Houses still used as ATM

[bearishgurl]

SDowner, be happy you qualified for conventional financing. Borrowers using $0 down VA financing are already upside down upon COE. This is due to the humungous “funding fee” of 2.15% that is wrapped into the VA purchase-money or refinance loan. Due to this (and the slow payoff in the first years of their 102.15% LTV mortgage), they still owe 100% of their mortgage ~3 years later when it is time for a change of duty station. A lot of these borrowers let their VA-funded property go into foreclosure when they change duty stations or retire in a different locale because they can’t get enough proceeds from a sale to pay all their closing costs and retire their mortgage and the spouse is unwilling or unable to stay behind to attempt to ready the property for sale and put it on the market while the sponsor/member reports to his/her new duty station. After these borrowers default and then transfer to a new locale, they just live in military housing (if available) until such time as they have another change of station or they are able to buy again. If they can’t get their VA loan entitlement returned to them (due to foreclosure and the VA paying off the 25% “guarantee” to the lender) then they will have to try to later qualify for financing which requires a downpayment.

Most military families (and even retirees) especially from the enlisted ranks, live check to check all of their lives. If the sponsor dies before his/her spouse and has elected to have a survivor benefit premium taken from his/her pay at the time of retirement, his/her spouse will receive a benefit of 55% of his retirement pay (which could be substantial, esp in combination with SS benefits).

This group really doesn’t care if they have to live check to check the rest of their lives or their credit is (temporarily) shot because the vast majority of them will have some kind of a check coming in (plus SS, when they become eligible) until they die. In addition, if they are retirees, they (and their spouses) are eligible for Tricare and Tricare for Life plus have commissary and exchange privileges for life and a myriad of other recreational, travel and social services available to them at low or no cost through their local base.

Essentially, just think of most of these recent VA buyers as “glorified renters” who will likely never build up any equity before they find themselves having to sell due to a life circumstance. They live in a transient culture where “big brother” has always taken care of their daily needs.

These poor schmucks (your neighbors?) aren’t really “better off” than you. When push comes to shove and you are all applying for SS, I predict your net worth will be 10X theirs. It is also quite possible that some or all of them will have no net worth at all by then and that is okay. They’ll just live off their pensions in a double or even single-wide mobile home in flyover America and the house they once “owned” for a minute and a half in your neighborhood will be but a fleeting memory 😀

[spdrun]

Plus being government property can’t be fun — remember Agent Orange and Gulf War Disease? Who knows what will come out 10 years after Iraq II and Afghanistan?

BTW – if the soldiers buy at a good price, can’t they rent it out after changing duty station? Or wait till separation from the service before buying a home, as my friend who’s an ex-Marine did.

[CA renter]

[quote=HLS][quote=ltsdd]

Would you think it would be possible if it’s “the last 7 or 8 or 9 years” instead of “the last 6 years”? Would you care to share why you think such a scenario is not possible?[/quote]

Because I deal with loans, lenders, guidelines, regulations & underwriters on a daily basis and don’t just make up scenarios based on what I think I know.

It makes for creative writing and the possibility of developing a movie ‘based on a true story’ though….

Nobody was getting a new loan for a few years after a bankruptcy, foreclosure or short sale.
Certain programs have loosened up a bit if hardship in the past can be well documented.
Credit scores were affected and are a factor in getting a new loan.

Although not impossible, there were some creative things happening on both sides of the fence…
BUT to assume that this was widespread because of stories in the media and internet is silly.

Based on the OP, it was not implied that ‘these people’ ever had any cash as you suggest, but all done with borrowed money.[/quote]

How about this, HLS?

So how long? I have made a helpful list to give you an idea of when the bankruptcy will stop being important for the purpose of getting a mortgage loan.

CHAPTER 7:
Conventional mortgage – 4 years from the discharge or dismissal date.
FHA mortgage – 2 years from the discharge or dismissal date.
VA loan – 2 years from the discharge or dismissal date.

CHAPTER 13:
Conventional – 2 years from the discharge date, or 4 years from the dismissal date.
FHA mortgage – You must have made at least 13 of the Chapter 13 payments on time. This should take 13 months.
VA – You must have made at least 13 of the Chapter 13 payments on time. This should take 13 months.

FORECLOSURE – you can begin to qualify for a mortgage 2 to 3 years after the foreclosure. These years can pass at the same time as the years from the bankruptcy, so you have an incentive to do both at the same time, especially if your house is underwater.

http://www.bankruptcytruth.com/minnesota-bankruptcy-information/how-long-after-bankruptcy-can-i-qualify-mortgage-buy-house

[scaredyclassic]

VA and FHA loans were not strong offers for distressed properties a few years back is my understanding. never wouldve gottena good deal with VA fianncing

[CA renter]

[quote=scaredyclassic][quote=FlyerInHi][quote=scaredyclassic]
i also wonder that more men don’t feel this way about affairs and not staying with their wives. when i see another woman, all i see is a giant headache. more desires, more problems, expenses, this that the other thing. good lord. it makes the head hurt.

i don’t think my testosterone is low. but i am low on desire.[/quote]

I feel exactly this way.

I’m all setup in terms of material needs and housing. 700sf condo as a main residence and an 1800sf second home.

If I get married to an older woman whose biological clock it ticking, she’ll probably want a house in the suburbs somewhere with a luxury SUV. A younger woman would want shopping sprees for handbags, shoes, etc…

Yes, it makes the head hurt![/quote]

perhaps you are Harold looking for his Maude.[/quote]

I’ve never seen the movie, but because of your post, looked it up. Looks seriously good. Going to see if my DH will watch it with me (or I will watch it alone). Thanks for more inspiration, scaredy.

And, yes, Brian needs to give up on his unrealistic and conflicting desires and just marry a terrific older woman who is done with the whole family and kids thing. Great suggestion!

[scaredyclassic]

Harold and maude was a big formative movie for me. I assumed everyone in the USA had seen it because I did.

[UCGal]

[quote=scaredyclassic]Harold and maude was a big formative movie for me. I assumed everyone in the USA had seen it because I did.[/quote]
It had big impact on me to.
If only for how he turns a jag sportscar into a mini-hearse. Awesome!!!!
He was goth before goth was cool.

[scaredyclassic]

I still can’t listen to cat Stevens at night after 3 drinks and not cry tears of joy.

[Author]

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