Foreclosures and second mortgages

[DEDixon 39]

Imagine all the free cars and SUVs and boats and jetskis and vacations and furniture people hauled away from their foreclosed home.... all that stuff paid for from the line of credit (heloc) or the second mortgage.

They got it all for free!

[Ban Hammer 13,346]

not necessarily.

[Dr. Obvious 49]

They got to lose their house for it. I doubt they paid for all their toys in cash, rather just used the HELOC for down payments on them. The repo man probably isn't far behind.

[Jasman0717 9]

Its what you get when you let gansters run things. It kind of reminds me of some episodes from the Sopranos

[dalegg 143]

Its what you get when you let gansters run things. It kind of reminds me of some episodes from the Sopranos

I think its what you get when you let morons run things. Until a couple weeks ago I was puzzled at how Bank CEOs could allow so many loans to go through at one time without someone saying "gee, maybe we should see why so many people can suddenly qualify for expensive homes?"

This was NOT all Freddie and Fannie stuff either. Loan officers were disguising the true nature of these loans. They were not all just going along with gov't directives. They were pushing them. I know because I was almost a victim of it.

But a couple weeks ago when the CEOs took bailout money and used it to pay billions of dollars in bonuses..that's when I realized. These people are just idiots. That information is public and they know it. How could any sane person think that the public would be okay with that? It lacks common sense. The same type of common sense that a sensable person would have when suddenly your company is issuing a record number of high dollar loans.

is my opinion.

[Sylvia_n_Joseph 3]

If they used a second to pay for the toys the toys are paid in full. So no one will take the toys away. Tells you a lot about a person that would rather have a SUV than a house

[DEDixon 39]

I think its what you get when you let morons run things. Until a couple weeks ago I was puzzled at how Bank CEOs could allow so many loans to go through at one time without someone saying "gee, maybe we should see why so many people can suddenly qualify for expensive homes?"

I'm just amazed when they speak of themselves as professionals and insinuate that they are the smart ones. From Alan Greenspan on down, they don't look so smart to me.

I just finished watching the Enron documentary from a few night ago and what amazed me most was the responses they give to questions from the likes of congress. One thing about CEO, when things are going well, it is all because of them, them and their mastermind, when things go poorly, it was something they had no idea was happening like they were at home sleeping the entire time.

[Hilarious Clinton 452]

They got to lose their house for it. I doubt they paid for all their toys in cash, rather just used the HELOC for down payments on them. The repo man probably isn't far behind.

With ZERO down on a house you can't afford..... what's the loss?

[DEDixon 39]

If they used a second to pay for the toys the toys are paid in full. So no one will take the toys away. Tells you a lot about a person that would rather have a SUV than a house

Right, they could have paid in full with a second or a HELOC (line of credit). Actually, there is no better way to pay for the toys since the interest on the toys became an interest right off, because it is tied to the home. And not to mention that second mortgages and HELOCs have far lower interest than credit cards and personal loans.

When I see an SUV, I often wonder HELOC, foreclosure, free?

40,000 grand for a vehicle is nothing when they were handing out 125,000 HELOCs here in California.

Some people didn't even know they could get the HELOC or second, it was a slick loan officer that wanted to make a commission from the sold loan that gave people the idea. This is especially true for people who can't read English - loan officers could put anything in front of them and they would sign it. I knew some Spanish speakers who were loan officers and who also knew English doing this to those that didn't know English.

Edited February 21, 2009 by DEDixon