David Blank, a West USA agent in northeast Phoenix, closed a house with a subprime loan just two months ago in which the buyers had a bankruptcy and a foreclosure but still got 100 percent financing. Blank said the buyers wound up putting less than $300 into the deal after securing $8,300 in closing-cost money from the seller, some of which was used as a fee to secure an interest rate lower than the market rate.
"They got in under the wire," Blank said of the buyers. "They got 100 percent financing. . . . That's a lot harder to get now. They can afford the payment. By making the payment, it will improve their credit. They're living the American dream: home ownership."
This A-hole is doing nobody any favors. He is selling to a GUARANTEED FB with previous bankruptcy and foreclosures… am I missing something… Then he says … they are living the American Dream…. to me this is like blasphemy….
I'm speechless in my disgust with how they are spinning this. These people never deserved to own a home.. it is a privledge, not a right. Sorry, buy the American Dream, is for responsible people, who have shown good credit history, and CAN afford a decent down payment.
Sounds like the new American dream, $300 to live in a house for year.
Okay, okay, make it fun, make the first mortage payment and then stop. Then when they call tell’em you got laid off but are scrapping the money together, then drag it out 90 days, then answer their letter saying you got a new job and can start making payments again but can’t afford the back payments and need to push them out, drag out the negotiations, don’t make a payment, when they finally get to something that requires a payment, tell’em you got fired again. Then wait.
Eventually they’ll kick you out, but I’m guessing you can live there a year or more for less than $100/month. What are they going to do? Screw up your credit rating?
Also hidden in this story is one factor that’s keeping house prices up — kickbacks from the seller to the buyer. In many cases a sale will go on the books at an inflated price, but what’s not shown is that the seller gave the buyer $10K for a down payment or whatever. Some realtors love this sort of monkey business because it allows them to keep up the illusion that prices aren’t falling. What’s amazing is that the buyers are so stupid as to volunteer for increased transaction costs and property taxes. As someone smarter than me once said, “No one ever went broke underestimating the intelligence of the average American.”
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