I am paying my neighbor''s mortgage and he didnt say thanks

[Hudson_Hawk]

One problem is if they bought a house and were foreclosed on, their credit probably took a huge hit. Many places wont rent to people with questionable credit.

 

[Dancing Fire]

Date: 2/20/2009 1:02:54 PM
Author: stone_seeker
I appreciate all the discourse on this topic. Some very valid points. I guess I don''t understand where these troubled homeowners were before they got into trouble. Were they renters? If so, why cant they rent again? Is renting considered un-American? Did they sell a smaller home? If so, they probably got a good deal on it and should perhaps downsize. People all over the world are making do with less so why do we need to subsidize that extra bedroom or swimming pool? Or, in the most egregious case, did they take out a ton of money in a refi and spend it on discretionary items? (BMW, 50'' plasma, trip to France). The government is going to lose a lot of equity with the American public if they just try to keep these folks in the status quo. I mean why bailout homeowners who lost money? I lost money in the stock market through no fault of my own, where''s my check? Why do we favor homeowners over non-owners?

I am not just whining about the unfairness - I really believe the unfairness is actually going to cause greater issues in the near term and for future generations with its unintended consequences.

Obama campaigned about how low wage workers have been shut out of home ownership and yet he is enacting a plan that will keep prices high! I dont see the value in that. There are a lot of people who can buy a home at lower prices and once they do, they will spend money fixing it up, on washing machines, etc. Which will ultimately help everyone. If we keep piling on debt to keep the irresponsible in the status quo, eventually the house of cards falls. So I say rip off the band aid rather than slowly peel it off.

People should be allowed to go bankrupt and businesses should be allowed to fail. The govt should focus on facilitating that process rather than trying to prevent it. There is no value in heaven without the threat of going to hell.

yes they did.
yeah,i''m still waiting for that check.

 

[stone_seeker]

Date: 2/20/2009 1:04:38 PM
Author: Hudson_Hawk
One problem is if they bought a house and were foreclosed on, their credit probably took a huge hit. Many places wont rent to people with questionable credit.

Its funny - i was just going to edit my post and say I would rather the govt offer credit rating amnesty to those people than to spend trillions keeping them in their current situation. These people''s credit is probably screwed as it is. I rather the govt help on that front which costs taxpayers a lot less.

The only other side to this coin is that the banks who lent this money out take a huge hit - well, that has already happened with Citibank trading at $1.66 per share. The banks are at 1990 lows again. Yet housing is still at 2005 prices.

 

[Hudson_Hawk]

I don''t see that ever happening. I forsee the govt forcing landlords to relax their credit requirements before they''ll forgive people''s bad credit.

 

[packrat]

It''s certainly not nice for Realtors to insist on taking potential home buyers to homes out of their price range, and it''s not nice (ha, nice, I sound like a kid on a playground-that''s not nice!) for banks to offer people loans greater than what they can afford. But at some point, you do have to check things out for yourself, and use a little common sense. Common sense dictates if you and your spouse both make minimum wage and have 3 kids, you prolly don''t need to look at homes in a gated community w/a swimming pool and guest house on 30 acres. We didn''t get blindfolded and forcibly driven to look at over budget homes, and the bank didn''t have an armed guard standing over us demanding we sign extravagant loan papers.

We went to our Realtor, he asked what we were looking for and gave us spec sheets on homes to look at. He looked for homes that were listed over our budget but that might have been on the market longer and might accept an offer closer to what we wanted. In the end, it was our choice for a small fixer upper. We almost ended up renting until we could find something, but last minute we got wind of this house for private sale. Much as I''d''ve liked a bigger home or one that was a little more "done", we couldn''t afford it, no matter how we crunched the numbers. But we didn''t sit back and let the Realtor or the Bank tell us what we could afford or what we could do. We wanted to trade in my truck and get a brand new one last year but couldn''t afford it..so we hopefully will do it this spring. If we can''t afford it, we won''t.

People won''t learn if they keep getting bailed out, and where''s the incentive for the ones funding the bailouts, to keep on the straight and narrow?

 

[zhuzhu]

Date: 2/20/2009 1:23:27 PM
Author: Hudson_Hawk
I don''t see that ever happening. I forsee the govt forcing landlords to relax their credit requirements before they''ll forgive people''s bad credit.

I agree. Credit check system is the backbone of risk-management for lenders. Without it, the lending industry is going to have no future.....

Personally, I would not date anyone who has bad FICO score (Suse would be proud!

).

 

[Harriet]

Stone Seeker et. al., I agree -- what is wrong with renting? I''ve been told so many times that it''s akin to pouring money down the drain. But, surely something is wrong when the increase in property prices far outstrips the increase in income in a certain area!

DiamanteBlu, want to hazard a guess as to when South FL prices will bottom out?

 

[Allisonfaye]

Date: 2/20/2009 11:02:24 AM
Author: DivaDiamond007

Date: 2/19/2009 1:33:34 PM
Author: Cleopatra

Date: 2/19/2009 1:24:10 PM
Author: tlh
I was in the restroom the other day... at work. And two ladies came in, and did the stall poop and talk. Ok gross, I know. Now, I am a prolonged handwasher, and I must say I was appalled at what I heard them discussing. One lady is intentionally NOT paying her morgage so that she too can get bailed out. ''i want my piece too....'' I was very sick at their discussion... she is also talking about maxing out her credit cards, so that when she files for bankrupcy she can get more bang for her buck.


I was very disturbed. Now granted I only heard a fraction of their conversation, so I might have missed something, so I cannot judge.


But I do wonder, how can we fix this? What we are doing is not working. We are trying to put a bandaid on a severed head... and I just don''t know what to do, and I don''t have faith in our government either. A stimulus didn''t work. The bailout of the banks doesn''t seem to work when they aren''t lending... I don''t have the answers, everywhere I look people are affected by this... in soo many ways.

That makes me sick to my stomach. I am so tired of people working the system in a way that it benefits themselves and leaves the rest of us poor (responsible) souls taking care of their mess.....I hope she declares bankruptcy - do these people have no idea what it does to their credit? It''s just plain idiotic to think that this is benefiting themselves in anyway...

**MINOR THREADJACK**

I really try to stay out of the discussions over here, because I wouldn''t consider myself thick-skinned, but here goes. Having worked in bankruptcy for going on 5 years now, maybe this woman should file. If she cannot afford her house or her debt then she should. Filing for bankruptcy is largely a ''business'' decision that sometimes one has to make. It''s also a decision that needs to be planned. It''s not going to ruin her credit any more than it already is by making late payments and having a large debt-to-income ratio. In fact, her score will likely go up when she gets rid of the debt - because her debt-to-income ratio will go way down. It''s a dirty little secret of filing for bankruptcy. She''ll have the black mark on her report for around 7 years, but the actual affect of a bankruptcy only lasts about 1 year, 2 years when it comes to mortgaging real estate. In the long run she''d be better off. Bankruptcy is not always the most responsible thing to do, and most who file use it as a last resort, but sometimes it''s the best option.

Put yourself in the shoes of someone who has just lost their good paying job and has a mountain of debt (mortgage, car, credit cards, other loans). It''s a very scary reality for many people these days. We''ll wait and see how much worse it gets if/when the automakers fail. My office is bracing for an increase in bankruptcy filings that we haven''t seen since before October 2005 (when the new laws went into effect).

**END THREADJACK**

I''m not totally into politics so I''m not sure what this whole mortgage bailout means to me, especially since I do not own a home and probably won''t for another few years. My tax dollars have been paying for people who are not responsible for a long, long time - i.e. welfare and other government programs so to me this really isn''t anything different.

I guess my question to those that oppose this move by our government is: What is a better option? How would you handle this situation? Do you have any better ideas? Should we really just let all of these people, irresponsible or not, lose their homes, and become homeless? Foreclosures lower property values in neighborhoods. Wouldn''t you rather these people stay in their homes, make their payments, with assistanct or without, and maintain the value of your own home?

I''m not saying that I totally agree with what our government has done, nor do I think that I have all of the answers. I''m just curious as to what you would do differently to help get our economy back on track since we can''t undo what''s already been done.

Can''t figure out how to highlight so quoting Divadiamond here:

"I guess my question to those that oppose this move by our government is: What is a better option? How would you handle this situation? Do you have any better ideas? Should we really just let all of these people, irresponsible or not, lose their homes, and become homeless? Foreclosures lower property values in neighborhoods. Wouldn''t you rather these people stay in their homes, make their payments, with assistanct or without, and maintain the value of your own home?

I''m not saying that I totally agree with what our government has done, nor do I think that I have all of the answers. I''m just curious as to what you would do differently to help get our economy back on track since we can''t undo what''s already been done. "

This is a great point. Everyone is mad but can''t come up with a better solution. And this is to maintain the value of your own home.

 

[luckystar112]

$300,000 loan on a 50k a year income? That's nothing.

Try being pre-approved for a 1.5M condo on a 20k a year salary, putting down 75k in borrowed money, not getting the loan, and losing the money.

Full of fail on so many different levels..........
Excerpt:

"I normally wouldn't think I could afford this," Kasimov said. (Um....ya think!!!!!) "But there was all this excitement ... Hollywood all over the place." He says he was told there were only a few units left, and the real-estate agent, knowing what Kasimov did for a living and that it was his first purchase, said, "Let's see if they'll approve you."

Kasimov said that when he asked if he could afford the condo, the agent told him: "Let the bank worry about it."

 

[zhuzhu]

Date: 2/20/2009 5:49:02 PM
Author: luckystar112
$300,000 loan on a 50k a year income? That''s nothing.


Try being approved for a 1.5 million dollar condo on a 20k a year salary.

Full of fail on so many different levels..........

Excerpt:


''I normally wouldn''t think I could afford this,'' Kasimov said. (Um....ya think!!!!!) ''But there was all this excitement ... Hollywood all over the place.'' He says he was told there were only a few units left, and the real-estate agent, knowing what Kasimov did for a living and that it was his first purchase, said, ''Let''s see if they''ll approve you.''

Kasimov said that when he asked if he could afford the condo, the agent told him: ''Let the bank worry about it.''

For people like that, stupidity is not an excuse. Both the bank that lent them the money and the borrowers should pay for their irresponsible action.

However, the pool of responsible people who can no longer afford the payment/ineligible for refinance due to lost of job and drop of home value, should be helped to maintain the value of the houses in the neighborhood.

The big question really is, where can we find the manpower and resources to screen who is responsible and who isn''t? Who should taxpayers help and how do we prevent cheaters into the system?

 

[Beacon]

Date: 2/20/2009 5:58:27 PM
Author: zhuzhu

Date: 2/20/2009 5:49:02 PM
Author:

For people like that, stupidity is not an excuse. Both the bank that lent them the money and the borrowers should pay for their irresponsible action.

However, the pool of responsible people who can no longer afford the payment/ineligible for refinance due to lost of job and drop of home value, should be helped to maintain the value of the houses in the neighborhood.

The big question really is, where can we find the manpower and resources to screen who is responsible and who isn''t? Who should taxpayers help and how do we prevent cheaters into the system?

Oh not to worry - there are thousands of people in financial services who have lost their job who could do this work right away. I think it is imperative that the government be quite tough about the thing, only give a chance to people who are paying on time and trying their best. THose who stopped paying on purpose and who are running up debt hoping for a handout, they need to be thrown out!!

 

[Dancing Fire]

Date: 2/20/2009 4:53:17 PM
Author: zhuzhu

Date: 2/20/2009 1:23:27 PM
Author: Hudson_Hawk
I don''t see that ever happening. I forsee the govt forcing landlords to relax their credit requirements before they''ll forgive people''s bad credit.

I agree. Credit check system is the backbone of risk-management for lenders. Without it, the lending industry is going to have no future.....

Personally, I would not date anyone who has bad FICO score (Suse would be proud!

).

hey zhu

when are you available ?

i have a very high FICO score.

 

[stone_seeker]

Date: 2/20/2009 5:02:31 PM
Author: Harriet
Stone Seeker et. al., I agree -- what is wrong with renting? I''ve been told so many times that it''s akin to pouring money down the drain. But, surely something is wrong when the increase in property prices far outstrips the increase in income in a certain area!


DiamanteBlu, want to hazard a guess as to when South FL prices will bottom out?

Ha..throwing money down the drain - kinda like buying a home you cant afford. There is nothing wrong with renting.

I was watching Chris Matthews tonight (against my better judgment but he had rick santelli on) and he always says that if we dont help these people they will be out on the street. That is the part that escapes me. Why cant they rent? Are there many areas were rentals are not available? Foreclosures always find a buyer. These new buyers may just be willing to rent out the home to the family that is in there (called a sale-leaseback) at a very affordable rent. But for some reason, the government rather see people in homes that they own (even though they dont really own it, they are just renting from the bank).

Oh well - another few generations of people who get priced out because we dont want prices to come down from VERY inflated levels. Keep in mind, this only impacts people who bought in the last 3 years - who I assume lived somewhere else before they bought this new home they couldnt afford.

 

[zhuzhu]

Date: 2/20/2009 7:58:37 PM
Author: Dancing Fire

Date: 2/20/2009 4:53:17 PM

Author: zhuzhu

Date: 2/20/2009 1:23:27 PM

Author: Hudson_Hawk

I don''t see that ever happening. I forsee the govt forcing landlords to relax their credit requirements before they''ll forgive people''s bad credit.

I agree. Credit check system is the backbone of risk-management for lenders. Without it, the lending industry is going to have no future.....


Personally, I would not date anyone who has bad FICO score (Suse would be proud!

).

hey zhu

when are you available ?

i have a very high FICO score.

Sorry, I am happily married.

Does your wife know how naughty you are on Pricescope???

 

[DivaDiamond007]

Date: 2/20/2009 4:53:17 PM
Author: zhuzhu

Date: 2/20/2009 1:23:27 PM
Author: Hudson_Hawk
I don''t see that ever happening. I forsee the govt forcing landlords to relax their credit requirements before they''ll forgive people''s bad credit.

I agree. Credit check system is the backbone of risk-management for lenders. Without it, the lending industry is going to have no future.....

Personally, I would not date anyone who has bad FICO score (Suse would be proud!

).

May I ask why? And what is a "bad" FICO score? Below 700? Below 600? Did you ask your SO/DH for a copy of his FICO score before going out with him? What do you presume about someone with a "bad" FICO score, according to your standards?

You do realize that most credit reports (and therefore the scores) are inaccurate, right?

I''m not trying to pick on you for this statement, but it just seems so.......shallow to me and I''m interested in your line of thought on this subject.

 

[DivaDiamond007]

Date: 2/20/2009 7:59:57 PM
Author: stone_seeker

Date: 2/20/2009 5:02:31 PM
Author: Harriet
Stone Seeker et. al., I agree -- what is wrong with renting? I''ve been told so many times that it''s akin to pouring money down the drain. But, surely something is wrong when the increase in property prices far outstrips the increase in income in a certain area!


DiamanteBlu, want to hazard a guess as to when South FL prices will bottom out?

Ha..throwing money down the drain - kinda like buying a home you cant afford. There is nothing wrong with renting.

I was watching Chris Matthews tonight (against my better judgment but he had rick santelli on) and he always says that if we dont help these people they will be out on the street. That is the part that escapes me. Why cant they rent? Are there many areas were rentals are not available? Foreclosures always find a buyer. These new buyers may just be willing to rent out the home to the family that is in there (called a sale-leaseback) at a very affordable rent. But for some reason, the government rather see people in homes that they own (even though they dont really own it, they are just renting from the bank).

Oh well - another few generations of people who get priced out because we dont want prices to come down from VERY inflated levels. Keep in mind, this only impacts people who bought in the last 3 years - who I assume lived somewhere else before they bought this new home they couldnt afford.

I think this has already been touched on, but if you have bad credit then it can be difficult to land an apartment or house to rent. Granted, where I live, if you have a hefty security deposit you can usually find a decent place to rent.

I think that there is still a stigma against renting. I''ve had many a person roll their eyes at DH and I when they find out that we *still* don''t own a home and are "throwing our money away" by renting. I think that there are pros and cons for both renting and home ownership.

 

[zhuzhu]

Date: 2/20/2009 9:07:37 PM
Author: DivaDiamond007

Date: 2/20/2009 4:53:17 PM

Author: zhuzhu

Date: 2/20/2009 1:23:27 PM

Author: Hudson_Hawk

I don''t see that ever happening. I forsee the govt forcing landlords to relax their credit requirements before they''ll forgive people''s bad credit.

I agree. Credit check system is the backbone of risk-management for lenders. Without it, the lending industry is going to have no future.....


Personally, I would not date anyone who has bad FICO score (Suse would be proud!

).

May I ask why? And what is a ''bad'' FICO score? Below 700? Below 600? Did you ask your SO/DH for a copy of his FICO score before going out with him? What do you presume about someone with a ''bad'' FICO score, according to your standards?


You do realize that most credit reports (and therefore the scores) are inaccurate, right?


I''m not trying to pick on you for this statement, but it just seems so.......shallow to me and I''m interested in your line of thought on this subject.

I don''t think you are picking on me at all. I did date a guy who has lousy credit score, while his FICO score was not why we broke up, his irresponsible behavior (refuse to pay cc balance, cheat the tax system...)certainly was contributing to his lousy FICO score (which he intentionally hide from me at the beginning of our courtship). So to clarify, what I don''t like is the irresponsible traits that will ultimately lead to a low credit score.

There are exceptions of course, such as unexpected medical bills that result in one''s bad score, therefore yes, not everyone who has bad credit score are the same.

It is a personal choice what personal traits and characteristics you look for in a potential lifetime mate. Some will only date or not date certain race, certain hair/eye color, or having certain social economic status. I am the type of person who pays off cc balance every single month and 100% on time, therefore I chose to also be with someone who is as similar to me as possible in financial behavior(actually my DH is exactly like me financially). It is simply a personal choice.

 

[Dancing Fire]

Date: 2/20/2009 8:23:51 PM
Author: zhuzhu

Sorry, I am happily married.

Does your wife know how naughty you are on Pricescope???

but available?

 

[Dancing Fire]

Date: 2/20/2009 9:07:37 PM
Author: DivaDiamond007

Date: 2/20/2009 4:53:17 PM
Author: zhuzhu

Date: 2/20/2009 1:23:27 PM
Author: Hudson_Hawk
I don''t see that ever happening. I forsee the govt forcing landlords to relax their credit requirements before they''ll forgive people''s bad credit.

I agree. Credit check system is the backbone of risk-management for lenders. Without it, the lending industry is going to have no future.....

Personally, I would not date anyone who has bad FICO score (Suse would be proud!

).

May I ask why? And what is a ''bad'' FICO score? Below 700? Below 600? Did you ask your SO/DH for a copy of his FICO score before going out with him? What do you presume about someone with a ''bad'' FICO score, according to your standards?

You do realize that most credit reports (and therefore the scores) are inaccurate, right?

I''m not trying to pick on you for this statement, but it just seems so.......shallow to me and I''m interested in your line of thought on this subject.

DD
i agree with zhu. if the two get married,they''re also marrying each other''s debt and his/her lowest FICO score. creditors will use the lower score of the couple when it comes to borrowing money.

btw; any FICO over 750 is EX.

 

[TravelingGal]

Date: 2/20/2009 5:21:26 PM
Author: Allisonfaye

Can''t figure out how to highlight so quoting Divadiamond here:

''I guess my question to those that oppose this move by our government is: What is a better option? How would you handle this situation? Do you have any better ideas? Should we really just let all of these people, irresponsible or not, lose their homes, and become homeless? Foreclosures lower property values in neighborhoods. Wouldn''t you rather these people stay in their homes, make their payments, with assistanct or without, and maintain the value of your own home?

I''m not saying that I totally agree with what our government has done, nor do I think that I have all of the answers. I''m just curious as to what you would do differently to help get our economy back on track since we can''t undo what''s already been done. ''

This is a great point. Everyone is mad but can''t come up with a better solution. And this is to maintain the value of your own home.

I can''t add much to this discussion because this topic pisses me off so much, but to answer the question posted above:

Yes, I''d would want to maintain the REAL value of my home. Not some stupid, bullsh*t overinflated amount that is going to come down at SOME POINT. All they are doing is stalling the bottom.

 

[TravelingGal]

Date: 2/20/2009 11:00:11 PM
Author: Dancing Fire

Date: 2/20/2009 9:07:37 PM
Author: DivaDiamond007

Date: 2/20/2009 4:53:17 PM
Author: zhuzhu

Date: 2/20/2009 1:23:27 PM
Author: Hudson_Hawk
I don''t see that ever happening. I forsee the govt forcing landlords to relax their credit requirements before they''ll forgive people''s bad credit.

I agree. Credit check system is the backbone of risk-management for lenders. Without it, the lending industry is going to have no future.....

Personally, I would not date anyone who has bad FICO score (Suse would be proud!

).

May I ask why? And what is a ''bad'' FICO score? Below 700? Below 600? Did you ask your SO/DH for a copy of his FICO score before going out with him? What do you presume about someone with a ''bad'' FICO score, according to your standards?

You do realize that most credit reports (and therefore the scores) are inaccurate, right?

I''m not trying to pick on you for this statement, but it just seems so.......shallow to me and I''m interested in your line of thought on this subject.

DD
i agree with zhu. if the two get married,they''re also marrying each other''s debt and his/her lowest FICO score. creditors will use the lower score of the couple when it comes to borrowing money.

btw; any FICO over 750 is EX.

Even though I took Zhu''s comment as a bit tongue in cheek, I would also agree. If I were in my early 20''s, I would not care. But in my 30''s, hell yeah he had better be responsible with his credit. TGuy had no credit coming to the US and in 3 years, he''s built up a solid score of 725.

DF, my score is 820 last I checked. How bad do ya want me, big boy?

 

[zhuzhu]

Welcome to the 800 club, TravelingGal!

 

[Dancing Fire]

Date: 2/21/2009 12:41:49 AM
Author: TravelingGal

Even though I took Zhu''s comment as a bit tongue in cheek, I would also agree. If I were in my early 20''s, I would not care. But in my 30''s, hell yeah he had better be responsible with his credit. TGuy had no credit coming to the US and in 3 years, he''s built up a solid score of 725.

DF, my score is 820 last I checked. How bad do ya want me, big boy?

the last time i checked mine was 821,and that''s no BS,so i got you beat by 1 point

 

[strmrdr]

Date: 2/21/2009 1:51:48 AM
Author: Dancing Fire

Date: 2/21/2009 12:41:49 AM

Author: TravelingGal



Even though I took Zhu's comment as a bit tongue in cheek, I would also agree. If I were in my early 20's, I would not care. But in my 30's, hell yeah he had better be responsible with his credit. TGuy had no credit coming to the US and in 3 years, he's built up a solid score of 725.


DF, my score is 820 last I checked. How bad do ya want me, big boy?

the last time i checked mine was 821,and that's no BS,so i got you beat by 1 point

careful that karma don't bite ya
Everyone is 2 steps away from 600

 

[tradergirl]

Mine probably is 600 because I have zero debt and use no credit; ergo, they can''t tell if I would pay on time or not.

It''s not an issue because I refuse to use credit. We have rented throughout this whole housing bubble even though we could afford to pay cash for a house and will pay cash when I think prices have sunk enough. We''re nowhere near that point yet, at least where I want to buy (Santa Fe NM)

I think this business of being held hostage by credit scores is for the birds.

 

[tlh]

Date: 2/20/2009 5:02:31 PM
Author: Harriet
Stone Seeker et. al., I agree -- what is wrong with renting? I''ve been told so many times that it''s akin to pouring money down the drain. But, surely something is wrong when the increase in property prices far outstrips the increase in income in a certain area!

DiamanteBlu, want to hazard a guess as to when South FL prices will bottom out?

I spent forever looking for the link... but just last week MSN had an article in the week in review section about cities where it is actually CHEAPER to rent than own because of this situation. Phoenix, Scottsdale, Mesa was #9 or so in the list of 20 places. Rent on average was $400 a month cheaper than the morgages in the area. I WANT the market to bottom out. The home prices out here are RIDICULOUSLY overpriced. THe property values went way outta whack in ''05... it was a falsely inflated value.

I remember that year I was renting, walking the dogs and houses in the neighborhood were just SITTING for sale... not moving. No one would adjust the prices. I remember seeing a house for $400K+ and my rent was only $1,000 a month.. in the same neighborhood... for maybe 1,200 sq. feet of house. We aren''t even talking in the ritziest of neighborhoods either. There was nothing special about this home... (and at the time) zillow had estimated the home''s value around 220K when it''s all time high was almost 300K. The house was 100 THOUSAND over what the house either sold for, or was valued at its highest point. If it wasn''t such a ridiculous estimate, I don''t think I''d even remember it. I did remember houses sat on the "For Sale" Lot the entire 2 years we rented. RI-DIC-U-LOUS!

I think that probably had to do w/ people taking out larger morgages than for just the house, and were needing to sell it for more, to cover the furnishings. Bleh, ok I am done.

 

[tradergirl]

I was a big contributor to a very popular housing bubble blog that started in 2004 and is still going (although I got bored with the topic last fall and moved on) www.thehousingbubbleblog.com. We chronicled the wacky rent/price ratios (for awhile you could rent $1M houses in California for $1500 per month). It was hysterical watching it all unfold just as we laid out in 2005 (archives of all this are available).

Another great site for this topic is www.itulip.com

 

[steph72276]

Date: 2/21/2009 8:51:57 AM
Author: tradergirl
Mine probably is 600 because I have zero debt and use no credit; ergo, they can''t tell if I would pay on time or not.


It''s not an issue because I refuse to use credit. We have rented throughout this whole housing bubble even though we could afford to pay cash for a house and will pay cash when I think prices have sunk enough. We''re nowhere near that point yet, at least where I want to buy (Santa Fe NM)


I think this business of being held hostage by credit scores is for the birds.

We are like that too. Really the only way to get your FICO score way up there is to borrow money. I don''t borrow money (except for my mortgage), I pay cash for things. You can get still get a great interest rate if you go through a lender that does actual underwriting and uses their brain rather than the almighty FICO score. We have a mortgage at 5%.

 

[tradergirl]

By the way, how ironic is this?

http://www.itulip.com/forums/showthread.php?p=76323#post76323

 

[DivaDiamond007]

Zhu - Thank you for clarifying your stance and for not being offended

I understand what you mean about not having responsible habits with money and mates. I too dated a guy with bad credit - but it was totally his fault. He didn''t pay his bills on time and had too many credit cards. My DH and I are similar in our spending/saving habits and while we do utilize credit we do it wisely and our scores reflect that.