Something I just learned. Banks sending out 1099s on all these foreclosures.

[Blaine Wiley]

Originally Posted by relliott

People to stupid to own is not fair as many people are still hard working blue collar types that know nothing of finance and are simply stuck when those thy pay to trust , instead take advantage of them.
Everyone out there whom works 8 hours a day should have a right to the American dream and not just those lucky enough to have a lawyer or Mortgage consultant in the family.

Me thinks that everyone out there does have the right, but not everyone out there has the ability.

[relliott]

Blain ..you are perfectly right as the problems are compounded by more than one concern.

[dmcauley]

Did big business go overboard on approving loans to people who shouldn't have qualified for a loan in the first place? YES. Did consumers go overboard on thinking they could afford a home when if fact they may have known they couldn't afford it? YES. Did both think that if things turned sour they would be able to get the government to save their butts? Probably!

The moral of this is that common sense was not put in to common practice! Had everyone acted and abide by the common sense guidelines, then we may not be having this problem now. It was another example of business and consumers getting greedy with someone else's money. Evey one wanted in on the gold rush, now we take a breath and wonder how the heck did this happen? It happened because people and business wanted to make a quick buck. (Hence the dramatic increase in the number of home inspectors, Realtors, mortgage lenders etc) Some people name it capitalism, and rightly so, while others think where is the common sense?

Just my 4 cents.

[bdoles2]

Originally Posted by gromicko

The real problem is that young people are getting bad advice from their parents and schools. Young people are told to study, get good formal education, get a good steady job and buy a house that they can't afford. Wrong.

Around these parts it's not the kids that are defaulting. It's the ego hungry grown men and women 40+ years old. It's greed, it's the keeping up with the "Jones" mentality.

It's not the getting bad advice, it's the following in their footsteps. If mom and dad can do it, then surely I can it do (is how they think).

Times are a changin' !

[bdoles2]

Originally Posted by gromicko

I tell my own sons:

"If someone offers you a steady job or drugs, just say no. However, if you have to take one or the other... get hooked on drugs. It will do your life less harm than getting hooked on the fake security of a steady job which is nothing more than economic slavery at best."

Hmmm, drugs could ultimately kill you. It's not very often I see a person with a steady job kick the bucket.

[John McKenna]

And yet another ingredient....
The risky low budget loans, that contain some really hard terms with it,
was also over abused by greedy investors to flip property without
using any of their own money (...as little as possible). Huge volumes
of risky investors fled the stock market dot.com crash and played
the game of real estate while it lasted. Many got caught up side down
as the market contracts from it's artificially induced inflation. A lot of little
people will get carried away as the tide goes back out... and the
banks go after their booty.

The boom and bust cycle is a well oiled machine, to those who pull
the levers. Smart people do not play another mans game.

[pcarter-old-04]

This problem with banks are not new when it comes to loaning money to individuals. This has happened in the late sixties and early seventies to farmers in the midwest, and a lot of them went under because of it. I can remember my Grandfather and my Father were telling our neighbors back then not to take the loans the banks were offering. Productive acre's was worth about $ 700.00 an acre and the banks were lending money to the farmers at $1,200.00 an acre..... my wife's father was approached by the banks for the same type of deal in Missouri. (Wife and I met later in life), a lot of farmers lost a lot (remember farm aid promoted by Willie Nelson)............ Now we are seeing it again, different arena, but basically the same.

[Jeffrey R. Pope]

I could be wrong, but it's my understanding that banks submit a 1099 only on a "Short Sale," not on a foreclosure. This is where the owner and bank settle on a sale amount, less than what is owed, rather than foreclose on the property.

A "debt relief" is recorded on the owners credit, which is less detrimental than a foreclosure.

My wife is currently negotiating with banks, on "short sales," for several properties. This trend is more favorable to owners who are trying to avoid the foreclosure process.

[Michael Larson]

Originally Posted by jpope

I could be wrong, but it's my understanding that banks submit a 1099 only on a "Short Sale," not on a foreclosure. This is where the owner and bank settle on a sale amount, less than what is owed, rather than foreclose on the property.

A "debt relief" is recorded on the owners credit, which is less detrimental than a foreclosure.

My wife is currently negotiating with banks, on "short sales," for several properties. This trend is more favorable to owners who are trying to avoid the foreclosure process.

That's my understanding as well Jeff.

[Christopher Currins]

Originally Posted by mlarson

Keep in mind that is was the politicians who pressured banks to lend to people that were poor credit risks.
And no those same pols are looking for someone else to blame.

Only in America......do we use the word 'politics' to describe the
process so well: 'Poli' in Latin meaning 'many' and 'tics'
meaning 'bloodsucking creatures'.

[Russell Spriggs]

Speaking of short sales, a number I've inspected have been just that in the last couple weeks.
Last one was a million that went for 730k.
Always a market for us to inspect, just gotta be there to answer the phone!