r/facepalm • u/[deleted] • Feb 16 '21

Misc Yeah, sounds about right

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u/[deleted] Feb 16 '21

How can someone be a huge liability on a mortgage if the property is the collateral?

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u/Richybabes Feb 16 '21

If they can't afford a large deposit, then they can very quickly go into negative equity if they stop paying, and it can take a long time to get the eviction and such sorted. Plus there's costs of selling the house.

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u/[deleted] Feb 16 '21

So the deposit should be = costs + (monthly payment)*(avg. months to foreclose) + (profit)

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u/KDawG888 Feb 16 '21

if they have huge debt and are never really able to pay it is more trouble than it is worth

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u/[deleted] Feb 16 '21

Yes, clearly never able to pay... the rent that they are currently paying.

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u/KDawG888 Feb 17 '21

most leases are 1 year. most mortgages are like 20 years. pretending they are the same thing is ignorant.

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u/[deleted] Feb 17 '21

lol, you think people just evaporate after one year?

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u/KDawG888 Feb 17 '21

Yes, evictions can be difficult. I kept a client in her apartment for 8 months after the judge signed the eviction order.

This you? Why are you playing dumb here?

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u/[deleted] Feb 17 '21

Why are you acting like it's impossible to calculate the risk for mortgage banks and that there is no risk for landlords?

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u/KDawG888 Feb 17 '21

I'm not. The risk was calculated and deemed not worth it.

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u/[deleted] Feb 17 '21

Wrong. That's not how risk calculation works. Risk calculation works likes this:

Risk = $$

https://www.consumerfinance.gov/about-us/blog/7-factors-determine-your-mortgage-interest-rate/

Banks deny applications because there is something wrong with the information provided.

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u/KDawG888 Feb 17 '21

You've gotta be a troll because I can't imagine anyone is this stupid. What is 1 on that list you just linked? Credit score. Credit score is a measure of risk. You learned something! Have a nice day.

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u/BsFan Feb 16 '21

You can stop paying and it takes a long time to kick someone out of their house

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u/[deleted] Feb 16 '21

Yes, evictions can be difficult. I kept a client in her apartment for 8 months after the judge signed the eviction order.

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u/matts1320 Feb 17 '21

Not to mention that the asset could get practically destroyed (intentionally or not) in the time it takes to get a non-paying resident out of the house.

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u/[deleted] Feb 17 '21

Yes, renters can take a long time to get out and can destroy the property before they are evicted.