Comments on: People Still Asking for Nothing Down Loans: This Free Bus is Coming to a Stop. http://www.doctorhousingbubble.com/people-still-asking-for-nothing-down-loans-this-free-bus-is-coming-to-a-stop/ How I Learned to Love Southern California and Forget the Housing Bubble Thu, 09 Feb 2012 03:22:22 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: dimwit http://www.doctorhousingbubble.com/people-still-asking-for-nothing-down-loans-this-free-bus-is-coming-to-a-stop/#comment-40365 dimwit Fri, 25 Sep 2009 21:11:15 +0000 http://www.doctorhousingbubble.com/people-still-asking-for-nothing-down-loans-this-free-bus-is-coming-to-a-stop/#comment-40365 was going to contribute something of value, but my real estate agent friend called to get me to help him and his wife look for returnable cans along a rural ditch he has claimed as his territory. offered to loan him some dough for his tent rent, but hes too proud. was going to contribute something of value, but my real estate agent friend called to get me to help him and his wife look for returnable cans along a rural ditch he has claimed as his territory. offered to loan him some dough for his tent rent, but hes too proud.

]]> By: Chuck Allen http://www.doctorhousingbubble.com/people-still-asking-for-nothing-down-loans-this-free-bus-is-coming-to-a-stop/#comment-9085 Chuck Allen Tue, 04 Mar 2008 12:22:40 +0000 http://www.doctorhousingbubble.com/people-still-asking-for-nothing-down-loans-this-free-bus-is-coming-to-a-stop/#comment-9085 Nothing down loans are a bad deal for the lender. If everything goes OK in the market and the house appreciates then the buyer sells the house and makes a profit. If something goes wrong then the buyer walks and the house goes back to the bank and the bank loses money. Example: Buyer buys a house for $150,000 in a hot market and 2 years later his job is transferred and he has to move. The market has turned into a cold market and the house is now only worth $145,000 and the carpet needs to be replaced in the property. Lender has to replace carpet or sell the house at a $10,000 discount and pay Realtor fees & closing costs. The bank would net about $126,000 once the house finally sold. If I were a lender then I would want the borrower to have something to lose. Nothing down loans are a bad deal for the lender. If everything goes OK in the market and the house appreciates then the buyer sells the house and makes a profit. If something goes wrong then the buyer walks and the house goes back to the bank and the bank loses money.

Example: Buyer buys a house for $150,000 in a hot market and 2 years later
his job is transferred and he has to move. The market has turned into a cold market and the house is now only worth $145,000 and the carpet needs to be replaced in the property. Lender has to replace carpet or sell the house at a $10,000 discount and pay Realtor fees & closing costs.
The bank would net about $126,000 once the house finally sold.

If I were a lender then I would want the borrower to have something to lose.

]]> By: exit http://www.doctorhousingbubble.com/people-still-asking-for-nothing-down-loans-this-free-bus-is-coming-to-a-stop/#comment-2516 exit Wed, 24 Oct 2007 18:56:08 +0000 http://www.doctorhousingbubble.com/people-still-asking-for-nothing-down-loans-this-free-bus-is-coming-to-a-stop/#comment-2516 http://online.wsj.com/public/article/SB119318489086669202.html Note that this is main stream media - the Wall Street Journal has never been known for being a wild-eyed anti-business rag. Of particular humor - Mozilo "shocked" that most borrowers made only the minimum payment. Like in Casablanca. Shocked. http://online.wsj.com/public/article/SB119318489086669202.html

Note that this is main stream media – the Wall Street Journal has never been known for being a wild-eyed anti-business rag. Of particular humor – Mozilo “shocked” that most borrowers made only the minimum payment. Like in Casablanca. Shocked.

]]> By: Zero Interest http://www.doctorhousingbubble.com/people-still-asking-for-nothing-down-loans-this-free-bus-is-coming-to-a-stop/#comment-2507 Zero Interest Wed, 24 Oct 2007 05:08:59 +0000 http://www.doctorhousingbubble.com/people-still-asking-for-nothing-down-loans-this-free-bus-is-coming-to-a-stop/#comment-2507 That's not good enough. I want a zero interest and 50 years term loan. I should I pay anything at all. Heck, the government should just give me a million dollar house. That’s not good enough. I want a zero interest and 50 years term loan. I should I pay anything at all. Heck, the government should just give me a million dollar house.

]]> By: North Carolina Mortgage http://www.doctorhousingbubble.com/people-still-asking-for-nothing-down-loans-this-free-bus-is-coming-to-a-stop/#comment-2492 North Carolina Mortgage Tue, 23 Oct 2007 16:08:25 +0000 http://www.doctorhousingbubble.com/people-still-asking-for-nothing-down-loans-this-free-bus-is-coming-to-a-stop/#comment-2492 they still have zero down financing with MyCommunity and HomePossible. You just need a 620 middle credit score to avoid High PMI. Fannie Mae & Freddie Mac are doing really good in these products! they still have zero down financing with MyCommunity and HomePossible. You just need a 620 middle credit score to avoid High PMI. Fannie Mae & Freddie Mac are doing really good in these products!

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