How do the right questions go unasked?
Because at a guess, the person showing the unrealistic math doesn't give the people who should ask the questions enough time to think of them.
First of all, 'Posse?' Passé
Cordelia ,'Potential'
Natter 57 Varieties
Off-topic discussion. Wanna talk about corsets, duct tape, or physics? This is the place. Detailed discussion of any current-season TV must be whitefonted.
Atropa - Mar 20, 2008 11:52:46 am PDT #6282 of 10001
The artist formerly associated with cupcakes.
Toddson - Mar 20, 2008 11:52:59 am PDT #6283 of 10001
Friends don't let friends read "Atlas Shrugged"
I think he's cute now. And the National Zoo has a new baby kiwi ... but I haven't been able to get a link to the picture.
Tom Scola - Mar 20, 2008 11:53:19 am PDT #6284 of 10001
Remember that the frontier of the Rebellion is everywhere. And even the smallest act of insurrection pushes our lines forward.
But the math has to stop hugely short of reality, and I want to see that pitch, how they handwave over the fact that it's not sustainable.
Most of it has to do with adjustable rate mortgages. People are given a super-low initial rate (or even an interest-only loan), and either misled about what the rate will end up being when it's adjusted, or told that when their rates go up, they can just refinance the loan.
Except that when their rates did go up, and they tried to refinance, they found out that they owed more on their mortgage than their homes were worth.
The math all does work out, but only if you assume that the value of your home is only going to go up.
Jesse - Mar 20, 2008 11:54:44 am PDT #6285 of 10001
Sometimes I trip on how happy we could be.
Yay, Sophia!
And yay for me too, because I finally had an interaction today that didn't end with me wanting to stab the other person, or someone else. Good thing, too, because I'm going out for my friend's birthday, and I would hate to be all stabby.
lisah - Mar 20, 2008 11:54:55 am PDT #6286 of 10001
Punishingly Intricate
Because at a guess, the person showing the unrealistic math doesn't give the people who should ask the questions enough time to think of them.
And it's hard to know what the right questions are to ask. Even if you are relatively educated. I mean, I knew enough not to get an ARM but the whole mortgage getting process was pretty confusing and I could have easily been dicked over.
And then there are unexpected events, like losing your job or health issues.
Jesse - Mar 20, 2008 11:56:04 am PDT #6287 of 10001
Sometimes I trip on how happy we could be.
Most of it has to do with adjustable rate mortgages. People are given a super-low initial rate (or even an interest-only loan), and either misled about what the rate will end up being when it's adjusted, or told that when their rates go up, they can just refinance the loan.
Except that when their rates did go up, and they tried to refinance, they found out that they owed more on their mortgage than their homes were worth.
This has happened to a friend of mine, exactly. Although I wouldn't be surprised if she played her own part in the misleading.
Kat - Mar 20, 2008 11:57:39 am PDT #6288 of 10001
"I keep to a strict diet of ill-advised enthusiasm and heartfelt regret." Leigh Bardugo
okay, Plei, could you please explain what you mean by overlift and lift?
The dye was supposed to be a shade identical to my natural and actual color.
This morning I heard "Coming Dancing" and I forgot how much I adore that song.
tommyrot - Mar 20, 2008 11:57:55 am PDT #6289 of 10001
Sir, it's not an offence to let your cat eat your bacon. Okay? And we don't arrest cats, I'm very sorry.
I've also read of cases where large fees the buyer had to pay were not disclosed. I'm curious as to what, exactly, but that's all I know....
Amy - Mar 20, 2008 11:59:14 am PDT #6290 of 10001
Because books.
Except that when their rates did go up, and they tried to refinance, they found out that they owed more on their mortgage than their homes were worth.
The math all does work out, but only if you assume that the value of your home is only going to go up.
Okay, that's what was I missing. Thank you, Tom.
Aims - Mar 20, 2008 11:59:32 am PDT #6291 of 10001
Shit's all sorts of different now.
Basically, what Tom said.
Furthermore, sometimes people - like my boss - run into cluases that weren't caught even by his attorney involving pre-payment penalties. On two of our properties, if we refinance before a certain time period has passed, we have to pay a) 1% of the total initial loan b) 100% of the interest that would have accrued if we let the mortgage go to maturity.
The broker that got him the loans has since gone under and can't be found and we're trying to sue him and the original lender. We're also running into a problem where the original lender had another clause that went uncaught that says they can sell the loan to whomever they like and the purchaser is bound by any contract the new lender says so.
It's all crazy.