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Mortgage Rates

48Connor said:
When my grandpa died, my dad took my grandma to get all the bank accounts changed over to her name and a new credit card, since the card she had been using basically all of her adult life was in my grandpa's name. The bank originally wouldn't give her one. At that point my grandma was 75, never had an actual job or any reportable income, her name was never on the mortgage, a car loan, credit card, cell phone, phone bill, nothing. Zero credit history.

Took some convincing by the bank manager to someone at Visa to get her a card - "She's got $xxxK sitting in her account, she'll pay it, don't worry!"
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My wife was on the mortgage and had secondary credit cards where I was the primary. We were surprised when she had no credit history at all. I was in the process of buying a car so she bought it, I co-signed for her (since she had no rating she was high risk) and she pays the loan. Stupid. Apparently mortgage only reports to one person's credit rating. I havent checked recently but I assume she has a good score now as payments are automatic.
 
GreyGhost said:
My wife was on the mortgage and had secondary credit cards where I was the primary. We were surprised when she had no credit history at all. I was in the process of buying a car so she bought it, I co-signed for her (since she had no rating she was high risk) and she pays the loan. Stupid. Apparently mortgage only reports to one person's credit rating. I havent checked recently but I assume she has a good score now as payments are automatic.
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I could be wrong but I believe that if yo co-signed the car.. it goes against your credit history... not hers.
 
GreyGhost said:
My wife was on the mortgage and had secondary credit cards where I was the primary. We were surprised when she had no credit history at all.
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This is a common consequence where typically the male spouse take the lead in applying for credit cards, vehicle ownership, utility accounts etc.... Do your spouse a favor and ensure she has her own credit card where you are the secondary and that it is used and paid off promptly so she had her own credit score. She should also be a joint account holder for all non registered bank accounts and a named beneficiary on the registered ones. Same with utilities. Odds are that the male spouse is going to kick the bucket before the female does.
 
Hopefully by the time one spouse is kicking off the other has limited need for credit,
However there is a trend to divorce later in life and one party can be left literally holding the bag . No credit history, assets carved in half and if one was going to receive a large inheritance, the dumpee not the dumper looses out .

Love does not last forever , poor financial management does .


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ReSTored said:
This is a common consequence where typically the male spouse take the lead in applying for credit cards, vehicle ownership, utility accounts etc.... Do your spouse a favor and ensure she has her own credit card where you are the secondary and that it is used and paid off promptly so she had her own credit score. She should also be a joint account holder for all non registered bank accounts and a named beneficiary on the registered ones. Same with utilities. Odds are that the male spouse is going to kick the bucket before the female does.
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She is listed on everything.

She is named beneficiary on registered accounts.

We ditched the card that she was primary on long ago as she sucked at paying attention and I didnt want to have more cards to pay. The next time we get a card, she will be primary. We have no need for more cards now.

Our primary bank accounts are intentionally separate so any hiccup that freezes accounts for one person wont take out the other. Neither account has life changing amounts of money in it. We both have the passwords to everything.
 
LePhillou said:
All that credit card talk brought back ptsd...
Did credit card customer service (and then CC level 2 support) for about 2-3 years.

It's said that back then, about a decade ago, about half the people paid in full in canada, the other half paid interest monthly. But most people don't really know how things work. ANd it's a PITA to explain most of the time.

They've gone through several iterations to try to make statements clearer over time.
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It's very simple. In case of a dispute the consumer loses.
 
AllistonGT said:
Wife works in a law office. Already seeing buyers walking from purchase agreements. Also seeing banks refusing to proceed with pre approved mortgages. They have an exit in the fine print. Purchased property still has to appraise to banks satisfaction.
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What are they walking away from?

If they lose their deposit of say $50 K it hurts. If they are responsible for the difference between the agreed sales price and the resulting discounted price it could add hundreds of thousand more to their debt. IE. Agreed price $1.3M sells for $1M second go around.

In the latter case, the builder could (Depending on his financial situation and ethics) go fire sale pricing to get cash flow.
 
nobbie48 said:
What are they walking away from?

If they lose their deposit of say $50 K it hurts. If they are responsible for the difference between the agreed sales price and the resulting discounted price it could add hundreds of thousand more to their debt. IE. Agreed price $1.3M sells for $1M second go around.

In the latter case, the builder could (Depending on his financial situation and ethics) go fire sale pricing to get cash flow.
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I don’t think the sellers automatically keep the deposit. They need to sue for it as there’s a mutual release of the funds that needs to be signed.

Then they have to go after the failed buyer, and for the difference in selling price.

Precedent is set that they would win. But it ain’t cheap.
 
nobbie48 said:
What are they walking away from?

If they lose their deposit of say $50 K it hurts. If they are responsible for the difference between the agreed sales price and the resulting discounted price it could add hundreds of thousand more to their debt. IE. Agreed price $1.3M sells for $1M second go around.

In the latter case, the builder could (Depending on his financial situation and ethics) go fire sale pricing to get cash flow.
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Buyer is normally responsible for the price difference. Normally they are ill-informed and think the deposit is the limit of their pain.

Even if the buyer wants to complete the transaction, bank wants an appraisal near closing and buyer needs to come up with cash to make the loan work if appraisal is low. Unlike crankcall's case, this won't be a two day loan, this is big money that needs to get paid off. If you get it from a secondary lender, rate will suck huge.
 
Back in the Dark Ages (early 1980s) my partner and I bought our first house.
Houses were obviously a lot cheaper then but bank rate mortgages were 16.5%.
We counted ourselves lucky to get a private one from her father at 15.75%.
All that mattered was 'how much a month', the rest sorted itself out on the longer term.
It worked great until she booted me out and her daddy forgave her most of the loan.
At least I walked away with enough to put another down payment on a different place a few years later.
As the car salesmen say, "it's just pennies a day" (until you run out of pennies) ...
 
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TK4 said:
Back in the Dark Ages (early 1980s) my partner and I bought our first house.
Houses were obviously a lot cheaper then but bank rate mortgages were 16.5%.
We counted ourselves lucky to get a private one from her father at 15.75%.
All that mattered was 'how much a month', the rest sorted itself out on the longer term.
It worked great until she booted me out and her daddy forgave most of the loan.
At least I walked away with enough to put another down payment on a different place a few years later.
As the car salesmen say, "it's just pennies a day" (until you run out of pennies) ...
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My often wed brother's first marriage involved buying a house with help from his wife's father. The guy wasn't dumb. He loaned the money specifically to my brother. When the marriage failed and was dissolved the assets were split 50/50 but my brother had to repay F-I-L from his share.

Pay to play can get really expensive.
 
AllistonGT said:
From proceding with their contractual obligations.
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Exactly, but would a lot of people be surprised if the sales agent verbally told them otherwise. Likewise, no one expected the rate hikes or a shortage of unicorns.

It's always sad when people get hurt, either financially or physically, even if they contributed to their demise. In some cases they come out stronger but often they limp for the rest of their lives.

Bankruptcy ends the pain and depth of the hole but carries forward in subtle ways. As I understand it one can't ever be a CPA. Other occupations may be similar.
 
Relax said:
People signed home purchases without a financing condition?
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It sounds like the banks are pulling out the rugs based on equity. You're ok for $700 K but the property value drops $2K and the bank wants more down or less borrowed. Add to the price problem the bank gains on the new interest rate.

One would assume the bank deal was based on ironclad numbers but panic buying makes people take risks.

The seller could say No conditions in hot times and a more agressive buyer gets the property.

A house near my daughter sold with no conditions a few months before peak. A house inspector would have gotten writer's cramp from the job.
 
raginduck said:
I could be wrong but I believe that if yo co-signed the car.. it goes against your credit history... not hers.
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That only happens if the cobo gets chased in collections. Only her credit history gets the benefit of good behavior, both get burned if the loan goes into default.
 
nobbie48 said:
What are they walking away from?

If they lose their deposit of say $50 K it hurts. If they are responsible for the difference between the agreed sales price and the resulting discounted price it could add hundreds of thousand more to their debt. IE. Agreed price $1.3M sells for $1M second go around.

In the latter case, the builder could (Depending on his financial situation and ethics) go fire sale pricing to get cash flow.
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Not worth it. The legal retainer on a real estate deal that goes to court is $25k min, the costs can run up to $50k if the defendent fights. If the dependent is rich, maybe worth the fight, otherwise take the deposit and move on.
 
nobbie48 said:
A house near my daughter sold with no conditions a few months before peak. A house inspector would have gotten writer's cramp from the job.
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In my 'hood the buyers don't care. They knock down the bungalows and build ugly monster homes.
 
TK4 said:
In my 'hood the buyers don't care. They knock down the bungalows and build ugly monster homes.
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Same in my hood, except the rebuilds are quite tasteful.

I'm having fun watching a few families who bought $4m 4500sq' infill monsters whine and protest because one on their street got approved for 6000sq'. Seems it doesn't fit their view of the neighbourhood.
 
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