I am doing a topic on home loans for today's contest topic (go me!) and I realized that I have a personal story about how the banks have kind of messed themselves up by offering loans to people who shouldn't own a home.
Federal home loans are the easiest ones to get, like they are super easy but are kind of meant for the poor to get loans. Anyway, my ex husband (when we were married) got a home loan. He didn't default on the loan, he ended up selling the house. The process of buying the home was really loose, though. I'd just moved our bank accounts over to a new account and my then husband forgot and he overdrew on our old, empty account. Also, we'd just moved up from college where he'd dropped out and he'd been working his new job for less than six months. Even the federal loans require that you work at least two years, better off with the same job.
He didn't apply for a federal loan either, he got a private loan which is supposedly much more difficult to get. We paid everything on time and were never late, but it's kind of scary that the bank gave him the loan on six months work. All they wanted to see of our banking is a one month statement. We did all our banking online so its was just a print-off... that's it. It wasn't an expensive house, though, just an old foreclosure build in like 1917.
I handled the bills, so although it was his house, I made sure everything was paid every month and one thing I found was strange was that we started with paying our mortgage monthly to one company, and then our mortgage was sold to another company, and then later during the divorce it was sold to another company. This was in the course of probably a year and a half. It was a fixed home loan (I'd never get a variable) but the price each month would change because the bank made an error with the money we'd put down -- they put all the money toward the down payment and NONE toward the mortgage insurance. Since the mortgage insurance wasn't paid "at the table" it was wrapped up in our monthly payments along with the current mortgage insurance -- it's hard to explain but each payment was comprised of:
The house payment + the current month's mortgage insurance premium + back payment on the mortgage insurance that was supposed to be presented at the table. The reason the payments would change each month, however, is because we would pay more than asked each month to knock out that premium. Our plan was to do that from the get-go in order to knock out the house payment, anyway.
Did you have a strange experience with your home loan?
by crankalicious3 months ago
On Friday, his first day in office, Donald Trump's administration reversed a decision that would have cut the FHA mortgage insurance premium, which would have saved the average home owner about $500/year. It was set to...
by Shepherd's Lamb4 months ago
I just want to discuss what's going on in my little head right now and hope to hear from those of you more educated on the subject.I qualified to buy a condo in 2004 (six years ago). I paid $6,000 cash for...
by Ralph Deeds6 years ago
I just refinanced my home mortgage today--4% for 15 years. Closing costs around $1,900. This is the lowest interest rate in 50 or so years.
by wishingonastar6 years ago
Let me start off by saying that this loan is a Freddie Mac loan. This loan has been sold so many times throughout the 10 years I have lived here. I fell on hard times and tried for a loan modification. My...
by Gary Anderson6 years ago
I must warn people from Australia with one Seeking Alpha article I just put out. Hope this will stand for your benefits, since I don't make any money on Seeking Alpha articles. I know some of you are from Australia.If...
by Daniel Carter7 years ago
I noted on the news last night that congress is trying to control bank interest rate hikes, and other predatory practices, at the same time that banks are countering such moves as quickly as they can with sudden new...
Copyright © 2017 HubPages Inc. and respective owners.
Other product and company names shown may be trademarks of their respective owners.
HubPages® is a registered Service Mark of HubPages, Inc.
HubPages and Hubbers (authors) may earn revenue on this page based on affiliate relationships and advertisements with partners including Amazon, Google, and others.