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Rudager posted:When the LVR is like 35% they won't care because either you pay them, or they take the house and sell it and take the money that way, unless the house's value massively tanks there's no way in which they don't win. Most likely the people writing the loan aren't going to hold onto it for all that long, and they have no interest in repossessing your house. They want to write you a mortgage and sell it off to another agency, which won't buy it if all the documentation is in place (or it's 2007). Even if for some reason you are getting a mortgage from a bank that intends to hold it forever (you shouldn't be), the actual person approving your loan has no interest in blowing off his personal responsibility and having it come back to bite him in the rear end later. Even if the bank makes money repoing your house it might end up costing him his job if he screws up enough. Also, when banks have real interest in real estate speculation they don't do it by repossessing deadbeat's houses. Most mortgage people write a loan, take their profit and move on to the next deal. A ridiculous amount of conventional loans end up at Fannie and Freddy in the secondary market.
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Nov 5, 2014 07:30
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I'm not saying the bank is doing it as some long term investing strategy in the real estate market, I'm saying that when the guy applying for the loan is throwing down $250k on a $350k house, the bank has zero risk of not recovering the money and costs involved in repo'ing the house if it comes to that.
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Nov 5, 2014 08:11
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Droo posted:Most likely the people writing the loan aren't going to hold onto it for all that long, and they have no interest in repossessing your house. They want to write you a mortgage and sell it off to another agency, which won't buy it if all the documentation is in place (or it's 2007).
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Nov 5, 2014 13:18
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No income? The man made $350,000 in one year! Of COURSE he can pay for the house! ...is probably what he and the girlfriend were thinking in their heads.
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Nov 5, 2014 13:32
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Rudager posted:I'm not saying the bank is doing it as some long term investing strategy in the real estate market, I'm saying that when the guy applying for the loan is throwing down $250k on a $350k house, the bank has zero risk of not recovering the money and costs involved in repo'ing the house if it comes to that. Sure, but the point of mortgage lending is to make lots of interest money on payments made over time, not break even on your principle and foreclosure expenses after months-years of defaulted payments. Also if they had $250k equity in a $350k house and took a strict foreclosure with no leftover equity that's pretty bad with money assuming they didn't trash the place into ruins.
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Nov 5, 2014 15:30
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Guinness posted:It's a sadly common theme that people who have bad/no financial literacy piss away any sort of windfall in short order. See also: many athletes, pop stars, lottery winners, etc. Yeah if I got a 350k inheritance (no way in hell) I would probably blow 10-15k of it on silly poo poo, use 35 of it to get out of my underwater condo, and then use the other 300 to say "okay I'm moving my target retirement age up ten years."
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Nov 5, 2014 15:41
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So if you're the banker, the typical 20% down mortgage type nets you 10,500 from the 3% closing cost. You get the same 10k with the 70% down they're putting down; that opens the banker to a lot more willingness to take that risk, since as mentioned in most cases they want to repackage that loan and sell it off. Even if every lender didn't want to do that, you'd just shop until you found one that did. My optimistic take is that it's placed in a security that isn't graded AAA, of course (the subprime crisis largely resulting from junk mortgages being graded AAA). In which case the scenario is as someone mentioned before: the lender isn't taking the risk directly, but more risk costs them money in the secondary market for flipping the mortgage. Nail Rat posted:Yeah if I got a 350k inheritance (no way in hell) I would probably blow 10-15k of it on silly poo poo, use 35 of it to get out of my underwater condo, and then use the other 300 to say "okay I'm moving my target retirement age up ten years." I'd probably spend a few k on fronting my vacation budget before we eventually have kids since it'll be impossible to travel for a few years then, pay off all my student loan debt and then make a down payment on a house. But I have a job, with income and everything, so I'd hope that's not bad with money. MJBuddy fucked around with this message at 15:57 on Nov 5, 2014 |
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Nov 5, 2014 15:55
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Rudager posted:I'm not saying the bank is doing it as some long term investing strategy in the real estate market, I'm saying that when the guy applying for the loan is throwing down $250k on a $350k house, the bank has zero risk of not recovering the money and costs involved in repo'ing the house if it comes to that. Unless the homeowner facing eviction on a foreclosed home decides to dump cement down all the drains etc. You can sue them but they don't have any money so good luck with that.
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Nov 5, 2014 15:58
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MJBuddy posted:There's literally an entire thread in this very subforum discussing how unqualified people make money writing garbage content. melon cat fucked around with this message at 16:26 on Nov 5, 2014 |
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Nov 5, 2014 16:22
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Found out from my dad this past weekend that my mother put the money she got from the sale of my grandma's house (the amount of which she refuses to tell anyone) in her checking account because she "might need it for something" so I figure it'll be gone in 6 months if it even lasts that long.  My dad has a decent retirement but it isn't infinite and their house isn't paid off, so that could have alleviated a lot of uncertainty and stress, but she'll piss it away like every other dollar that has ever passed through her hands. My dad is trying to figure out some way to keep whatever is left of his estate from her when he's gone, because he figures if she ends up with it my sisters and I will never see a dime.
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Nov 5, 2014 16:35
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Everything Burrito posted:Found out from my dad this past weekend that my mother put the money she got from the sale of my grandma's house (the amount of which she refuses to tell anyone) in her checking account because she "might need it for something" so I figure it'll be gone in 6 months if it even lasts that long. Yeah, the answer to that is divorce.
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Nov 5, 2014 16:37
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I never quiet understood getting a windfall and financing poo poo. The inheritance dumbasses spend $40k on two cars that they don't even own yet and when the money runs out they are literally left with nothing. Blow your money, sure - but actually own something that's going to provide an ongoing benefit (car to drive, house to live in) when the money is all gone. And Chevy's? If you're going to roll in a GM death trap at least get a Buick.
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Nov 5, 2014 16:38
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MJBuddy posted:So if you're the banker, the typical 20% down mortgage type nets you 10,500 from the 3% closing cost. Brokers do not make 3% commission (more like 50 points to 1%) and it's calculated from the mortgage dollar value, not the sale price of the house.
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Nov 5, 2014 16:43
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Wickerman posted:Yeah, the answer to that is divorce. Yeah I think he knows that but refuses, so its all hosed all the way around. I know he considered it because they pretty much hate each other but decided not to for some reason. Not for the kids certainly because we're all 30+ years old and don't understand why he won't do it.
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Nov 5, 2014 16:45
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Everything Burrito posted:Found out from my dad this past weekend that my mother put the money she got from the sale of my grandma's house (the amount of which she refuses to tell anyone) in her checking account because she "might need it for something" so I figure it'll be gone in 6 months if it even lasts that long. You can look up the sale price of the house, that's a matter of public record
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Nov 5, 2014 16:45
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Krispy Kareem posted:If you're going to roll in a GM death trap at least get a Buick. Senior citizen spotted.
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Nov 5, 2014 16:45
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PCjr sidecar posted:Senior citizen spotted. The sound dampening in my Buick Enclave keeps me blissfully unaware when the engine suddenly stops because I have baubles on my keychain. What am I saying, GM put all the lovely car starters in Chevys and Saturns.
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Nov 5, 2014 16:51
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melon cat posted:This pretty defines the existence of eHow, Expert Village, About.com, and Yahoo! Answers. They're all just click farm operations that have zero content, and solely exist to get clicks. The amount of weird nonsense I've seen in their "how-to" instructions has nearly made my head explode on several occasions. http://www.wikihow.com/Hug-a-Girl quote:If she doesn't want to be hugged, don't go in for it. A forced hug can sometimes be off putting.
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Nov 5, 2014 16:58
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melon cat posted:This pretty defines the existence of eHow, Expert Village, About.com, and Yahoo! Answers. They're all just click farm operations that have zero content, and solely exist to get clicks. The amount of weird nonsense I've seen in their "how-to" instructions has nearly made my head explode on several occasions. http://www.wikihow.com/Post-in-FYAD
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Nov 5, 2014 17:20
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BEHOLD: MY CAPE posted:You can look up the sale price of the house, that's a matter of public record That won't tell you how much she got from the sale unless there was no mortgage.
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Nov 5, 2014 17:27
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Krispy Kareem posted:The sound dampening in my Buick Enclave keeps me blissfully unaware when I drive through a farmers' market.
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Nov 5, 2014 17:27
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Nail Rat posted:Unless the homeowner facing eviction on a foreclosed home decides to dump cement down all the drains etc. You can sue them but they don't have any money so good luck with that. They've got $250k worth of equity in the house though.
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Nov 5, 2014 20:05
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Rudager posted:They've got $250k worth of equity in the house though. How many houses have you bought?
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Nov 5, 2014 20:16
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Everything Burrito posted:My dad is trying to figure out some way to keep whatever is left of his estate from her when he's gone, because he figures if she ends up with it my sisters and I will never see a dime. Half joking answer... Don't die before her? Serious answer, would putting all assets/life insurance beneficiaries in a trust with a trickling payout to heirs solve this problem? How difficult is it for normal people to do this?
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Nov 5, 2014 20:49
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Crazy Mike posted:Half joking answer... Don't die before her? Not too difficult, the instrument you're thinking of is called a spendthrift trust. The real issue is sorting through their collective estate and figuring out which parts he owns solely and can put in the trust. Anything the wife puts into the trust won't be protected by the spendthrift clause if the wife is also a beneficiary of the trust. The wikipedia article covers it in the section about self-settled spendthrift trusts. Summary: He'd have to hire a lawyer and spend at least $1k-$2k. Oh, and you have to pay the trustee. He could set his life insurance beneficiaries to be the kids, and that would skip the wife completely.
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Nov 5, 2014 21:05
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First time credit card user, need suggestions on GameStop credit card? (self.personalfinance) submitted 1 day ago * by wut_r_reddit So yes, I am 18, and my primary reasoning for getting the store credit card is to buy an XBox One, but I am somewhat knowledgable and know not to over use. I already have about half of the money in cash ready to buy the XBox, but if I spend $500 in the store with the card then I have 6 months to pay it off. Realistically I will be able to pay it off in 1-2 months, far before the 6. With an interest rate of about 26%, will I have to pay interest if I pay it off before the 6 months? Not trying to tank my credit score at a young age but I do want to take advantage of a good opportunity and begin to build my score up. Thanks for any and all help!
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Nov 6, 2014 00:55
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Also I put 50% down on a 400k house but they still had to do a ton of paperwork, same normal poo poo that any loan would do.
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Nov 6, 2014 00:55
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it's funny how people are still insisting that a bank won't approve a 70% down payment mortgage for deadbeats when, in the actual original story, the deadbeats got the loan in the first place
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Nov 6, 2014 01:32
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Zo posted:it's funny how people are still insisting that a bank won't approve a 70% down payment mortgage for deadbeats when, in the actual original story, the deadbeats got the loan in the first place Because third hand stories on the Internet are always factually correct and complete in detail, it simply must be true and happened in just that way Edit: this would be pretty easy for you to investigate for yourself. Just pick any mortgage broker in the phone book and give them a call. Ask them if they can pre approve you for a no documentation loan with partial funding from an inheritance windfall from this tax year and that you're unemployed with no other assets and a bunch of car debt. BEHOLD: MY CAPE fucked around with this message at 01:42 on Nov 6, 2014 |
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Nov 6, 2014 01:36
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A lot of people seem to be conflating something that a bank SHOULDN'T do with what it WOULDN'T do. Banks, like all large organizations, frequently make startling stupid decisions.
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Nov 6, 2014 01:37
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Xyven posted:A lot of people seem to be conflating something that a bank SHOULDN'T do with what it WOULDN'T do. Banks, like all large organizations, frequently make startling stupid decisions. no, you see, it is impossible the bank gave out a loan that I personally would not have
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Nov 6, 2014 01:40
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These drat loan havers. Don't underestimate the power of truck equity while towing an underwater boat to travel to a temporary job which you'll be fired from the week after you get the mortgage. Some income insurance would be in order but that's too expensive when you have no money.
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Nov 6, 2014 02:10
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Crazy Mike posted:Half joking answer... Don't die before her? Some sort of trust is what he is looking into. One of my sisters is a lawyer specializing in estate planning so she's been trying to figure out what will be the best option that hopefully won't be too complicated to administer. He does want to provide for my mother and wants something that would protect her from spending herself into poverty as well as preserving something for him to pass down. I find the whole thing really frustrating but am also somewhat resigned to the possibility that she will in fact do just that if given the opportunity. For a little E/N, my childhood home was a hoard house and she's always put herself and her stuff above the rest of the family. I'm really not sure how much goodwill she will have left with her kids if she manages to spend up what would have been our inheritance that my dad worked his whole life for on stupid bullshit and then expects us to take care of her when it's gone. I just hope it never reaches that point.
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Nov 6, 2014 04:10
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More packages came in for my bad-with-money roommate today. Judging by the shape/weight/size, they look like DVDs and maybe another package of whippit cannisters. I don't even understand what he could possibly have a need to buy at this point. This was supposed to be for his dental surgery.  He also informed me that he mixed ecstasy with his anti-depressant, but nothing happened, so his new plan is to stop taking his medication for a week so he can roll on ecstasy. I started to tell him to not loving do that, but I've been saying that all summer and he ignores me anyway so I went on with my day.I talked to a financial advisor today about a traditional IRA that my former employer set up for me! This employer discontinued their pension program. I didn't know I was eligible for their pension since I was only with them for three years, but they set up a traditional IRA with my name on it, so I guess I was. Our current plan is for me to convert the traditional IRA to a roth IRA so I'll get taxed as a young'un and not when I'm older. It's kind of overwhelming and I feel kind of hopeless when I think about my goals--I kind of wish I'd saved more in my 401k instead of doing my stupid travel/maxing-out-my-credit-cards bullshit. I'm remembering the time I spent $300 on a wig--I was having fun dying this wig myself and all, but jesus. But at least I'm getting started... legsarerequired fucked around with this message at 04:19 on Nov 6, 2014 |
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Nov 6, 2014 04:15
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legsarerequired posted:He also informed me that he mixed ecstasy with his anti-depressant, but nothing happened, so his new plan is to stop taking his medication for a week so he can roll on ecstasy. I started to tell him to not loving do that, but I've been saying that all summer and he ignores me anyway so I went on with my day. Yeah let's take something to block serotonin receptors and then something else to flood your brain with serotonin and wonder why it doesn't work. He needs to fully withdraw from his anti depressants for a decent effect from the ecstasy. I'm sure he's going to be really enjoyable to be around as his spending on junk escalates. Don't worry there's no way you can unretard him.
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Nov 6, 2014 05:11
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FCKGW posted:First time credit card user, need suggestions on GameStop credit card? (self.personalfinance) GameStop now has credit cards? I never would have figured I'd see that day. But I'm sure at 26% APR it's good business sense for them.
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Nov 6, 2014 08:40
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IllegallySober posted:But I'm sure at 26% APR it's good business sense for them. Especially since hardcore gamers are among the worst bad-with-money offenders, aside from hardcore gamblers and hard drug addicts. I say hard drugs because most of the hardcore gamers I know are addicted to marijuana. My roommate averages $15 a day on weed. Rick Rickshaw fucked around with this message at 11:58 on Nov 6, 2014 |
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Nov 6, 2014 11:54
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I would imagine that it's probably a pretty lovely time to buy a console right now, considering black friday is right around the corner.
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Nov 6, 2014 13:38
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legsarerequired posted:More packages came in for my bad-with-money roommate today. Judging by the shape/weight/size, they look like DVDs and maybe another package of whippit cannisters. I don't even understand what he could possibly have a need to buy at this point. This was supposed to be for his dental surgery. Hey, maybe the dentist told him that the laughing gas costs extra, so he decided to bring his own instead! ...seriously tho, whippits in general are "bad with money". I'm not going to lie, when i have some extra money burning a hole in my pocket, i pick some up now and again. But they're way way way more expensive than the rush they give. At this point, he'd be better off buying a drat tank.
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Nov 6, 2014 14:05
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http://forums.somethingawful.com/showthread.php?threadid=3679044
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Nov 6, 2014 14:56
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