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 Tue, 06 Jan 2009 20:17:17 +0000 http://wordpress.org/?v=2.2.2 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!

]]> By: Billy http://www.doctorhousingbubble.com/people-still-asking-for-nothing-down-loans-this-free-bus-is-coming-to-a-stop/#comment-2491 Billy Tue, 23 Oct 2007 16:04:02 +0000 http://www.doctorhousingbubble.com/people-still-asking-for-nothing-down-loans-this-free-bus-is-coming-to-a-stop/#comment-2491 what do u all think of this? http://www.seekingalpha.com/article/50949-proposal-to-correct-resource-misallocation-in-the-housing-lending-sector what do u all think of this?

http://www.seekingalpha.com/article/50949-proposal-to-correct-resource-misallocation-in-the-housing-lending-sector

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