Ot - Foreclosures

[Mikej]

How do you guys feel about people who buy new houses, tap 125% of what they can get out of thier existing home, put that down on a new home, then try to sell old home for that 125% - then just foreclose on old place while the new place has all the equity. Follow? BURNS me up. Slight rant at co-worker who thinks he is so damn smart and it wont do "anything" since so many people are doing it. I 'm scared to buy a Legend Ti, could afford it, but some guys just go for broke...Maybe I should just get a new bike.

[Tobias]

It’s selfish.

Likely not to work any more because banks have tighten lending practices.

[saab2000]

I found my 10-foot pole...

I thought that declaring bankruptcy/foreclosure had long-term implications for one's credit? Would this not damage one's credit rating severely?

[J.Greene]

He should be banned. Please tell him J.Greene thinks he's scum.

JG

[TMB]

How do you guys feel about people who buy new houses, tap 125% of what they can get out of thier existing home, put that down on a new home, then try to sell old home for that 125% - then just foreclose on old place while the new place has all the equity. Follow? BURNS me up. Slight rant at co-worker who thinks he is so damn smart and it wont do "anything" since so many people are doing it. I 'm scared to buy a Legend Ti, could afford it, but some guys just go for broke...Maybe I should just get a new bike.


I hope your co-worker has lots of cash in the bank to pay for repairs or contingencies.

Because he will not be getting any from the bank in future.

[rwsaunders]

I'm with Saab. Your co-worker's credit is shot for 7-10 years, but maybe he doesn't care. Remind him that people like you have to pay for the actions of the greedy.

[jimcav]

the guy is taking advantage of the loose lending environment and an idiot to boot, since he seems oblivious to the downside of foreclosure.

jim

[cmg]

he'll be crying when he's force to pay high interest rates for his crappy credit rating, on a new car, new TV, new furniture, insurance, etc. etc. it all comes back. it ain't that smart.

[Mikej]

Because it is not my wallet or life, but it does get under my skin.

[cdimattio]

Providing that the foreclosure is the only blemish, the credit score bounces back quicker than one might think.

I have seen FICO scores in excess of 600 just 2 years after a foreclosure or a bankruptcy.

While the data remains on the credit report for a lengthy period as other have stated, most of the real world screening with impact is based upon a numerical FICO score rather than a full credit report.

[Tobias]

Because it is not my wallet or life, but it does get under my skin.I disagree -- it affects us all.
Although I place greater blame on any bank that lends 125 percent.
That's just plain irresponsible.

[Pete Serotta]

Who, the poster below?

He should be banned. Please tell him J.Greene thinks he's scum.

JG

[Tobias]

the guy is taking advantage of the loose lending environment and an idiot to boot, since he seems oblivious to the downside of foreclosure.

jimI know a nice young guy who is going through a similar process because he can’t afford his automobile expenses.
When his car gets close to the warranty expiring – sometimes much before then – he trades it for a new one for fear he can’t pay for unexpected maintenance and repairs.
The problem is that with each subsequent trade he gets further behind; or upside down as some call it.
In order to roll his increasing debt into the new purchase, he is forced to buy a more expensive vehicle than he really wants; and additionally has to buy a vehicle that has fallen out of grace in the marketplace and is being sold with a deep discount so the discount amount covers his negative equity in the previous car.
Obviously as soon as he drives off the lot, his negative equity is even greater; but he keeps repeating the cycle over and over and is digging himself a deeper and deeper hole which may lead to bankruptcy.
IMO he’s to blame for making bad choices which led to bankruptcy once already, and the banks are to blame for giving him credit beyond his means.

[Tobias]

Who, the poster below?Am I being banned?
I thought fiscal stupidity wasn't political.

[J.Greene]

Who, the poster below?

The co worker.

JG