Home loans: I can't believe folks are so dumb

Discussion in 'Economics' started by Smart Money, Mar 27, 2007.

  1. blast19


    This is why the market needs to crash...no joke. :eek:
  2. blast19


    The number of people who just figure they'll move when their ARM resets, 24% of those surveyed, is astounding. I guess the RE market in the last few years has made moving as easy as getting a job, living there for a while, and moving on with a nice little profitable severance package. Shock will hit them when they have to move.
  3. I am surprised that many people do not know what their own mortgage is. That is very peculiar to me.
  4. blast19


    This is a country of severe financial mismanagement is something I've gleaned just from life thus far. The amount of friends I've had buried in debt who were in their early 20s just goes to show the lack of proper money management.

    Of course the statistics show it too.

    So why would anyone be busy thinking about their mortgage when they know a check for $3k goes to this or that company every month and there's a shiny new house to move in to!

    We're a slightly distracted and unrealistic culture...credit cards gone wild! :D
  5. I think this is a major symptom of the consumer culture of "Buy Now, Pay Later."

    Borrowers don't want to know the details folks. They want to live in a fantasy world where housing prices only rise and where they can always sell their house to a 'greater fool' if times get tough.

    I am in the mortgage business now, and I have worked as a mobile notary signing mortgage documents. Now, don't get me wrong, I think most Real Estate Clerks just want to get the deal to close ASAP and also there are a lot of scumbag lying loan officers. However, I have seen so many stupid borrowers who will sign anything put in front of them.

    These are the same people who will spend a weekend comparison shopping for a big-screen TV, but will close their eyes and sign ANYTHING put in front of them that gives them "home-ownership."

    There are SO MANY resources out there for borrowers, but they refuse to do a little homework. I mean, who's fault is it in the end?

    I like to consider myself a libertarian, but the endless bounds of human stupidity make me think that a lot of people need to have someone there to save them from their stupid selves.

    The shame is that their choices affect us all.
  6. I agree, I think people may be too quick to sign papers and do not do enough homework. I think that is one of the most important things someone can sign and it definitely is worth doing some homework and understanding exactly what they are signing. I know I would.
  7. I blame MTV.

    MTV Cribs started a few years ago. Housing prices soar. People buying homes they can't afford.
    Coincidence? I think not. :)
  8. You think "folks" are dumb? Maybe not, just desperate. I mean if you have bad credit it's not like you got a lot of choices. Worst case scenario, you can't pay, you walk away, no money down, your credit is trashed for a few years. How dumb is that?

    I think the lenders are dumb. I mean think about it: who in there right mind would loan a mooch with lousy credit, no money, and rely on him to tell you what his income is without checking? Then loan it to him on terms that you KNOW he can't repay if there is the slightest glitch, don't qualify him based on the income he needs when the rate rises in a mere two years. LOL! Hell, I check people out harder than that, and require more money on rentals! These lenders are as stupid as they come.

    And while we're passing around "dumb" awards...why not pass out a few to the investors who later bought these horseshit loans from the originators!

    Looks like the one walking away from this with the least amount of damage was the borrower. Dumb eh?

  9. blast19


    OldTrader, DING DING DING!!!

    The lenders are so fucking stupid! But I think these guys were so busy getting rich they didn't give at what price it went off. Angelo Mozilo is the best example in my mind...$140 million in stock sales in the last 14 months. OUCH!

    These guys were lending to people by qualifying them at teaser rates and without income verification? How amazing that these multi-billion market cap companies were loaning people making $65k/year 85-110% of a home's value in places like Sacramento! WOW!

    And top it off with the fact that like 45% of loans in California in 2006 were piggyback loans and lenders weren't factoring that in!!!!

    The list of idiotic mistakes goes on and on and if I were a shareholder I'd be suing or dumping....these companies have ruined most of their value by setting themselves up for disaster. I wouldn't be surprised to hear a statistic that Countrywide and WaMu bank own like 40% of the homes in Sacramento in the next two years...even sounds likely to me at this point.

    The banks buying these shit MBS are idiots too...I'm not sure why the banks are still showing support to the lenders that were helping screw them for the last few years by giving them bailout loans...denial and the want to prop up the economy I guess. The fed will likely do the same.
    #10     Mar 27, 2007