|
 Maybe those markets were overpriced New
- Forum: LiquidLounge
Re:  Foreclosure mess: who should take responsibility? julesagogo New
Re:  The people and institutions whose names appear on the paperwork, and NO ONE ELSE!!! rlhartman New
Re:  But in some markers, "creative" mortgages are the only way most people can afford a home lrcable New
Date: Mar 17 2008, 19:55 GMT
From: -teledave-
 |
|
 |
|
to start with and those prices were buoyed by the "new" interest-only loans that allowed people that couldn't afford to buy there otherwise purchase at inflated prices.
Some of the borrowers are victims simply because they don't have the intelligence to disbelieve what their lending and home selling professionals are telling them they can afford. I remember buying my first house 14 years ago and being told that at our incomes my wife and I could afford a home in the range of $400-500K, we bought a house for $130'ish and I thought paying for it was a real burden on our lifestyle.
It didn't take a rocket scientist to realize that this was going to happen when 100% adjustable rate interest only loans started being sold. When people have maxxed out there borrowing capability to buy the house they were told they could afford the smallest market change was enough to cause disaster.
It happened something like this. Oil/fuel prices caused an upturn in most consumer goods, consumers were told it was a temporary situation caused by Katrina so they kept on borrowing to maintain lifestyle, costs continued to rise, disposable incomes got squashed, people continued to borrow and OMG all of a sudden couldn't make all the payments. Time to sell since my mortgage broker and realtor (paid on commission) told me my home would appreciate at a rate of 5% annually so obviously it's worth more now than the loan taken out against it. Oh shit, it won't sell for that because there are thousands of people in the same boat trying to sell and driving the prices down, I'm upside down on my mortgage I thought that only happened with vehicle loans.
I have some sympathy for the borrowers because they relied on professionals in many instances and were led astray, I have absolutely no sympathy for the lenders. I think they should take the loss, not me. |
|
 |
|
 |
 Your last sentence - "I think they should take the loss, not me" - sort of sums it all up, eh? <NT> rlhartman New
|
BoaterTalk 
