Question by Sean: Did some mortgage companies dupe people into buying more home than they could afford or to refinance?
Granted you’re supposed to do your own research but what happens when a mortgage company convinces you that your fears and your worries are unfounded. Many people did have reservations about refinancing and purchasing homes with these sub prime mortgages, however these lenders really made it their business to prove it was a good move. Why would you take advantage of people regarding something this serious?
Jessica: looks like you were absolutely right! lol Good call.
Answer by Jessica
Yes, that is the issue. That is why they are called predatory lenders. However, just wait you will get a lot of “answers” placing 100% of the blame on the homeowner.
Give your answer to this question below!
YES – and this is the problem that people are facing now! But we aren’t supposed to be talking about this……it’s viewed as whining!!
You could also ask whether some borrowers duped mortgage companies by exaggerating their income and their ability to make the mortgage payments.
Selling mortgages is a commission business. the money the agent made was at the point of sale. More mortgages, more profit. Mortgage lenders took a chance that the economy would stay healthy or at least stable enough to support the mortgages they made. Many guessed poorly and will lose big time.
First off, when you are out looking to buy a house you are the one that typically sets your price.
You then go to a morgage company and ask them if you qualify for the loan. At which point they offer you options.
These dumbass that bought too much house, figured that for the past 8 years interest rates have fallen and I’l be adle to refinance to a lower interest rate later.
They gambles and lost. The morgage companies played the same game.
Gambles and lost. The governmnet should let them lose. It was their choice., both the ho,e owner and morgage company’s.
Unless someone was literally forced to sign these contracts, they don’t deserve ANY help. If someone is stupid enough to take a loan they clearly cannot afford, they deserve to be homeless. I am so sick of this “it’s not my fault, blame the evil corporations!” mentality. People need to take responsibility for themselves.
Some probably did, but as an owner/leader of a real estate team, I have not seen it.
I have seen many lenders find the most money that they could, but they told the buyers EXACTLY what could happen. My team would has not put buyers with lenders who would not walk away from a deal if it would be harmful to the buyer. As a matter of fact, we only have one client who is at ANY risk of losing their house, and it is because the wife lost her job, and the husband’s hours have been cut…NOT because of a bad loan program.
Buyers put themselves into this position in almost all of the cases.
Jessica…And a spoon made Rosie O’Donnell fat. It had nothing to do with her cramming that spoon in her fat face so much, right. Predatory lending investigations have shown that it was VERY rare.
ADDED: Sad how far this country has slipped into blaming anyone but the guilty. Throw out facts from inside the industry, and the “it’s society’s fault” crowd starts throwing down the thumbs.
They did it for the ‘love of money’…… 🙁
Sad but true….they are in business to make money, ever seen a bank not make money?
Check out FDRS.org on the web, Federal Debt Relief System has the History of Banking on it’s site. WHAT an eye opener!!!!!!!!
People will always screw others for money.
BTW, it’s called deregulation. It’s caused the CA energy blackout (ENRON), mortgage crisis (by lack of oversight), S&L crisis in the late 80’s (by lack of oversight), Tech bubble (by lack of oversight), mining disasters (by lack of oversight), and now has added to the gas price hike by lack of oversight of commodities speculation and lack of enforcement of anti-trust laws which allows illegal Big Oil collusion.
We live in a predatory capitalist country. Here, it is OK to take advantage of less educated or naive people if it is in the name of making a profit.
That is the system everyone has bought into and that’s why thy continue to get fked. Same deal with the gas prices, according to the people who run the country, it’s a market economy so if the market sets the gas prices at 10.00 a gallon and bankrupts half the country…Oh well, that’s what the market said do so Fck it!
You live by the dollar, then you die by the dollar.
No because if they lend money and it is not repaid they lose money and go bankrupt. The problem is people bought homes they could not afford, they refinanced to take out equity in their homes so they could spend that money and over extended themselves.
Lenders have no desire to become landlords for a bunch of vacant properties that can’t be sold for what is owed.
Americans need to take responsibility for their poor judgment and over spending and quit blaming everyone else for their problems.
the government should let them lose ?…
ok so because we didn’t have consumer protections in place, or anyone willing to protect consumers… we’re going to let a quarter of America become homeless ?
Why isn’t the government letting Fanie Mae lose ?
or Freddi Mac ?
What about Bear Sterns ?..one of the largest government bailouts ever, and all due to the mortgage crisis !
Maybe if we didnt’ have a president who appoints his cronies to the FHA, or the FTC, or to be the FED chairman…. we might have a few people actually looking out for the people who make this economy work !…the consumers !
Nobody is looking out for the little guy…
Mortgage companies and banks, have been allowed to do whatever they want, and the entire country is suffering as a result.
This is the result of a hands off approach to free market economy….