Quote:
Originally Posted by Bay Kid
The guidelines for banks, according to a banking friend, is to make x amount of low income loans. They know they will never be paid.
In the 70's I sold several homes for an investor that bought wrecked homes from the government for 5K, spent 10K and I resold them for 25K. FMHA loans, .25 to $1.00 down payment and the loan included closing cost. Most of the homes were lived in for 6-8 months, torn to h___ and vacated, just to be resold to the investor for 5K AGAIN. I quit selling them. Such a waste. I learned if you get something for nothing you usually don't care.
|
What is predatory lending? What is predatory borrowing? Who is responsible? What is Caveat Emptor?
I think home buying should be taught in high school and include all applicable factors. The course should show all hidden costs of buying homes, closing costs, taxes, upkeep, home insurance, portion of income to spend on home that is do-able with your income. Two incomes? Explanation of all kinds of loans. Pros and cons of balloon notes, conventional mortgages, thirty year fixed rate, etc. What does appraised value mean? How can that change? What is a credit rating, what is a good credit rating, how to get a good credit rating. What is high risk, medium risk and low risk to you? How much does rent cost? How much can you afford to pay for rent or a loan payment if you make x amount? What you must do or do without if you want this kind of home?
Everyone has to have a place to live. Call the course housing 101.
If a kid has parents who have not bought a home, this would be such a help.