How dumb are these people?

[drago]

This dude calls me for a loan, says he wants either an equity loan or an unsecured loan. Immediatly i thought he knew at least a little about lending if he knew what unsecured meant. He says he needs to consolidate 40K in credit card debt. so i ask...how much equity do you have in your house?

-whats equity?

-Ummm ya serious? "how long have you lived at your house?"

-"since august"

-"did you put anything down?"

-"no"

(how the f()ck are you going to do an equity loan if you don't have any f()cking equity???)

The dude makes like 25k per year, owns a mortgage of 1700 per month (which i'm dying to know what bank gave him that one) and wants unsecured loan of 40k???? wow...i'm speachless, the worst part is i have to put it through even though i know it will be denied. So in the mean time i figured i'd rant about this idiot instead of putting it through.

and now i feel better.

[Bob]

That's ridiculous, alright. 40k in credit card debt and a mortgage that big on that kind of income? Wow.

[drago]

That's ridiculous, alright. 40k in credit card debt and a mortgage that big on that kind of income? Wow.

I feel like its going to be hard to explain this one to him, without making him cry. I think he was born in 78, so he could come back from this, but i wouldn't want to own whatever type of loan he's got on that house.

[ECURB]

This is a HUGE problem lately... Banks are handing out loans to people they know cant pay... there is actually a lot going on with trying to stop it... people are getting burried in debt by their dreams...

[drago]

This is a HUGE problem lately... Banks are handing out loans to people they know cant pay... there is actually a lot going on with trying to stop it... people are getting burried in debt by their dreams...

I come acrossed a ton of different people, financially speaking. There is this guy i just mentioned, but then there is this couple who are really soft spoken, and you woudln't think much of them, but they keep coming in with these 40K dollar checks cause they own a few properties. Turns out the guy is really handy with electrical, plumbing, and just other general stuff. so they have probably 200k with us, but you would never guess.

Then there's the others, where if the furnace goes out, its time to file bankruptcy.

[RSJ]

This is a HUGE problem lately... Banks are handing out loans to people they know cant pay... there is actually a lot going on with trying to stop it... people are getting burried in debt by their dreams...

It won't be stopped because it is Hedge Funds and other investers that are driving it up. Even considering the high default rates it is a very profitable investment. People just need to be more responsible.

[ECURB]

I come acrossed a ton of different people, financially speaking. There is this guy i just mentioned, but then there is this couple who are really soft spoken, and you woudln't think much of them, but they keep coming in with these 40K dollar checks cause they own a few properties. Turns out the guy is really handy with electrical, plumbing, and just other general stuff. so they have probably 200k with us, but you would never guess.

Then there's the others, where if the furnace goes out, its time to file bankruptcy.

America is broke right now, sad but true... I cant even afford to post on another JETS board if I wanted

A little while back I was thinking of investing in some property to fix up and rent out... I had banks lining up to give me and my 600 (at the time) credit score, maxed out cards, ect ect loans for a 250,000 house...

Now my score is better, my cards are nearly empty... they would most likely let me buy a mini mansion so long as I give then a written no verification income statement... its sad but true...

[drago]

It won't be stopped because it is Hedge Funds and other investers that are driving it up. Even considering the high default rates it is a very profitable investment.

With how overpriced (mostly in your area really) the houses are they can default, sell the house at 80% and still come out even, or better. Maybe its the synic in me, but i don't mind that banks are pushing them to foreclosure, leaves ways for people that can count to clean up, and make some money.

If you buy a house, you should really know what equity is, at the least.

[ECURB]

It won't be stopped because it is Hedge Funds and other investers that are driving it up. Even considering the high default rates it is a very profitable investment. People just need to be more responsible.

I need a "hit the nail on the head" smiley...

[RSJ]

With how overpriced (mostly in your area really) the houses are they can default, sell the house at 80% and still come out even, or better. Maybe its the synic in me, but i don't mind that banks are pushing them to foreclosure, leaves ways for people that can count to clean up, and make some money.

If you buy a house, you should really know what equity is, at the least.

I agree, it is cyclical like anything else. I think there are more artificially inflated areas than the east coast - but the east coast is up there. Cali is rediculous and it is the capital of interest only loans.

And yes equity is one thing you SHOULD know.

[joewilly]

man, you really have to feel sorry for folks like this chap. Most likely has small children if he stepped up & bought a house. If you're young & not exposed to much financial lingo, perhaps not knowing what equity means doesn't mean he's a dumbass but unfamiliar in that area of expertise. 40,000 of cc debt & a 1700 per month payment due on a 25k salary makes him a dumbass though, one that I can't help but feel sorry for.

perhaps you can help shed light on his dilemna & suggest a remortgage or whatever is gonna keep him from losing the house & any credit rep he now has.

[Alk]

And this is a perfect example of why my paychecks go straight to my wife.

[ECURB]

This dude has about 21k in payments for his house every year...

That leaves about 300 bucks a month to pay for everything else...

He is f*cked

[drago]

man, you really have to feel sorry for folks like this chap. Most likely has small children if he stepped up & bought a house. If you're young & not exposed to much financial lingo, perhaps not knowing what equity means doesn't mean he's a dumbass but unfamiliar in that area of expertise. 40,000 of cc debt & a 1700 per month payment due on a 25k salary makes him a dumbass though, one that I can't help but feel sorry for.

perhaps you can help shed light on his dilemna & suggest a remortgage or whatever is gonna keep him from losing the house & any credit rep he now has.

Yeah i think yo uare right on me trying to help him a bit. you never know how much he'll really want to listen though.

i forgot to mention he rents two rooms out for 500 each. so he's got an extra 12k on the year at least. but still, paying 700, with tax and ins? that's tough. My bank is too conservative to help him i think, i could send him to my old place of employment, they might be able to help more than me...good luck to him i guess.

[ECURB]

And this is a perfect example of why my paychecks go straight to my wife.

This was a thread about dumb people... not people without balls...

[joewilly]

Yeah i think yo uare right on me trying to help him a bit. you never know how much he'll really want to listen though.

i forgot to mention he rents two rooms out for 500 each. so he's got an extra 12k on the year at least. but still, paying 700, with tax and ins? that's tough. My bank is too conservative to help him i think, i could send him to my old place of employment, they might be able to help more than me...good luck to him i guess.

well that's a little better. ya gotta be careful in how you approach him too don'tcha. you don't want to insult his intelligence by trying to help him but he may well be very appreciative if you offered some "off the record advice" with your banking hat off.

I just have to feel sorry for folks who are good honest people but lack the knowledge req'd to manage their own finances and are too proud or just don't know where to turn for advce.

And on top of that loan institutions & cc companies take full advantage of these individuals

[joewilly]

And this is a perfect example of why my paychecks go straight to my wife.

last time we chatted at bunko night she said it was cause of the pics with the animals at a friends farm. she never lies when she's drunk, who should I believe?????????

[greg63]

This dude calls me for a loan, says he wants either an equity loan or an unsecured loan. Immediatly i thought he knew at least a little about lending if he knew what unsecured meant. He says he needs to consolidate 40K in credit card debt. so i ask...how much equity do you have in your house?

-whats equity?

-Ummm ya serious? "how long have you lived at your house?"

-"since august"

-"did you put anything down?"

-"no"

(how the f()ck are you going to do an equity loan if you don't have any f()cking equity???)

The dude makes like 25k per year, owns a mortgage of 1700 per month (which i'm dying to know what bank gave him that one) and wants unsecured loan of 40k???? wow...i'm speachless, the worst part is i have to put it through even though i know it will be denied. So in the mean time i figured i'd rant about this idiot instead of putting it through.

and now i feel better.

Idiocy is an equal opportunity affliction.

[Arsis]

This dude has about 21k in payments for his house every year...

That leaves about 300 bucks a month to pay for everything else...

He is f*cked

Maybe the guys is dyslexic and really makes 52k a year.

[Boozer76]

I work in mortgages and jokingly say I could get a homeless person a 400k mortgage, but the truth isn't that far off. Here's a good one I'm doing now:

Husband-35 years old, wife 23 years old. Husband works 2 jobs 80 hours a week to earn a total of 95k a year. Wife still goes to school to eventually work in a profession that will start her at 30k at the most. She's a little primadonna that might not even decide to work at all. The husband comes to me and says he has 100k for a downpayment and is looking in the 450k price range. Though it's a bit tight, it a reasonable amount that he could afford and work with. 2 weeks go by and hetells me he found a house. I said great, what's the numbers? 600k, offering 525k. The first words out of my mouth were "are you insane!". He says his wife loves it, he has to have it, make it happen. I was praying that the banks would either decline due to debt ratio or price him out of it with a higher rate. Nope, banks had no problems giving him a conforming loan without question. The sellers turned down the offer, and after making 3 more daily consecutive offer raises they finally settled at 575k without once consulting me.

Sure enough, banks still have no problem giving him the loan at conforming rates. Addmittedly his credit score is great, but a 30 year fixed with taxes and insurance is almost 4000 a month (taxes are very high). He nets 6k a month, leaving him 2k to pay 800 towards cars and 1100 for food, utilities, gas and leisure each month. I told him that I really felt I was financing his divorce. He will need about 130k a year to comfortably live like a somewhat normal family. For that to happen, he will need to either work 80 hours a week for the rest of his life (divorced in 2 years when he snaps and she starts cheating cause he's never home), Have her miraculously earn enough money in a job to compensate for the difference so he can quit his second job(never gonna happen in her field), or he gets a big enough raise in his day job to quit his second job assuming she has a half decent paying job (never gonna happen in his fild which is the same as hers).

His answer to me when I told him I was financing their divorce? She really loves the house. I did my due diligence and at this point I have to give him the loan, he is already commited and beyond attorney review. I will get paid a handsome chunk of change, but it is due to the unimaginable stupidity of people who live far beyond their means.

[The Gun Of Bavaria]

It seems like anyone can get credit for anything. Sure you can say that banks shouldn't be handing out loans like candy, which to a degree is correct. But people have to have a personal responsibility as to what they get themselves into. Although personal responsibility isn't a big thing these days.

[Jet Moses]

This dude calls me for a loan, says he wants either an equity loan or an unsecured loan. Immediatly i thought he knew at least a little about lending if he knew what unsecured meant. He says he needs to consolidate 40K in credit card debt. so i ask...how much equity do you have in your house?

-whats equity?

-Ummm ya serious? "how long have you lived at your house?"

-"since august"

-"did you put anything down?"

-"no"

(how the f()ck are you going to do an equity loan if you don't have any f()cking equity???)

The dude makes like 25k per year, owns a mortgage of 1700 per month (which i'm dying to know what bank gave him that one) and wants unsecured loan of 40k???? wow...i'm speachless, the worst part is i have to put it through even though i know it will be denied. So in the mean time i figured i'd rant about this idiot instead of putting it through.

and now i feel better.

His current salary is irrelevant. It doesn't matter if he makes 25k or 50k or 100k, he doesn't grasp the concept of living within his means, or how to budget money. His ignorance of basic finance and economics just exacerbates his lack of comprehension. Thats why I laugh when people think that if only they could hit the lottery, or fell into alot of money, that somehow it would solve all their problems. People who are fiscally irresponsible with a small amount of money, don't change their habits when they get more money. Classic case in point: MC Hammer.

True, it doesn't help that their is an industry out their that exploits these people, but we as a society have collapsed into a moral malaise, where ethics are compromised as long as it's "legal". That's the yardstick people generally use today, in terms of business or social interaction.

I would recommend that business and finance courses be introduced into HS curriculum, but what good would it do? The very institutions of law and government, which are supposed to create a framework of ethics, and lead by example are by and large, the greatest violators of public trust.

How do you tell your children to live within your means, when every level of government, federal, state, and local, spends more than they have?

Debt isn't in and of itself bad, indeed, very few people could own a home without it. But what we have witnessed especially in the last ten years is an industry that has turned "the American Dream" into a speculators scheme.

I'm glad I didn't get suckered in.

[Bugg]

I've closed 2 loans in the last few weeks. One was a teacher/cop family buying a house for around 575K, 50K down. Thier monthly payment is $4100.

The other one is a 30-year all interest loan, cop/cop family, house for $650K, 35K down. The payment is going to be around $4300 a month.

Told them both that that's one hell of a nut for anyone.

I thought all the foreclosures were going to slow it down a bit, but now I don't know. In both cases, these people have good credit, but are living beyond their means with these mortgage.But both wanted thier dream home in their dream neighborhood. It's as much pyschology as it is finance.

[Bugg]

His current salary is irrelevant. It doesn't matter if he makes 25k or 50k or 100k, he doesn't grasp the concept of living within his means, or how to budget money. His ignorance of basic finance and economics just exacerbates his lack of comprehension. Thats why I laugh when people think that if only they could hit the lottery, or fell into alot of money, that somehow it would solve all their problems. People who are fiscally irresponsible with a small amount of money, don't change their habits when they get more money. Classic case in point: MC Hammer.

True, it doesn't help that their is an industry out their that exploits these people, but we as a society have collapsed into a moral malaise, where ethics are compromised as long as it's "legal". That's the yardstick people generally use today, in terms of business or social interaction.

I would recommend that business and finance courses be introduced into HS curriculum, but what good would it do? The very institutions of law and government, which are supposed to create a framework of ethics, and lead by example are by and large, the greatest violators of public trust.

How do you tell your children to live within your means, when every level of government, federal, state, and local, spends more than they have?

Debt isn't in and of itself bad, indeed, very few people could own a home without it. But what we have witnessed especially in the last ten years is an industry that has turned "the American Dream" into a speculators scheme.

I'm glad I didn't get suckered in.

In college, they left these credit card applications around for anyone to fill out and get plastic. And silly me at 21 of course got one. Or 5 or 6.

It took years to get out of that stupidity.

Now I was dumb and it was my own fault. Probably colleges shouldn't allow that. But at a bare minimum high schools should include some life skills classes to teach young people about everyday finances. That would be much more valuable than Latin or French or shop for most of us.

[JerryK]

I have to honestly say I couldn't live in the whacked-out markets you guys are in.

My wife doesn't work, but with a little luck I'll get just over 80k this year, BUT I REFUSE to pay more than 1200/mo for a house pmt. At 2000+ I'd jump off a bridge.

Cars=paid off. (knock on wood)

Student loans= paid off this month.

Credit card debt= 0. Work expenses only, on a card that gets me hotel points for cheap weekends with the wife.

Folks, live cheap. Find a girl that doesn't have to have a feather-bed on day one. Start small, and in 10 years you'll be thanking me.

[dickkotite]

I DONT FEEL SORRY FOR THESE PEOPLE. THEY ARENT THT ooops stupid they are just greedy adn irresponsible. 4k for a house payment? yea right maybe if you play in the NBA.

as far as banks giving out the loans, the way i see it if they get 30-80k in down payment money and their closing fees, what do they care if the guy defaults? they get late fees and then just foreclose and resell the house. seems like its a win-win situation for the banks

so financial gurus, whats the theoretical formula of how much house you can afford vs. income?

[dickkotite]

I have to honestly say I couldn't live in the whacked-out markets you guys are in.

My wife doesn't work, but with a little luck I'll get just over 80k this year, BUT I REFUSE to pay more than 1200/mo for a house pmt. At 2000+ I'd jump off a bridge.

Cars=paid off. (knock on wood)

Student loans= paid off this month.

Credit card debt= 0. Work expenses only, on a card that gets me hotel points for cheap weekends with the wife.

Folks, live cheap. Find a girl that doesn't have to have a feather-bed on day one. Start small, and in 10 years you'll be thanking me.

theres a lot to say about that jerry. i was thinking about downsizing and moving to a cheaper area... i did the math and realized that i would be cash rich for the first time. maybe i wont have the luxeries that i have now, but if i wanted to go to jamaica or wherever on a whim i could go and money would never even be considered

[joewilly]

this whole living within you're means stuff has really got me spooked. No way am I selling the other toaster though now that the 1st one's paid off

[ECURB]

I DONT FEEL SORRY FOR THESE PEOPLE. THEY ARENT THT ooops stupid they are just greedy adn irresponsible. 4k for a house payment? yea right maybe if you play in the NBA.

as far as banks giving out the loans, the way i see it if they get 30-80k in down payment money and their closing fees, what do they care if the guy defaults? they get late fees and then just foreclose and resell the house. seems like its a win-win situation for the banks

so financial gurus, whats the theoretical formula of how much house you can afford vs. income?

You can get a no money down, no income verification home loan pretty easy...

They split it into 2 loans... one for 80% and one for 20% so you dont have to pay PMI...

I have actually seen situations where banks will loan people the money to get through closing with no money down...

[drago]

Folks, live cheap. Find a girl that doesn't have to have a feather-bed on day one. Start small, and in 10 years you'll be thanking me.

Words to live by. I'm honestly looking for a girl like that, she has to be thin, attractive and like the beatles, but other than that, you nailed it on the head .

[drago]

I DONT FEEL SORRY FOR THESE PEOPLE. THEY ARENT THT ooops stupid they are just greedy adn irresponsible. 4k for a house payment? yea right maybe if you play in the NBA.

as far as banks giving out the loans, the way i see it if they get 30-80k in down payment money and their closing fees, what do they care if the guy defaults? they get late fees and then just foreclose and resell the house. seems like its a win-win situation for the banks

so financial gurus, whats the theoretical formula of how much house you can afford vs. income?

My bank is pretty conservative, and won't go over 40% Debt to income ratio. That's just us, tons of people (as previously mentioned) will go way over.

And you're right, reposessing the house and reselling it can be done at a profit if they find another sucker that thinks they can afford a 4k payment on 50k a year.