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Thread: Credit Bureaus - Big Business Killers

  1. #21
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    Quote Originally Posted by rwb72 View Post
    Just words. I'm calling anything money out of my pocket to move in, a down payment. VA should look into it.
    Mr. rwb72,

    Words with specific meanings. LOL, I guess you thing interest payments are down payments as well?

  2. #22
    Senior Member NeoVsMatrix's Avatar
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    Quote Originally Posted by rwb72 View Post
    LOL.You're either a loan officer or grade a patsy. ANY money out of your pocket before you can live in that house, is a down payment. Maybe you are conned when they dress it up with fancy words like "closing costs", I'm not. Bottom line is, do you get into the house up front cost free, or don't you ?

    And NO, you are NOT A LIABILITY for housing, if/when you've been paying for it perfectly for 50 years. Are you dumb ? That 50 year record makes your credit score 100% (and even better than that.) Only an idiot talks to a credit bureau about this.
    Anyone who made house payments for 50 years.. is at least 70+ years old. If i were a bank, no matter what credit score, i'd be not too willing to provide a 15 or 30 year loan to that person.

  3. #23
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    Quote Originally Posted by NeoVsMatrix View Post
    Anyone who made house payments for 50 years.. is at least 70+ years old. If i were a bank, no matter what credit score, i'd be not too willing to provide a 15 or 30 year loan to that person.
    Mr. NeoVsMatrix,

    Agreed, that would be a bad loan. The person is likely on a fixed income, savings are going down, not up, at greater risk of having health problems that would tap those savings, and likely unable to afford the upkeep of their investment. In addition, they would likely die before the loan is paid, and the bank would have to deal with probate.

  4. #24
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    Quote Originally Posted by Kallie Knoetze View Post
    Mr. NeoVsMatrix,

    Agreed, that would be a bad loan. The person is likely on a fixed income, savings are going down, not up, at greater risk of having health problems that would tap those savings, and likely unable to afford the upkeep of their investment. In addition, they would likely die before the loan is paid, and the bank would have to deal with probate.
    A mortgage is a disaster at that age. We went through that with my MIL. She took a significant mortgage at 67 for her home in Florida. (30 years). She fell and broke her femur 15 years later and it really was a problem when she needed funds for assisted living. She needed to liquidate during the worst of the housing crash and lost over 50K on the home. Walked out without a dime including her down payment. You at least would want to see a return on your down payment when you sell.
    Thanks from NeoVsMatrix and Kallie Knoetze

  5. #25
    New Member rwb72's Avatar
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    Quote Originally Posted by Kallie Knoetze View Post
    Mr. rwb72,

    How is it dumb to want to know how trustworthy your tenants are?
    It is dumb to deny reliable customers, by analyzing their paying habits for things UNRELATED to your product. It's even dumber for housing sellers/lenders to call someone with a 50 year PERFECT TRACK RECORD FOR HOUSING PAYMENTS, > untrustworthy.

    How much dumber does it get than that ?

  6. #26
    New Member rwb72's Avatar
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    Quote Originally Posted by Kallie Knoetze View Post
    Mr. rwb72,

    Words with specific meanings. LOL, I guess you thing interest payments are down payments as well?
    No, because they come later.

  7. #27
    New Member rwb72's Avatar
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    Quote Originally Posted by NeoVsMatrix View Post
    Anyone who made house payments for 50 years.. is at least 70+ years old. If i were a bank, no matter what credit score, i'd be not too willing to provide a 15 or 30 year loan to that person.
    You could make a 10 year loan to a 70-75 year old, without an unreasonable risk. And that older person on Social Security, is a more reliable payer than a young person whose payments hinge on a job.

    As for medical costs, because of the Vietnam War, many older people are veterans, and do not HAVE any medical costs. Medical care is free. Yet another good reason to sell/rent to the "elderly" biggrin.gif
    Last edited by rwb72; 12th July 2018 at 02:26 AM.

  8. #28
    Veteran Member Madeline's Avatar
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    Quote Originally Posted by rwb72 View Post
    They're not the only ones to blame, but they're a significant starting point for any discussion about what inhibits, if not downright kills, business in America. It was bad enough before they came out with the credit "score" concept. Now, we live our lives confined by this insidious number, that decides what house we may or may not live in, what car we may drive, and if we can buy things or not.

    Most appalling is the effect on housing. This is where banks and housing complexes are to blame as well. To buy a house, unless quite wealthy, one must get a home loan. First thing that happens is the home seller "runs your credit". Supposedly, this is to determine if you are trustworthy in terms of paying monthly housing payments. OK. But how is this check ordinarily done ?

    ALL WRONG! That's how. It's done by consulting with 3 credit bureaus, from which an average credit score is derived. And these are based on your past experiences with paying for a very wide variety of things, almost all of which has nothing to do with housing. So you could be denied a home loan for which you would be paying the same monthly payment you are now, and have successfully been paying for many years.

    All this could be from misinformation in a credit report, or from bad credit on non-housing things (jewelry, musical instruments, sporting goods, whatever)

    What it comes down to is a prospective home buyer should be rated for a home loan based on his/her record over the past 3 years or so, in paying FOR HOUSING. To deny a home loan based on anything other than one's HOUSING PAYMENT RECORD, is simply killing business. It kills the sale for the real estate company, deprives the buyer of the home, and the bank loses the interest it would/should have made from that loan. Crazy.

    Bad for the bank. Bad for the home seller. Bad for the home buyer. Only one who gains is the credit bureau, for handing out information not really related to the transaction. How much business is going down the tubes, because of credit bureaus, and banks stupid enough to go to them, instead of previous landlords for housing credit information.

    You could have never missed a housing payment in 50 years, never even been late once, and be denied a home loan because you missed a couple of cable TV bills, or don't have some revolving cards or whatever they're called. Lastly, credit bureaus even chip down your score based on inquiries made about your credit. What the hell does that have to do with it ?
    Businesses need (1) access to capital and (2) profitable sales.

    Individual credit scores only affect the second. However, you are correct that these scores are increasingly important to Americans, and personally, I don't agree that the algorithms that are used to crunch the data and produce a final number should be proprietary, secret and beyond government regulation. Nor do I think credit reporting agencies should be immune from liability for error, data thefts, etc.

    They want the money and power, they should be forced to adhere to some basic fairness.

    Businesses also have credit ratings, but the issues they create are entirely different.

    All that said, the U.S. economy cannot withstand more freely awarded home loans. Whatever you think is wrong with our economy, it isn't the slow housing market.

  9. #29
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    Quote Originally Posted by rwb72 View Post
    It is dumb to deny reliable customers, by analyzing their paying habits for things UNRELATED to your product. It's even dumber for housing sellers/lenders to call someone with a 50 year PERFECT TRACK RECORD FOR HOUSING PAYMENTS, > untrustworthy.

    How much dumber does it get than that ?
    Mr. rwb72,

    50 years of a perfect track record for house payments is just one thing that goes into the credit score. Again, if they have a record of paying their mortgage, but they let all their other bills go to crap, they are not a good risk as they can be sued and lose the house to judgment.

  10. #30
    Senior Member NeoVsMatrix's Avatar
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    Quote Originally Posted by rwb72 View Post
    You could make a 10 year loan to a 70-75 year old, without an unreasonable risk. And that older person on Social Security, is a more reliable payer than a young person whose payments hinge on a job.

    As for medical costs, because of the Vietnam War, many older people are veterans, and do not HAVE any medical costs. Medical care is free. Yet another good reason to sell/rent to the "elderly" biggrin.gif
    You're WRONG.
    Medical care is not free.. just because you don't pay for it, doesn't make it free. WE others pay for your medical care. Better don't forget that.

    From all i've seen in this thread so far.. you'd be too much of a risk fro me to loan you the money for a house, especially you wanting it without any personal commitment, free of any down payment. Why would i want to lend you money for something you don't want to put a dime of your own money into ? Where's your incentive to value and treasure that property, if you haven't put anything into it yourself ?
    Last edited by NeoVsMatrix; 12th July 2018 at 10:09 AM.
    Thanks from Madeline

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