Here’s what’s wrong with America.
Watch this video about a couple who lost their home to foreclosure and are now living in a campground and tell me if you hear what I hear.
The gal says they walked into that home and said “…. we can get this for $265,000 - NO MONEY DOWN? OMG!!!”
I’m going to make an assumption here. I will assume that they did, in fact, purchase the home with NO MONEY DOWN. Given that they bought the home during the height of loose lending that means their investment may have been no more than just the closing costs, BUT, the way they were making loans they may have been able to make the purchase with the closing costs rolled into the loan.
After they move in the home doubles in price and what do they do? Remember they had approx $265,000 in equity.
Are you following what I’m trying to say? Assuming they purchased the home with NO MONEY DOWN - they had little to NOTHING invested - and now they are cashing in on the equity.
OK - then the gal loses her job and they don’t have money to pay their bills ( including their house payment ).They try to sell the home and the sale falls through, so what do they do? They suck out more equity via an emergency loan from lenders who obviously realize these guys are up sh*t creek so its not like they are going to get great rates: THESE ARE HIGH RISK CUSTOMERS. In case you don’t know, lenders who make loans to people in their financial condition ASSUME they are going to be getting the home.
They way I see all they did was TAKE. What are they crying about? I mean if this guy worked all his life to make the down payment and/or put up his life savings to buy the home, that would be one thing, but I don’t see it that way. Everything that I saw/heard leads me to believe they got the home for no money down and used their home like ATM to take money out. Then when times got tough, they took MORE money out.
It ends with the guy crying and saying “it hurts, I didnt cause this to happen…other’s caused it, nobody cared, everybody just walked away.” I say HE IS THE ONE WHO WALKED AWAY. I have absolutely NO SYMPATHY for these crybabies. If anybody got screwed here, I think its the lenders. Folks, THIS is what’s wrong with America!
He NEVER really owned that home in Vegas, he just had legal title to the property. Miss 3 payments and you find out real quick who REALLY owns your home. I’m sure he does OWN that trailer.
I have had this blog as a draft for a several weeks because before I posted it I wanted to know that I actually had the information correct. I email CNN and asked them to verify what I believed I heard and never received a reply. I did detect a discrepancy in the report regarding their payment. Bottom Line: If I am wrong as to my interpretation of events I will gladly stand corrected. If anyone has information to prove that these people actually made a down payment please let me know.
© R. "Lazarus" McAtee
Broker: Lazarus Realty