This is crazy!

As someone who works within the mortgage industry (but whose financial institution will never see a penny of The Big Bailout of 2008), I am simply appalled by the mortgages being handed out to the 48039 ZIP code.

Most of the mortgage amounts I have researched are tens of thousands more than the doubled SEVs for the same property!

Ex: SEV is $48,000. Value SHOULD be $96,000. The mortgage is for $120,000. It's NOT on the water. House is under 900 sq ft. and not well-kept.

Several foreclosures within 3 BLOCKS. One is just a few doors down.

That is exactly what got the greedy mortgage companies into their debacle! Absolutely crazy! Maybe the owners can afford their payment, but they are so upside-down on their house, it's pathetic!

Monthly payment (before taxes and insurance):
$120,000 @ 7.25% for 30 years = $818.61
(total interest = $174,701.40 ; total payments = $294,701.40 )
or
$96,000 @ 7.25% for 30 years = $654.89
(total interest = $139,759.25, ; total payments = $235,759.25)

It would take the homeowners 13 years before they hit the $96,000 mark because they financed $120,000. Plus, they would save nearly $60,000 in interest!

Then again, maybe the company let them over-mortgage, so they can make their mortgage payment for a few years? Over-mortgage to pad their "savings account."

Pay 7.25% in interest. Earn maybe 1% in savings dividends.

YIKES!

The Last of Sheila (Coburn)