bank putting up 80% has first dibs on any debt collection. Because of this, the banking doing 20% requires a much higher interest rate. I believe it was usually 2-3% more. I feel like PMI only applied to the 20% loan as well, so it made that much lower. You'd try to structure your payments to pay off the 20% loan the quickest. In reference to the BWM coworker and mom, I'm surprised the bank is willing to do a 97% loan. As long as they are the 1st mortgage though, they probably don't care where the other money comes from. You really think mom is getting her money back first if they go belly up? Bank will likely sell at a loss, still pocket the down payment from mom, and mom will never see a dime. Majority of my work was in subprime though, so I wouldn't be surprised if laws have since changed a lot of this. Those were the only people that needed these types of loans. I'd love to know where they are going to come up with the purchase fees though. Unless the bank lets them roll it into the loan for possible negative equity.
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Jun 29, 2016 02:55
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I potentially just landed a new position working directly with home loan modifications, so by next week I'm sure I'll have plenty of ridiculous stories to cry about and share with everyone.
Senf fucked around with this message at 08:11 on Jun 29, 2016 |
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Jun 29, 2016 03:25
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SneakyFrog posted:"The headshot loan" Just a bunch of procedurally generated linkfarm SEO bullshit for that term. I can't remember the last time I saw someone say "google such and such" where it wasn't obvious they'd never done so themselves.
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Jun 29, 2016 03:32
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El Mero Mero posted:This is why new Zealand not having FDIC is pretty lol because whatever place is issuing that loan is doing it with their client's money. You don't need a financial crisis to go out of business and gently caress your clients What the government will do in the event of a big gently caress up is they will bail out balances up to a certain amount, or a similar process to stop the financial system from completely seizing up. What the Finance Minister has indicated is that the Government will have flexibility when not bound by rules. The event that triggered the change was a series of finance company collapses (including one that was a ponzi scheme, the equivalent of Madoff). Of course the Government might decide to not bail out any depositors if something is seriously wrong.
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Jun 29, 2016 04:28
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Dustoph posted:In reference to the BWM coworker and mom, I'm surprised the bank is willing to do a 97% loan. As long as they are the 1st mortgage though, they probably don't care where the other money comes from. You really think mom is getting her money back first if they go belly up? Bank will likely sell at a loss, still pocket the down payment from mom, and mom will never see a dime. If they have FHA with mandatory PMI why not? Not their money at that point. Who knows if it will actually go through as the house has to appraise for the FHA loan value or higher, plus they actually tend to look at income now.
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Jun 29, 2016 05:15
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Jeffrey of YOSPOS posted:That's not the proposal though - the mom would be taking out the mortgage and isn't borrowing any money. The mom is basically acting like a really nice intermediate bank in this case, it's not the headshot. If that's the proposal then it's going to get treated like an investment property, unless they lie about occupancy of the property.
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Jun 29, 2016 06:34
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Yeah FHA has "first" in the name, they don't let you use those on a second property that you aren't going to live in. Most likely is mom is taking some sort of line of credit on her house and gifting that money to the kids for the down payment, nothing illegal in that scenario.
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Jun 29, 2016 15:56
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Henrik Zetterberg posted:Which, itself, is BWM. They now require PMI on the whole life of the loan instead of 5 years/78% balance-to-loan ratio. When did this happen? I assume it's another good reason to refi once you hit that 78% equity point, assuming interest rates are lower.
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Jun 29, 2016 15:57
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BraveUlysses posted:When did this happen? I assume it's another good reason to refi once you hit that 78% equity point, assuming interest rates are lower. Also assuming your home didn't go down in value. Kind of a gamble at the moment, in my mind.
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Jun 29, 2016 16:06
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 I'm already in for 2k
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Jun 29, 2016 19:22
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You know, we're all just jumping onto this headshot thing. Maybe her mom is an NMLS registered mortgage originator!
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Jun 29, 2016 19:30
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Uncle Enzo posted:
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Jun 30, 2016 02:36
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Don't invest in retirement funds, be a day trader! https://forums.somethingawful.com/showthread.php?noseen=0&threadid=3259986&perpage=40&pagenumber=658#post461568392 To be fair, after a few posts, he came to his senses.
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Jun 30, 2016 15:41
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quote:Hillary Finne says she ran up $318,000 in student loans to attend the Loyola University Chicago School of Law – the ticket, she thought, to financial security. In a bitter irony, she was denied a license to practice law in Illinois because she’s in too much debt. Who would've though giving idiot teens license to borrow unlimited amounts of money is a dumb idea? https://www.revealnews.org/article/in-debt-and-out-of-hope-faces-of-the-student-loan-mess
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Jun 30, 2016 17:04
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The medical technology one is pretty funny to me, because if she had finished the degree there are a ton of ~$45k+ entry level jobs for the field with a lot of overtime generally available. It's not a half bad field for having to pay back student loans- if you finish college. In general though, you need to finish college if you start going.
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Jun 30, 2016 18:03
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BadSamaritan posted:The medical technology one is pretty funny to me, because if she had finished the degree there are a ton of ~$45k+ entry level jobs for the field with a lot of overtime generally available. It's not a half bad field for having to pay back student loans- if you finish college. I have a feeling they fall in the category of people that choose a major based on "That pays a lot." versus "I have an interest in that field and wouldn't you know it pays a lot too." Then realize too late that they aren't able to hack it, or just aren't driven to finish the program. Looks like at least one did it out of passion for social work. Not smart enough though to realize Public Sector Mental Health pays dog poo poo. And unless you have a Phd in the private sector you're probably going to be relegated to cleaning up poo poo from persons with disabilities. Everyone wants to complain that mental health community inadequacies may be a leading cause to missing opportunities to prevent mass shootings. But no one wants to pony up and prop up the system to help. Muh Taxes! DEMAG fucked around with this message at 18:47 on Jun 30, 2016 |
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Jun 30, 2016 18:26
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DEMAG posted:I have a feeling they fall in the category of people that choose a major based on "That pays a lot." versus "I have an interest in that field and wouldn't you know it pays a lot too." Then realize too late that they aren't able to hack it, or just aren't driven to finish the program. This is partly what happened to law schools and the law profession (among other things), and is what I see beginning to happen with computer science. Tons and tons of people choosing to go down the path because "it pays well" even though they have no real interest or aptitude for it. If I wasn't the total loving nerd that I am, being a software developer would be hell. If I were unable to find motivation or a sense of accomplishment in solving these stupid little abstract problems all the time I would be absolutely miserable. And to get & keep a software job that pays well to you usually have to be reasonably good at it and have a certain level of commitment. And for it to be a cushy, flexible gig you've also got to be reasonably good at it or else you'll always be behind and putting out fires (that you probably caused). Trying to make smart decisions about the ROI of your university education is still a good approach, but choosing something only because of the money is a quick path to misery.
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Jun 30, 2016 18:48
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What is the end game with the student loan problem? Accept current situation where a large amount of college students are moderately hosed and a few are majorly hosed? This only makes sense if there are lots more people using student loans responsibly than getting into trouble. Finally say gently caress it and declare student loans dischargeable via bankruptcy? Accept the increase in rates and decrease in accessibility and opportunity? We are moving to a rich society and a poor society so why the gently caress not? Guarantee subsidized to free college for everyone? We'll still end up with educated poors instead of uneducated poors if there aren't enough jobs for them, only everyone will be paying for the subsidy. Is the current state of affairs for student loans a good deal? At what point does it become predatory or has it already?
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Jun 30, 2016 19:10
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I'd say it's already predatory. I can't think of any other debt that can't be restructured through bankruptcy. It's essentially a life debt you're taking on once you sign that agreement.
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Jun 30, 2016 19:45
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Crazy Mike posted:Guarantee subsidized to free college for everyone? We'll still end up with educated poors instead of uneducated poors if there aren't enough jobs for them, only everyone will be paying for the subsidy. This, plus a legislated end to credentialism, so that people don't need to go to college anymore. A lot of jobs that require degrees would be better done by some jerk off the street with OJT; but employers don't want to train anyone anymore. Support for employer OJT + penalties for requiring credentials.
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Jun 30, 2016 19:49
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Solice Kirsk posted:I'd say it's already predatory. I can't think of any other debt that can't be restructured through bankruptcy. It's essentially a life debt you're taking on once you sign that agreement. Tax liens and alimony are two kinds, but I know there are more.
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Jun 30, 2016 19:50
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Solice Kirsk posted:It's essentially a life debt you're taking on once you sign that agreement.
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Jun 30, 2016 20:06
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Sepherothic posted:Who would've though giving idiot teens license to borrow unlimited amounts of money is a dumb idea? Those amounts of debt are pathetically low. They need to find the 500k+ debt people.
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Jun 30, 2016 20:13
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I dunno, 73k would seem like a lot if you're making $9 an hour.
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Jun 30, 2016 20:25
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Subjunctive posted:Tax liens and alimony are two kinds, but I know there are more. Alimony at least stops if they die.
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Jun 30, 2016 20:34
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Star War Sex Parrot posted:And it typically occurs the moment you're able to at ~18. Some folks wait until later to get swindled by for-profit colleges, I guess. Consumers need to take some responsibility for the problem, but the environment itself is definitely predatory. It's a complicated problem without an easy answer. I wish it was as simple as "stop going into massive debt for worthless anthropology degrees!" but I understand the naïveté that goes with a decision like that when you're young. You're forgetting institutional pressures, as well. There's nothing really to be gained by effectively victim blaming people who were told all of their life "YOU MUST GO TO COLLEGE". My mom and dad both don't have a bachelor's degree, but I was instructed from a fairly young age (middle school-ish) that I was going to college. Get into high school, everyone and everything is focused around getting students into post secondary education. "You need these skills for your college career", "it's important that you get a good SAT score", "you'll never find a job unless if you have a college degree". Oh yeah, by the way your body and brain chemistry is changing at a dramatically fast pace. And oh yeah, a bunch of politicians magically cut funding to public universities and state colleges so tuition is doubling every 5 years. Sign here. E: to put a finer point on it, I find it easier to be sympathetic towards most people (read: most) when it comes to student loan stuff. Yeah there are outliers, but I'm not going to condemn someone who is essentially a victim of systemic predatory practices. Phone fucked around with this message at 21:08 on Jun 30, 2016 |
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Jun 30, 2016 20:59
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It's not just the cut funding, there are other causes for massive tuition raises. For starters giant new buildings being constantly built to attract more students which aren't really needed.
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Jun 30, 2016 21:04
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Nail Rat posted:It's not just the cut funding, there are other causes for massive tuition raises. For starters giant new buildings being constantly built to attract more students which aren't really needed. Yeah, much like how raising the minimum wage to $15 is going to make McDonald's 4x as expensive overnight. It's a piece of the puzzle, but you're missing the forest for the trees.
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Jun 30, 2016 21:09
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So one of my companies sent me and another FA to a high school career day to represent the firm. It was kind of great telling a ton of kids, "Hey, we didn't go to college and make $80k+ a year." Every kid that stopped at our booth, and I mean every single one of them, was shocked neither of us had been to college and had managed to somehow find a job. It's so drilled into their heads that there is no work outside of college grads besides fast food that they thought we had just lucked out.
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Jun 30, 2016 21:10
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It's also great your company didn't try to fire you for disclosing salary (even though it's totally protected legally, in theory).
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Jun 30, 2016 21:31
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Nail Rat posted:It's also great your company didn't try to fire you for disclosing salary (even though it's totally protected legally, in theory). What the gently caress is this?
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Jun 30, 2016 21:34
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Solice Kirsk posted:So one of my companies sent me and another FA to a high school career day to represent the firm. It was kind of great telling a ton of kids, "Hey, we didn't go to college and make $80k+ a year." Every kid that stopped at our booth, and I mean every single one of them, was shocked neither of us had been to college and had managed to somehow find a job. It's so drilled into their heads that there is no work outside of college grads besides fast food that they thought we had just lucked out. What's FA in your case? Flight attendant? Financial advisor?
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Jun 30, 2016 21:36
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Phone posted:What the gently caress is this? What the gently caress? Do you live under a rock or do you actually not know that US companies are vindictive/punitive about people discussing salary, even though it's protected to do so according to labor law? The guy was saying he was publicly disclosing his salary. He has/had a good and rare employer if that won't get him into poo poo. http://www.npr.org/2014/04/01/297623088/it-s-illegal-but-people-can-get-fired-for-talking-about-their-pay Just for starters. I seriously don't understand where you're taking issue with this.
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Jun 30, 2016 21:39
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Nail Rat posted:What the gently caress? Do you live under a rock or do you actually not know that US companies are vindictive/punitive about people discussing salary, even though it's protected to do so according to labor law? The guy was saying he was publicly disclosing his salary. He has/had a good and rare employer if that won't get him into poo poo. Yeah, I do. Your tone is incredibly patronizing and reeks of "good golly you should feel lucky to even have a job" charlatanism. Your reaction to "kids are being sold a false bill of goods wrt to college" is "man you're so lucky that your employer didn't take punitive action against you"?
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Jun 30, 2016 21:41
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Nail Rat posted:What the gently caress? Do you live under a rock or do you actually not know that US companies are vindictive/punitive about people discussing salary, even though it's protected to do so according to labor law? The guy was saying he was publicly disclosing his salary. He has/had a good and rare employer if that won't get him into poo poo. I imagine at a job fair, companies want their employees to disclose their salaries (at least if they're good.) Why would your mind jump to "He's probably gonna get fired for telling these high school kids his company pays the big bucks?"
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