Skip to main content
No. of Recommendations: 1
There isn't a lot in this story that we haven't seen in others, but one thing jumped out at me, and is the major reason I decided to post it.

The husband was a mortgage broker. And he still made mistakes.

http://money.cnn.com/2007/03/18/real_estate/in_to_deep.moneymag/index.htm?cnn=yes

Nancy
Print the post Back To Top
No. of Recommendations: 11
"There's a big difference between how much a lender can qualify you for and how much you can actually afford."

This is one lesson I learned when I was young, thanks to my father and a neighbor. My father served on the board of a credit union. One day one of our neighbors started ranting to him about how the credit union had refused his application for a boat loan. My father explained to him that if they refused his loan, it was probably because he already had too much outstanding debt. Our neighbor told him he was wrong and that another bank had approved him for a loan from them. My father congratulated him on his new boat. I was listening to the whole conversation so my father later explained to me that the credit union tended to be more conservative about granting loans since they were more concerned about losing assets on a poor loan then they were about making a profit.

Less than a year later the boat was repossessed because our neighbor couldn't make the payments.

Print the post Back To Top
No. of Recommendations: 0
The husband was a mortgage broker. And he still made mistakes.

I read the article and assumed the husband made the same assumption that housing would just keep going up, up, up, and therefore so would his income -- not very different than some IT consultants, such as my uncle, in the late '90's.
Print the post Back To Top
No. of Recommendations: 0
The husband was a mortgage broker. And he still made mistakes.

I read the article and assumed the husband made the same assumption that housing would just keep going up, up, up, and therefore so would his income -- not very different than some IT consultants, such as my uncle, in the late '90's.

I saw the article, and as soon as I saw that he was a mortgage broker I felt sorry for all the people he helped get mortgages for.

I had a broker tell me he'd be able to approve me at 50% back ratio. I said, and I quote: I'm glad to hear that, too bad you'll never see me be that stupid.


Print the post Back To Top