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COMMUNITY The Cookout (1M views)

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SneakDZA said:
Yeah - it seems like they tightened shit up so they don't take a loss when the "homeowner" can't keep up with the payments. They're leasing houses essentially.
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Basically that is all they are doing. It's like they can't lose. They were part of the problem in 08. Bought up even more houses. So now they basically either making a profit if the people eventually pay off the mortgage or they got paid rent for years if the people can't. Can then turn around and "sell" the shit to someone else again.
 
SneakDZA said:
This shit sounds like a subprime mortgage on steroids to be honest.

Basically you "buy" a house you can't afford from the bank, make payments to the bank for a few years as the value of the house degrades to where you owe more than it's worth, then you get foreclosed and the bank takes their house back.
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School me on this.

I bought my house before covid so I'm good. Fixed rate.

However, even if someone's home value drops how does that effect their ability to make their payment? Example(random numbers), lets say they paid 150k for their house, mortgage payment $700 a month, which is around 1/4 of the monthly salary(single person)....the home value drops to 120k for whatever reason but they can still make the monthly payment easily...what's the issue?

I'm genuinely trying to learn something here.
 
WilberDMillz said:
School me on this.

I bought my house before covid so I'm good. Fixed rate.

However, even if someone's home value drops how does that effect their ability to make their payment? Example(random numbers), lets say they paid 150k for their house, mortgage payment $700 a month, which is around 1/4 of the monthly salary(single person)....the home value drops to 120k for whatever reason but they can still make the monthly payment easily...what's the issue?

I'm genuinely trying to learn something here.
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You can still make the payments. You lose home equity. Meaning you can't borrow against the house to make large costly improvements. Say with your job you have to move and sell the house. Now with your mortgage being under water you will likely owe money and not a make a profit or break even. When you sell your home the bank wants that balance in full. So being under water you going to have to come up with that difference.
 
DMorgan said:
You can still make the payments. You lose home equity. Meaning you can't borrow against the house to make large costly improvements. Say with your job you have to move and sell the house. Now with your mortgage being under water you will likely owe money and not a make a profit or break even. When you sell your home the bank wants that balance in full. So being under water you going to have to come up with that difference.
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On top of that - with subprime lending they were essentially selling houses at inflated prices to people who shouldn't have qualified for the loan in the first place so they were being set up to fail. They like to blame the housing bubble bursting on that part but it's really a chicken or the egg situation.
 
SneakDZA said:
On top of that - with subprime lending they were essentially selling houses at inflated prices to people who shouldn't have qualified for the loan in the first place so they were being set up to fail. They like to blame the housing bubble bursting on that part but it's really a chicken or the egg situation.
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Very true. To add on to that even more. They gave some black people who were more qualified than white people higher interest rates and pushed them to subprime loans.

These banks were allowed to destroy whole neighborhoods and fuck up peoples credit scores that still possibly effects them to this day.

That shit was wild as hell.
 
illed_Out said:
So because it’s not just for black and Hispanic people only, does that mean it can’t help people of color at all ?? I don’t think it’s a good idea to write it off without doing proper research..
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The problem isn't that the program won't help any Black or Hispanic people. The problem is that the state that the purpose of the program is to reduce the housing inequality. It's unlikely to do that if they don't have to make an actual commitment to specifically help the underprivileged.

@DMorgan compared it to Affirmative Action, and that's perfect. That was a program that was started to help Black people and other minorities to bridge the gap, but they extended it to include white women. Now, the numbers show that white women have been the biggest beneficiaries of Affirmative Action.
 
I was going to look into the whole Bank of America mortgage for buying a home, but I might just wait and rent at least one more year before I look to buy a home.
 
DMorgan said:
You can still make the payments. You lose home equity. Meaning you can't borrow against the house to make large costly improvements. Say with your job you have to move and sell the house. Now with your mortgage being under water you will likely owe money and not a make a profit or break even. When you sell your home the bank wants that balance in full. So being under water you going to have to come up with that difference.
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Good point. I cant say I know anyone this happened to personally. I know people who've moved and just rented their house out. I can see that scenario tho,
 
SneakDZA said:
This shit sounds like a subprime mortgage on steroids to be honest.

Basically you "buy" a house you can't afford from the bank, make payments to the bank for a few years as the value of the house degrades to where you owe more than it's worth, then you get foreclosed and the bank takes their house back.
Click to expand...
If you couldn’t afford the house in first place, how do they expect you to pay the unexpected “what if’s” of owning a home. You gonna finance every major repair? Now you got loans on top of loans on a house you shouldn’t have had in first place.

shit is a trap.
 
WilberDMillz said:
School me on this.

I bought my house before covid so I'm good. Fixed rate.

However, even if someone's home value drops how does that effect their ability to make their payment? Example(random numbers), lets say they paid 150k for their house, mortgage payment $700 a month, which is around 1/4 of the monthly salary(single person)....the home value drops to 120k for whatever reason but they can still make the monthly payment easily...what's the issue?

I'm genuinely trying to learn something here.
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Did u get a chance to refi during covid?
 
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