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How long is a sentence in credit jail?

By New Renter following x   2013 Aug 14, 2:47pm 4,913 views   16 comments   watch   nsfw   quote     share    

The talk of the potential demise of Fannie Mae and Freddie Mac has gotten me to wonder - if these two were to indeed go away what would happen to lending standards? Would private lenders be more prone to forgive a tarnished credit history, and if not what penalties might be imposed (higher fees, higher points, complete denial of loan, etc.) Would credit jail from a short sale be shorter or longer than the 2-3 year term imposed by these entities?

1   HydroCabron   ignore (1)   2013 Aug 14, 11:40pm   ↑ like (0)   ↓ dislike (0)   quote   flag        

They don't care what you did before - they're interested in whether you'll do it again. Credit jail will be as short as possible, after which you will enjoy the same high interest rates on your loans as everyone else, or perhaps a bit higher because you have been naughty. If you come in with 30% down, and/or agree to sodomy-class interest, they'll be happy to serve you the day after your bankruptcy or short sale.

If the government backs away from being the mother hen for the banks - which I doubt - the banks will be concerned with equity above all. Nobody will have a loan of more than 80% LTV, and even that will be at a smoking high interest rate - at least by today's standards.

2   APOCALYPSEFUCKisShostikovitch   ignore (38)   2013 Aug 14, 11:57pm   ↑ like (1)   ↓ dislike (0)   quote   flag        

America will be raped like never before as the banks won't be able to dump their crap. People will come to learn IT'S CASH or FUCK YOU, AMERICA because the bank will rape like they've never raped before. Likely every last house will be bought by hedge funds to corner the rental market and jack rents to 90% of income.

3   Reality   ignore (5)   2013 Aug 15, 12:06am   ↑ like (0)   ↓ dislike (0)   quote   flag        

Jumbo loans seem to be having fairly low interest rates nowadays. Jumbos do not qualify for resale to GSE's.

4   New Renter   ignore (11)   2013 Aug 15, 12:33am   ↑ like (2)   ↓ dislike (0)   quote   flag        

HydroCabron says

and/or agree to sodomy-class interest,

I had no idea sodomy was an option. I suppose that helps explain why the market in SF is so hot now.

5   Tenpoundbass   ignore (15)   2013 Aug 15, 12:35am   ↑ like (0)   ↓ dislike (0)   quote   flag        

By time the bubble dragged the banks down with it in 2008, I had been setting out the market for 8 or 9 years already. And still couldn't find a house that wasn't over priced yet.
But during that year, I knew of at least 3 or 4 people who either already short sold, got foreclosed on, and was able to buy again.
One guy a coworker, was in the process of short selling one house, and buying another. They all managed to close on those houses.

6   Quigley   ignore (0)   2013 Aug 15, 1:29am   ↑ like (0)   ↓ dislike (0)   quote   flag        

Floridians have it easy in comparison to Californians. Housing has been dirt cheap there since 2009. If you didnt buy then, I really don't understand why, unless you just didnt have the means. I understand the prices have come back a bit, but still very affordable.

7   Tenpoundbass   ignore (15)   2013 Aug 15, 1:56am   ↑ like (0)   ↓ dislike (0)   quote   flag        

Quigley says

Housing has been dirt cheap there since 2009.

It has not been dirt cheap, not for private sector anyway. Unless you're going by comparison of California compared to Florida. But even then it's not really equal. As someone in IT in California making over 180K a year, would lucky to find a job here making over 92K.

That's not to say, that if you had cash to play with, you could have picked up some of the special stock ghost inventory, reserved for "The Club".

8   Dan8267   ignore (3)   2013 Aug 15, 3:35am   ↑ like (2)   ↓ dislike (0)   quote   flag        

New Renter says

HydroCabron says

and/or agree to sodomy-class interest,

I had no idea sodomy was an option.

It's not. It's a requirement.

9   Blurtman   ignore (1)   2013 Aug 15, 3:37am   ↑ like (0)   ↓ dislike (0)   quote   flag        

If you are a large real estate developer, and you walk away from a massive loan, there is no sentence. If you are a bank and become insolvent, there is no sentence.

10   anonymous   ignore (null)   2013 Aug 15, 3:46am   ↑ like (1)   ↓ dislike (0)   quote   flag        

Hopefully, not long. I've been turning up the pressure on my old lady to take her turn at chapter 7. The only reason I'm skeptical at all, is that I can't for the life of me, think of any cons as to why someone riddled with debt wouldn't file chap. 7. The pros are easy, you get to be a smart, good little capitalist and purge your bad debts, then start anew. The cons,,,,,are there any?

11   APOCALYPSEFUCKisShostikovitch   ignore (38)   2013 Aug 15, 3:51am   ↑ like (1)   ↓ dislike (0)   quote   flag        

errc says

The cons,,,,,are there any?

You file too soon with an overburdened credit line of 100K. You want to blow out an eight figure credit line and file.

12   HydroCabron   ignore (1)   2013 Aug 15, 9:24am   ↑ like (1)   ↓ dislike (0)   quote   flag        

Recent parolees from credit jail will soon flood the market with cash offers. Together with bi-curious Chindian racial stereotypes, they will drive prices beyond anyone's means.

Buy now, or be priced out forever!

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