patrick.net

elliemae says

on the loan mod, it seems that he’s saying tht you should claim you can’t pay and get a loan modification based on lower income. doesn’t make sense.
PockyClipsNow says

After you buy this house, after a few months, you should try to get a loan mod. They can reduce interest rate to 2% for 5 years (standard deal) and put part of principal on ‘back of loan’ which means the payment is not based on the full principal owed. They try to get your payment down to 31% if ‘declared income’ I think.

Serisouly you already are able to document low income to qualify for a s-8 vouchers. So after buying this house you should also qualfiy for a loan mod possibly. Tell them ‘your expenses have gone up’ for medical, insurance, food, whateva.

It seems crazy but why wouldnt this work? (Then when prices go up flip the house, buy gold bars, and bury them to hide the assets? im not sure how to cash in here and keep on welfare.)

In other words, lie. use the gob’mint to buy the place, then lie & have them reduce your payment further. It prob wouldn’t work because S8 is helping out. This train of thought assumes that you want to scam the system rather than to use the legal program to your advantage.

Ahh, I see. I ran it by a friend in financing and he said wouldn't work since Sec 8 is very restrictive with what you can do under the program.

Nomograph says

You seem like an articulate and educated person. As a husband and a father, your number one priority should be to keep your family *off* welfare, instead of looking for ways to get *on* government assistance.
I would never, ever, in a million years voluntarily place my family on welfare unless it was a matter of survival. It would be an embarrassment that I would not be able to live with. But that’s just me, and I was raised with a different set of morals and values that some.

My wife was on assistance when we married. For her it was a matter of survival since she was a single mom trying to finish college. Buying a house doesn't put us on welfare any more than we currently are(section 8 rental - section 8 homeowner). I would think someone who makes over $50k a year should be able to support a family on that, but at least in California, this means you're "poor" and still qualify for a number of welfare programs.

Maybe the embarrassment should be California's that someone making that kind of money can barely get by in their state.

NuttBoxer says

Maybe the embarrassment should be California’s that someone making that kind of money can barely get by in their state.

Move then! Even though you're stealing from all of the US taxpayers with this section 8 home buying nonsense, we don't need anymore takers here in CA. I'm sure that Mississippi or Alabama would love to have you.

Funny how I never hear anyone speak of living way under their means and saving for a home.

lurking says

NuttBoxer says

Maybe the embarrassment should be California’s that someone making that kind of money can barely get by in their state.

Move then! Even though you’re stealing from all of the US taxpayers with this section 8 home buying nonsense, we don’t need anymore takers here in CA. I’m sure that Mississippi or Alabama would love to have you.

Hey now. I lived in AL and I can tell you, they don't take kindly to section 8 system gamers. This stuff wouldn't fly down there.

This whole conversation makes me really tired. Every time I try to console myself with "maybe we have finally learned a lesson," the same old crap keeps rearing it's ugly head.

So I point out that we live in a MASSIVE welfare state(more welfare programs than any other state in the US), that causes families with a stay-at-home parent to be classified as "poor" and your response is to defend our dear leaders in Sacramento!? I guess working towards reducing the ridiculously inflated cost of living here by cutting back bureaucracy, and eliminating the unions that control every election and live off our labor would be too much work, so you prefer to throw stones from the sidelines. Unfortunately, that attitude is exactly why California is on the verge of becoming the first state in this country to go bankrupt.

And don't worry, the aid we receive directly from Section 8 all comes out of my pocket, since after subtracting taxes every year, I end up back at zero. Of course your taxes are still paying for the Section 8 workers, directors, HUD, and a million other unnecessary bureaucrats in San Diego, Sacramento, and Washington. But throwing stones at your neighbor is easier than blaming your government I guess.

like Zombies they keep on coming. even I'm thinking that I need to rent the money to "own a home" so I can "get a life" and "have a future."

Nuttboxer has the right attitude. Everyone who can possibly qualify for gov cheese should take it (and then some). The faster we can get CA into Bankruptcy court the better off the state and the nation and the world will be.

Here is why: we NEED HIGHER INTEREST RATES desperately to crash housing further (making it more affordable for all) and also savers should not be robbed with 1% CD rates to pay for bank bailouts. A default/haircut on CA bonds and muni bonds should cause a rate spike. Right?

How the hell can int rates be this low with debt levels (chance of default) so insanely high? Its screaming a red flag for something....risk? isnt it?

Also people do not realize the HUGE amount of folks on S-8 in CA. It keeps rents REALLY HIGH. These horrible crappy apartments in the worst part of the ghetto will be $800 a month. Why so high? because everybody is on S-8. Its drives up rents like Freddie/fannie/FHA drive up house prices.

So people that are poor have no choice but to use S-8 since rents are high (due to s-8). Thank you liberal retards for making it impossibly expensive to live without handouts for millions.

This should make Katy happy, we've decided to wait another year before we buy. We'd prefer to save up our own downpayment first, and possibly buy in Tijuana(my wife's hometown) where housing is more reasonable. In the meantime we'll be looking into reducing our rent(we're currently over our voucher, which means we pay the difference), and looking into other opportunities to build our savings. Thanks to everyone who contributed hard numbers to help me get a better grasp on what buying will cost, and what we can afford.

It's hard not to get into the politics and ideas driving our current market when we talk about this stuff, and I tried to resist, but when something isn't right, sometimes you just have to say it.

Katy Perry says

Funny how I never hear anyone speak of living way under their means and saving for a home.

Most Americans think the other way...Get into debt of the lifetime and then use the house as a piggy bank to generate free money, sitting on the couch and using the calculator. :)

This is why welfare doesn't work as well anymore. Once the stigma is gone, then folks are looking for a way to stay on it rather avoid it or get off it quickly.

Strategic foreclosures are rising for the same reason.

Nomograph says

You seem like an articulate and educated person. As a husband and a father, your number one priority should be to keep your family *off* welfare, instead of looking for ways to get *on* government assistance.
I would never, ever, in a million years voluntarily place my family on welfare unless it was a matter of survival. It would be an embarrassment that I would not be able to live with. But that’s just me, and I was raised with a different set of morals and values that some.

These conditions exist as a part of our fiat currency, fractional reserve, debt system. The government is used as a platform for the banks who brainwash us into thinking debt and government dependency are the only way to live. Then when we're all up to our eyeballs in debt, and relying on the government for our clothing, food, and shelter they pull the rug out. Through cycles of inflation and deflation all the wealth is transferred from the general population into the hands of those who control the system. Debts become untenable, and the population is reduced to an army of slaves who's only purpose is perpetuating the system for those on top, who contribute nothing, but own everything.

Wait... This sounds a little too familiar.

Zlxr says

If poor people don’t use the system - the rich will (they do anyway) so what are you all screaming about?

I do have a problem with that - the programs are there to help people better themselves and hopefully get off welfare someday. It's hard to fake being poor - I'm thinking that this person's family gave them money and they got off S8 that way. Either that or they borrowed 'til they dropped, like so many other people.

S8 is a federal program - and the (voucher) program that Nuttboxer is on sets the market rent, figures out the renter's share of that, and then tells them how much their share is. If their share is determined to be $500 and then housing pays $1000, they can get a place for $1,200 and only pay $200 out of pocket. If they get a place that costs $2,000 S8 pays $1,000 and they pay $1,000.

The housing authority (or program administering the federal program locally) does require annual recertifications where the renter proves his/her income - but they're not allowed to ask where the difference between what they figured the renter can pay and the actual rent comes from. I've seen drug dealers, house cleaners and other under-the-table income sources that allowed the renter to pay 2-3 times over the amount of the subsidy.

The voucher program will pay 30% of the adjusted gross income toward rent with a maximum amount for the total rent - so it's not possible to move to another place and pay more out of pocket for the difference.

Both of these programs have long waiting lists in most areas (altho some small towns, or specialized programs allow for moving to the top of the list). There are other programs too, ones that are administered by non-profits, etc.

elliemae says

Tenouncetrout says

You’ll need a W2 from the same company for more than two years, with no lapse in employment

Not really, because this is a government insured program. It’s a bit different.

I'll eat my hat if he gets a house, if his story is as told.

FHA loans is a "GOVERNMENT insured program".

The woman at the Title company told me I lucky the deal went to fruition. She said only about 1 in 20 applicants that "Qualified" in the initial stages, makes it to Closing.
She suggested I never refinance, that the FHA deal going around right now is even better than the VA loans. The legal protection in the FHA loans are so stringent that it is impossible for the bank to change terms, even due to payment history. And almost just as hard to be foreclosed on. With all of these protections, for the loan recipient, they make damn sure they'll be able to pay it back. Which is why they are very selective who they actually sign the check for. Even though they initially qualify on paper.

If it weren't for the fact that FHA loans are the bulk of the houses being sold(Private funding is even tougher to get) then Realtor would totally ignore buyers seeking to buy with FHA financing.
Which was the case a few years ago, when more people were still getting loans with conventional loans.

FHA loans are HUD loans, I was sent HUD and FHA disclosures almost every day while I was waiting for the house to close.

These loans are such a pain the ass get, that it is easy for anyone not White to pull this card...

http://www.businessweek.com/ap/financialnews/D9K00VJO0.htm

Nomograph says

NuttBoxer says

The government is used as a platform for the banks who brainwash us into thinking debt and government dependency are the only way to live.

You’ve brainwashed yourself.
Normal people don’t believe that government dependency are the only way to live. If I were you, I’d forget about welfare and join the rest of us.

I'm sure you were screaming for Washington to do something along with everyone else when they talked about AIG going under. If you believe in the FDA, DHS, IRS, FBI, or any other 3 letter acronymed government agencies then you are dependent on the government. If you believe in Social Security, or medicare, guess what? Dependent on the government. Don't feel bad, most "normal" people are in the same boat. The normal you want to believe in, hardworking Americans who want to live free and be left alone(by the government), is mostly gone. Otherwise most of this mess never would've happened.

There's a difference between using the system with understanding, and being used by the system without recognition.

I'm a foreclosure counselor....you might as well make your appointment now! If you have no savings, you will not be able to sustain that mortgage payment.

I guess 'medicaid fraud' is more common for the wealthy to 'take advantage of'.

Those stories arent quite as fun as 'obese fat kat bankers using food stamps meant for the starving'.

Here is one:

http://www.nypost.com/p/news/local/millionaires_welfare_con_50topBdKL0y5HfYYlQ0jzK

Nomograph says

If you want to be a good husband and father, you job is to get your family *off* welfare.

That's quite a statement coming from a leftist. Are you saying everyone that is on welfare isn't a "good husband and father?" It's amazing how often and easily the hypocrisy of the left is exposed.

Move to Minnesota! :-D

you were looking at homes in San Diego in 2010, qualified for section 8 voucher, ie assistance to buy at the literal bottom point ever, and didn't do it???

holy shit, what a horrible decision!

your complete lack of balls really hurt you!!!!!

Wait what?

"Section-8 Home Ownership Program" - Seriously, that exists?

Why do you think he's always ranting and raving about how it's all a big scam now? He's gotta find some way to swallow the huge mistake he made.