The Middle Class Get Screwed...again

Parents Forum
361

<p>Whoops. Sorry. It's no. 316. Here, I'll copy it.<br>
Epiphany wrote:</p>

<p>" 'I see my friends (married couples) who have so much more than me and who make so much more than me - but they get FA money for their kids. They live the life of Riley, have the cars, the trips, the homes, the toys..'</p>

<p>You know, this is such drek. (Excuse my Yiddish.)
(1) Lots of people (for example, adolescent boys) brag about their sexual conquests, too. Do you believe all those claims, as well?
(2) What does "They get FA" mean?
(a) They may very well get loans, which are ALSO f.a.
(b) They may be liars, and/or power-tripping you.
(c) They may get a legal amount of small or non-small f.a., depending on other expenses that you may or may not know about, that they may or may not have revealed to you.
(3) They may be crooks.
In that case, as the line goes, "This sounds like a matter for the authorities."</p>

<p>If there is just so much bleepin' blatant f.a. fraud going around, you folks who claim to have verifiable inside knowledge of this stuff are failing in your civic duty, & I have no respect for you in that case. You ought to be at the very least anonymously reporting such supposedly confirmable violations with actual names, street addresses, job titles, license plate numbers of such mini-mafia figures.</p>

<p>Otherwise, stop with the teasing posts. You either have hard info, or you don't. Anythiing else has no credibility."</p>

<p>DocT, some people on this thread are very hot about all the non-savers with high incomes qualifying for all this great financial aid from schools. I don't think it's true, some other posters also don't believe it, and the post I just quoted says it best.</p>

362

<p>Well I believe it and it was true when I was in school 35 years ago. I personally knew a student whose parents owned a business, had a huge house that was mortgaged to the hilt and was given a full ride because his parents showed hardly any income and the house wasn't considered an asset. My father worked two jobs to pay for my education and save for retirement. Since our house was paid off, my father paid full tuition.</p>

363

<p>
[quote]
It would surprise some to know that there are people who's income is 30k and have bought 500k houses (where the median price is ~350k) with no money down. It isn't unusual - this is why there is a subprime mortgage mess.

[/quote]
</p>

<p>Yep. LOL. It would sure surprise me. Why don't you show us how those monthly payments work out PITI? There sure are some interesting mathematics going on here.</p>

364

<p>There isn't any interesting mathematics here. My wife works at a mortgage loan company which is trying to help people refinance who got mortgages based on not having to verify any income when they got these mortgages. Not only that in some cases, the mortgages were for amounts greater than the house was worth at that time let alone today.</p>

365

<p>Show me. $30K a year. 30 year note. $500,000.</p>

366

<p>I could own 3 homes, lol! What's that 800 number?</p>

367

<p>Can you say interest only, upside-down delight?</p>

368

<p>$417k note (max without going jumbo), 6.97% fixed APR, 30 years, $2705 per mo. via Quicken Loans. (Just did a quick check. This is not our mortgage!!!)</p>

369

<p>$2705 per mo. via Quicken Loans. </p>

<p>Is that PITI or just PI ;)?</p>

<p>So, I really don't think that ever happened on $30K income. No income verification didn't mean just sign your name.</p>

<p>Npw, if someone is saying a thief scammed a $500,000 mortgage when his real income was $30K, well.....you catch him. I'll get the rope again. Edit: Complicit mortgage broker, surely you jest?</p>

370

<p>It was an ARM. Country Wide Financial had pulled this kind of stuff all the time - one of the reasons they are being investigated (selling mortgages to people who couldn' afford them). Go online and you will see mortgage companies that do this particularly for people who are "self employed" ( which can mean anything)</p>

371

<p>Never ever seen it for someone with a $30k income. Even once. Even on February 29th in a leap year.</p>

<p>Show us the evidence.</p>

<p>Now folks with $150k incomes living in houses (with really nice mortgage interest tax deductions subsidized by you in me) that should have required a $300k income? Dime a dozen. Kind of like free rent for five years or so, and then they have to move.</p>

372

<p>and you never will unless you hook up with a mortgage company that is run by crooks.</p>

373

<p>They DID sell mortgages to people who couldn't afford them. No question about that. But I'm still waiting for evidence of even ONE mortgage for $500,000 given to someone with a $30k income.</p>

<p>If you've got it, show it.</p>

374

<p>Anyone who is living beyond their means and has incurred a lot of debt is not getting any financial aid breaks, because the aid system does not take into account consumer debt or living expenses. So the parent with a $60K income who has taken on a mortgage for a fancy house with a monthly payment of $3800 and who has run up $25K of credit card debt on top of that is treated exactly the same as the person with the same income with no debts and a $1200 monthly mortgage payment. The big spender may look to outsiders like he doing well -- but behind the scenes, there's a very different story to be told.</p>

375

<p>Obviously Sherlock, since my wife is an employee at the mortgage company trying to refinance it, I can't show it</p>

376

<p>I don't recollect if the CSS profile takes into account debt - I think it does although Fafsa doesn't. Besides some schools want detailed tax returns submitted in order to get financial aid.</p>

377

<p>Nope. No consumer debt considered.</p>

378

<p>Darnit, sometimes, we just have to post after the guy above. </p>

<p>I saw one with an gross income of $24K in 2006 & '07, Partially unemployed in '05 when got his $200K new home, 80/20 (100%), Interest only payment of $1300 (~$16,000/yr), spoke broken English.</p>

379

<p>LongPrime, what did he put on the app as his income at the time? Was there a cash flow sheet?</p>

<p>As to the broken English so do half our baseball and hockey millionaires and a good many actors at $5mill a picture. I don't think that is relevant.</p>

380

<p>If I take out a home equity loan to pay for my debt, it doesn't show up on the profile or tax return??</p>