New sample of someone sipping from the Stupid cup...
“Irene Pena is buying her first home, a three-bedroom house in San Pablo priced at about $500,000. She was scheduled to get the keys to her house this week, but instead she learned 10 days ago that her loan had fallen through because the lender changed its criteria.”
“Pena’s seeking 100 percent financing using a combination of a first and second mortgage, and applied for the loans using a ’stated income’ process, because she cannot document her full income using pay stubs or W2 forms.”
“Her real estate agent, Gema Smith in San Jose, said Pena’s credit score is very good, but the lender denied the loan at the last minute because Pena works for a janitorial service and cleans houses as a side job. Smith said lenders are suddenly balking at making loans to workers who can’t easily document their income, even when they have good credit scores. Two other adults in her household will be contributing to the mortgage, but they lack income documents, too.”
“‘I feel like I was discriminated against,’ said Pena.”
Example of Idiot with a doctorate in education below. (stolen shamelessly from Ben's place)
Unbelievable that someone with a doctorate in education probably spent more time researching the digital camera and flat screen tv he bought than he did when showing up to the housing bubble with a bucket of money and a big box of stupid.
“Unlike many borrowers who took out subprime loans, Andy Sobel had good credit, a decent job and modest savings, but he needed to stretch to buy a home in the white-hot San Diego housing market in 2004.”
“Three years later, Sobel has lost his home and his savings, and he faces a big tax bill as a consequence of a failed subprime mortgage held by Countrywide Financial Corp. he says he should never have been written.”
“He knew payments on the loan could rise, but was told he could refinance. His broker advised him to take out a negative amortization loan that would add $300 each month to his principal and ‘ride it out for a few years’ until the market recovered.”
“‘I said, ‘Are you crazy?’ I started really worrying,’ he said.”
“For Sobel, the banks began foreclosure proceedings in December. Both lenders have agreed to allow Sobel to sell the condo at a loss of $60,000, on which he has to pay taxes.”
“‘You never think that this could happen to you. You feel like an idiot,’ said Sobel, who has a doctorate in education. ‘You fall down and they stab you.’”