Maxman Posted August 29, 2007 Share Posted August 29, 2007 Anyone watch this stuff? Everyone they show (first time home buyers) are buying with no money down. Having the sellers front the closing cost. I realize this is at the center of the whole sub-prime fiasco right now. But it is weird watching this stuff. Kind of scary actually. Plus these guys are all pick INTEREST ONLY LOANS. Why? Because the money would be better served putting into other investments they say. WHAT MONEY??? You just bought a house with no money. You are banking on appreciation. It is sad to watch actually. I should be rooting against these people, yet all I feel is sympathy. Link to comment Share on other sites More sharing options...
Lady Jet Posted August 29, 2007 Share Posted August 29, 2007 Anyone watch this stuff? Everyone they show (first time home buyers) are buying with no money down. Having the sellers front the closing cost. I realize this is at the center of the whole sub-prime fiasco right now. But it is weird watching this stuff. Kind of scary actually. Plus these guys are all pick INTEREST ONLY LOANS. Why? Because the money would be better served putting into other investments they say. WHAT MONEY??? You just bought a house with no money. You are banking on appreciation. It is sad to watch actually. I should be rooting against these people, yet all I feel is sympathy. You're a good man Max. At least you still feel sympathy. Link to comment Share on other sites More sharing options...
Maxman Posted August 29, 2007 Author Share Posted August 29, 2007 You're a good man Max. At least you still feel sympathy. This couple just bought a house in the middle of the country for 279k. The house is all fixed up. They have no plans to enhance it. They said the mortgage is a lot more than their rent was. They saved squat when paying rent. How are they going to pay for this house? WHY DO I EVEN CARE? But hey they are paying off interest for the next 10 years. So they have nothing to worry about, good grief. I think these mortgages are going to be illegal soon. The government protects our kids by telling them to wear bike helmets. The problem is they are getting in the way of natural selection. Some of these kids are growing into adults and buying these crappy mortgage deals! Link to comment Share on other sites More sharing options...
Thai Jet Posted August 29, 2007 Share Posted August 29, 2007 "There's one born every minute" P.T.Barnum Link to comment Share on other sites More sharing options...
Kidhuman Posted August 29, 2007 Share Posted August 29, 2007 I hate all these home shows. Flip this ouse, flip your mother Link to comment Share on other sites More sharing options...
Green DNA Posted August 29, 2007 Share Posted August 29, 2007 These are people that need to be protected from themselves through some sort of regulation. The lure is getting a house without reaching into your pocket, what could be better than that? The mindset is that if the values drop, you just walk away, no harm no foul. What they don't realize is that their credit is non existent after that and they will never have another chance to own a home unless they win the lottery. The upside in all this is that you can pick up some good bargains in the repo market if you are alert. Link to comment Share on other sites More sharing options...
JerryK Posted August 29, 2007 Share Posted August 29, 2007 I'm using similar loans to pay for a couple apartment buildings I own. I think they're helpful for income property, because they help keep cashflow positive if your tenants drop off. In a few years I plan to use the cash I've accumulated from all 3 to pay off one, then move to the other. ....I'll check in with you then to let you know if I was an idiot or not. Link to comment Share on other sites More sharing options...
Maxman Posted August 29, 2007 Author Share Posted August 29, 2007 I'm using similar loans to pay for a couple apartment buildings I own. I think they're helpful for income property, because they help keep cashflow positive if your tenants drop off. In a few years I plan to use the cash I've accumulated from all 3 to pay off one, then move to the other. ....I'll check in with you then to let you know if I was an idiot or not. That is totally different. People are doing this to pay a primary house with no savings. really different situations. Link to comment Share on other sites More sharing options...
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