Results 51 to 56 of 56
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05-08-2012, 11:00 AM #51
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05-08-2012, 11:02 AM #52
Except that newer federal regulations aimed at big banks are destroying this model. My father-in-law's a small-town banker, home mortgages and farm equipment loans, and they haven't had a bad loan in decades because he knows everyone in that town, knows their business and their business prospects, and knows whether they're reliable or not. But that stuff goes out the window when the OCC applies the same rules to little Commercial Savings Bank as it does to Citi. It's a big deal to him because it's not like they can just switch the focus of their business and start lending only to high net worth individuals or large businesses with large cash reserves- those people and businesses don't exist in that town of 6,000.
He's been bitching about this for a few years but the NYT recently ran an article about it and the flight of community banks to state regulators: http://www.nytimes.com/2012/04/03/bu...pagewanted=all
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05-08-2012, 11:05 AM #53
Second mortgages were an embarrassment to my parents generation, best taken as a last resort. My generation, the Boomers, threw that attitude in the trash can in the early ninties, and are now resorting to reverse mortgages to survive.
30% of "homeowners" over 65 are carrying a loan in that house. One third!
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05-08-2012, 11:23 AM #54
It always scares the shit out of me, in social conversations, when older people ask me about getting a Reverse Mtg to help meet their living expenses. Inside I am like "WTF???", as I think you need a free and clear home at retirement, but on the outside I just dodge the conversation saying I don't know much about Reverse Mtgs
The sad reality is, most people live beyond their means. Especially in high cost areas. At some point it is tough to sell your $250k condo in San Diego and move to the snow in a home for $50k, to have some cash in the bank and a free and clear home, so most everyone does what they can to extend the dream. Lucky the OP is young, doing well and in a good spot. I see examples of exactly the opposite everyday and it makes me grateful for what I have.
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05-08-2012, 11:23 AM #55
And in hindsight totally fucking insane, right? I remember at the time, I think it was 2005 or 2006, when they first announced this, being pissed because it seemed like a real estate pricing correction was finally going to happen, and by opening up the market to more potential "qualified" buyers they prevented it.
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05-08-2012, 11:36 AM #56
It's an act of desperation. It's all many have in the form of any kind of tangible asset. Read this: http://baselinescenario.com/2012/05/...urity-matters/ Sad, huh? About half of the older people out there really really need SS to live on. SS! You know, basically jackshit.
Don't grow up to be like them.
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