Jobs people do to earn a commission while knowingly screwing their fellow man:
* Drug Dealer
* Pimp
* Arms Trader
* Tobacco Lobbyist
* Bookie
* Real Estate Clerk
* Mortgage Broker
I hope real estate clerks and mortgage brokers come to realize one day the evil they did these past few years, all for the almighty commission. I hope they donate some of their illicit proceeds to homeless shelters, family counselors, the United Way, and agencies who help people avoid foreclosure.
Report Reveals 2.2 Million Borrowers Face Foreclosure on Subprime Home Loans; Homeowners to lose Billions
A new CRL study reveals that millions of American households will lose their homes and as much as $164 billion due to foreclosures in the subprime mortgage market.
The “Losing Ground” study is the first comprehensive, nationwide review of millions of subprime mortgages originated from 1998 through the third quarter of 2006. CRL finds that despite low interest rates and a favorable economic environment during the past several years, the subprime market has experienced high foreclosure rates, and we project that one out of five (19.4%) subprime loans issued during 2005-2006 will fail.
The report discusses a number of factors that drive subprime foreclosures—these include adjustable rate mortgages with steep built-in rate and payment increases, prepayment penalties, limited income documentation, and no escrow for taxes and insurance. We also determine that these features cause a higher risk of default regardless of the borrower’s credit score.
Our study also finds that recent high appreciation in many areas has masked problems in the subprime market, and that the cooling housing market will cause failure rates to rise sharply in many major markets. California, Arizona, Nevada, and greater Washington DC will be especially hard hit. Also in this report, we project lifetime foreclosure rates for 2006-originated subprime loans in each MSA in the United States.
January 19, 2007
Millions will now lose their homes. Families will be destroyed. Bankruptcies will soar. But hey, REALTORS(R) got paid!
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15 comments:
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CRL Study?
I thought Suzzane reserched this!
LOL
RayNLA
Pish posh. Hokus pokus.
Lies, lies, lies.
Look Kieth and all you bitter renters, I TOLD you people that real estate 1) never goes down in price, 2) you can always cash out and sell your home for more $$$ if you can't make the payments, 3) they're not making any more land, and 4) if you don't buy now, you'll be priced out of the market FOREVER. These people going into foreclosure just don't have the fortitude to hang on for 'their' price. They wouldn't be in trouble if they just held on long enough.
Love,
Suzanne
Insurance agents...car salesmen...makers of all the sugary-carbo junk food taking up most of the shelf-space in the supermarkets...the advertisers that try to spin that it's not bad for your health...Some lawyers...financial advisors...basically anyone that sells anything for a commission screws you in order to get paid
I guess you and I differ on whether stupid people should be coddled.
Personally, I think stupid people should be exploited for all their worth, as long as there is no fraud involved.
Remember, it's all these supposed "victims" that the mortgage brokers enabled, that bubbled up the house prices to the point where sane people can't afford to upgrade, or buy their first home.
I have no sympathy in the least.
The United States consumer apparently has to learn the hard way why living beyond your means is unsustainable. So be it.
Without this upcoming hard lesson, money becomes valueless. Hard work, ingenuity and responsibility become meaningless when you can borrow your way to wealth. Rewarding this dead end is going to destroy the real value of the American system.
Another comment.
People who are so ignorant as to buy now, or since 2004, must be acting on emotion, or voodoo economics. It has merely been sentiment and cheap money that has inflated the housing bubble.
Since so many people act out of emotion without looking at the facts, what will happen down the road is that when housing crashes, the entire concept of owning a house will be evil and painful. This means people reacting on emotions, seeing the debacle of foreclosure around them, will stay away from buying a house in droves. This means prices will drop much lower than anticipated.
Harvest time for the foreclosure buyers.
keith,
it's an interesting read. share it with greg swann.
" i thought suzanne researched this!"
suzanne will be part of the statistics.
Millions will now lose their homes. Families will be destroyed. Bankruptcies will soar.
Sounds familiar:
"Many people in Nevada County have something in common with millions of other Americans across the land. Their financial well-being has been shattered by a careless media. And the results are a housing market in a tailspin, bankruptcies, foreclosures and ruined credit, just to name a few of the consequences."
...
"They wanted to talk "crash" and that's what they got."
More...
sacramentolanding.blogspot.com
You know what this tells me? That some people just don't have any sense of humor.
I have a feeling the realty clerks got caught up in the mania and put there commission checks into houses they couldn't afford. Easy money breeds more greed and corruption.
I wonder if any realty clerk ever told a buyer they can't afford the home of there dreams.
I know in Los Angeles a certain lender (WAMU) would send loan officers to open houses and convince a buyer that they could afford to buy the house even if they couldn't. The loan officers were trained to focus the buyer on the low monthly payment with little regard to the increased payment which would adjust upward in 2 or 3 years. To me this high pressure sales which plays on a persons emotional desire to own a home. This is all part of the problem with housing.
You forgot WHORE on your list
I'm Shocked, shocked I say to hear this has happened!
Why I thought that Realtors had a code of ethics. I thought that their code of eros would prevent a family gorssing $75,000 a yera from taking a $500,000 loan!
Where did I get distracted? Was it the cleavage, the hair, the makeup, the stiletto shoes and skin tight pants with the longs nails?
Sheesh!
Yeah, and don't forget those crooked Home Inspectors too :-) http://www.ableinspector.com
Hilarious observation, not much unlike the band playing on the deck of the titanic as it was sinking. A pinhead of a real estate agent put “Too Late” on the sign of a recently sold townhome. The townhome is just a cookie cutter home in a subdivision that is a cookie cutter subdivision of greater community. The entire area is just a sea of for sale & for rent signs. Too late?? Too late?? No, the buyer was “TOO EARLY”!!
How did it sell? Two price cuts, first from over 500k down to 499k, then down to 459k and who knows what the amount of the bid was that was accepted. If they had waited until the spring flood of homes for 07 it would likely have been down to 400k!!
Personally, I agree. I think realtors have a job where it is almost impossible to do it "cleanly", because the realtor has a vested interest in the home being sold for the highest possible price, and to whoever they can talk into that highest possible price! After all, once the transaction is done, and they get their commission, they can walk away and don't have to worry their little heads at all that the buyers of a particular house will likely lose it to foreclosure. Not their problem, right?
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