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Thread: Credit Bureaus - Big Business Killers

  1. #31
    Veteran Member Madeline'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" Attachment 16191
    About 3 million Americans served in the Vietnam War. There are about 50 million people in this country age 65 or older. Obviously, "most" retirees are not getting their health care from the V.A.

    Most probably are using Medicare, but it is imperfect. Deductibles, copays, coverage limits, etc. It's not especially useful to poor retired people.

    Whether old people are a better risk for home mortgages than young adults is debatable. They often fail to do basic maintenance, they usually cannot afford repairs, and they sometimes lose their ability to handle their own finances.

  2. #32
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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" Attachment 16191
    Mr. rwb72,

    A bank would never make a 10 year loan to a 72 year old, or anybody, for that matter, without excellent credit. For one, the mortgage payment would be way to high for most people to afford.

    And if an older person is relying on social security to pay a mortgage, they are a very bad risk as SSI is a very small portion of one's retirement portfolio.

  3. #33
    Moderator HayJenn's Avatar
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    Quote Originally Posted by NeoVsMatrix View Post
    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 ?
    I'm thinking he has no idea how home loans are actually made

    They look at everything - including credit history, income and assets.

    They look for a HISTORY of delinquent payments. Not paying your cable bill isn't going to kill the loan - there has to be a pattern.

    They look for tax liens or civil judgments - how many times you have applied for credit in last year or so

    Also look for how big your downpayment will be - the bigger the better as a viewed a "risk" for the bank.

    Also how long with the mortgage be? A shorter loan the better.

    They also look at employment history.

    Of course they also look into bankruptcies and past foreclosures.

    But when it comes to bankruptcies - you could potentially be eliable for home loan after two years have passed if you follow the right steps.

    My husband works in the real estate industry. The OP's post is mostly just not factual.

    And let's not forgot one thing that was a major cause of the recession and the collapse of the housing industry that followed.

    Banks were making loans WITHOUT having to show income verification.

    Dumbest idea ever!!
    Thanks from Blueneck

  4. #34
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    Quote Originally Posted by rwb72 View Post
    Most of the posts I've seen in this thread so far are utterly clueless. Are posters having reading comprehension problems ? Maybe the problem is that when you are immersed in an absolutely, mindless illogical system for so long, you come to regard it as correct.

    Well, it simply is INcorrect. I don't care how you slice it. This whole hodgepodge of things that credit bureaus use as criterea, is irrelevant when applying for a home loan. In fact the credit bureau ITSELF is irrelevant. Once again, the only thing that a lender should be looking at, at all, what is your record regarding HOUSING payments.

    Any lender who would turn down a prospective home buyer who has paid his housing payments perfectly for HALF A CENTURY, is a complete idiot, who ought to be fired for causing his bank to lose money. The bank should not even be consulting credit bureaus on home loans. This is nothing but a business killer way of losing money.

    Are these idiots even consulting current and previous landlords AT ALL ? (the only thing they should be doing)

    BTW, VA home loans are supposed to have zero down payment. When you have "closing costs" (just another word for down payment), you don't have a zero down payment.
    If you're in debt to say, the Franklin Mint, and the proud owner of every set of collector plates ever known to man, it stands to reason you might eventually have to file for bankruptcy and you might not be able to make your house payment.

  5. #35
    New Member rwb72's Avatar
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    Quote Originally Posted by Madeline View Post
    About 3 million Americans served in the Vietnam War. There are about 50 million people in this country age 65 or older. Obviously, "most" retirees are not getting their health care from the V.A.

    Most probably are using Medicare, but it is imperfect. Deductibles, copays, coverage limits, etc. It's not especially useful to poor retired people.

    Whether old people are a better risk for home mortgages than young adults is debatable. They often fail to do basic maintenance, they usually cannot afford repairs, and they sometimes lose their ability to handle their own finances.
    But they don't lose jobs - which is why of 14 evictions in the last 6 years, in my apartment complex, NONE have been seniors on Social Security and pensions.

  6. #36
    New Member rwb72's Avatar
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    Quote Originally Posted by Blueneck View Post
    If you're in debt to say, the Franklin Mint, and the proud owner of every set of collector plates ever known to man, it stands to reason you might eventually have to file for bankruptcy and you might not be able to make your house payment.
    I didn't say you could talk about MY about personal life. So talking in general, the OP is talking about people who are not in debt. Got that ? Credit bureaus have a variety of ways to disparage you besides debt.

  7. #37
    New Member rwb72's Avatar
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    Quote Originally Posted by HayJenn View Post
    I'm thinking he has no idea how home loans are actually made

    They look at everything - including credit history, income and assets.

    They look for a HISTORY of delinquent payments. Not paying your cable bill isn't going to kill the loan - there has to be a pattern.

    They look for tax liens or civil judgments - how many times you have applied for credit in last year or so

    Also look for how big your downpayment will be - the bigger the better as a viewed a "risk" for the bank.

    Also how long with the mortgage be? A shorter loan the better.

    They also look at employment history.

    Of course they also look into bankruptcies and past foreclosures.

    But when it comes to bankruptcies - you could potentially be eliable for home loan after two years have passed if you follow the right steps.

    My husband works in the real estate industry. The OP's post is mostly just not factual.

    And let's not forgot one thing that was a major cause of the recession and the collapse of the housing industry that followed.

    Banks were making loans WITHOUT having to show income verification.

    Dumbest idea ever!!
    I'll agree that loaning money without income verification is incredibly dumb. The rest of your post however doesn't seem to catch what the OP is saying. You, et al in this thread, are complicating what is actually rather simple.

    I'm telling a bank which is making a home loan to just do 2 things >>

    1) check an applicant's income (Social Security is better than a job even if it's less $$).....and.....

    .2) check the person's housing payment record (last 5 years) Simple as that. Stop throwing away money going to credit bureaus for irrelevant information.

  8. #38
    New Member rwb72's Avatar
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    Quote Originally Posted by Kallie Knoetze View Post
    Mr. rwb72,

    A bank would never make a 10 year loan to a 72 year old, or anybody, for that matter, without excellent credit. For one, the mortgage payment would be way to high for most people to afford.

    And if an older person is relying on social security to pay a mortgage, they are a very bad risk as SSI is a very small portion of one's retirement portfolio.
    Look, I don't know what world you're coming from, but most people over 65 that I know, DON"T HAVE a "retirement portfolio".

    As for the mortgage payment, on a $100K house (incl interest), over 10 years that's 833/month. Most Social Security recipients could afford it.

    "Excellent credit", in my world, is 50 years of making HOUSING payments without a single problem. You don't don't get more excellent than that, as long as the income is enough to pay the monthly bill.

    As for "risk" If I was selling or renting housing, I'd rather have a SS recip, than a young person with a job (here today gone tomorrow)

  9. #39
    New Member rwb72's Avatar
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    Quote Originally Posted by Madeline View Post
    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.
    I didn't say anything about the economy here. And I wouldn't call HOUSING lending on the basis of income plus a 5 year track record of HOUSING payments, "more freely awarded".

    A perfect HOUSING payment record is simply matching the criterea to the task (instead of using unrelated criterea)

    This is not a matter of how free the lending is, it's a matter of relevant assessment.

  10. #40
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    Quote Originally Posted by rwb72 View Post
    Look, I don't know what world you're coming from, but most people over 65 that I know, DON"T HAVE a "retirement portfolio".

    As for the mortgage payment, on a $100K house (incl interest), over 10 years that's 833/month. Most Social Security recipients could afford it.

    "Excellent credit", in my world, is 50 years of making HOUSING payments without a single problem. You don't don't get more excellent than that, as long as the income is enough to pay the monthly bill.

    As for "risk" If I was selling or renting housing, I'd rather have a SS recip, than a young person with a job (here today gone tomorrow)
    Mr. rwb72,

    I come from the world of reality.

    If you are over 65 and don't have a retirement portfolio, why would any bank lend to you? Especially someone who thinks $100K amortized over 10 years is $833 ($833 will not even pay off the principle). The actual mortgage is over $1000/month, and that is not counting property tax and insurance.

    Social security is subsistence living and if you are paying 90% of it for your mortgage, then you can't even afford dog food to eat.

    Maybe excellent credit in your world is making house payments, but a bank is in the business to make safe home loans. They need to know you are trustworthy.

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