Sherwood Forest rally

[Dieseldog]

It may be that human nature dictates spending. If someone told me special financing could put me in a house for $180,000 and I was looking at a house at $100,000. Why would I go with the less expensive and possibly smaller of the two?

This is the kind of mentality the mortgage brokers and real estate people prey upon.
They will promise you the individual a low payment. Next thing you know, the payment escalates.

House prices AND rent have changed dramatically in the last few years. With the easy credit why would you rent for the same price of a house payment? That is until the payment raises.

With so many houses and the right cash price it is time for people to think about coming back to the city of Detroit, Hamtramick and Highland Park.

Before all the naysayers try to burn me at the cross. I realize bringing a house up to code is an investment. Especially after the scrappers are done! The point I was trying to make was that sometimes you have drop back and settle for something less. Make something out of it. Do the best you can.

And most Important Keep Your Eyes On The Prize.

[softailrider]

Why do posts like these always seem to bring out all DY's resident racists?

Crawford has, in his typical fashion, shows once again that he hasn't a clue about anything. As usual, he doesn't let that stop him from offering his distorted views.

Where do you have knowledge that Detroit teachers make a 6-digit yearly income? You have no source to back up your claim, it is an out and out lie.

Also, I love all the folks who think that banks and mortgage companies are totally innocent in this crisis. If you believe that, I have some swampland in Antarctica to sell you. The mortgage companies knew damn well they were employing shady practices and are getting burned as a result of their reckless behavior. People bear part of the responsibility, but the main culprits are the companies.

With all due respect, I don't agree with that last paragraph. There's so much mortgage fraud on the part of BORROWERS out there it would make your head spin. When you drive down streets in Detroit and see one foreclosed house after another you can't possibly believe these are all cases of peeople who were overextended. In my opinion many of these foreclosed house are by DESIGN. You have people who took the money and ran, it's as simple as that. The story is the same in the suburbs only the stakes per house were much higher. Don't kid yourself, the reality of the situation is that there are foks who ran off with hundreds of thousands of dollars. I hear very little about banks, mortgage companies or the feds going after any of these people.

[barnesfoto]

Perhaps some of the folks who bought homes that they could not afford were stupid, or maybe they just follow directions well. After all, our society is filled with signs, printed pages and moving images that say BUY BUY BUY! And as a very wise poster pointed out, the hype was not just in advertisements and the media [[I recall an awful lot of stories about people buying and selling homes and making great money!) but even our recent war criminal/president was up there smirking and advocating an "ownership society".

There were many smart people who saw the massive dismantling of regulations of banking and finance as a sure recipe for disaster.

There were many other college educated people who advocated such deregulation, and many college educated people who participated in the pillaging knowing full well that it would end badly.

The blame can be spread very widely, and I hope that the sick cult that has for the last 27 years gone about eliminating so many of the rules that were put into place after the disaster of the Great Depression is now as soundly discredited as the Temperance Movement was after prohibition.

[Detroitej72]

In my opinion many of these foreclosed house are by DESIGN. You have people who took the money and ran, it's as simple as that.

So, what your saying is that the banks and mortgage companies just hand a person thousands of dollars in cash and assume the person will buy a house with it? That's the most ridicules thing I've ever heard. When you close on a house, the bank never gives you the money, they give it to the seller.

I hear very little about banks, mortgage companies or the feds going after any of these people.

Maybe because it rarely happens?

[davewindsor]

So, what your saying is that the banks and mortgage companies just hand a person thousands of dollars in cash and assume the person will buy a house with it? That's the most ridicules thing I've ever heard. When you close on a house, the bank never gives you the money, they give it to the seller.



Maybe because it rarely happens?

I'm not sure how it works in Detroit, but in Windsor, if you have a good paying job, you can get a home equity line of credit. It's a common thing. If, before the credit crisis, you bought a house and a few months down the road you went to the bank and said you renovated it and it's worth more and they granted you a home equity line of credit for the difference, you'd be able to walk away with thousands in cash after the credit crunch [[provided you wanted to screw up your credit rating). It's not as simple as you said it because you'd have to own the property for a few months first, but it's something that happens all the time.

I guess that's the kind of thing the banks are trying to ward off with foreclosures these days. Speculators buying a house for $20,000, claiming they put 80 grand into it in three months and trying to get it refinanced at a $100K value.

[softailrider]

So, what your saying is that the banks and mortgage companies just hand a person thousands of dollars in cash and assume the person will buy a house with it? That's the most ridicules thing I've ever heard. When you close on a house, the bank never gives you the money, they give it to the seller.



Maybe because it rarely happens?

Good grief !..............I cannot believe that a person can be as naive as you are.

[Detroitej72]

Good grief !..............I cannot believe that a person can be as naive as you are.

I can't believe a person thinks the banks and mortgage companies are innocent in this whole ordeal.

[mwilbert]

There are two main kinds of mortgage fraud perpetrated by buyers. One is misrepresentation of their resources, and the other is misrepresentation of the property being purchased. The former involves lying about income, source of down payment, or credit status. This doesn't result in the buyer getting any cash, just a property that they can't afford. The hope is that the price rises so that they can refinance and take some money out, or flip it. Because of the enormous number of no-documentation loans given out in the mid-2000's, there were a lot of people who did not give accurate information about their financial status when they were buying property in that period. I would call it fraud, although kind of a low-level fraud, often with the collusion of the lending officers, who made money writing loans and didn't care if they were good.

The second type of fraud generally requires some kind of collusion with the seller--undisclosed discounts or kickbacks [[in money or in-kind). Sometimes the seller and the buyer are basically the same person, with some kind of straw person keeping the bank from realizing that the same person is on both sides of the transaction. This is clearly fraud, but I don't think we yet know how much of this was going on.

The interesting thing about the case here is that one of the owners said they went into foreclosure over a "tax issue". The only way I can see that being the loan company's fault is if they weren't paying the taxes properly out of escrow. If they were collecting the taxes but not paying them, the homeowner should notice that their escrow balance is too high, and then they could just pay the back taxes out of the escrow. The other option is that no one was paying the taxes. Again, I would think the owners would notice. I'd be curious to know exactly what the tax issue was.

[reddog289]

What caught my eye with this thread was the Sherwood Forest rally. Thinking how things are I thought there was a rally about crime. No it was about people losing homes. Neither of which are a good thing by any means.
This brings back memories of why I bought a house. When I knew that me and my girlfriend would be moving in together, We made an agreement and the said agreement has worked out fine. During this the house her and her two daughters were living in with me on the weekends and the future son in law for the next six months worked out fine.Till the day that the papers came and said the house had been forclosed. She got off by not having to pay rent, which I should have told her to save that money ,but that is another story. Renting a house in foreclosure is not fun.Why should the landlord care if the place is kept up.Since the water bill was the owners problem, some people in the house didn't seem to care if they wasted water or not. Which was settled by me after the move.
Granted I for one am not the only person here underwater on their house.I look at people renting homes/apts for more than I pay for my mortgage and say "It could be yours for what you are paying someone else". Buying a house was a way of myself taking responsiblity.I do not want to rely on someone else to have to fix something I can fix when it is broke. I get calls from the oldest girl wanting me to fix stuff in her apt. Tell her call the landlord.. As a teen I had to go into the house I grew up in after we rented it out, and this is by no means intended to sterotype renters. But after seeing what had happened to the house I grew up in was sad.
My mortgage went up last year, By almost $200.00 a month due to previous city taxes which have now dropped. I have gotten by so far, and hope to pay this thing off. Yet when I read stuff posted and how alot of it turns to racial arguments. All I can say is that Dr King would not be happy reading this kinda stuff. Altough I myself have my views on the Rev Jackson. But to each his own.This is a big shit hole and we will all have to either move, ride it out, or die off. Things happen to everyone, Not just Blacks,Whites, Educated,ETC.

[softailrider]

I can't believe a person thinks the banks and mortgage companies are innocent in this whole ordeal.

When did I write anything about that? The banks made a huge number, of what turned out to be bad loans. But look around you, drive down the streets in Warrendale or EEV. Do you really believe that all those bank owned properties are the result of people who overextended themselves? If you actually believe that, you need to have your head examined. Some people made a living out of refinacing their property. Values went down and they walked, in some case with hundreds of thousands of dollars.They probablly ruined their credit rating, and they probablly could care less. Situation is the same in the suburbs, take a look ats ome properties that banks are trying to unload for 400,000.00. Property taxes are 20,000.00 or more that were jacked up by phony recorded sales. Ask any real estate salesperson, they'll give you the same theme with different variables.

[Lorax]

Sorry, guys, but the burden of proof of someone's assertions as to their personal creditworthiness is up to the lender making the loan.

Knowing that loan will be ultimately re-sold, it's up to the one originating that loan to make sure the applicant is telling the truth.

There are mechanisms in place to do so- whether or not they choose to do the required research is up to that lender.

Before the Rethuglican deregulation of the banking industry, where standards were relaxed, no income verification loans offered, zero percent down loans were offered- who wouldn't want to take advantage of these officially sanctioned deals?

If the lenders were operating from a position of skepticism and scrutiny as to the information being presented by the borrower, then we wouldn't have found ourselves in this situation.

Those who rail against the individual as bearing the total responsibility for this debacle is ridiculous. No one credible believes this.

Job losses and bankruptcies due to medical reasons are the vast majority of defaulted loans in this country.

Most were able to afford their homes, and wanted to keep them, but when their jobs are disappearing at alarming rates, they end up having to walk away from them.

The bigger problem in the mortgage crisis were the further relaxed standards for investors buying and flipping properties to make a quick buck. There was even less scrutiny of these loans, as evidenced by the dozens of 40+ story empty highrises dotting the lanscape here in Miami.

[sumas]

Please post on how the rally went. We almost bought there in the late seventies. My parents, both eastsiders, their health went into a tailspin so we bought on the eastside to be near them.

EEV is doing a tour today trying to attract new residents. People do not realize that there are many viable neighborhoods still here in the city. Many people are fighting to retain our areas.

I even had a "Martha Stewart" moment since I want my neighborhood to look good for this event. Went to Aldis yesterday and bought a big fat pumpkin. Went to Eastern Market and bought Mums. This morning I cut and edged my front lawn. Walked the block to remove flyer debris. I am shamed sometimes at how much others do to maintain our community. I should do more.