Does anyone agree that banks and mortgage companies have provided loans for people the wrong way?

Deal Score0

My suggestions on the loans are that they should not rely so much on a credit report.
Many people pay their rent or house payment before any other bill. The problem was these people were getting all their closing cost paid and no down payment fees. Now it would be hard for me to qualify these people. I would rather they had at least 5,000 to pay down. At least this shows people who can save or handle money. Loans to me are all messed up.

What would your suggestions be????
Who wants to lose 5,000 of their own hard earned money??

The mortgage is about 5 years old on a house I part own in Colorado. I’ve been trying to get off the title and mortgage but my ex-fiance seems to blow me off each time. I don’t care about the money I just want out he can have the house. I’ve told him several times but I guess he does not qualify for an assumption. Now what? I’ve told him over and over again I don’t want to take this to court….but it may be my only option. My credit is getting hit hard because he pays the mortgage late, a lot. I can’t afford the house after a career change. He’s been paying by himself for years. I told him I want to sell it or just get me off the mortgage. Quick Claim will get me off the Title but not off the mortgage! The mortgage is what is affecting me credit score. It’s a fairly new ranch style home in golf course community big corner lot….it will sell if he’d let it. Please help no one seems to have any answers! I’ve more then paid for my mistake of going in on a house and being naive!
Thank you for everyones suggestions. I’m very stressed about this. I’m the co he is the primary. Also he has been late paying the mortgage twice (in a row recently)by 30 days. I found out by my credit report… he never informed me he was having problems coming up with the mortgage. I would have paid if I would have known to keep my credit at good standing. Also it’s a 30 year.

17 Comments
  1. Reply
    mister ed
    January 29, 2011 at 2:22 am

    i think all credit should be put on hold — let everyone pay cash for one year!!!

  2. Reply
    phoenixstarshine
    January 29, 2011 at 2:39 am

    Borrowing usually makes good business sense..but not if you cannot afford to pay the loan back…personally I do not use a credit card too often.

  3. Reply
    RaginCajun
    January 29, 2011 at 3:01 am

    Back about 10 years ago it was the norm that you had to put 20% of your own funds as a down payment to buy a home. This gave you a vested interest in paying the mortgage. Like many other things, competition and customer demands led to 100% financing, overequity refinances, no money down purchases, stated income (the lie loan) loans, No income verification loans..all up to 100%. Heck, even 100% programs for investment property.

    The industry goes through cycles where guidelines become lax and easier and then the roof falls in. In 14 years, this is the third downturn in the industry I’ve been through..by far it’s the worst. Expect several years before this rebounds and then look for very tight guidelines with little to distinguish the competing lenders. Then new company’s will pop up to replace the ones that went under during this period and you’ll see the guidelines gradually loosen up again. I don’t ever expect to see them get as loose as they were before the crash but looser nonetheless. And look at foreclosure rates now…people do not pay their house first anymore. Why pay the money on a house that may no longer be worth what you owe when you can let it go and go rent while saving hundreds every month? Not my point of view but it’s what is happening. There are three things a lender looks at when determining whether to approve a loan: Stability, ability and willingness. Stability is how long you’ve been in your current home (renting or owning) and on your job. If you move alot, it could be an indicator of not paying any being thrown out..or running from rent. Ability is how much you earn, compared to how much you owe. This is commonly referred to as your DTI (debt to income ratio). The allowable range is typically 28% to 50%. Willingness is what your credit bureau shows, how do you manage your bills. If you can’t pay a $ 20 per month credit card with a $ 1000 high credit, why would someone believe you would pay a $ 1200 monthly note for over $ 100k?

    It’s an imperfect science but it’s what has developed over the years. All in all it probably does misrepresent a small percentage (like my in laws getting turned down by Sears for a washer and dryer because they haven’t had to borrower money in over 20 years so their credit showed no recent activity..hence no willingness. It’s still probably right more often than not and better than the old days when you got approved if your banker was your neighbor but turned down if he didn’t know you personally. As a former underwriter, there were MANY loans I got sick over approving..yet as an employee you can only do what your employer asks. If they want to allow outrageous programs then you have to approve them or it becomes discriminatory. So, lots of loans were made that shouldn’t have been and now we reap what we sow.

  4. Reply
    Time travler
    January 29, 2011 at 3:19 am

    When I bought my first home, I had to have 20% of the value of the home down, have had a job for more then 2 years, and my job pay had to be about 1/2 the price of the house of what I made in 1 year. My sister-in-law bought a home a couple of years ago with no down payment, she had filed bankruptcy 10 years ago, her income is only SSI and yet she was able to buy a home. She could very easily loose the home if 1 little thing goes wrong in her life. It really ticks me off to hear stories like this. I know it is the American dream, but you must work for it, save your money, and then when you do buy, you should only buy a home that you can truly afford. This whole downturn of the economy is due to 2 facts, stupid people, and greedy lenders.

  5. Reply
    goingmad/swancrazydot
    January 29, 2011 at 3:48 am

    I am one of those who never made it on to the bottom step of the mortgage ladder, and sadly it looks as if many youngsters today are going to miss out. The banks and other companies are in it for the money and sadly living on credit hasn’t just been for the well heeled but for many the only way to survive. One thing is for sure the poorer people will be the first to suffer, because no money no clout. I feel sorry for those who are going to join the down at heel through no fault of their own but one thing it will serve to illustrate that is that not all the poor are the deadbeat lazy b’s they are made out to be some of us had health problems, were abandoned or widowed, and so on across the board, and my main worry is that as people are losing funds, as house prices plummet so greedy gut landlords are hiking the rents – they don’t care about evicting those who can’t pay the high increases for there are going to be many people waiting for accom; esp after floods and storms as well on top of it.

  6. Reply
    Tigger
    January 29, 2011 at 4:36 am

    Yes, they have. The Government should not bail them out. The Shareholders should have to eat the losses, not; We, The Taxpayers.

  7. Reply
    CwboyBill
    January 29, 2011 at 4:57 am

    You can thank the Clinton administration for this fiasco. He/they pushed Fannie and Freddie into a corner by demanding they approve ultra-high risk loans to anyone that wanted one, even if they were too poor or too sorry to pay for it. When the housing market exploded in 2004 they went even further out on a limb by pouring money into property speculation. Many, many executives made billions until the property value melt-down of 2007 finally got the cost of houses back under control — by then it was too late. There were hundreds of billions of dollars loaned on properties that were going DOWN in value and the end was now in sight… crash landing, bust, whatever you want to call it, but this time it is affecting our entire economy. Which is the reason the government HAD to bail-out Freddie and Fannie, even though it makes any conserative cringe at the thought. Maybe there will be something good learned from all of this and a more sensible loan standard will be put into place in the future — providing we all aren’t living in cardboard boxes by the end of the year…..

  8. Reply
    jon g
    January 29, 2011 at 5:08 am

    DOES YOUR EX WANT TO REFIN?IF HE DOES HAVE HIM EMAIL ME I DO MORTGAGE FOR PEOPLE WITH BAD CREDIT JOHNG@OLDMERCHANTS.COM

  9. Reply
    sunshine_today
    January 29, 2011 at 5:09 am

    I think you need to talk to a real estate professional. This situation is a little out of the realm of yahoo answers. good luck!

  10. Reply
    Jonathan
    January 29, 2011 at 5:57 am

    Confer with the mortgage broker that sold you the house and mortgage aggreement.
    First – sign “quit claim papers” on the property – since you don’t care about owning any part of it.
    Carry this with you when you confer with real estate brokers about how to remove your name from the mortgage.(this shows that you really have “no interest in the property.”
    Find somebody to love and be loved – you need an intelligent man to lean on.
    conferring with a lawyer is not a bad idea – it is just expensive and “somewhat” certain.
    * sweet talk to him, to encourage him to refinance – he can refinance on his own and even lower his payments.

  11. Reply
    moeman63
    January 29, 2011 at 6:39 am

    Let this be a lesson to others who want to purchase real-estate with someone other than a spouse….. don’t do it. When there is no “divorce” involved, each party is individually responsible for the entire debt. Bad choice….. But good luck!

  12. Reply
    Ms Real Estate
    January 29, 2011 at 7:21 am

    TO MOEMAN63: I’m sure your comment was the last thing she wanted to hear….she asked for advice, not your self-righteous soap box comment, as if you haven’t dogged a woman at some point in your life.

    Anyway girl, if you don’t want to buy him out, try to get him to refi so that he can buy you out. I would try to buy him out (he’s probably dollar driven) and put the property on the market.

    Good Luck!

  13. Reply
    Real Estate Guy
    January 29, 2011 at 7:37 am

    Find a GOOD Real Estate Attorney. You may find that you could become the aggressor and sell the property right out from under him. You may also find, depending on the circumstances, that he may be held liable for damaging your credit. Although it’s hard to say not knowing all the details, one thing is for sure, you don’t have to sit back and take it and a good attorney should be able to offer some options. Get tough!!! Let him start begging you to back off!!!

  14. Reply
    longhunter17692002
    January 29, 2011 at 7:44 am

    you are in a pickle id talk to a lawyer

  15. Reply
    Skip
    January 29, 2011 at 8:38 am

    There is no legal way you can get out of the contract you have signed with the mortgage company along with your ex-fiance. The mortgage company expects you to honor your contract. Also you mentioned that he misses payments so the chance of you getting off the mortgage is not all that great as the mortgage company has another person to go after in the event your ex don’t make the payment.

    I don’t think I would sign a quit claim deed unless there is a solution to the mortgage. You will still have that to hold over his head.

    There are companies that purchase part ownerships in properties, you might threaten him with that and get some money in the process. Even if you don’t do it it might make him think and refinance. After five years there is equity build up.

    I am not sure a court will get involved in breaking a legal contract you have made.

    You might check and confer with a attorney about the late payments and the affect they are having on your credit. There might be a way to have him to force a sale of the property.

    I hope this has been of some use to you, good luck.

    “FIGHT ON”

  16. Reply
    jafnarf
    January 29, 2011 at 9:21 am

    How is the property vested,You and your ex as joint tenants ??? Who was the actual primary-borrower and co-borrower on the loan ??? (need more details) Why don’t you try to sell the property out from under him. If you where the primary borrower on the loan or your property is vested equally between you two it is more than likely that you could try to sell the property. The catch is that he would have to sign off on the deal or quit claim it over to you. But the FOR SALE sign in his front yard would definitely get his attention…

  17. Reply
    wondering in michigan
    January 29, 2011 at 10:06 am

    DO NOT sign the quit claim deed until AFTER you are off the mortgage! You need a lawyer though. Good luck to you!

    Leave a reply

    Register New Account
    Reset Password