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  #31  
Old 02-21-2020, 01:05 PM
Steven Pederson Steven Pederson is offline
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Quote:
Originally Posted by Scott C View Post
Well its not the banks fault. You see you walked out, why didn't the other knuckleheads walk out? They willingly signed up for the home loan, car loan, etc- then didn't pay it back. Personal responsibility is all but forgotten. Its like they are zombies that are forced to go to a car lot or bank and ask for money... which we know is not true.
talked to a lady back in 2010 who was chewing my wife out because she works for a big bank as an accountant. She was mad at her because her daughters house was foreclosed... Turns out the daughter who made $60k/year???? as a teacher was approved and took out a $800K loan on a lake house interest only loan. Daughter never lost employment, but when the market crashed that $800K loan turned into a $400K realized value. So she walked away from it.

Who's to blame there? Old rule of thumb is 2x your salary, she should have been looking for $120K homes. Bank should never of approved, but the buyer should never have signed that loan and should never have been chasing that nightmare.

Last edited by Steven Pederson; 02-21-2020 at 01:08 PM.
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  #32  
Old 02-21-2020, 01:06 PM
jfishpa jfishpa is online now
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Default Mortgage loans

Going off of memory here , but wasn't there supposedly a quid pro quid with the Feds allowing banks to get into the securities markets when they agreed to write the risky mortgages ?
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  #33  
Old 02-21-2020, 01:32 PM
grizzley grizzley is online now
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Didn't "THE GOVERMENT" change a law put in after the depression that only allowed banks to lend out $13 for every $1 on deposit, to where they could lend out something like $42 for every $1 on deposit. Now to me, it would make sense to try to get interest paid to you on money that you don't even have, but are allowed to loan out and collect that interest on it. If my memory serves me right, it was the Glass Steagall act that was changed.

Last edited by grizzley; 02-21-2020 at 01:35 PM.
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  #34  
Old 02-21-2020, 02:14 PM
Scott C Scott C is offline
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Quote:
Originally Posted by Steven Pederson View Post
talked to a lady back in 2010 who was chewing my wife out because she works for a big bank as an accountant. She was mad at her because her daughters house was foreclosed... Turns out the daughter who made $60k/year???? as a teacher was approved and took out a $800K loan on a lake house interest only loan. Daughter never lost employment, but when the market crashed that $800K loan turned into a $400K realized value. So she walked away from it.

Who's to blame there? Old rule of thumb is 2x your salary, she should have been looking for $120K homes. Bank should never of approved, but the buyer should never have signed that loan and should never have been chasing that nightmare.
The teacher is wholly to blame. Its was still the same house, she could still "afford" the payments, she just decided to walk because of a dip on real estate prices.
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  #35  
Old 02-21-2020, 04:15 PM
Bugler Bugler is offline
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Originally Posted by jfishpa View Post
It was a link in a news feed , Didn`t ask me to subscribe.
It asked me so I closed the story. I suspect it is because I have read articles from the Wall Street Journal before and must have used up the free clicks before registering count.
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Last edited by Bugler; 02-21-2020 at 04:21 PM.
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  #36  
Old 02-21-2020, 09:43 PM
Keuka Keuka is offline
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The teacher makes $60K and took out an $800K loan! Ha, I'll bet she teaches economics too.
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  #37  
Old 02-22-2020, 06:46 AM
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That Minnesota guy That Minnesota guy is online now
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Great to see Wells Fargo got dinged with a $3 billion dollar fine. Sad thing is it's their customers who ultimately end up paying it.

For those wondering.... the fine wasn't involved with the 2008 fiasco, it was for ANOTHER fiasco they were involved with.
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  #38  
Old 02-22-2020, 08:17 AM
andy6092 andy6092 is offline
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Well to be fair, it's not the government's fault people are too stupid and unreasonable when they make personal financial decisions. Anyone can walk away from lenders if they want to. The problem is, everyone is too worried about keeping up with "The Johnson's" and lack good judgement skills with money in general and buy that overrated vehicle and the mansion three bedrooms too big and a boat that doesn't fit in the driveway. People are idiots. Understanding when borrowing money from a lender makes sense within reason and only in certain cases is a huge deal. Again, "within reason" is hard to come by because each person has their own "justification" on every decision they make financial or not.

When it comes to student loans, some have their heads screwed on right and mentioned already in this thread that if you take out a loan, you pay it back. SIMPLE. If it not "simple", then your obviously doing it wrong. You don't borrow more than you can chew. Go to college to be a doctor, get a job as a doctor, which in turn pays well and can therefore payoff the loan with minimal pain. Went to college to be a doctor and then graduated but failed to be able to practice and cannot afford the student loan debt? Welp, guess what buttercup?your problem and not the government's or any other person with integrity and responsibilitie's problem either. Don't go to college for something that is unstable or won't pay you back. Don't assume going to college to be an art major will land you a plush corner office gig that pays six figures and be mad when reality sets in. Think ahead. Schools need to educate finances better/more. There is an alarming amount of the general population that could use it. Life is a gamble. But it's worse if you don't know how to play.
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  #39  
Old 02-22-2020, 08:25 AM
Custom Eyes Custom Eyes is online now
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I think one of the biggest problem on the borrower side is that people shop for loans by payment, not the terms of the loan. All a lot care about is if they can afford the payment at the time of the loan, and don't care about what is going to happen later down the line, whether it's payments ballooning, total principle due, or if they end up upside down on the loan. The lenders don't help with the problem much either. When I was presented with the interest only loan option, it was the first time I had ever heard of one, so I asked them to explain it. They tried to sell it as the greatest thing in the lending industry. When I laughed and questioned about the principle coming due at the end of the loan with no equity, he said, ah, don't worry about it, you just refinance the principle balance again and start over. LMAO!!
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  #40  
Old 02-22-2020, 09:09 AM
Ozark Bob Ozark Bob is offline
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Quote:
Originally Posted by That Minnesota guy View Post
Great to see Wells Fargo got dinged with a $3 billion dollar fine. Sad thing is it's their customers who ultimately end up paying it.

For those wondering.... the fine wasn't involved with the 2008 fiasco, it was for ANOTHER fiasco they were involved with.
Is this fiasco about giving out loans people don"t pay off? I had not seen the story on the fine. Bob
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