tloonya
Junior Associate
What status?
Joined: Dec 18, 2010 16:22:13 GMT -5
Posts: 8,452
|
Post by tloonya on Nov 8, 2012 15:27:11 GMT -5
Someone came to me for an advise. Their family is about to buy a house. They are saving for it now. One person told them about some program for first time buyers (THEY DO NOT OWN HOUSE AT THE TIME so do not ask me if its their first house...please...) that is only requiring $3800 for downpayment and closing cost together. The house can be $200K or around that much. The APR on the loan is going to be 3% or bit more but very good one...
I have been out of this for 20 years. I do not remember how it was going. I am afraid to advise them and all I said was that they must have lawyer with them at the closing.
However having trouble getting $3800 together they might be 'skimping' on paying lawyer (we've paid $500) some money... because they don't have much.
Have you heard of such program?
|
|
swamp
Community Leader
Don't be a fool. Call me!
Joined: Dec 19, 2010 16:03:22 GMT -5
Posts: 45,335
|
Post by swamp on Nov 8, 2012 15:28:44 GMT -5
Yes, I have. Why are they asking you? If they can't get together $3800, they have no business buying a house.
|
|
vonna
Well-Known Member
Joined: Aug 11, 2012 15:58:51 GMT -5
Posts: 1,249
|
Post by vonna on Nov 8, 2012 15:29:09 GMT -5
If they can't get $3800 together, they have no business buying a house.
|
|
vonna
Well-Known Member
Joined: Aug 11, 2012 15:58:51 GMT -5
Posts: 1,249
|
Post by vonna on Nov 8, 2012 15:30:03 GMT -5
ooops . . . Swamp beat me to the punch!
|
|
midjd
Administrator
Your Money Admin
Joined: Dec 18, 2010 14:09:23 GMT -5
Posts: 17,719
|
Post by midjd on Nov 8, 2012 15:36:18 GMT -5
WHO are these people who keep asking you for advice?!
|
|
justme
Senior Associate
Joined: Feb 10, 2012 13:12:47 GMT -5
Posts: 14,618
|
Post by justme on Nov 8, 2012 15:36:20 GMT -5
ooops . . . Swamp beat me to the punch! Eerie...the exact same phrase.
|
|
Deleted
Joined: May 13, 2024 2:02:10 GMT -5
Posts: 0
|
Post by Deleted on Nov 8, 2012 15:36:57 GMT -5
|
|
swamp
Community Leader
Don't be a fool. Call me!
Joined: Dec 19, 2010 16:03:22 GMT -5
Posts: 45,335
|
Post by swamp on Nov 8, 2012 15:37:15 GMT -5
Vonna lives in my head with the rest of The Mean Girls.
|
|
tloonya
Junior Associate
What status?
Joined: Dec 18, 2010 16:22:13 GMT -5
Posts: 8,452
|
Post by tloonya on Nov 8, 2012 15:38:10 GMT -5
Yes, I have. Why are they asking you? Because they don'rt know YOU!...and btw you stole this line from hoopsie...and MidJD If they can't get together $3800, they have no business buying a house. Wrong! They are paying for the appartment. So now they will be paying for the house. Whats the difference???
|
|
swamp
Community Leader
Don't be a fool. Call me!
Joined: Dec 19, 2010 16:03:22 GMT -5
Posts: 45,335
|
Post by swamp on Nov 8, 2012 15:40:23 GMT -5
Yes, I have. Why are they asking you? Because they don'rt know YOU!...and btw you stole this line from hoopsie...and MidJD If they can't get together $3800, they have no business buying a house. Wrong! They are paying for the appartment. So now they will be paying for the house. Whats the difference??? What's the difference? When something goes wrong at your apartment, you don't have to pay to fix it.
|
|
Peace Of Mind
Senior Associate
[font color="#8f2520"]~ Drinks Well With Others ~[/font]
Joined: Dec 17, 2010 16:53:02 GMT -5
Posts: 15,554
Location: Paradise
|
Post by Peace Of Mind on Nov 8, 2012 15:47:12 GMT -5
Is this their first house? I agree with the others that they should have some savings before they buy this house besides the required amount to buy it. If they are having trouble with that small amount they are already at their max. Have they worked their numbers to compare their mortgage, property taxes and home owners ins. with their current rent? Are they hiring an inspector to make sure there are no major problems with the house that they can't afford to fix? There are many first time buyer programs out there. Some are grants, or they assist in closing costs, etc. They will also have to meet the income limits to qualify. They may need to research these things first because each program and each state is different.
|
|
tloonya
Junior Associate
What status?
Joined: Dec 18, 2010 16:22:13 GMT -5
Posts: 8,452
|
Post by tloonya on Nov 8, 2012 15:51:10 GMT -5
WHO are these people who keep asking you for advice?! Do you realize how dumb it sound EVERY time you asking me the same question!!! What do you really want to know? Their names? Addresses? What do you expect me to answer??? Susan and Bill from 234 South ave, Anywhere, PA 19003. You ok now???
|
|
tloonya
Junior Associate
What status?
Joined: Dec 18, 2010 16:22:13 GMT -5
Posts: 8,452
|
Post by tloonya on Nov 8, 2012 15:56:52 GMT -5
We had bought our house blindely without any rights to do so. We weren't making anywhere close to the mortgage payments. However our relatives all been here for ages and lived in houses so we wanted to 'reach to them' and make them proud of us. Stupid immigrant's thing. I am sure those who were born here will not be able to understand. However this house inspired us to go to school and find better jobs etc...
I will not tell them not to buy. I am sure (because I know them) they will be able to manage. And WHAT worse can happen IF you can't pay mortgage? You'll be back to the appartment. But if you will be able to do it - full force to you!!!
I just don't want them to get scammed. Thats it.
|
|
midjd
Administrator
Your Money Admin
Joined: Dec 18, 2010 14:09:23 GMT -5
Posts: 17,719
|
Post by midjd on Nov 8, 2012 15:57:48 GMT -5
It was more of a rhetorical question, but thanks for answering...
OK, a non-rhetorical question... do you think you're really the best person to be giving others' advice on how not to be scammed?
|
|
swamp
Community Leader
Don't be a fool. Call me!
Joined: Dec 19, 2010 16:03:22 GMT -5
Posts: 45,335
|
Post by swamp on Nov 8, 2012 15:59:43 GMT -5
We had bought our house blindely without any rights to do so. We weren't making anywhere close to the mortgage payments. However our relatives all been here for ages and lived in houses so we wanted to 'reach to them' and make them proud of us. Stupid immigrant's thing. I am sure those who were born here will not be able to understand. However this house inspired us to go to school and find better jobs etc... I will not tell them not to buy. I am sure (because I know them) they will be able to manage. And WHAT worse can happen IF you can't pay mortgage? You'll be back to the appartment. But if you will be able to do it - full force to you!!! I just don't want them to get scammed. Thats it. No, the worst that can happen if they don't make their mortgage payment is they get foreclosed on, then they get a deficiency judgment against them, and then they get their wages and property garnished, and then they ruin their credit rating.
|
|
justme
Senior Associate
Joined: Feb 10, 2012 13:12:47 GMT -5
Posts: 14,618
|
Post by justme on Nov 8, 2012 16:08:13 GMT -5
We had bought our house blindely without any rights to do so. We weren't making anywhere close to the mortgage payments. However our relatives all been here for ages and lived in houses so we wanted to 'reach to them' and make them proud of us. Stupid immigrant's thing. I am sure those who were born here will not be able to understand. However this house inspired us to go to school and find better jobs etc... I will not tell them not to buy. I am sure (because I know them) they will be able to manage. And WHAT worse can happen IF you can't pay mortgage? You'll be back to the appartment. But if you will be able to do it - full force to you!!! I just don't want them to get scammed. Thats it. No, the worst that can happen if they don't make their mortgage payment is they get foreclosed on, then they get a deficiency judgment against them, and then they get their wages and property garnished, and then they ruin their credit rating. Not to mention having a foreclosure against them could make it harder for them to get back into an apartment. Because, ya know, paying a mortgage and paying rent are eerily similar. If you couldn't manage to do one, why would a landlord trust you to do the other?
|
|
tloonya
Junior Associate
What status?
Joined: Dec 18, 2010 16:22:13 GMT -5
Posts: 8,452
|
Post by tloonya on Nov 8, 2012 16:08:24 GMT -5
It was more of a rhetorical question, but thanks for answering... OK, a non-rhetorical question... do you think you're really the best person to be giving others' advice on how not to be scammed? OK! You wouldn't learn would you MidJD? Do I think I am best person to be giving others advice? Excuse me but again...stupid question. I didn't come to anyone. They come to me. What difference does it make if I don't think I am the best person to give out answers? How does it change fact that they had ALREADY came to me and asked that question??? Really...how?
|
|
midjd
Administrator
Your Money Admin
Joined: Dec 18, 2010 14:09:23 GMT -5
Posts: 17,719
|
Post by midjd on Nov 8, 2012 16:09:48 GMT -5
It doesn't change the fact that they asked you the question... but it might be more helpful for you to direct them to someone who is better-equipped to answer.
|
|
tloonya
Junior Associate
What status?
Joined: Dec 18, 2010 16:22:13 GMT -5
Posts: 8,452
|
Post by tloonya on Nov 8, 2012 16:22:38 GMT -5
It doesn't change the fact that they asked you the question... but it might be more helpful for you to direct them to someone who is better-equipped to answer. Have you read my original post where I said I told them to get a lawyer??? However you guys think smart you are - you don't really know what everyone's beef is. My neighbor who was born here have NO idea that tax return is not a good thing... So you have NO idea how many people are unaware of things we are talking about here. YOu don't know how many people REGARDLESS of lack oif knowlwge still buying and paying their houses living plain stupid life - work-bills-work-bills etc.... You thinking that because you are blessed with education about finances - everyone should had been! And they are not! And I am here in a center of this immigrant world. And I am 'the senior' and its not even an issue! Americans tell me stories as well, not ONLY forreigners.
|
|
midjd
Administrator
Your Money Admin
Joined: Dec 18, 2010 14:09:23 GMT -5
Posts: 17,719
|
Post by midjd on Nov 8, 2012 16:30:39 GMT -5
Why do you assume I have no idea about others' financial... illiteracy, for lack of a better word? I am fully aware that YM is a self-selecting population with above-average financial knowledge (with a few exceptions ). My point was that these financially illiterate people are coming to you - for whatever reason - and you are unable to give them advice. So perhaps instead of guessing, or coming here and asking for information and calling us names, you should refer them to someone who CAN give them advice. Maybe you're the one who needs to work on reading comprehension.
|
|
tloonya
Junior Associate
What status?
Joined: Dec 18, 2010 16:22:13 GMT -5
Posts: 8,452
|
Post by tloonya on Nov 8, 2012 16:43:33 GMT -5
Why do you assume I have no idea about others' financial... illiteracy, for lack of a better word? I am fully aware that YM is a self-selecting population with above-average financial knowledge (with a few exceptions ). My point was that these financially illiterate people are coming to you - for whatever reason - and you are unable to give them advice. So perhaps instead of guessing, or coming here and asking for information and calling us names, you should refer them to someone who CAN give them advice. Maybe you're the one who needs to work on reading comprehension. Where exactly do you suggest I reffer them to?
|
|
vonna
Well-Known Member
Joined: Aug 11, 2012 15:58:51 GMT -5
Posts: 1,249
|
Post by vonna on Nov 8, 2012 17:50:17 GMT -5
Vonna lives in my head with the rest of The Mean Girls. shhhhh. . . swamp! Some people may still think I am nice!!
|
|
bean29
Junior Associate
Joined: Dec 19, 2010 22:26:57 GMT -5
Posts: 9,954
|
Post by bean29 on Nov 8, 2012 17:54:33 GMT -5
tloonya,
In my experience if you tell people something they don't want to hear, they don't listen. In this case, they asked for advice, so hopefully they will listen, but still I would get myself out of the middle but refer them to someone I am fairly confident is reputable.
A Mid-Size local bank, a large bank, Mid sized credit union etc.
I used to work at MGIC (Mortgage Guarantee Insurance Corp.)
They have an on-line education course for first time homebuyers that will actually give them all the info YM'ers would want them to have. It covers things like monthly payment, expected utility costs and reserves for maintenance.
The course is free but you have to get a code from a lender to do it. The course is required by Fannie/Freddy so I would think any lender that resells their mortgages in the secondary market will refer your family to a similar course.
There used to be a lot of shady brokers and lenders out there. I would assume there still are. So imo, you can help by telling them who to talk to to figure out how much house they can afford and what they expect their monthly expenses to be.
The above mentioned course asks people to make out a budget...they can fudge it in their favor, but if you really want to know if it is the right decision for you and you make up a budget you will be able to figure it out.
|
|
bean29
Junior Associate
Joined: Dec 19, 2010 22:26:57 GMT -5
Posts: 9,954
|
Post by bean29 on Nov 8, 2012 18:08:50 GMT -5
What does (We've paid $500) mean? are you borrowing them down payment funds?
Interesting story...My DH says when they first came to this country they lived in a polish flat underneath his grandparents and one of his uncles lived in an apartment on the 2nd floor (Polish Flat is a basement apt). My Mil was not treated nicely by her MIL, so DH says she borrowed money from everyone she knew and bought her own duplex. His parents paid that money back in short order.
But the borrowing $$ from friends and family was a tradition among immigrants from their hometown. When DH and I got married my in-laws borrowed $$ to a distant relative to buy a house. I was scandalized by the undocumented loan...but it was repaid without a hitch.
|
|
tloonya
Junior Associate
What status?
Joined: Dec 18, 2010 16:22:13 GMT -5
Posts: 8,452
|
Post by tloonya on Nov 8, 2012 18:58:43 GMT -5
GBC, thanks. I hear you and I see you can relate to a 'forreigner' isuue issue If I tell them to do what you said...its too much complicated....its easier for them to ask me. And I am trying to help thought I know its probably going to work as it always does...they will ask someone else and someone else and whoever will tell them what they want to hear - they will go with it. My concern here is to not let them make biggest mistake of their life and not to get into scam where from they will not able to recover. That's it. I wasn't asking THAT much from all these people, was I? All I wantged was 'this kind of arrangement is possible/unheard of/most likely a scam/etc...' But I've gotten more than I've bargained for...as always.
|
|
Deleted
Joined: May 13, 2024 2:02:10 GMT -5
Posts: 0
|
Post by Deleted on Nov 9, 2012 8:13:46 GMT -5
I am not surprised that people ask tloonya for advice. In her community surely she appears quite successful. She owns a home and a business. Her friends are actually smart to ask her, because she has clearly figured out how to improve her situation & she is here to get great advice.
Your friend should get their mortgage through a participating bank or credit union, NOT a mortgage broker.
They should not skimp on lawyer, this is their ONLY protection from predatory bank or seller practices.
They should reach out to community for loan to help with lawyer fee if they need to.
They must eliminate ALL debt & make sure not to buy furniture or things until after the closing happens. Then they can also ask community to donate furnishings for specific rooms (don't do open invitation or you get 30 year old upholstered stuff!!!).
They should buy a home with extra room so they can rent a room or two to help with expenses. Very good to look at the homes with an eye to how flexible the home can become if you need income from it while you are still living there. If they can buy both sides of a duplex that is actually ideal, but might be out of reach $s.
Each area has programs to help buyers purchase in targeted areas. Downtown that needs to go through revitalization, rural area purchase programs, first time buyer incentives. There are several if you look hard enough.
|
|
Deleted
Joined: May 13, 2024 2:02:10 GMT -5
Posts: 0
|
Post by Deleted on Nov 9, 2012 8:49:21 GMT -5
I am not surprised that people ask tloonya for advice. In her community surely she appears quite successful. Exactly. I mean she is an immigrant who came from Latvia or somewhere like that where he parents were probably first cousins and she only had schooling up through the first grade. She is doing amazingly well given her circumstances.
|
|
tloonya
Junior Associate
What status?
Joined: Dec 18, 2010 16:22:13 GMT -5
Posts: 8,452
|
Post by tloonya on Nov 9, 2012 10:43:51 GMT -5
Rockin! Finally a breath of a fresh air... We are actually discussing duplex. 3+2 where they are going to occupy 3BR and rent out 2BR. Its not easy toi come across those kind. But they have time while saving money. Again...financing using bank will not be possible in near future because they will probablyu ask for 10% at least and these money will be a problem. So this is why everyone jumped to a $3800 number!
AAAAAAAAAArchieeeee! Not Latvia...Ukraine. Not cousins...siblings. Not first grade - college. Bookkeeping major. I told you that!!!
|
|
Colleenz
Senior Member
Joined: Dec 20, 2010 8:56:39 GMT -5
Posts: 3,983
|
Post by Colleenz on Nov 9, 2012 11:04:50 GMT -5
Your parents were siblings?
|
|
tloonya
Junior Associate
What status?
Joined: Dec 18, 2010 16:22:13 GMT -5
Posts: 8,452
|
Post by tloonya on Nov 9, 2012 11:36:04 GMT -5
From Latvia... where is the icon for gullible?
|
|