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Posted: Wed Mar 28, 2007 2:12 am Subject: cnn article re: forclosures

So I found this article about foreclosures...thought it might be of some help to someone out there.

http :// money.cnn.com/2007/03/26/real_estate/losing_the_house/index.htm?postve rsion=2007032712

Law Student · Posted: Wed Mar 28, 2007 4:17 pm Subject:

Past behavior is finally catching up with some companies such as Countrywide and others. I was involved in the sale of a house about two years ago. Countrywide financed 100% for the buyers and no downpayment. It was one of those "sub-prime" loans, and the buyers admitted that they were "broke" upon signing. This is but one example. Every other house in California and other areas are starting to have "for sale" signs out because of this. We are only seeing the beginning of a tidal wave of foreclosures.

Countrywide also manipulated the price of the house, but thats another story.

Posted: Wed Mar 28, 2007 4:21 pm Subject:

Law Student - I completely agree with what you're saying - I think the subprime lending issue is about to explode into a huge number of foreclosures.

I'm one of the "subprime" borrowers who ended up filing Chapter 13 bankruptcy in order to keep my house. The mortgage broker did the same thing you mentioned - offered to get me financed at 0 down...in the end, I wound up with a very high interest rate, a payment that was much higher than I told them I could afford, and they lied to the mortgage company to get me financed.

Law Student · Posted: Wed Mar 28, 2007 4:29 pm Subject:

Yes, suebee, yours is another typical story regarding subprime lenders. I might also mention that the buyers I mentioned had filed for bankruptcy shortly before the loan was made! Their credit was also about as bad as it could get.

It started in California several years ago, loans would be made in which payments only applied to the interest. Then after five years, monthly payments would balloon, with nothing having been applied to the principle.

Posted: Wed Mar 28, 2007 4:40 pm Subject:

Between the subprime mortgage mess and the oil prices, things aren't looking good. The economy is already extremely unstable...look out now.

Law Student · Posted: Wed Mar 28, 2007 5:56 pm Subject:

Yes, I believe there's already talk of Congressional hearings regarding the subprime lenders. This could be far bigger than Enron, by far. It's difficult to believe such business practices.

Posted: Thu Mar 29, 2007 7:12 am Subject:

I know it's hitting our area pretty hard. People are having problems refinancing because of this mess. I'm surprised they were able to get a house so soon after bankruptcy. It's going to be interesting to see how things pan out. I know our mortgage company was sued last year for some of the reasons listed above. We have to wait another year before we can refinance though.

Posted: Thu Mar 29, 2007 7:18 am Subject:

these sub-prime lenders must have done ARM's in lieu of a traditional fixed rate mortgage...At least that's what it sounds like.

Over the past 7 years ish the housing market boomed...due to extremely low interest rates. Those interest rates are starting to climb and subsequently home prices are on the rise too (go figure they're supposed to balance out)....

I'm not sure if anyone remembers the rise and fall of the housing market in texas in the 80's??? Oil was booming, everyone wanted to live in texas, homes we're expensive...oil crashed, housing crashed...people fled texas...sold their homes and STILL OWED MONEY to the mortgage companies....

History repeats itself!!!! I bought a house 3 years ago, and sold it last february for almost twice what I paid for it....No I'm not bubble sitting...I decided that owning a home wasn't for me at the time b/c I wasn't sure where I wanted to live. I wanted out of my long term committment, in order to flee if necessary. I don't regret it. I have a nice little nest egg!!

Law Student · Posted: Fri Mar 30, 2007 8:23 pm Subject:

And just released a couple of weeks ago -- the median average for a house in San Francisco is over $600,000. I'm sure it's the same for just about the whole Bay area. Yes, sswet, but this time round, I believe it's the whole country.

Guest · Posted: Mon Apr 02, 2007 10:45 am Subject:

Ameriquest got popped for 295 mil for its unsavory mortgage practices..lol

Law Student · Posted: Mon Apr 02, 2007 7:35 pm Subject:

Countrywide have been popped a couple of times as well. The AG in Texas popped them a couple of years ago for charging people for the legal paperwork, but it wasn't being done by lawyers, just office-hands at Countrywide. That's just one example.

California Law Student

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