Stated Loans are gone?
January 19, 2009 4:57pm CST
What the crap! All these people that went in and knew they couldnt pay for their mortgages just screwed everyone else and it just pisses me off. Has anyone else looked for a stated loan and can't find one? Did you find one? Where?
• United States
20 Jan 09
This whole problem started when people signed a loana that they were told they "qualified" for, but didn't bother to look to see if they could "afford" the payment. Stated income loans are a huge contributor to our current situation, along with ARM's. They were qualified on false incomes or not qualified on the maximum loan amount they'd have to pay. I used to be a mortgage loan processor and hated to do the stated income or "NINA", no income, no assets kinds of loans...the lender got a higher interest rate, but in the end, cost themselves as well as the rest of the country big time. I am now looking to buy a home for the first time...and I qualify for nearly half a million dollar loan amount, but I can only afford the payment on that loan amount? Heck no! Can I find a home in my price range of about 1/3 that? Heck no. THe foreclosures are not out there. In my area, the only ones in foreclosure were those that had overly high property values and were bought on ARM loans and after the first 3 years, the owner can't afford the increase in payment so they forclosue. The property value has dropped so much that it can't even be sold so the bank gets it and they sit on it preferring to loose money for the next few years on the hope that the industry might pick up again and they can recoop their loss instead of pricing it a a market value and getting rid of it and writting off the loss and moving on with their profits. In this recession time... I read foreclosures were UP 81% last year... I "qualify for so much, my FICO is among the highest and yet I can't afford a home... how pathetic is that! The stated income loans are probably never to be seen again, so if you are looking for that, better try something else.
• United States
20 Jan 09
I have not tried, but I have heard that loans are going to get harder and harder to get even for people with good credit. You are right to be upset, I am upset as well. Many of us did things right, we bought homes we could actually afford, we made all our payments, we saved and invested our money and now we are the ones who are getting the shaft. It simply is not fair.