patrick.net

Sounds like they're doing NINJA loans all over again LOL.

"Pate-Yow said she will qualify for a zero-down payment mortgage once she clears up a $505 unpaid phone bill, even though she’s unemployed and disabled from being stricken by cancer. Her husband, Joshua Yow, 21, reported income only from his work as her at-home caregiver, she said.

“We told them how much we made and all that stuff and that was good enough for them,” she said. “No closing costs. No down payment. They like to close quick.”

Real? More like real scammish.

The pattern seems similar, but did you check out the prices?

These aren't $600,000 houses with jumbo loans.

The payments are in the $750-$1100 a month range -- the price of a suburban apartment...with total costs towards $170,000. Even if they default, it's no different than moving from an apartment...you wouldn't have lost hundreds of thousands in capital and be obligated for $3000 a month payments.

If there are are no hidden costs (like $600 a month HOA fees) then it seems like the right way to do it.

tts says

Sounds like they're doing NINJA loans all over again LOL.

They have to keep the borrowing binge on to support the prices. :)

bubblesitter says

They have to keep the borrowing binge on to support the prices

Normally I would be suspicious...but again...check the purchase price, and the payments.

It seems very fair to me.

For example:

Austin, TX

Pricepoint:$849/mo.
Bedrooms:3
Baths:2
Stories:1
Garage:2 carFLOORPLAN

http://www.lgihomes.com/floorplan.cfm?id=4428C780-3048-78A5-1503E9AD735ADE1D

Seriously, I'm not advertising this...I'm just amazed.

Look at the size of these homes!

John Bailo says

Normally I would be suspicious...but again...check the purchase price, and the payments.

Investors are not going to buy from builders. Hence the exotic loan products are necessary.

John Bailo says

but did you check out the prices?

Doesn't matter.

NINJA stands for No Income No Job/Assets for a reason.

Even a $30K house is unaffordable for someone in that position much less $120K-ish homes.

John Bailo says

bubblesitter says

They have to keep the borrowing binge on to support the prices

Normally I would be suspicious...but again...check the purchase price, and the payments.

It seems very fair to me.

For example:

Austin, TX

Pricepoint:$849/mo.

Bedrooms:3

Baths:2

Stories:1

Garage:2 carFLOORPLAN

http://www.lgihomes.com/floorplan.cfm?id=4428C780-3048-78A5-1503E9AD735ADE1D

Seriously, I'm not advertising this...I'm just amazed.

Look at the size of these homes!

It's at least 160- 175k. It's idiotic to just list the mortgage when the whole world thinks about the price.. Like most Texas homes, you get creamed in the property tax, especially for new areas, and the maintenance required of a larger home drenched in sun and a hoa for the pool, playground and landscaping. The permanent cost is simply huge for land that is worth nothing. It s pretty obvious this thing is far far far away from Austin right smack in nowhere land. Its subprime like a mofo and a huge sticker price for Texas at that.

It's marketing to the dumb. These are places that are first to fall and last to rise.