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me_irl
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this post was submitted on 11 May 2026
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me_irl
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But the 1400 doesn't require any trust since if they can't afford that, they're out. If they can't afford the loan, the bank would be out the loan sum.
the bank isn't out of jack shit, they reposess your house.
That's not completely true, because it depends on the future value of your house. Plenty of banks got burned in the early 2000s when they gave out too many loans and then all of a sudden the houses weren't worth what people owed on them.
I'll shed a single tear for those banks who reposessed those houses that are now worth an absolute fucking fortune when I get a house of my own.
I'm not crying for the banks, but that's why they don't just give out loans to anyone.
Foreclosed houses very rarely sell for what they’re worth and it’s not uncommon for people who are foreclosed on the trash the house on the way out.
When my wife and I were recently looking for a house in the city we moved to recently one of the houses we looked at had had the air conditioner taken by the previous owners because it had been foreclosed on. I’m serious, the entire fucking condenser was taken.
yeah but you're not going to make me feel sympathy for JP Morgan Chase.
They should've cut back on their avocado toast if they wanted to run a successful bank
I wasn’t trying to make you feel sympathy for a bank. Just pointing out that foreclosing on a house isn’t profitable for a bank.
not really. They got paid at least some of the mortgage, housing prices keep going up and damage is fixed by paying some poor asshole peanuts. Even if it isn't profitable , I don't really care, I'm not losing any sleep at night over the fucking assholes.
Nobody was asking you to lose sleep. I kind of feel like you need to calm down.
why are you so hell bent on defending the banks? I feel you need to relax and not put in overtime.
No part of anything that I’ve said should be construed as defending a bank. The fact that you keep going out of your way to call it that is why I’m telling you that I feel you need to calm down.
The only point I was trying to make is that foreclosure is neither in the best interest of the bank or the homeowner.
After 2007/2008 it became very clear to banks that they need to prepare for the case where people can't make mortgage payments because the economy crashed, and house values have plummeted because nobody's able to buy a house because the economy crashed.
That $950 mortgage also doesn't include taxes and insurance plus the cost to maintain a house. All of that is wrapped into the cost of rent.
Mortgage calculators are deceiving.
And the profit the landlord takes on top of that. Landlords don't generally rent out to break exactly even on cost.
Landlords also do cheaper repairs.
When it's your house you're likely to go for the higher quality options when the major repairs hit and do more timely repairs on things landlords will ignore.
If you're the landlord, it is your house.
The difference is that you're not living in the house if you're a landlord. A smart landlord will still do high quality repairs on certain things: roof repairs, pipe leaks, electrical issues, etc. Not fixing those things quickly and fixing them well could result in long-term damage to the property. But, there's another class of problems that are annoying to the tenant but not a priority for the landlord. For example, a toilet that doesn't flush well. That's an annoyance, but probably won't damage the property in any way, so the landlord might not care much.
Even in the best of cases, landowners may not be generating a direct profit but are generating equity in the home.
I had to explain this to one of my landlords (he was a first time landlord and it was his old place) once a long time ago. He was quite shocked that he wasn't making nearly as much money as expected when the homestead exemption was lifted from the home. He tried to increase our rent well above the average for the area because of it and we had to threaten to walk.
You'd be stupid to do that, even if you were genuinely trying to be charitable about renting. You'd want some profit for repairs and sudden issues.
Revenue for repairs and sudden issue is still breaking even, the point of profit for landlords is to well generate profit on the bottom line.
A landlord is almost always making money even if they are just "breaking even" on the mortgage.
If the landlord is still paying for a mortgage, the profit goes into their equity gain.
Once the mortgage is paid off, the profit goes into the landlords pocket.
This is how many people get started being parasites on society. They have other people pay the bank while they gain the assets of their labor.
You'll have to have some profit if you want money to pay for the repairs and sudden issues without it being from your pocket.
Did... You read their comment?
I did. Where would the money for the sudden issues come from if you didn't make a profit from the outset?
Landlords, when they're organized, put some of the rent money aside for repairs, and don't touch it until those repairs are needed. Profit, is the money they make on top of that.
Their rent prices are large enough, to both cover the entirety of the repairs, and make sure that there is even more money left over in the end, for profit.
"Sudden" repairs are neither unpredictable, nor chaotic. Houses, appliances, everything, can only last so long, and it's easy to know how long the AC unit and the roof insulation is going to last, the estimates are right there when you buy the things.
And what happens if there aren't repairs?
You built your property in a magical candy land where things last forever.
(Explanation in case you're a real human person who's just kinda stuck up instead of another bot: you've been arguing semantics in bad faith instead of facing the important parts of this conversion, so honestly, take some time off, and solve the problems troubling your life. Or, otherwise, please phrase your question as a poem so I can understand it better.)
I mean is it any less magical than being able to perfectly predict how much you'll use in repairs, even sudden and unexpected ones?
Just silly, profit doesn't have to be such a scary word.
Why the fuck should the price to rent something give profit over the monthly pay of a loan to own it?
Landowners want renters to pay for their stuff. They're lazy leeches.
See, your foolish mistake is applying morals and logic to the profit drive. There are none to be found, there. Just people who want more money, because they can, and have the law behind their back, threatening you with homelessness and the destruction of your continued existence.
Jokes on my landlord, if I ever lose everything, so does he. 🔥
Damage to Capital is based.
They're insured against your pyrotechnic solutions. Are you? Typically insurance doesn't pay out to the policy holder if they intentionally cause the damage.
Well in this scenario, presumably I have "lost everything" and therefore do not care whether the landlord is insured against fire.
He'll burn just the same with or without insurance.
If you're taking in rent for only the predictable running costs then how are you paying for some sudden issues?
But it also doesn’t include the tax deduction on the interest, and the fact that the principal is essentially a saving account you are paying into yourself every month, which will come back to you when you sell the house.
It’s really fucked up how they prevent people from home ownership. And they even try to sell this through the mainstream media as making it sound like sometimes renting is a better option. In some super rare cases it is a better option. But mostly it is not.
Anyone thinking they'll making a dent on the principle for the fist five years is going to be very disappointed. Selling get five years, closing costs are likely to put you in the red.
Renting is better only if you're not committed to the area. But if you end up renting the same place for 10 years, you're definitely losing out.
There's no single solution here and playing the media on this one sounds childish. Read better media.
Five years in and 1/7 of my principal is already paid off. That's a nice dent.
Yeah it's kinda depressing how owning a home is the only financially responsible option, all other things being equal
That's about the cost of my mortgage, and I also pay $300 in property taxes, $400+ utilities, $120 insurance and have to pay for repairs. That $1400 rent number seems really cheap, I'm guessing it's comparing a single bedroom apartment to a house? Definitely not apples to apples.
Except now they can sell the home. Which probably has appreciated on value since the loan. Plus the loan interest since it was purchased originally. And payments at the front of a mortgage are almost entirely interest since the principal is so high.
Any recession can cause a downward pressure on house prices at the same time as difficulties paying for a mortgage. You may not be able to sell the home for enough to pay off the mortgage when you get into trouble.
Yeah, that idea is very 2007. The 08 crash was a great time to buy a house if you still had a job because a lot of foreclosed houses were for sale for way less than they'd been bought for by their previous owners.
I have never in my life seen house prices go down. They just quit going up as fast.
In my life I've had two times when they went down along with unemployment going up.
The 2008 crash and a local crash due to the biggest employer in town being on the verge of bankruptcy in the 1990s.
You're right, I had a brain fart