Your Thoughts on the Economy?

Taggart · 03-01-2009, 07:32 AM

Quote:

Originally Posted by Old Dutchman

When a bank doesn't try to work with people the people suffer.

I agree with that and I'd add that in some cases, the people getting the credit made some mistakes as well.

I saw a report on people who got mortgages with manageable payments initially, but it sounded like the payments were designed to basically double in a few years... At least that's what happened and I got the impression that it wasn't simply a result in the change in overall interest rates.

Laughingmouse · 03-01-2009, 12:26 PM

Quote:

Originally Posted by Taggart

I agree with that and I'd add that in some cases, the people getting the credit made some mistakes as well.

I saw a report on people who got mortgages with manageable payments initially, but it sounded like the payments were designed to basically double in a few years... At least that's what happened and I got the impression that it wasn't simply a result in the change in overall interest rates.

Often, people were told not to worry about the payments going up, and were assured that the lender would be happy to work with them so they could stay in their homes.

It can be hard to defend yourself when you are taught that banks and other lenders can be trusted.

Taggart · 03-02-2009, 07:27 AM

One of the cases I saw on CNN involved a lady who was having trouble as her payments went up, but didn't have a lawyer to help with the purchase. I was surprised at that.

Is it common in some areas of the US to not hire a lawyer when buying a home?

katharina · 03-02-2009, 10:18 AM

Quote:

Originally Posted by Taggart

Is it common in some areas of the US to not hire a lawyer when buying a home?

I'm not aware that you need a lawyer when you go through a real estate agency. We never had to deal with one. If you mean without a real estate agent either... well yes, there are some "for sale by owner" homes that bypass an agent, but I'd think those would be the ones that *would* take a lawyer.

chocoguy · 03-03-2009, 02:50 AM

I think that it would get a lot worse. It would take some time before the economy could be better. I doubt it that anyone could speed up the recovery.

SageMother · 03-03-2009, 11:41 AM

Quote:

Originally Posted by Taggart

One of the cases I saw on CNN involved a lady who was having trouble as her payments went up, but didn't have a lawyer to help with the purchase. I was surprised at that.

Is it common in some areas of the US to not hire a lawyer when buying a home?

Most people purchase homes without a lawyer, where I live, and most of the time the lawyer can't make significant changes to a contract without risking the buyer's ability to purchase it.

chocoguy · 03-04-2009, 05:18 AM

Quote:

Originally Posted by SageMother

Most people purchase homes without a lawyer, where I live, and most of the time the lawyer can't make significant changes to a contract without risking the buyer's ability to purchase it.

This is also the same case on my country. My sister bought her home without a lawyer but she is not having any trouble. I guess that it has something to do with luck.

Taggart · 03-04-2009, 07:27 AM

Quote:

Originally Posted by SageMother

Most people purchase homes without a lawyer, where I live, and most of the time the lawyer can't make significant changes to a contract without risking the buyer's ability to purchase it.

I'm not suggesting that a lawyer is involved in negotiations, other than advising against a bad deal.

I suppose you could buy property here in Canada without a lawyer too, but the first concern I'd have would be to do a title search to see if there were any liens on the property.

And I'd also expect a lawyer to point out if the mortgage payments were designed to double in a few years, as that seemed to happen to the lady in the TV news article I saw. I'm sure that was stated in the agreement, but probably not clearly so a layman like myself would necessarily catch it.

I'm not sure if that was a result of coincidence in the market or if her payments would have doubled anyway.

katharina · 03-04-2009, 09:53 AM

Quote:

Originally Posted by Taggart

I suppose you could buy property here in Canada without a lawyer too, but the first concern I'd have would be to do a title search to see if there were any liens on the property.

Isn't that part of the fees that you'll be paying to the real estate agent? As for the payments doubling, that's probably why fixed rate is desirable. The lady in that news story must have had an adjustable rate (ARM) and I'll bet someone told her at the time that the payments could fluctuate wildly.

chocoguy · 03-05-2009, 07:28 AM

Quote:

Originally Posted by katharina

Isn't that part of the fees that you'll be paying to the real estate agent? As for the payments doubling, that's probably why fixed rate is desirable. The lady in that news story must have had an adjustable rate (ARM) and I'll bet someone told her at the time that the payments could fluctuate wildly.

I don’t think that the real estate agent has power over that. All he wants is to get your money. He would talk to anyone who is selling there house and then refer them to you.

This is the reason that it would be safer if you would just get a house from a real estate company. You won’t be having any trouble like this one.

Taggart · 03-05-2009, 08:15 AM

Quote:

Originally Posted by katharina

Isn't that part of the fees that you'll be paying to the real estate agent?

In Canada at least, I'm sure it's not. You hire a lawyer to go to the appropriate office where the land titles are kept and he/she sees if a previous owner borrowed money using the land as collateral and if that loan is still outstanding.

katharina · 03-06-2009, 06:28 AM

Quote:

Originally Posted by Taggart

In Canada at least, I'm sure it's not. You hire a lawyer to go to the appropriate office where the land titles are kept and he/she sees if a previous owner borrowed money using the land as collateral and if that loan is still outstanding.

That's very interesting... I suspect it's not the same here because we never hired a lawyer and all that stuff was taken care of by the realty company. Not sure if they're all like that or not... maybe we were just lucky.

Twiceshy · 03-07-2009, 10:56 AM

Quote:

Originally Posted by Taggart

In Canada at least, I'm sure it's not. You hire a lawyer to go to the appropriate office where the land titles are kept and he/she sees if a previous owner borrowed money using the land as collateral and if that loan is still outstanding.

Here, any liens have to be disclosed and taken care of before the sale can go through. I am not sure how it is other places because each state has different laws.

katharina · 03-07-2009, 11:40 AM

Quote:

Originally Posted by Twiceshy

Here, any liens have to be disclosed and taken care of before the sale can go through. I am not sure how it is other places because each state has different laws.

Yes, that's how it was here. It wasn't a choice whether to have it researched or not... it was just part of the process. It's nice that way.

Laughingmouse · 03-07-2009, 01:28 PM

Ypu have to wonder why some areas require one have a lawyer to understand what's going on, and to research liens.

Since all of the records are public, anyone should be able to pick through the information on their own, if need be.

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03-02-2009, 07:27 AM	#18 (permalink)
Taggart Member Join Date: Jan 2009 Posts: 154	One of the cases I saw on CNN involved a lady who was having trouble as her payments went up, but didn't have a lawyer to help with the purchase. I was surprised at that. Is it common in some areas of the US to not hire a lawyer when buying a home?

03-03-2009, 02:50 AM	#20 (permalink)
chocoguy Junior Member Join Date: Feb 2009 Posts: 78	I think that it would get a lot worse. It would take some time before the economy could be better. I doubt it that anyone could speed up the recovery.

03-07-2009, 01:28 PM	#30 (permalink)
Laughingmouse Junior Member Join Date: Feb 2009 Posts: 77	Ypu have to wonder why some areas require one have a lawyer to understand what's going on, and to research liens. Since all of the records are public, anyone should be able to pick through the information on their own, if need be.