A question b/c I'm a big nosy butt

[Raychel]

Okay I have a friend who is buying a house... I have not seen this house, she says it is a "fixer upper" so these days that could mean anything...but even a fixer upper these days aren't that cheap to come by unless it's really really bad.
Least not around here...

At any rate...I'm completely baffled as to HOW they can afford to buy a house.I get calls from collection agency for these people, b/c they have used my name as a reference on crap they don't pay for so I know they don't pay their bills. They just got their 2nd cell phone shut off, that was after they got 2 land line phones shut off.

The husband got sued for them not paying their rent for several months and then they broke their lease. I've visited her when she opened $400 electric bills and she's thrown them in the trash b/c they can't pay them.

So can anybody explain to me how these people are claiming to buy a house?! Do banks really give loans to people like this?

I am worried for them though if they're buying a house...b/c the bank don't mess around if you can't pay your house payment....

[lizaanne]

Don't believe it till you see it. :)

Actually, they could have someone co-signing for them, they could be doing one of those scary mortgages for poor credit people which has an exorbitant interest rate...there are ways to do things if you are desperate enough. Doesn't mean they will be able to keep the house a year if they don't know how to pay bills.

Sit back and watch, chances are it may not even happen.

~Liza

[purple_octopus]

It could also be a HUD or FHA loan, which has much lower qualifications than traditional mortgage loans. But like Liza said, it won't help them much if they can't pay their bills and get foreclosed on a year later.

[sweetiez]

WOW crazy.. wish i could have a house LOL!

[Angela]

Oy....I know people like that, and I don't understand it. I can't imagine being in a situation where we can't pay our bills, which is why we're renting right now instead of paying a mortgage (we qualified, but it was almost triple what we could afford to spend a month).

[Raychel]

Well they are somehow into the house...I resisted asking any nosy question but it definitely wasn't a buying situation.

But here's the kicker...they broke a lease a second time!! Just wow. They just up and left their apartment w/o giving anybody a warning.

Seriously..these people are just wow. Actually it's the husband who makes all these stupid decisions but they're married so it reflects on both of them.

Octoberbride..what you said reminds me of some other people I know...the bank will give you the loan, but you can't afford the monthly payment anyways *heh*...

[Maria 05]

Some bannks in Ireland are offering 100% morgages but you still have to pay them back
I want a house

[Angela]

Maria, that's what we got (100% mortgage), but the payments were insane. Forget it---I'll save for a down payment and we'll move in a few years!

Some people definitely shouldn't be given any kind of credit, Raychel. I'll never understand how they get it!!

[Scarlett O]

My BIL filed for bankruptcy, and still got a new credit card that very afternoon. They really don't care if you can afford it or not, they just want your business and money. Fees are like gold! :lol:

[lizaanne]

I've never heard of a 100% mortgage - what is that?

~Liza

[purple_octopus]

I think it's no down payment. The loan is on 100% of the property value.

[Venus]

I think it's no down payment. The loan is on 100% of the property value.
And a usually an extremely high interest rate.

[lizaanne]

Oh! Wow - that's gotta hurt! No wonder it's not something you would want to do!

When we bought our first house, my ex and I borrowed the money for the down payment from my dad. It was one of the most difficult thing I've ever had to do - I'm the type who NEVER asks for help, even if I'm dying by the side of the road. But we did, and I'm glad for it. It took us two years to pay it back. I vowed that we would starve first before we were even a minute late on a payment to them.

Now - I'm in my third home (post divorce, I've had to downsize considerably), but it's worth the hard work and sacrifice.

Man, I would love to move though. Now that it's the two of us in my cute little bungalow (1000sqft), I'm feeling the space issue. I was standing in the livingroom this morning thinking --- what the heck would I do with a baby in this house? I don't even have room when an extra pair of shoes comes to live here!!!

~Liza

[Angela]

The interest rate on the no-down payment mortgage we qualified for was actually not inflated at all. It was whatever the current interest rate is, which I don't remember.

I'm actually much happier in our little apartment that we can truly afford---we put extra towards all of our bills every month, save a lot (towards a down payment on a house), and can afford to go out on dates once a week as well. If we had decided to do the mortgage and bought a house....well, it scares me to think about the financial situation we'd be in right now. I'm truly glad we didn't do that!!!