There are 992 foreclosure sales scheduled between September 19th and October 18th. I have been told that not much purchasing goes on at these sales. The banks seem to prefer to take the properties as they are lacking viable buyers.
The above scan (hit on it to enlarge) comes directly from the mortgage of a couple that were foreclosed on September 19th. They bought a modest home in March of 2006 for $207,000 and financed: $207,000! If you can make heads or tails of the prepayment clause and the interest clause I scanned, you are a lot smarter than the majority of people getting these subprime loans. And, with that pre-payment clause their hands were tied, they couldn't sell to get out of foreclosure. I don't think these people had a clue as to what they were signing. Doesn't really matter to them, however, they didn't put any money down and their credit was trash before the loan so nothing lost. Someone is left holding the bag and I have a feeling it is all of us.
3 comments:
I have to disagree with your take on whether these people knew what they were signing. You'd be surprised how many people voluntarily ask for these loans because it's the only way they can get into a house basically for free. Then this and some added items hit the fan, and they lose a home they never really put any money into to begin with. However, the part about all of us holding the bag is correct.
Ask someone to read those clauses and see if they can understand what the fee would be if they sold the house in 2 years.
thanks trent. good info.
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